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Kallumama: We all know Premier Foods shares will go up in the long term, maybe a couple of years. You are no Investor sage in claiming that & who wants to buy your house anyway? I am talking about to the short /medium term share price. That’s going down.
The chances are that Paulson is continuing to reduce its holding and this, as in the recent past, is placing a ceiling on the share price. But hopefully as each week passes we get closer to the end of Paulson's sales, and hence the removal of the tap. Sooner or later I suspect Oasis will want to reduce its holding to a more normal portfolio holding, say 5%, but with luck, not at these prices. I agree with Kall that this is one for patience. Meanwhile we have the interesting and positive refinancing news to come.
You should sell Premier Food shares & take profits yourself. 6 months is up, I thought you were going to sell? It still not reached your high target price. It did not go to 150p, nor 120p, nor 114 Year Highs, nor 110p. Actually these shares fell the day before results (never seen that happen), fell on trading results day (always happens but this time trading results were good) & then today went below 100p level on reflection of great results from the company. They will fall further & still faster. Paulson has potential millions of shares to sell & the big share shorters may come back driving down the share price. Good luck with that.
Kallumama: I’ve got 40 years shares trading experience. So you get wiser over the years. This shares trading is no easy thing, heck a lot of research about share investments, need buckets of luck & then it’s about investor perceptions/ trading activities & then buy lower/ sell higher & about what’s good value and risk levels. So it’s glib to say it’s only only about casino gambling.
pernix, it looks like you made the right call to sell before it went down to 98p but you missed the £1.08, so well done on that but I don't think this is going anywhere near 70p again and I think the little drop has now finished so if you are waiting to get back in , now might be the right time before it goes to £1.30 ish
Kallumama: You don’t know what I am trading. So lay off wild speculation as I’m no shorter of Premier Food shares. You seem to just talk the talk. I’m actually trading shares. So I’m buying cyclical growth shares when they are down. Just made £3K profit after I bought loads only yesterday, sold them all today. That’s where the action is & not a couple of pennies ups & downs with Premier Food shares !
I missed this one on the 19th
19-May-21 Peel Hunt LLP Buy - £130.00
IMO Results were good. The trend of the SP is upwards. 1p dividend is a great start. Lower financing arrangements to come. Not unexpected that PI's have moved out but I would be surprised if they have made much profits over the last 6 months.
I am a holder as where else do I put my hard earned monies? Growing internationally, lower debt, Pension fund deficit reduced. All good news.
There will be peaks and there will be troughs however the trend is your friend and if you look at the longer term charts then SP has a way to go to catch up.
Good luck all and remember it's only money :)
Misery 1p dividend, er that's a 1% return on capital - find me a savings account paying 1% these days.
Premier Positives
- Focus on brands with higher margins (moving away from non branded cakes)
- More low sugar, healthy eating variants
- Investment in brands through TV advertising etc
- Debt being paid down and lower rate loans secured
- Pension restructuring.
- Growth in International sales and use of Local Managers and distributors who know the market
- Dividend restarted after 13 years..
However Risk and Unknown
- Elephant in room = How far will sales fall when people return to work / start socialising again going to restaurants / cafes?
- Inflationary risks to raw materials, labour costs etc.
- Can brands become fashionable again? (were regarded as very dated until people had to eat at home again in pandemic)
- Healthy eating and obesity- In a post covid world, will UK Gov regulation get tighter on sugar laden products?
There's many who believe PFD have had a "one off" bumper year with supernormal profits that won't be repeated again, once CV19 disappears. Hence the shares are still being shorted and the share price fading after the results...
I'm a believer in the turnaround story and recent success. However suspect the share price may fall back to low 90s and the 1p dividend although a start, but not enough to prop it up significantly.
70’s pence coming. Share price falls will get buyer interest. It is not about Free Cash Flows, Company Profits, Debt Reduction etc.. It is about Perceived Value Investors put on the company. That meaning it’s a Pandemic Stock with a misery 1 pence dividend. We are now in a Post Pandemic World & Growth shares are now in demand. Buy Cyclical Growth Shares when economies are recovering !
with the 3m trade trade for 101.40p yesterday at 16:35:53 indicates strong support over £1
your are right 'trade the rumour not the news', let see the price of new fixed bonds today
It's the hope that gets you
Looks to me like the old adage 'trade the rumour not the news'
I'm thinking strong support in low 90s
To get this thing moving again
The jimster
Thank you for that. But I'm still little confused. It has no cash impact bt it is distributable capital. why could it not have been used to clear more debt?
It must be how they intend to maintain paying future dividends as they continue clearing debt with FCF.
Can anyone explain to me the Profit and loss reserve. Is this tangible or just an accounting figure. Is this money that the company can now spend?
Most of the good news was expected. We still need to wait for the dust to settle with this pandemic for a better understanding.
Having a presence in Australia and USA. It is a brand that will potentially be known world wide. I agree about pataks. However pfd seem to have acknowledged the approach nissin took about using an overseas company to distribute and grow their products.
Taking these baby steps will allow pfd to take bigger strides internationally. The partnership with Cape herbs also allows them to understand and explore opportunities overseas.
Having a stronger overseas presence might also help with improving sales during our summer months.
That the PFD SP will ever reflect the true value of this business.
After great results and all the good news that went with them the market still hasn’t managed to reflect the true value in the SP…….in my opinion !!
Interesting that the short position hasn't been closed.
And PFD must be analysing potential acquisitions which could be the reason for extending the RCF.
Weston foods also seems to be doing a good job distributing our brands. I like what they are doing with sharwoods. Great brand to build internationally.
Or is it this section.
The revolving credit facility was refinanced in May 2021, the new facility is for £175m and expires in May 2024 with the option of extending for up to two additional years. Further details of the refinancing are included in note 15.
But it doesn't say the % rate.
Is this what you are talking about.
Additionally, and as announced today, the Group is planning to issue new Senior Secured Fixed Rate Notes which are expected to replace its existing Fixed Rate Notes which currently attract a 6.25% interest rate.
But there is no time limit on this so could be another few months, couldn't it.
Wait some years. Premier Foods should go up more. Cyclical Growth shares will be in demand from now. That’s until economies start slowing down. Still years away as Trillions of Government Global Stimulus favours shares geared to rising economic growth. Pandemic perceived shares are likely not favoured.
Hang in there. Wait a couple of years. These Premier shares will rise near your target price. It’s when the economies falter & cyclical growth shares are no longer in demand. We all know Trillions of money stimulus is driving world economic growth upwards. So growth shares geared to recovering economies will outperform others. Pandemic stocks like those perceived by investors may underperform.
is a wonderful thing, like many others maybe I should have sold some yesterday at 1.08 and bought back today !!!!
still that's life £1.20-£1.50 will come at some stage.
No Takeover Bid coming soon for Premier Foods. New KOP investor gives it stability, long term shareholder. I thought you said you would give it 6 months or sell out your premier foods shares holding. If you short term shareholder than maybe good time to sell these shares & take your profits. Nothing wrong in banking a profit !