Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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Hi Libero, Agree with your thoughts. CSS acquisition will increase pre tax profit by about 50%, think eps will be more like 16p, have a target on a PE. of 15 of about 240p. Just do not think it will ever achieve "fair" value.........based on the fact it's always been (or has for a few years now) perceived as undervalued and a re-rating will eventually come, but will it?. DD
At 131p: Market Cap = £20.4m and historic PE of 13.6. Furthermore we can work out that the EV/EBIT is 12.9, and the TNW covers 97.5% of the market cap. Previously I know that PMR’s peers re-rated substantially, leaving PMR in the dust, and there was the expectation it would play catch up. This hasn’t yet happened, and I’m not sure how the peers are doing at this point so will look into this shortly. Looking at everything else: They have decided to reintroduce dividend payments!! – Great news! The 18 May update suggests the company is doing rather well organically. They have decided to make an acquisition for – if I’ve understood it correctly - up to £1.5m in cash and deferred payment comprising of an equal split between Group and the acquisition’s parent company of any fees from transferred business earned in the first 12 month period, up to £5m. This is a brilliant deal paid for in an unusual way. Presuming the acquisition makes £1m profit before tax this year and next, it means that PMR have effectively made the acquisition at a maximum of 6.5 x earnings, which is superb. Presumably the first year would therefore add £0.5m to PMR’s bottom line in the first 12 months, and £1m per annum thereafter. However it won’t be until the 2017 financial year before the full benefits of the acquisition come through. Once they do, presuming everything is flat, the fundamentals will start looking even more attractive as PMR’s profit before tax rises to £3.15m and the EPS rises to circa 14.1p (giving this a PE ratio of 9.3), making this very cheap and the dividend payment reintroduction and future increases very plausible. Additionally PMR still have so much in cash they could do another handful of identical deals to this. CONCLUSION PMR seem to be doing surprising poorly at the moment but, with the TNW covering almost all of the market cap, there’s little downside and there’s clearly huge upside in the 2-3 years to come as it grows increasingly profitable and starts paying dividends again. For those reasons I am currently happy to hold.
Price creeping up all week and another 2% today-so little shares available if there is a deal this will rocket,I've bought a few more today. Has loads of cash and pays divi-well undervalued and with the stakebuilding something is going to happen soon.
Dalman lifts PMR stake: http://www.telegraph.co.uk/finance/markets/marketreport/11513263/Dalman-lifts-Panmure-Gordon-stake.html DD
WMG now over 9%-something is going on here
Libero, thanks for posting the stuff from Paul and Jimbo, it's interesting getting other perspectives. I think that some of the fall was down the comparison between the headline figures of H1 and FY, as discussed below. PMR good positive coverage in last night's Evening Standard and this morning's City AM, so hopefully that'll increase the profile. They have considered several acquisitions already this year, so may be lining up using some of the cash for that.
Rhaegar, I totally agree with you that this is very undervalued and the current price seems unfair.Here’s my thoughts (which I posted on the General Chat topic “riddler’s technicals”): “PMR - Final Results are out today, and they're very good. -Profits are up 84% -Cash has doubled -Liabilities are significantly down -The dividend has been re-introduced as a reflection of their… -…Very Positive outlook -EPS is now 9.64p (up from 1.32p) Therefore PMR seems cheap and - considering the bullet points above – due a good re-rate I'd say. Especially when you look at how PMR’s share price has performed against its peers! The market can be very harsh sometimes...” And I’m not the only one who thinks it. This is what Paul Scott, small cap expert, had to say about the results: "Hi jimbobjames2002, I had a very quick look at Panmure Gordon & Co (LON:PMR) results (which I hold), and thought they looked good, with positive outlook. So very odd that the shares fell. Very illiquid micro caps do this sometimes though - it only takes one or two holders who haven't really been following trading updates, to look at the results, and think they're bad, and to sell, to knock the price back temporarily. What is your views on the results from PMR? Regards, Paul." And here’s another investor who shares our views called Jimbobjames (from stockopedia): "Thanks Paul, PMR is a bit of a frustration for me. I bought after decent results in September and it's been a hard slog ever since! Was hoping for a positive reaction yesterday but that didn't happen. The introduction of a divi after 8 years has to be good news and profits up 84% too. It just doesn't seem to get the markets interested despite it being so cheap. I'm kind of in 2 minds, but if I put my long-term value hat on it still seems an anomoly to be this cheap - I just wish management would release a few more meaningful RNS's to publicise the company's progress a bit more, maybe it's just under the radar for most investors."
Now closer to 4 lol. Didn't expect the fall...but bought more at 125p, taking my average to about 130p. H2 inferred was weaker than H1, but not dramatically so... FY EPS was lower than H1 alone, but as noted earlier this is primarily a result of the redundancy/restructuring costs that fell into H2. H1 2015 has started well - so at this price seems good value all things considered. I think a target of 170-200p would be reasonable, but may happy to be flexible
£6m increase in cash to £12m - still a £21m m/c. Gives an EV/EBIT of 4-5. Net assets exceed m/c. Dividend restated, positive outlook. Only slight blemish is the £1m of redundancy and restructuring in H2 (which makes H2 look weaker than it was) - but this is only in line with the 2013 figure. I'll email them a question about this when I get chance and post any answer.
Bought back today for tomorrow's results. From the recent transactions section of their website the brokerage side looked busier H2 14 than H2 14, but little indication of how the other departments have performed. Hopefully given the strong H1 the full year will be show yoy improvement. I don't think the dividend will be back just yet though.
Thanks. Seems excessive for relatively low skilled / everyday employees (going off linkedin only) but this is the City so perhaps I shouldn't be surpised!
Salary range at Panmure for analysts ranges from a basic of £85 for the juniors up to around £145k for the most senior. On top of that are bonuses.
Thanks for the replies anyway guys. If it helps you both feel a bit older I probably wasn't alive then! Can do most key calcs without that info anyway, just interested to get a feel of how much external capital would be needed to genuinely expand the business.
I worked briefly in the City at the same time at Spikeyj ...so well before indecent bonuses lol
saw your note on sula, so popped over, but sorry, no idea mate, you want someone who's still in the city game now, or has been recently. i was in the markets professionally way back in the 1980s, we just got paid in groats and mammoth skins back then.
A question for anyone who has worked in or around City in recent years, or has connections with those who do: Do you know roughly how much PMR, CNKS, etc need to pay individual equity research analysts and brokers to retain them? And how do these figures compare between staff in London and say Liverpool, or Leeds? To place this in context, I was having a closer look at PMR's results and operations with a view to buying back in. I can see the global overheads figure, but it is difficult to separate out the salaries of senior management from the relatively junior level equity analysts. I see that they maintain small offices in Liverpool and Leeds, and looking at linkedin they seem to staff these with a few fairly young members of staff. Wondering at the cost of these outposts, their viability and the point at which brokers become sub-scale as listed companies. The only figures I personally hear or see on the internet are those working at bulge bracket banks, which I gather is a very different league in terms of pay, bonuses, etc.
advfn WMG increased stake today to over 8%-something is on the cards here which could be exciting. Results expected to be v good and price at a low point. Last Feb price was 180p and they have improved profits since then, I think it's a bargain at this price.Press will pick this up at sometime soon, could be Telegraph who have noted stake last month.
Extract from the Telegraph 16th Dec - Bill Gates and other high rollers in focus: Stockbroker Panmure Gordon has also attracted a well-known backer. On Monday, a stake of almost 1.2m shares, some 7.6pc of the company, passed from long-time shareholder Lazard to investment firm WMG, which was founded by veteran investment banker and Cardiff City FC chairman Mehmet Dalman. The shares were sold at 130p apiece and Panmure closed flat at 128p on Tuesday. Given that Mr Dalman, who was formerly chairman of controversial miner ENRC, and Panmure boss Phillip Wale go back a long way, his investment is perhaps unsurprising. In 1998, when Mr Dalman was head of Commerzbank’s investment banking business, he hired Mr Wale and the two worked together at the German group until 2004. GL DD
New Shareholder WMG apparently owned by Chairman of Cardiff Football Club-Times reckons something in the offing here.!
WMG straight in at 7%, now the fourth largest shareholder. Might get it moving!. GL DD
20,000 shares to be bought per month = 240,000 per annum Therefore every 12 months from today 1.5% of the number of shares in circulation will be bought for 100 to 110% of the share price. Not bad...
This hasn't gone to plan and, quite frankly, it's entirely unwarranted. This should be rated much higher than it is at present...
May interest http://www.privatepunter.co.uk/Companies/looking-for-a-floor-13-september-2014
My profit here was short lived - 6 days!, aagh well onwards and upwards. GL DD
Quite amazing considering the article two Sundays's ago in the same paper as a sell but Tempus has picked it as a speculative buy.