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Big volume Harwood topping up again?
Nice start to the week, with just a £5k buy causing a tick up.
Yep I agree this will start moving upwards
GLA to those who held
Hopefully this is the start of a breakout underpinned by HC/CM buying since Feb
Another 800,000 shares bought this morning and another tick up....looking strong. Hopefully Harwood Capital/Christopher Mills are buying again.
Nice 408,334 share buy to start the day has caused the price to tick up again. Perhaps not much stock around.
Just as I thought. Hardwood has moved from 4.14% in February to 9.03% in May..... What next!?
Harwood Capital/Oryx/Christopher Mills continue to buy. They've bought another 8m shares and now have 95.5m, or 9.03%:
Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Holdings-in-Company/91058770
Excellent rise late on Friday, and good to see buying this morning at the full 1.35p offer price.
Yet still only on a single-figure P/E.
Tick up soon methinks
More large trades. TR1 incoming. Harwood adding to their holding again?
🍷🍷🍷🍷
Castle
No movement on SP (yet..)
8m shares just reported through at 1.2p. Hopefully an overhang has now been cleared.
Excellent figures, and a very promising forecast from CEO. Using 930K EBITDA, I have a P/E of 7.6. To get an accurate P/E, EV and PEG, we will have to wait for FY results to see how the debt has been managed. Ladders Free purchase include further payment on results. It appears full payment is probable, and includes the following;
o deferred cash consideration of £1.45 million with a 5 per cent. coupon, to be paid in four instalments every six months beginning on 1 December 2022; and
o performance based contingent consideration of up to £1.4 million, which will pay six times the increase (only) of EBITDA for the financial year ending 30 November 2022 over and above £1.2 million, in three instalments with the final payment due to be made on 1 June 2024.
Nonetheless, far better vendors qualify for full payment than not.
If FY is in line of forecast, or exceeds, then I would hope for 2p+ sp.
Singer Capital's update this morning reiterates their 1.5p target price.
They see PBT trebling to £2.1m this year (from £0.7m last year), with what looks like a resulting 0.14p EPS which matches Equity Development's forecast.
A 1.5p share price and a P/E of 10.7 looks reasonable at present. But the market will start to look forward with the 30/9 year end not that far away. If next year's forecast is say 0.18p-0.2p EPS then a share price of say 2.5p-3p as positive sentiment returns would be possible.
This is a well run company. Strategic and communicative and an ever more impressive II. Looking good for a proper leg up.
Good to see new 2-year highs now. But still only on a P/E of 8.9.
Equity Development have a new note out, retaining their 1.7p price target and 0.14p EPS forecast. They conclude:
"The strong progress in the top-line reflects the improving capabilities of the Group to handle larger contracts and sustain a positive cadence of sales across its entire business, thereby improving its visibility in sectors that Fidelis and REACT SC have previously only had limited exposure to. The large pipeline of opportunities augurs well for the outlook, with the Group on track to deliver our
FY estimates. The improving cash generation, as highlighted by the significant improvement in EBITDA, remains a positive driven by the momentum within LaddersFree and Fidelis.
Valuation
We use DCF and peer group comparison models to determine the fair value of the shares. Taking an average of the two suggests an unchanged 1.7p / share."
Https://www.equitydevelopment.co.uk/hubfs/Research/React%20Group/REACT%20Group%2024%20April%202023.pdf
Research link here: https://www.equitydevelopment.co.uk/research/record-half-year
The indicative H1 outcome, as suggested within the pre-close trading update, sees revenues, gross profit, and EBITDA at record levels, with the latter close to FY22 levels. The pipeline of opportunities remains strong, thereby underpinning FY23 expectations for adj. PBT and net cash. The cross-selling of services to the clients of LaddersFree is bearing fruit, with a focus on higher gross margins and recurring revenues providing better visibility. With estimates unchanged, we see little reason to adjust our fair value, suggesting a re-rating remains likely.
We use DCF and peer group comparison models to determine the fair value of the shares. Taking an average of the two suggests an unchanged 1.7p / share.
Nice RNS
The H1 trading update today looks good and confidently asserts that REAT should achieve market expectations of 0.14p EPS to this September.
Which would put REAT on a P/E of only 8.2.
LaddersFree is doing better and better, Fidelis is now thriving and Reactive is steadily improving once more.
Certainly room for good upside from here imo:
Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Trading-Update/90831891
Looks like Harwood (or others) are still buying - online you can only buy a maximum 300k at almost the full 1.2p offer, whilst you can sell at least 1.6m in one swoop at a nice premium at 1.131p.
OT : two other microcaps which have both produced good news this week and look good value to me are TST and SYS.
Christopher Mills/Harwood Capital continue to buy - they've bought another 4m shares to go to 87.5m shares and go above 8% to 8.27%:
Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Holdings-in-Company/90777948
topped up anyway - I'm hopeful this can double from these levels.