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Good dividend£ payment? Question: the buy back shares that the company have been amassing - do they get divide not on them??
Welcome tichtich,
Looks like you've made the No. 1 rookie mistake. This is no longer just a 'van rental' company.
No.2 rookie mistake is believing you are the only one who has 'realised' the risks and that none of those risks are priced in.
On both of those points, look at the bigger picture, pre & post merger. I got in July 2020 after realising Mr Market had completely ignored the Redde business and had valued the company on Northgate profits alone.
The underlying trajectory of the business is very encouraging thanks to a highly competent management team leveraging their acquistions to create efficient growth. Don't ignore the EV story either.
Being a value investor, I don't normally talk up my investments as I relish in buying the dips, so this is my good deed for the day.
Hi. I just started looking at REDD a few days ago. It looks very cheap, recently bought back shares, low debt. The only drawbacks I can see: (1) probably very cyclical and we're heading for a recession; (2) higher oil/petrol prices could be bad for business.
Absolute bargain today. £650k spent well. This buyback is going far...
https://www.lse.co.uk/rns/REDD/transaction-in-own-shares-vzdo0f63t6dslgb.html
@jolly Regarding debt, I am aware thanks. Also bang on their 1.5x leverage target, which is very reasonable. That's why I've been topping up. Debt was the only thing I could come up with for the falling SP. Low on cash too but with a solid RCF liquidity is not an issue. Growing revenue and profit YoY since the merger and trading at reported tangible BV. I'm scratching my head too. With a P/E of 5.4 it's surely just a matter of time before it gets the attention it deserves.
Another large drop today despite the FTSE 250 finishing in the green. Institutional selling? Perhaps an RNS tomorrow? I'll be increasing my weighting if we get close to £3. I'm gonna keep buying and hope that 7% dividend is maintained.
Roughly half (a little over) of its debt is fixed at little over 1%pa out to end of decade
Debt levels and rising interest rates?
What's the catch here?
down at TNAV, profitable and growing, experienced management in a sector where there may really be some interesting economies of scale (incl access to cheap, v cheap LT debt; access to partnership deals with majors like Iberdrola etc)...
charts seem to be screaming sub £3
at which point, I'll start to scream "strong buy"
probably
Plenty of in-house buying these past few weeks. Always a positive sign.
Looks decent value
Panmure starts Redde Northgate with 'buy' - price target 500 pence
https://www.lse.co.uk/news/REDD/london-broker-ratings-panmure-likes-redde-northgate-davy-ups-moonpig-8a38vhg70ip4w6p.html
Parallel lines on the chart, indicate a sp, target of 460. However, there are major preceding top formations at 440, which could impede progress to the target. Bollinger bands are separating, which indicates a fast movement.
Sneezes and we get a cold -- old saying
Nice share price recovery from recent lows of around £3 and decent set of results. Major metrics Revenue, profit, EPS, FCF, margins all moving in right direct. Share buy back still in place decent 4 1/2% yield. Would have liked to see debt reduced but can't have everything.
Good update. At 300p it yields 7%. Happy with that.
? indeed. It seems to be due in large part to the fools at Simply Wall Street sticking the knife in with four 'We thinks' in the last two months. Goes to show that 'We (SWS) don't actually know'.
To my mind, if there is nervousness about the economy, then companies will be reluctant to buy vehicles, hold onto capital and prefer to lease which will be good for Redde.
£0.15 dividend plus £0.10 market being in sell-off mode today, so without ex-div we'd be down 3% ish, starting to look cheap to me, but so are a few others
Big drop though
Thanks
Ex-Div
Why the drop today?
Yes, I am of the opinion that there is a good way to go yet here - the buy back and hopefully the end of hostilities.
But of course the hostilities may in fact be helping REDD, both in terms of the rates charged out on their vehicles and perhaps to an extent the reduced availability of vehicles elsewhere because of the shortage of chips and other parts in the manufacture of vehicles. One reason why the values of second hand cars has risen.
The 30M share buyback should help boost the share price as well.
"... the Board now expects full year underlying profit before tax for the year ended 30 April 2022 to be in the region of £150m, comfortably ahead of consensus[1] of £133.9m. The Board expects disposal profits to account for c.33% of the full year underlying profit before tax compared to c.43% in the prior year."
Totally agree -- not at any stage where it should effect REDD - and unlikely it will - hold or buy seems good at this price - however when conflict is over - which i guess and hope will be soon - things will get back to some sort of normal - whatever the outcome in Ukraine - just hope not too many greaving for the lost of their sons/husbands on either side.