George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
yep may well dip to/below £2 first
but ,with 30-36p (or so lol) of broker projected earnings on Stockopedia, there must be a decent chance of a bull run toward 250p at the v least imv
a challenge on 230p+ looks on the cards over coming sessions :-)
Perhaps they should've held onto their short?
I maybe wrong about the short. I am just going off the "Stock Lent" RNS and subsequent Holdings RNS which seems to reverse it?
https://twitter.com/surprised_trade/status/1309042080531075073
looks like an overdone drop, so added to original holding @ 189p we were stiing at 230p a couple of days ago and business is getting better. as below...general mkt drops often provide opportunity
bod to pay a final divi of 6.8p and new management team making impact, acquisition (earnings enhancing) and cost/debt reduction programme etc
more to the point, name a credible broker :-)
https://www.piworld.co.uk/2020/08/07/piworld-interview-with-richard-leonard-investor-trader-life-in-a-family-office/
42.52 mins redd
?
Check out the trades from 14:18. Share purchases from 47 shares purchased declining 46,45,44,43,42,41,,etc all the way down to under 20.
Haven't seen that before. Could be an MM code, could be nothing at all. Any thoughts.
PS on the results, I think the management has delivered brilliantly on cost savings (see Richard Leonard's management views https://www.youtube.com/watch?v=px3MP_Qf7zg) . Really it's now a question of economic recovery. The target prices of >300p are looking very attainable and would hope to see pushing towards 250p in the next 6 weeks.
Did these guys try to short us with 12.5m shares? See RNS from yesterday.
@Monkshood Thanks for the info on book value. Not as high as I'd hoped but well above market cap. What concerns me is with the shift from purchasing vans to leasing, the book value will only fall.
https://twitter.com/surprised_trade/status/1306122528218402816
bod to pay a final divi of 6.8p and new management team making impact, acquisition (earnings enhancing) and cost/debt reduction programme etc ...looking forward it gets even better
https://www.piworld.co.uk/2020/08/07/piworld-interview-with-richard-leonard-investor-trader-life-in-a-family-office/
'As outlined above, on acquisition of Redde, net assets of £318.4m were recognised on the balance sheet, including £112.5m of goodwill, £186.6m other intangible assets and £19.3m of other net tangible assets.'
Well you get your divi, but net debt (@576M) is about 100m more than I was expecting.
Trying to amalgamate both companies accounts - I am sure I am not the only one! Tangible book value is about £610m but does anyone know if any goodwill was paid for the acquisition? Or if either company's shareholders had a windfall payment when they restructured the shares?
They did not say that they increased borrowing facilities, nor did they say net debt had reduced - they said 'headroom had increased' so you can interpret this either way.
It will depend if the 'headroom' is due to debt repayment or increased borrowing facilities , which was the point I was making (obviously not very well!)
From the comment 'cash inflows have been strong' I think that it is likely that it is debt reduction. As we have not had consolidated accounts since the merger it is hard to know what the level of debt was in the first place...
If they have reduced debt then there is more chance of a divi.
@Monkshood How does an increase in borrowing facility reduce net debt?
It may help with the negative cash situation I enquired about below (which nobody has answered. So the way I see it is the bank facility helps the cashflow statement but doesn’t alter the balance sheet.
The acquisition on the other hand will impact the balance sheet and possibly our dividend.
On the assumption that 'headroom on our bank facilities has increased from £234m at the end of April 2020 to £291m' means a reduction of net debt (rather increased loan facility...) then this is a total of 90m since Feb when the figure quoted was £200m.
It is a shame that they phrase it in this way as it makes it less transparent, I guess we find out on the 16th.
Had it not been for covid the merged company would have been close to entry to the FTSE250, so once covid is behind and the incorporation of the repair workshops is complete I think this will again be a realistic prospect and will help push the price up.
Most recent mention of the dividend was back in May:
"The Board is aware of the importance of dividends to its shareholders and, after careful consideration of the factors impacting this decision, will provide a further update at the time of the preliminary announcement of results."
Preliminary announcement of results are scheduled for 16th September so expect some news then.
Have a look at the RNS/news in the links above.
Can you elaborate please? What have I missed?
Wow. Looks like we got an excellent deal all round.
I take it oûr madam chair lady is spending our dividénds??
yes it would fit nicely into the business model BUT it is all about what we have to pay to get it..........