Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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I'm back in the black now and looking forward to my 10%+ divi yield for years to come.
ride120 - 180 :D
107.00 Massive fall from 180.
200k shares purchased by various directors in the last few days. Always a good sign.
SP looks to be bouncing back hard. Early days yet but looks like one of those opportunities created by a horde of sellers that completely disregards fundamentals in the race for the door.
200k shares purchased by various directors in the last few days. Always a good sign.
SP looks to be bouncing back hard. Early days yet but looks like one of those opportunities created by a horde of sellers that completely disregards fundamentals in the race for the door.
200k shares purchased by various directors in the last few days. Always a good sign.
SP looks to be bouncing back hard. Early days yet but looks like one of those opportunities created by a horde of sellers that completely disregards fundamentals in the race for the door.
A few for ride back to 120
Great opportunity to top up but I’ll have to wait until pay day - I noticed Mr Woodford has increased to nearly 30%
Fall seems overdone. The market first started getting nervous about some additional working capital requirements meaning no dividend growth and an increase in net debt. Then the loss of a low margin contract could indicate further contracts being lost in the future.
I've held a small amount of these for some time and know the company reasonably well so bought a few more today at 88p with an average entry of 105p. Despite the increase in debt the company has low gearing (20%) and net debt to EBITDA of <1 and has been very conservatively managed over the last 5 years with consistent dividend growth.
The valuation currently seems pretty reasonable, with an NPAT £38m on equity of around £160m we have a ROE of ~25%. CF is weak right now given the increase in working capital but my hunch is that this will unwind. Consensus dividend yield seems unrealistic now but even after all the reduction should be giving a sustainable yield of +10%.
They have a pipeline of opportunities and some decent sized director buys by the chair, CEO and PDA of CFO today gives me some assurance that management are confident in the long term future of the company. The SP could fall further in the ST as no doubt some holders are keen to liquidate but as a longer term buy I think this is a good bet.
* News Release *
Issue Date: 12 March 2019
Redde plc
("Company")
Director/PDMR Shareholding
The Company announces that certain directors and their persons closely
associated ("PCAs") have recently purchased an aggregate of 139,374 ordinary
shares with an aggregate value of GBP122,262 in the Company in the following
amounts:
Name Position Ordinary Price Number of Date of
shares paid per Ordinary purchase
purchased share Shares held
following
the
purchase
Avril Chairwoman 56,497 88.50p 56,497 12-Mar-19
Palmer-Baunack
Martin Ward Chief Executive 56,497 88.50p 3,980,958 12-Mar-19
Officer
Patricia Oakley PCA with Stephen 26,380 84.39p 12-Mar-19
Oakley, Chief 2,020,000
Financial Officer
Shocking fall in the SP..
A few weeks ago this was 187p!!
I'm thinking we could see 60p now in the next couple of weeks.
Would I be tempted to top up?
Probably not.
Has anyone out there got ANY idea where this will stop.
On Friday when they plunged renowned find manager Neil Woodford increased his stake from 26% to 27.37%.
See RNS out at 11.24 today. So Woodford was already into Redde for 26% and he must believe the drop is way overdone.
I partly agree with many of the comments on here about Redde's hire car business model possibly being old hat and that if other insurance companies follow suit they will be in trouble.
ive had a few claims, a lot of insurance firms have deals with enterprise , so cutting out redd also its got to be done now though a porthole, witch means tighter rules, insurance firms pay you out quick now for your car and store it then claim of 3rd party , so hire car cost is going down the pan ,
If they lose anymore contracts, their fixed costs remain so dividends at risk. If next gen cars are sensor controlled or driverless I guess the paradigm shift makes Redde’s services extinct. Any thoughts on how Redde can grow its businesses and improve its dividend cover in the medium term people’s?
Interesting - thanks. Broker ratings are important but only one aspect of research. It looks like a few nervous sellers are moving out and not enough buyers are here .. yet. If I had a floor target - it might be around 80p.. just my opinion and I hope to be proved wrong. It seems that some wonder if another contract may be cancelled? It's a risk but the share price could enter oversold terriority soon gla
Cenkos have reiterated a buy. It's a bit like a football board giving their manager their "vote of confidence".
Not that it matters to anyone but out at 145
I'm fairly new to this and bought in after discovering NT, following comment from others on other boards where he had purchased the same shares as I had, admittedly though at a lesser price. Bought and then stupidly on first day of results tried to average down. I know wrong and have previously judged others who have employed the strategy and thrown gone money after bad (VOD & RMG springs to mind). Got out at 135 after buying in a 176 to a loss of 1K. A big hit for me and now in the black, but glad I got out when I did and no doubt an expensive lesson learned. GL for those still exposed.
think ill take a punt this soon as a sure short lol
OMG - just seen this - really surprised because the results - just issued 1-2 weeks ago - were really solid and imo provided no hint of a future shock like an insurer contract loss. As some may know - I acquired Helphire shares at 1p many years ago now - at the time was told I was mad to invest - but I always felt this business had a cycle and I got in at the bottom. Now it appears the cycle has passed its peak and a period of decline may happen. Sold must already but kept a few here - may add on further weakness but will re-assess over the weekend. The correction is right and probably enough - providing there are no further contract losses...
i sold out last year as, insurance claims use help hire and red to give you hire cars after a crash , i had 2 claims with my insurance , who used redd, i had hire car for 20 weeks at 60 a day, now some insurance firms cut them out now, so its a matter of time others will follow, redd and help hire rip insurance firms of and now with all the whip lash claims insurance firms have looked into redd and cost , get out quick
A big blow of course losing circa £112 mil of revenues in the expected 2019/20 period, but for some context this company does have a lot of growth historically.
Revenues
2014: £200 mil
2015: £250 mil
2016: £380 mil
2017: £470 mil
2018: £525 mil
it's unfortunate that companies like this will lose big contracts from time to time and take a big hit but long term I wouldn't exactly be too worried.
lost half it's value in one week- think it might be due a nice bounce
Cash balances were only over £11m on the recent update ! Heaven knows how the price is this high