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The SP is up 7.69% today. Any idea why?. No news, just buying. Is there something I should know!!
Well nope. Not a shorter. I am trying to be realistic. Allianz a big outfit. But the book of clients buying special risks insurance is tiny. I think.
me ol boy...surely you be a jolly shorter ...good luck...I'd love more @c20p
Well as I understand it Allianz pay red24 a retainer fee to be on call to insured clients. But the Allianz book of insured clients is small. So while its good to have a big name associated with a wee outfit I am not sure Allianz is going to bring a huge increase in income flow. Just my opinion. I hope I am wrong.
Would be best, to allow me to right my earlier wrong, but I'd be very happy with 20p
Hi Jolly. There seems to be a lot of optimism around the Allianz contract. I think we`ll just have to wait to find out whether its misplaced or not?
yep...impressive bounce with some heft/vol ..my hunch clearly without merit lol
Damn and Blast. The price has gone up!!. What next!!
LOL. What do I know?!
Targeting c19p to buy... Any thoughts?
There is a line in that song that keeps playing in my head... Down....down down down.....
only...& of little value lol ...it is ok on valuation metrics here imv...but ok may not be enough and does not give any margin of safety given the volatility of ebit/risks faced by the business and the large gains that holders have made
Hi Jolly, Is that a hunch or based on chart work? I want to get in here but am waiting for the time being.
but decent chance of bottoming in mid/high teens imv
Can feel it in my bones.......
@23.9x...sub 20p would be sweet and understandable (run rate ev/ebit of 6-7 imv) ...Jolly chuffed
I don't think this share is going anywhere for a while. Indications are that the expansion has reached the limit for the time being. The fundamentals do not justify the current share price. I think there will be a track back to below 20p.
Boxer your point understood. I believe though that much income is from insurance companies in the form of retainers and the number of serious players is limited. Also what new emerging threats? The arab spring brought in much business as has the Isis threat. But what next? I think this is a good outfit and I hold the shares though I have topsliced heavily because I think the possibilities of expansion for time being are limited. The risk management market is crowded. Income is dependant on retainers which are limited and also on events which are unforeseeable and beyond the control of the company. Its a very capricious market.
Some misunderstanding here, the Risk Management market is expanding around the world as new threats are emerging. Also this company has a large footprint in the Product Recall market which is a substantial market globally so lots of opportunity for expansion. So earlier comment doesn't make a lot of sense to me and is not an accurate reflection of the opportunities in this market.
There are limited opportunities and clients in the risk management world in which red24 operates. The company has had a great run and brought in a number of new clients and contracts. But is the current rate of sp increase sustainable? Has it overshot? How many more clients can it pick up in a limited market? What is the implication of the recent director sale? I am not de ramping. Just asking questions that need answers. GLA
Just Keeps Going!
Impressive chart here and excellent rise from 10p level!
would be excellent for me (7k flip in the money and I can repair error of selling down @24p lol)
yes...it has been a rollercoaster, and the jury is still out on the sustainability of growth... ...if investors buy into sustainable growth, 50p is on imv ...before that I wouldn't be surprised by retrace/drift down towards 20-25p... to gather breathe for next assault
Obviously I have to agree with, Rhaegar, that your un-shakable faith in this company has been vindicated by the share price. I remember you felt it was the dark horse of 2014, and I took a little convincing but then decided it was very cheap and had a bright future c 19p (ages ago). For a while it felt like we were the only two who really liked the company. Then REDT publsihed some poor interim results that bore no correlation to previous results etc and it really shook my confidence in the company (the market felt the same way also), and so I sold at circa 17.5p. Leaving you to be the only one in the "REDT Fan Club." Furthermore, when it lost that massive contract I then started having doubts about its future prospects for obvious reasons... ...Yet it has clearly turned itself around since then with positive trading updates, results, an acquisition, and that contract with Allianz. So bloody well done for holding on, Jolly. I agree that it has a bright future ahead of it. 50p is achievable, and I'm glad you're finally making money out of this holding.