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Given the translation here last year of a high gold price = increased net asset value + increased company profits the 5% gain in the gold price this past week will at some point be reflected in the market value (30% off it's peak).
Good to note that gold is at an all time high today.
Patience required as Downing selling down their holding, however, broker note out with target price 290p
https://twitter.com/surprised_trade/status/1762759745981628713
Have topped up again fingers crossed
Totally agree. This is a very good entry point if you are not currently invested here.
For those of you who are tempted to buy - here's a reminder of how solid this business is!
The key metrics here are:
Market Capex at share price of £1.80 = £56.97m
Net cash = £5.039m
Pre tax profit = £10.1m
Dividend = 10.1p (5.6% yield)
No idea mate! Another couple of biggish trades went through earlier around 175/6p..
I'm looking forward to a Holding RNS or two, to confirm they are done.
Between 2 funds, they have taken off 33% of the share value here - just constant sells, against any liquidity.
Very frustrating for holders
How many to go?
I find the crazy thing is that by selling piecemeal into any liquidity, these funds are destroying the value of their remaining holdings of RFX!
Simply madness....
But agree with you, a lovely opportunity to buy shares at daft cheap prices.
Hi Rich, yup I see Downing appear to be selling down as they close their fund and it is therefore providing a rare opportunity to secure some cheaper RFX shares, seems rude not too 😉
427,830 shares gone through at 186p
I'm expecting to see Holding RNS soon that big seller is out..
Share price should recover then.
Good call, Surprised! A couple of funds have been selling RFX for a while, presumably due to PIs taking money out and funds closing. As a result, any decent PIs buys have been sold into and this has spooked / scared others from buying.
As always market makers drop bid hard, at first sign of a few large sells and spread can be large..
However RFX now dirt cheap at this price (35% off year high price, despite record £10m profit) and decent dividend too.
What's not to like!!
Back in after a year, sp dropped on ex div couple of days ago and now on a 52 week low surprisingly, RFX generates, profits, FCF and organic steady growth plans for 2024
https://twitter.com/surprised_trade/status/1758427520796430647
Rich, it may well be that many of the small "sells" at 192p were in fact buys. Mine was a buy for exactly the reasons you say. At the time the broker quoted sell price was 185p.
The weird thing for me here is that there are still private investors selling small blocks of shares around 192p. Makes no sense when this goes ex dividend next week 15 Feb at 7.1p a share. Surely they would hang on for a few more weeks to pick up their 3.5% return.
Yes there are other PIs buying around 195-197p, but its pretty much stalemate at the moment in terns of buy / sells.
High interest rates are here for another 6 weeks. The reality is that they are not that high when compared with the long term, simply high for recent memory.
https://www.cnbc.com/2024/02/06/credit-card-balances-jump-to-new-1point13-trillion-record-at-end-of-2023.html
This link shows that credit card balances are rising (29% rings a bell for some reason, though I have not used a credit card for a decade or more) and https://www.cnbc.com/2024/02/06/credit-card-delinquencies-surged-in-2023-indicating-financial-stress-new-york-fed-says.html that there are defaults.
The UK tends to lag the US by a few weeks. Gold is hovering a little off its highs but is stable. https://goldprice.org/
This SHOULD translate to pride a boost to the SP but at worst simply limit the downside. Very rarely, I have marked this as a weak buy - not investment advice, simply an old duffer with an opinion and some basic supporting narrative.
Oh, and as far as I am concerned, "weak buy" is not as strong as "buy" and a long way behind "strong buy". Almost 100% of my posts have "no opinion" as my default. And now, I have an appointment with a fresh glass of claret as the tide appears to have gone out.
Spinal_Tap, the dividend payment will be reflected by a corresponding drop in the share price. If this is a candidate for a bid, it is likely that a substantial premium needs to be offered to tempt shareholders. The positive side is that the company is profitable, throws off lots of cash has gold trading at record highs and has holiday season to kick off in an Olympic year. Airlines are noting bookings are rising.
Expansion is happenning organically for RFX and there has been some press comment that de-banking of pawnbrokers has taken place. This does allow opportunity to grow through acquisition. With the exception of Albermarle & Bond and H&T, not sure that there is any more competition that has capacity to put a bid forward. Management buyout, I suppose but would need to have quite deep pockets.
And could be a takeover target at these levels.
Even more puzzling considering there is a big dividend due very soon(ex-div next week).
Have added a few more today. Seems a great entry point to me, though disappointing that the shares remain in the doldrums.
Agreed mate - I'm not suggesting you sell. I'm a holder here and as far as I'm concerned they are a bargain at this price. Unfortunately there have been forced sellers (funds) where PIs have taken money out of these funds and they are scratching round trying to liquidate assets. Also PIs generally are harder to find when you can get 5% in a deposit account with no risk. However RFX share price will turnaround this year and I fully expect to see 265+ plus later this year.
A late transaction is often something as a bargain that exceeds the normal market size (NMS) by a factor of 3. The NMS according to the financials tab is 1,000 shares which seems very low to me. Therefore as the bargain has been executed for 70,000 shares which is considerably outside the NMS, then it is of no surprise that the transaction is recorded late.
You could be correct with a share overhang in place, but I am not inclined to sell shares in RFX based on the most recent information published.
There's got to be a large overhang here to clear, before the share price can move upwards.
I keep seeing big trades going through at the mid point i.e. between bid and ask - this is where one market maker has shares to shift from a large seller (fund) and is selling to another at the mid point price.
Just seen another 70,708 go through at 210p (reported late as always!)
Three is also a mention, though rather pessimistic, in todays Times. The link is behind a firewall though.
Perhaps the IC article will bring new investors in…………
https://www.investorschronicle.co.uk/ideas/2024/01/15/a-harsh-market-reaction-to-ramsdens-record-full-year-profits/