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Good morning
Silly question but why is the share price going down when Imvestco are adding twice?
Totally agree with Everestingly on valuation. At todays share price the market cap is £187m.
The RM business alone in 2022 generated sales of £113m. On a conservative basis the RM business is worth 2x Sales.
And the business is pretty much long term guaranteed - almost annuity like.
Customers do not like moving as it is hassle and expensive.
I first invested in Restore in 2011 and exited when Charlie Skinner did. Have taken a small stake today as it is just too cheap. We shall see. GLA
Everestingly....I hope and indeed think you are probably right. Again its frustrating the sp has dropped another 12% since last week. Today's drop is worrying. I hope its nervousness rather than a leak that has prompted sales. Nothing surprises me with AIM stocks. The next thing we'll hear is a cut in the dividend. Now that would see the sp dive.
It is frustrating Simon but I expect there is probably going to be some nervousness ahead of the results, week after next. Whilst that is understandable given the last announcement, there are potential positive catalysts alongside e.g new CEO and CFO announcements.
TBH, I will just wait for the results and decide from there, rather than run the risk of buying now.
Regardless of short term price movements, fundamentally the RM business alone is worth more than the current EV so I suspect a strategic review will accompany the new CEO announcement and therefore potentially another positive catalyst.
Down 5% to |£1.50 ...for no apparent reason. This share and AIM generally is beginning to pee me off. When a drop like this happens there is, in actual fact, a 'reason'. It's just that the small shareholders don't get to know until it's too late.
Interesting interview: Paul Hill and Odyssean Capital on Vox (c.6 mins in to the interview) ref change in PE attitude in last month or so. Now less likely to take private a single asset but would now look to buy an asset that would complement an existing asset and where synergies can be extracted.
Implications here re TIC deal: Interest rate levels starting to curtail PE activity; potentially smaller PE pool looking to do a deal.
https://www.stockopedia.com/content/fund-manager-stuart-widdowson-of-odyssean-capital-highlighhts-16-stock-ideas-971255/
Can you tell us more about what you saw?
I’m on the fence with this one atm
I simply do not understand how a company with a head start in terms of 'storage' in all it's forms, can go off course like this. Good riddance to the CEO and CFO who steered the group into this mess.
This company, in my view, still has the potential to be a growth stock provided the right people are in charge and stick to the core business rather than trying to gamble on short term digital contracts and fads.. In many ways its a licence to print money, given the amount of businesses that must be looking for a dedicated storage facility. The potential must be huge.
So why am I holding back? The company may be rudderless for a while although they ave started cost savings already. Time to take stock and review in a few months. I'm not going to average down. Learnt my lesson from previous experiences.
I've just finished a 6 month contract working for Restore.
I've never met such a group of idiots in my life.
They deserve everything they get.
I'm not invested
…Tuck away!
My view is that the interim ceo will need to reduce leverage (now over 2x) and will achieve this via a strategic review and subsequent sale of some of the businesses. The group is trading on 7x PE and c6x ebitda, and records management division alone is worth significantly higher. Institutions will be pushing to maximise this hidden value; PE will be interested for sure. Marlowe will not feature as equity and debt financing will not currently work for them and strategically they have moved on to focus on higher growth/ margin software.
I believe this is probably one to
Hello Richard08. I have just bought into this share at just under 166p. Like you I believe it has a silver lining, not all good but in my opinion way oversold and at its lowest SP since early 2015. Surely, the only way is up from here, even if in the short term it recovers todays losses. An interesting punt. GLA
Well, having read it through a few times there are some silver linings. Record management is holding up, digital services expected to drop £5m due to a contract not rolling over and interest on debt going up to £9.6m which accounts for most of the drop in adjusted profit to £31m from £41m last year. Paper price going down is outside their control and they still expect revenue growth YoY.
Of course, all this remains to be seen. It’ll probably track sideways until a new CEO is appointed and economy recovers/interest rates fall. But, the overall business seems secure and the market has done its usual tantrum with the toys going out with the bath water. I would bottom-drawer it for a year and see what happens.
Thoughts anyone?
This was only 2 years ago.
https://www.lse.co.uk/rns/RST/unanimous-rejection-of-marlowe-plc8217s-proposal-kfbipycln5d6pai.html
I wonder if there'll be some bid interest again, with a view to splitting the company up.
Me too, another long term Aim investment that looks like a very silly investment.
No wonder the CFO resigned two weeks ago. He knew what was coming.
The drop seems harsh. This was due to be a long term hold for me. I saw it as a company in a sector that would be in high demand for the foreseeable future. I'm loath to sell at a low though.
This was supposed to be a good LTH in my SIPP.
I've held it just over 10 years but it's now nearly back down to what I bought it at, having seen it over 500p at times and a possible bid at 530p.
I'll probably dump it now (or part of it), it doesn't look like it's going to do much for a while.
A good lesson to take some profits along the way.
Results are dreadful. CEO out with immediate effect. Pretty catastrophic year.
So, on the whole, things could be better! At least they still expect revenue growth but that’s the only silver lining in that lot! Batten down the hatches here for a bit I think!
I'm the kiss of death when it comes to investing. While I'm not exactly out of pocket from a few weeks ago, the resignation of the CFO is possibly not going to help the share price. Barring any dodgy activity at the company, I still see this as a steady growth stock.
The share price has been drifting down following cautious statements of late. In my view this is a well run company where its services will continue to be in high demand. The P/E ratio is too low given the potential. I remember Jim Slater some years back saying that it ticked all the boxes, had good people running it, and it would only be a matter of time where there would be significant growth or a takeover. I think this is a good entry point. I'm investing now and tucking away for a year or two.
Agree seems harsh, but sentiment for Restore in the City seems hostile just now.
Not the sort of re-rate I had in mind :(
Bit harsh to wipe so much off simply from the IT recycling side. But, hey ho.