The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen 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.
https://twitter.com/surprised_trade/status/1411934679310254083
all of the Group's business units ahead of expectations, cash generation strong, dividends to resume, further growth potential, sales expansion & further acquisitions expected, pipeline of acquisition opportunities
https://www.lse.co.uk/rns/RST/trading-update-dividend-restoration-fneslqfblh41lda.html
Over the last year, I’ve been filling my boots. A well run company with a strong franchise.
Starting to see momentum
A buy article in the Daily Telegraph today. Quester Stock picks
Restore: Canaccord reiterates buy with a target price of 580p.
Must have liked latest acquisition.
Looking forward to May TU.
@Matt and Surp - I share the same sentiment as you guys. When it comes to earnings - there are so many assumptions particularly with in/out of lockdown again - so difficult to quantify. Then you have acquisitions being earnings accretive. Overall, sentiment wise - RST, I see as being a safe, value, rather boring investment that does what it says it will do on the label. It's a Michael Atherton, knocking a few 1's and 2's around - keeps pf ticking over.
As for value wise, I suppose you are buying a stock that is no.1 / no.2 in their market - so comes with a wee premium which is fair.
Polar Cap are pretty savvy - so it's an endorsement of the good job that RST is doing. + if they are buying = RST has passed their DD.
My entry (btw- a small portion of my pf), particularly for Surprised's was when the SP was a wee bit knocked over. So very much of a no-brainer for patient, boring, lifeless ( :) ) like me who were seeking for value stocks a little late.
I do :-)
Thanks Surp. I don't really subscribe to the notion that one manager buying a chunk of stock should strengthen my resolve. Every buyer has a seller, so their 5% accumulation means that other investors owning 5% previously felt it was over-valued. Your argument only holds true if you actually know the team/manager at Polar Capital and rate them highly?
Hi Matt, I think your figures outlook not too far away and although value is not dirt cheap (there are very few, if any, around that are) better quality businesses are simply going to offer good value and opportunity for an increasing sp going forward. I think it reasonableto assume with the growth in the records aspect and the expected continued increase in IT recycling that £5 figure is going to be challenged at some point. Polar Capital securing 5% so far of RST is encouraging as their new position, I would suggest, supports our own view of the potential ahead
Surp, and scoob - guess you guys have kept this board going for quite a period now. I've been in this stock since mid 2014, buying a chunk in the 160 - 190 range. I started cutting above £5 in 2018, and bought them back in 2019 in the low 2's. Unfortunately, didn't sell when they went above £5 the second time! What level of EPS are you guys expecting this year and next? I'm thinking 20p this year rising to c 28p in 2022 - puts it on 13x next years earnings which feels reasonable value, though perhaps not dirt cheap?
With
- Return to office
- Recent strong performances shown on TU
- Debt Pile falling
- Recent acquisitions (probably done on the cheap)
- II increasing holdings
IMO RST is 85% heading north back to pre-covid SP level's and with a little more time - beyond
it continues, Invesco increased their holding to 12.7 percent....
https://www.lse.co.uk/rns/RST/notification-of-major-holdings-x3s7usgwc0ol4hb.html
Polar Capital have been securing stock, taken 5% so far...
https://www.lse.co.uk/rns/RST/notification-of-major-holdings-xzaq8cj5c0hvsqz.html
Restore’s (RST) rapid recovery from pandemic disruption continued into the fourth quarter, when revenue reached 90 per cent of pre-coronavirus levels. ....
....Margins should also benefit from cost saving measures that include reducing headcount and consolidating sites, aimed at wiping £2m a year from the expenses bill. Analysts at house broker Peel Hunt forecast adjusted pre-tax profits of £32.9m and EPS of 20.6p this year, nearing pre-pandemic levels in 2019, before rising 13 per cent in 2022. Buy.
https://www.investorschronicle.co.uk/news/2021/03/18/restore-recovery-gains-momentum/
CEO comments ''....With a further year of debt reduction, the business is well positioned to bounce back very strongly and is now actively investing for future growth. The recent acquisitions in Restore Technology will double revenues to £30m a year in this business and in Records Management, we are planning to invest in new sites during 2021 to absorb our accelerating net box growth momentum from 2020 and to meet future growth requirements. We have substantial quality and quantity in our acquisition pipeline with realistic pricing across all the key Business Units which we are actively pursuing."
Results exactly as expected with recovery from covid underway, near on 90% of business back in place and massively reduced debt a real bonus, steered through last year nicely and all set for recovery and growth as economy and business opens up :-)
https://www.lse.co.uk/rns/RST/full-year-results-kgmdqo2ghp241k4.html
excellent acquisition, RST going from strength to strength with this Apple aquisition :-)
https://www.lse.co.uk/rns/RST/acquisition-of-the-bookyard-ltd-ajo6k6p1b4vptap.html
Value stocks are back again.
Had RST as one of the top choices for value plays. Extremely underrated.
With the return to the office and end of lockdown near - surely this stock will perform even better from hereon (was surprised that it performed so resiliently) during lockdown and wfh yet was not en vogue....until now!
I can only imagine this will be vey good for RST going forward :-)
https://www.thetimes.co.uk/article/amazon-may-be-forced-to-recycle-electrical-products-v5g5bmtk9
online retailers will be forced to fund collection of old electronic equipment from homes and ensure it is recycled rather than sent to incinerators or landfill under plans being considered by the government.
Ministers are responding to concerns raised by the Commons environmental audit committee that online retailers and marketplaces such as Amazon have been “dodging their environmental responsibilities for the products they sell
https://www.restore.co.uk/Technology
https://twitter.com/surprised_trade/status/1359847451251912705
.pulled back from 400p, TU was good, business recovering from covid back to 85%+ and now No1 tech recycler...next target back to 400p+
a 'recovery' stock recovering through lockdowns and set for both further recovery and growth as economy opens up.
RNS ''..and will deliver a substantial increase in profits and sh value''..... Tech waste/recycling will only grow and grow
two top ups this morning ;-)
and another 894 @ 3.34p ;-)
Just added a few more (900) @ 3.32p :-)
Thanks Surprised. A few of these steady eddy stocks in the portfolio are great - got a few of these types in my pf. Will look into RST further. Cheers. GL