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I was happy to get these at 115, the update is not fantastic but have doubled my holding for half the cost today. I expect it to bear fruit within 12 months
ShearClass - I think that must be why so many buys came through as sells this morning, due to purchasing at the bid price. Seeing some buys come through now
Too much selling pressure. Looks like it will go below 50p and I have cancelled my order.
From my experience of SETSqx, as long as you can buy at equal to or less than the advertised bid price then without volume the price will go lower. It's also tempting to buy at bid because it feels like you don't pay any spread, however the reality is that's usually a false economy. As for 50p being support, it's a round number but nowhere near as relevant as £1 or 9.9p vs 10p, doubt it'll make any difference unless the seller happens to stop selling...
Historically, no-one has ever bought at 50p cause the share price has never been at 50p.
You've absolutely no basis on 50p being the price the share will turn upwards.
Support level = where significant buying starts to arrive. Directors will need to lead the way here to give PI's confidence.
Support level????
This is deep into ATL territory!
This is the key part of the annual report and very relevant to today's update;
• The base case is the board approved budget which has been updated to April 2022. The budget was prepared assuming that some COVID-19 restrictions, consistent with those in place in January 2021, are in place in 2022 and 2023. The restrictions in place at this time resulted in reduced footfall on the high streets and at airports resulting in reduced sales of non-prescription items. Consideration has also been made of increased costs and challenges in fulfilling orders because of the risk of disruptions in the supply chain.
• The budget does not assume any acquisition expenditure.
• The budget was prepared before the Ukrainian/Russian conflict. However, the Group does not currently have any operations in Russia or Ukraine or source materials from these locations. The main effect from the current crisis is on raw material costs driven by the increase in the price of oil. The Group expects to be able to maintain its budgeted margin throughout 2022 and 2023.
• A downside scenario updated the base case scenario with a further 10% reduction in sales from October 2022 as the Group has certainty over its customer orders up to this point. We have also assumed some cost saving at a conservative level by reducing expected bonus payments to senior employees. A second downside scenario was performed which used the same assumptions but made consideration of the poor trading in April 2022 due to a lockdown in Shanghai which resulted in a significant number of orders being held at the port.
• A reverse stress test scenario updated our base case scenario with a further 22% reduction in sales and 3% reduction in gross margin from October 2022 which results in a covenant breach in June 2023. We also assumed some controllable cost saving by a reduction in employee expenses and removed discretionary CAPEX spending."
Today's 13% fall in the group order book isn't as severe as their 'reverse stress test' which led to covenant breach, however it's not that far away. It has a lot of potential as a turnaround but I'd be wary of buying right now...
Looks like 50p may be the support level so we should hit that. I have a buy order in for 50p simply for a trade.
DYOR
Watching and waiting here. Incredibly low price but I'll more likely be keeping my powder dry till after the Autumn statement. I sentiment in retail shares such as this could sink further IMHO.
Gutted for the IP's getting skewered right now.
SWLC - wise words, thank you. It might get there sooner than that.
wakeyinvestor, you maybe right, but I won't be surprised the price drops to low 50s by tomorrow. Keep some dry powder for yourself.
SWLC - the further drop of 25% re WJG followed Kwasi Kwarteng disastrous mini budget. We shouldn’t have to worry about that for this share IMHO.
Have a look at WJG, seems the same pattern, 50% drop and then 25% drop the next a few days. Now it is 96p with next dividend in Jan 2023.
Picked up a block @61.8p so will tuck this away with some recently bought RENX
Looks like this has not yet found the bottom and sub 60p could be coming.
DYOR
My buy is also showing as a sell. Mmmmm
My buy showing as a sell also, the same happened last time I traded here too
What an over reaction this is. Order book down 13% compared to 1 year ago, yet SP is down more than 40% this morning. The Euro has weakened against the dollar but US and UK orders are holding up. I don’t think cash is particularly tight, more that as orders are down revenue will decrease, hence cash flow will decrease, so as a prudent measure to counter this the expansion of the Vietnamese factory and new investment in Portugal are being delayed. Sensible management and IMHO the SP should rebound from here.
Insider trading 19th Oct.
My purchase at 66p is showing as a sell. Definitely in oversold territory, but, hey, this is in SIPP wrapper so no biggie.
Wasn’t left with too much of a choice - averaged down at 66p
This company worth nothing. The CEO owns 20m shares. He gets his good salaries for years to come. Any earning would be reinvested. At the end nothing would be for shareholders I am afraid.
I agree, I still have a small holding here but not adding as their comments about deferring developments indicates cash is tight. I think that it has long term potential, but it is another for the bottom draw for now....
Having been tipped for its recessionary resilience, the SP has been in steady decline. Todays update is poor and thus far it does not appear to be enough to attract buyers for the shares.
I like the business model but the price needs to be more attractive for me to average my holding.