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Business is doing well and on a very solid path. Market has been assigning a very low value but perhaps it will soon believe the forecasts (which would make this one of the top 10 cheapest U.K. listed companies). Stockopedia gives TCAP a rating of 99. I will be adding. GLA
Most UK plc CEOs are completely clueless. TCAP leader Breteau has got it right. So good they kicked out the previous failure! Breateau said in the previous Half Year update:
1. "Our focus on productivity, contribution, and tight cost management, generated an uplift in profit and EBIT margin"
2. "The £100m of cash we targeted in the first half last year has been freed up 6 months ahead of schedule;it will be used to pay down debt. We are also announcing, starting today, a share buyback programme of £30m, and will continue to assess opportunities to free up cash to further invest in the business, pay down more debt, and/or return more capital to shareholders "
3. "Delivered £38m (annualised) Liquidnet integration cost synergies (target of at least £30m), six months ahead of schedule."
4. "Dynamic capital management: reducing debt, interim dividend up 7%, launching a £30m buyback programme"
Targeted £100m of cash, generated by opportunities following Jersey re-domiciliation, freed up six months ahead of schedule; being used to reduce debt and other financing obligations. Decreases future net finance costs, increases investment grade rating headroom. "
5. Alongside ongoing investment opportunities, continue to assess opportunities to free up cash to pay down more debt, and/or return further capital to shareholders."
There are not too many CEOs who can point to such progeress and specifically point to outcomes that benefit the shareholders, and focus on those outcomes. Most UK pls CEOs just do the job. I think Breteau is actually looking out for the owers of the company, i.e. shareholders. That is good to see - common in USA - rare in UK. This is why the US companies constantly outperform.
I did forget to say that don't forget update next week Oct 31st 6 days to go.
And also year end will March 12th 2024.
Of course if it hits high prices early on say in 2023, I'll trim or sell but would look to buy back in.
Best of luck, Cheap
Ok that's an interesting target. I am looking out for about 273p, tends to overshoot so I say 275p target by end of May/early June so that sort of long time 7 month wait. You can't guarantee anything but it's possible.
Best of luck
stockopedia ranks tcap as the 4th best uk listed company. trading update on tuesday 31 october. maybe a halloween treat? my back of *** packet valuation is about 250. gla
Good to see someone else following this absolute anomaly of a valuation discount...has to be one of the biggest opportunities in UK market, with Parameta worth potentially £2bn...you are getting the rest of the business for a negative value.
The Shore target of 200p is way off in my opinion...given the above and the fact that Global Broking has strong tailwinds behind it now.
Might have to be patient but paid a huge yield in the meantime.
Also you...you say massive geopolitical disruption could affect us...I tend to disagree, this is one of the few businesses out there which benefits from macro volatility! So happy days...
Shore capital says that the 12-month forecast PE is just under 6 now which is extremely low considering profitablity is improving. Price target was set at 200p, make of that what you will. This is old news but market tends to forget in these in a single day.
https://www.markets.iweb-sharedealing.co.uk/research-centre/market-news/article/?id=14307892&type=bsm
These gains get wiped out due to weak UK equity market. This drop looks like it's just cause of St James's bad update.
I am unsure why TCap should be in any way related to St James. It is ridiculous actually.
However, after looking at the charts the long term downtrend was broken when 150p was cleared around mid-August, this is now trading on a long-term uptrend line and past the depressing downtrend line that was in play since Feb 2018.
So, from that perspective it's looking good. Bounce on Monday from a little below current level maybe 161-162p. This barring any geopolitical disasters.
Very happy with October rise so far
I'll never get my head around how there can be so few comments on such an undervalued share...it's insane!!!
Very out of the blue the chairman buying today....he hasn't been quick to in the past given his net wealth. Perhaps something brewing...
Well the slow steady upward trend of the last week, is it implying that we are expecting, at least, decent trading update at the end of the month. Dedino's prediction of £2 by Christmas, might then not be far off. We will see.
Looks like it for now , £2 by christmas i hope
Tbh what id like to see is growth at liquinet if that is the strategy.
It's a 100% sub, so no reason not to put the tp icap clients in there if they can get the integration right.. but markets view is they have made a pigs ear of it. Hence the share price and disappointment in the results of it.
Still if this drops back to around 140p I'm a buyer, but without some view of what post buying brokers growth looks like im a seller at 180-200p.
Interesting noises from FCA btw about platforms needing MTF regualation etc and not restricted to those that just execute. Should help the big boys by clearing out the smaller ones.
Thanks for the good reply jstar.
When tcap got rid of their best trader last year it was clear to be voice is dying slowly.
So I think liquidnet was necessary to speed up digitalisation but also get big clients on liquidnet books on board. Since the previous CEO was kicked out, I see things have slightly improved. Share buy back and profits rather than losses imply that the worst is over
I-swap is ICAP electronic platform for bonds and been around for a long time. You don't need to purchase anyone to do a platform, theres plenty of MTF/SEF ones about for nearly every asset class so unless your mad you develop one yourself if you have the liquidity. If you don't have any liquidity then maybe buy.
The problem has always been voice brokers won't be the Christmas turkeys and post their liquidity to screens as it erm cuts themselves out of a well paying job. Buying any platform won't solve that.
Michael spencer realised that at ICAP, sold tullrts the voice element, sold all his shares in tp icap the next month (a massive red flag) then made a fortune selling the electronic side to the CME. Nice trade.
If tp icap strategy is now making all the voice brokers so expensively purchased redundant by getting the liquidity onto screens which historically they have been laggards in... Then it would explain the share price.
Does anyone actually realise that tp icap needed liquidnet to digitalise the company?
So it wasn't purely a revenue purchase but a way to help the company change to more digital form of existence.
Like the example with certain bonds being traded digitally only was only achieved with liquidnet was it not?
Liquidnet was clearly a very badly timed deal but I still cannot see this share being worth under 200. So much more value enhancing to buy your own shares on a pe of under 7 rather than paying a much higher pe for an acquisition. The lesson must surely have been learned. In looking at the shares one could miss a big opportunity by just focusing on the one big mistake. The overall valuation and prospects is what counts.
May I just remind you that this clown, Ace of clubs, said at share price of 110p that tcap is a sell. Facts. He spoke the share down when it was the buy point.
I did point this out earlier and is a fact
Also fact remains that tcap is a strong business and a year from now when it sits at over 200p, aceof clubs will be proven wrong. Again.
“We have always told our shareholders that Liquidnet isn’t a cost savings deal, it’s a growth deal, he emphasises there is lots of room for growth." - John Ruskin - CEO Agency Execution TP ICAP - June 2021
"TP ICAP drained by low revenues at Liquidnet" The Times - November 2021.
" Liquidnet division revenue reduced by 6%. " TP ICAP Interim Statement - August 2023.
"The successful execution of our strategy enables us to deliver sustainable shareholder value in the medium term." TP ICAP, CEO Review - Interim Statement - August 2023.
It's an old truism - "If the Americans want to sell you something; it a'int worth buying"
TP ICAP directors won't lose any sleep over it it's been bought with somebody else's money - yours and mine.
AceofClubs
Hoping for £2 finish
Inundated with buys that they had to go to backwardation to let the shorters out - going so much higher no doubt. GLA DYOR.
This company is awesome - will be taken out by a bid at some point noorth of £2.40 - should be trading at a premium
Looks like an annualised per of under 6 even after a big rise to 168. Surely the shares should be much higher. Uncertainty and volatility great news for this company. Maybe they could hit 30p of earnings this year or close.
Liquidnet as expected - underwhelms - despite that everything else ticking over nicely.
Soon to announce a 3rd bank added to Liquidnet which should start to help that division.
Nice dividend income in the meantime.
Very good results - the buyback of course being key.
Shame they ever went down the Liquinet road but hey ho. It's a grossly misvalued business...literally no other way of describing it. What are we, 3x EBITDA? Mad.