Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Meh... I 'd prefer ZOO as VID keeps a high risk of equity issuance due to its debt/leverage which is clearly now a problem. I'll buy post issuance/refi. Meanwhile, I'll stay on the sideline. I guess today's share price action says a lot, the uncertainty on the name outweighs the writer strike resolution .
Perfect time to buy now, at the end of the writers strike.
the next 3-6 months will be the studios in mass overdrive to pump out as much content as possible.
expect that behind the scenes Videndum are getting all their equipment fully booked ready, and will be able to charge premium prices due to the saturation of production coming.
Will still take a while for tv production and films to restart as actors still on strike. but... slowly, slowly...
Suspect (though who knows, in this market!) that ZOO will have a similar downturn on their results later in the week.
the writer's guild vote can't come soon enough but the actors still needs to be sorted so the sp could still suffer before the upturn. but calling the bottom of any share is a bloodie chore so i figured a 30% discount is good enough for now.
Thats a nasty UT, it looked as if it was running out of puff at 28% but it carried on.
Pleased I didn’t top up!
They don't mess around!
...Tomorrow! 26/9
No - the guy's been burnt on this one. Look at his comments below. Why, when anyone expresses negative views on a share, do they always immediately have to be short. They are obviously going to have had a torrid time, so why would their results be any good. The only question for me is how much this has already been baked into the price. I don't know the answer to that. All I know is that I'm still down on this. I'm holding, but I'm not adding because I don't know how bad things have been/may still be.
What are we expecting once the US markets open today?
Is this a classic short trader comment?
Up with the end of the strike in view, will soon drop back once they reveal horrendous results/rights issue
This knife has fallen right through my hand and is currently plunging into my foot
I've just added a few more @ £6.91, just before the close. Well underwater, and think it will be a slow recovery, but they are efficient, relatively cash secure, market leader and the strike, when it ends, will release pent-up demand (I hope). Or, at present tempting price, they'll get taken over.
Can anyone tell me why there was a sharp uplift in share price last thing yesterday..the 16th june?. Cant find any news...not that im complaining you understand!😁
Urgh! Wish I hadn’t bought these! Will hold now though and will see what happens. I don’t understand their market enough to have any confidence to top up.
Will buy some at 7 quid, and more at 6.50p should it get there.
Oof. Well, this one’s going nowhere for the next 2-3 years.
Not sure what the deal was earlier but spread is back to normal now, and I'm in. Watch it fall!
Just tried to buy some of these. The spread is ridiculous. So ridiculous I didn't go ahead. Any intel on why that is? Is it just not traded sufficiently?
Costs up, and debt up quite a lot (by a third, to £193m).
Divi up 14%, to 40p, revenue also 14% up, to £451m.
Statutory profits down 17% to £24.7m, adjusted pre-tax profits up 27% to £54m. Which is a bit weird.
I'm holding, and will probably add a few more if it's still under a tenner when my ISA sub becomes available in April.
Results out tomorrow.
CEO has clearly stated that they will hit top end of analyst expectations in Aug 22
Guidance reiterated in mid-Nov 22 (1.5 months prior to YE)
IF exchange rate is similar to levels at the time of the August presentation, CEO implied that the results will exceed.
Exchange rates of USD to GBP are similar at the YE to Aug presentation.
c90% B2B vs 10% B2C.
Re-opening of China, re-emergence of travel in H2, 2 Prime Amazon Events (July + Oct 22) + 8% price rise in VMS division = recovery of VMS division.
60% of debt is hedged with swaps.
Appetite of film and audio production insatiable for their products - look at ZOO + ADF - they serve all companies / studios producing film and audio.
Typically H1:H2 is a minimum 48:52 split. If so, PBT will be at least £56.25mn - I would say nearer to £60mn PBT
Famous last words - this company is materially underpriced. IMO, company will not only hit top end of expectations but exceed. GL for tomorrow. Guillotine out! DYOR.
P/E is only 10 if the bad stuff is ignored. In reality it is nearer 14.
Results out @ 28/2/23
Presently, PE c10 = crazy bargain (historically 14 - 23)
Gearing - easily covered with EBITDA - no issues
Loans - 59% is fixed with swaps - therefore rise in interest rates only has muted effect on interest charges.
Expected to be "on the top range of analyst expectations" via interims in Aug 22.
Nov 22 - TU - Reiteration of guidance as given in Aug 22 (must have benefitted from 2 Amazon Prime Days for its B2C division.).
II must have been offloading, fab opportunity for a buy-in at dirt cheap price.
Whilst consumer sentiment was stated as "weak" per their TU in Nov 22, this only a small part of their biz, main part is B2B.
Stuart Widdowson of Odyssean Capital LLP with Paul Hill - https://youtu.be/B3spSRO8Uug
states, "materially undervalued" (56min and 20 seconds).
They are market leaders and enjoy ability to raise prices.
Aug 22
Interest charges are limited.
Per interims:
Adjusted net finance expense* of £2.9 million was £1.0 million higher than in H1 2021. This was driven by higher debt, following the recent acquisitions, and rising interest rates. As at 30 June 2022, 59% of our borrowings were fixed through swaps, partly mitigating the risk of rising interest rates.