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I see that Graham Neary has also updated on VLE recently (again subscriber-only - anyone got access?). VLE now comprises almost a quarter of his portfolio!
Https://cube.investments/volvere-in-the-right-place-at-the-right-time-vle/
"Volvere – In the right place at the right time
Graham Neary
April 9, 2020
Throughout this economic and financial disaster, I've taken solace from my conviction in my top 5 portfolio holdings.
These 5 companies add up to nearly 70% of the entire portfolio value.
Top of the tree is Volvere (VLE), which now accounts for a silly 24% of my portfolio.
It released a trading update today which, naturally enough, I was very eager to explore...."
VLE have been tipped here by the looks of it. Subscribers only - anyone got the text?
Https://www.*************.com/views/48390/volvere-shares-up-on-our-february-share-tip-after-trading-update-more-to-come
"Volvere – shares up on our February share tip after trading update, more to come…
By Tom Winnifrith & Steve Moore | Friday 10 April 2020
Self-styled “growth and turnaround investment company” Volvere (VLE) has updated including it is “still achieving an encouraging level of output” and “is in a strong financial position, with significant cash resources”…"
Understandably cautious statement but good nonetheless. So far today 9 sales of 1000 each and the bid price remains unaltered. I wonder who has bought them? The company perhaps.
Trading statement is out. VLE continue to look great value imo. JL is typically cautious about the pandemic's uplifting effect on Shire's sales, but the signs are there:
Https://uk.advfn.com/stock-market/london/volvere-VLE/share-news/Volvere-PLC-Trading-Update-and-Notice-of-Final-Res/82200157
- net assets of 1382p per share (excluding the true value of Shire Foods)
- cash of £19.3m (prior to small Indulgence acquisition)
- Shire made £1.3m PBT, up from £0.85m, with revenues up 26% to £23m
- Shire's likely large uplift in retail sales partially offset by foodservice decline, but this must surely be much smaller relatively speaking as only 12% of sales?
Actually it would be a £28m cash pile (less the Landers' bonus) as VLE own 80% of Shire :o))
Indeed mytton.
The usual March trading update is now slightly late. I wonder if this is due to VLE being in the midst of corporate action? This could of course be an acquisition - but might it also be disposal news? The time to sell Shire (including the small Indulgence operation) would be at the peak of its attractiveness - which is now.
The Landers are keenly aware of the timing of these things, and of leaving something for the next man - perhaps they will utilise the current boom in demand to allow a respectable exit for Shire.
It would be great to see VLE sitting on a £30m+ cash pile having sold Shire for £10m+, particularly in the current environment. Anyway, pure speculation at present.
Agreed, but entire sectors of the economy are trashed. VLE can continue to wait
There's a "wall of cash" ready to support companies on the brink according to Bloomberg.
Including VLE's - the Landers will be inundated with opportunities in the coming weeks and months:
Https://www.bloomberg.com/opinion/articles/2020-03-31/distressed-debt-vultures-might-already-be-too-late
Peel Hunt have upgraded Cranswick to a Buy - you might just as easily substitute VLE (or Shire Foods) for Cranswick in this article:
Https://www.proactiveinvestors.co.uk/companies/news/916146/cranswick-churns-out-sausages-at-top-speed-as-coronavirus-drives-up-prices-916146.html
"Cranswick PLC (LON:CWK) is likely to be benefitting from the surge in demand for food through UK retailers amid the coronavirus lockdown, as well as from higher prices and demand for pork in China, analysts reckon....
“Schools are unlikely to return until autumn and summer holidays are likely to be spent at home, which means demand through retailers will remain high,” the Peel Hunt analysts said in a note to clients.
Over at Liberum, analysts also seemed to have picked up that Cranswick “continues to trade well” in its core UK market amidst high consumer demand for staple protein sources of sausages, bacon, ham and chicken.
”With food and farming deemed essential by the government during the coronavirus crisis, all of Cranswick's facilities are running at high operating rates, the Liberum analysts said in a separate note on Monday.
Yet VLE still only has a £25.2m m/cap - against around £19m-£20m net cash and therefore a valuation for Shire Foods of only around £5m.
Shire made £0.85m PBT in 2018 and was already on track for a much improved 2019 after H1'19's good results. With the curent crisis, we now know that Shire's products have been flying off the shelves and should continue to do so.
I'm really looking forward to the next trading update.
1000 not 10,000
Official london stock exchange site records a trade at 16.03.51 of 10000 shares at 1302p worth £13,020 so this site does have some missing trades
lse is a bit cr@ p at present. It usually gives up recording trades at about midday so it did well today.
The number of trades may include previous days.
Nice to see a decent hike up today but also a bit strange. On this site it gives the details of only 2 trades but on the header tells us there have been 15. If there has been that number, very encouraging, not only filling the freezers with pies but the boots with shares.
The trading update is late. Hopefully any day now.
Likely due to either or both (1) having to finalise the figures given logistics difficulties due to the virus, and (2) having to count all the additional money coming in to Shire Foods from its supermarket customer base :o))
Good to see some blue in my portfolio today :o))
Thank you rivaldo,some welcome good news in this,my largest holding by far.
agreed, well done.
Had a top up today but no trades showing on LSE after 11.30am (as usual)
Well done Rivaldo, great find! Working 3 shifts per day is very good news and when the panic buying slows down they will pick up more business from their erstwhile smaller accounts- Iceland being one.
The steadiest share on the market! Very tempted to buy more but prudence tells me I have enough. Should never have married her!
Fabulous new 11 minute interview with the Commercial Manager at Shire Foods about how the pandemic is positively affecting the company:
Http://cerespodcast.com/hospitality-insights-kevin-newey-shire-foods
Highlights:
- Shire are now a supplier to food retailers of pies, sausage rolls, vegan products etc, having transitioned away from the food service market
- Shire are seeing a "large upturn in sales and demand for these products"
- Shire supply Aldi, Iceland, Morrisons, Lidl, Asda and B&M (via Heron Foods)
- sales are accelerating and are like Christmas sales every day at present (remember, this is usually the seasonally quiet time of year)
- most ingredients are British, so no problems sourcing them
- Shire are working 24 hous per day for 5 days
- he doesn't foresee any staffing problems
- their supermarket clients are seeing loads of new customers now coming in every day and so are building up a new and expanding customer base
Got to be a multitude of opportunities for VLE at present
I wasn't too happy with the Cash ISA aspect before.... now I'm kinda glad!
Goodness, they're going to have some firepower: when the time is right. If Itaconix is going the way of all flesh, simply because they can't raise the needed ongoing funding for a great business, I wonder if they would consider stepping in?! There'll be others like them.
Dream on, Qd.
VLE were tipped in Master Investor's monthly magazine out this week as one of three small caps which look good bets (along with CNIC, which I also hold and has 90% recurring revenues):
Https://masterinvestor.co.uk/magazine/?utm_source=Daily+Bulletin&utm_campaign=8680e1a5d1-MI_Magazine_Alert_March_2020_DB&utm_medium=email&utm_term=0_25eff0bb7f-8680e1a5d1-34898813
See p.29 - the conclusion reads as follows:
"Cash to splash
Volvere's excellent long-term track record is demonstrated in its share price, which since bottoming out at 98p in March 2009 has risen twelvefold to currently stand at 1,185p. Nevertheless, that price is still a 13% discount to net assets per share of 1,356p as at 30 June last year. I note that figure is also equivalent to net tangible assets as Volvere retains no goodwill on its balance sheet. What's more, net cash of around £17.7m as at the end of last June covers around 82% of the current market cap and provides plenty of firepower for further deals.
With the company well-funded, and the Lander brothers having a very keen eye for a deal, Volvere looks attractive to me at current levels.
Some excellent returns have been delivered in the past by investing in underperforming businesses and then selling them for many multiples of the initial amount paid. However, it does seem that the directors are cautious, only putting
the company's money into the best deals that they can find. This is demonstrated by Indulgence being the first business bought since March 2015. As such, investors should have patience with Volvere. But it is encouraging that in the interims
management commented that the level of deal opportunities has increased since 2018 and that they are optimistic they will identify new businesses in which to invest.
Overall, as a play on a cash-rich company with a highly able management team, the shares are worth considering as a speculative buy."
Kisp57, thx re Graham Neary's comments. VLE have been tipped over the weekend by ************* - subscriber-only unfortunately, so if anyone has access....
Https://www.*************.com/views/47662/volvere-an-undeserved-discount-to-last-stated-nav-buy
"Volvere – an undeserved discount to last stated NAV, Buy!
Saturday 29 February 2020
September-announced half year results from self-styled “growth and turnaround investment company”, Volvere (VLE) included “net assets per share have reached a new record of £13.56 (30 June 2018: £6.75, 31 December 2018: £12.50)”. Despite this and clear further growth potential though, the shares are still available at a meaningful discount to that NAV and so…"
For reference, it's worth remembering that the m/cap here at 1125p is just £20.9m based on the 1.834m shares in issue.
I assume VLE's net cash position after the latest acquisition will be around £19m-£20m given Shire Food's H2 seasonal bias.
Which values Shire Foods, including its freehold property, at...not a lot.
As an aside, I'd have thought more people will be eating in, some with Shire Foods' meals, rather than going out to restaurants in the current virus panic (and given the recent rotten weather too!).
I managed to get sight of Graham's comments at last. Nothing new,other than it is 20% of his portfolio now. He backs management because of their incredible restraint. The Indulgence acquisition is the first for 5 years,despite having oodles of cash. Opportunism and a focus on capital preservation are two rare and invaluable characteristics of this company. VLE is only risking £1.25m of the cash pile plus a working capital facility,and will presumably look for synergies with Shire. He says he will continue to hold. And in this febrile market,it looks as good a bet as anything!! That last is my own assessment. I now hold over £40k worth for the record.