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Nice move up.
VLE should benefit from the second lockdown in their seasonally much better H2, with more people eating at home during the day, particularly given the cold weather. In addition - and this has been mentioned previously by VLE - the schools are staying open this time, which will benefit Shire's food service sales.
A £10m placing at 1350p....impressively, no discount at all to the share price. Us PIs have a chance to get involved too.
Summarised by:
"The Directors believe the current business environment will lead to an increase in distressed and turnaround opportunities available to the Group, specifically due to the impact of Covid-19 and Brexit in the UK."
That would give VLE £26m+ of cash firepower. The Landers must have some decent-sized targets in mind.
Another buyback - this time £33,000's worth at 1312p:
Https://uk.advfn.com/stock-market/london/volvere-VLE/share-news/Volvere-PLC-Transaction-in-Own-Shares/83420282
VLE will pick up small parcels of stock as well as larger ones like this - VLE is a relatively illiquid stock. It's as much about the signal it sends as the actual amounts involved. The Landers are cautious, and if they are happy to buy back stock at these levels it means they really think the share price is cheap.
Better than nothing!
500 ? hardly any ...
Good to see VLE restarting the buybacks as I hoped, buying back shares at 1290p yesterday:
Https://www.investegate.co.uk/volvere-plc--vle-/rns/transaction-in-own-shares/202009300738575654A/
Almost bought some yesterday. Glad I waited till today.
Question is will this reverse the upwards momentum? I am betting no.
Via the Impetus gains. Little has accrued from the food side so far. If suitable targets can't be found by the time of the full year results,I think a tender offer would be appropriate.
Added at 13.26 (too hasty), 12.20 & 12.50 Didn't expect to be be buying in the 13s again let alone the 12s.
Thanks Ricardo for your analysis. We have become so used to an ever rising NAV that a fall has scared a number of investors into selling.
My concern is the cash being poured into Indulgence with little so far to show for it. I presume the Landers know what they have,but I would be happier with a deployment of cash into non-food investments. A huge part of our NAV has come the Impetys
Results are out for the much seasonally weaker H1. The MMs have gone overboard with their reaction and are stiffing any sellers - the price has already bounced somewhat.
At 1245p the m/cap is now £22.8m. This compares to £26.02m NAV (all tangible assets), and £16.1m cash. VLE might consider re-starting their buyback programme at these levels.
Shire are doing well as predicted, with profits up around 50% against last year, though not as stellar as I hoped due to extra costs to cope with demand and increased production.
Indulgence has obviously been tough. Around £1.6m has been spent so far post-acquisition, leaving Indulgence owing VLE £2.84m to be repaid including the acquisition price, and essentially it's acted as a start-up incurring initial losses of £0.6m since February.
Good to see this news:
"I am delighted to announce that the Naughty Vegan brand is launching in a "big-4" retailer imminently."
Cash is at £16.1m after the Indulgence investment.
So overall a bit of a holding pattern methinks for this H2, whilst Indulgence is brought up to speed. Shire should have a very good H2, so their year end result will imo be great, offset to an extent by Indulgence.
Very well timed purchase yesterday!!!!!
The bid price is solid at 1500p, whilst the 20p spread at 1500p-1520p is possibly the smallest ever (I seem to remember it was that or larger even when the price was 150p-200p!).
Spread still quite tight. Paid 1560p for yet more, I have too many but short term at least there should be some mileage.
Gla
A couple more small buys today. The spread is down to a lovely small 40p at 1500p-1540p - so this is a good time to buy before the spread widens again to the more usual 60p-100p.
Someone keen to build a stake prior to the interims which should be out in the next 3-4 weeks perhaps.
hardly big times............................
Over the last few days sales have added up to about 5000 with the bid price unchanged. I wonder who has bought them? An encouraging sign.
Cranswick - the food producer, including pies - today reported their Q1 trading to the end of June, and stated they would be ahead of expectations for the year to March '21 after "exceptional" demand in the last quarter due to the shift to eating at home.
VLE will have suffered in the areas of foodservice and provision of pies to the footie, but these are relatively small contributors, and overall I'd expect them to have benefited in the same way as Cranswick.
H1 results will be out in just over a month.
...and Lidl are to open 25 new stores this year too, rising to 100 new openings by 2022:
Https://www.thesun.co.uk/money/12115765/lidl-open-new-stores-jobs/
"LIDL is set to open 25 new supermarkets across the UK this year - creating 1,000 new jobs."
"The ambitious plans will see Lidl open a new store every week across England, Scotland and Wales until Christmas 2020.
It's part of a £1.3billion investment for the UK that will see another 100 stores open in 2021 and 2022."
"There are around 800 Lidl supermarkets across the UK, and the retailer says it hopes to have 1,000 by the end of 2023."
News that Aldi are to keep opening many more stores, and that sales increased 13% in the three months to July 12th, should be good news for Shire Foods:
Https://www.thisismoney.co.uk/money/markets/article-8573339/Aldi-set-create-1-200-jobs-UK-year.html
"Aldi to create 1,200 jobs in UK this year as it continues to open stores
Published: 22:27, 29 July 2020
Aldi will create 1,200 jobs in the UK this year as it continues to open stores.
The German discount supermarket business plans to open an average of one shop a week between now and Christmas.
The retailer, which has more than 890 stores and around 35,000 UK staff, has already created 2,800 permanent jobs this year after demand for groceries rocketed in the face of the coronavirus pandemic.
Sandhurst, Bristol and Edinburgh are among the areas where shops will open as it continues towards its target of operating 1,200 stores by 2025.
The chain saw sales increase by 13 per cent over the 12 weeks to July 12, according to figures from Kantar."
qd22 we would need a crystal ball
If they were to RNS a cash acquisition, unless it were manifestly stupid (which would be VERY surprising) what would happen to the share price?
An opportunity to top up at below NAV has presented itself as a no brainer for those with cash. Fill yer boots. Real value here at least 1800 imho.
Lots of small sales over the last two days with.the shares slipping quite a bit. We are not used to this!
Any ideas as to why? Nothing sinister I hope.