Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I'm with you - hardly excellent results, though the bullish tone in the RNS would like to convince us that they are. The share price would have gone the other way had they been excellent.
But it also helps to be lucky!!
In my last post here in May, I reaffirmed my belief that the SP (then 215 'ish)was clearly indicating that the takeover would NOT happen and that assuming a sharp fall in the SP when the news broke, I had placed shrewdly judged limit buys at 190/180/160 to take advantage of the fall. I then set off for my place in rural France and didn't check for while , when I did I found that all three limit buys had been activated in the low 130's in the first few minutes of the post-bid news trading day!!!
Fortunately, that was a momentary low and today's results which TBH, I think are a bit patchy suggest that a recovery is on the way , WG is EBITDA positive , debt is more manageable and the income stream seems sound. I don't expect fireworks from here, indeed a slight fallback is possible, but I return to being a medium to longer-term holder and remind myself that even the best laid plans can backfire , but in this case, to good effect.
Aucuba,
You have summed up my thoughts exactly.
Touch Wood a better future.
In the run up to today, I had a feeling results would be good. Noticing a pattern on some shares. It is as if when good results are coming, the traders pull the price down a few days before to collect as many as they can. Hold on to them and walk the price up for the day of the results and a nice return. Opposite often happens before bad news and a drop.
The amount of shares traded prior to announcement of bid being dropped is also shameful. Surely most of the big increase in volume was insiders trading.
Markets stink. Even if they do make some of us money from time to time. All designed for a fee useless traders to extract money. Is it not time for AI and blockchain to start keeping this lot from clipping every ticket and never paying their dues?
Happy. Nice to see you back.
Hope you grabbed a nice low average when getting back in.
I played my hand badly by not listening to my gut.
So got some ground to make up but still looking healthy.
Suspect we will see a gradual rise from here and hopefully back to the 200/300s in the not too distant.
Steady results. GLA
Debt is in line with forecasts. Should they choose to, they can deleverage rapidly from 2024 as legacy liabilities fall away and much more of the profit is being turned into positive free cash flow. However, I think they will prioritise reinstatement of dividend because this level of debt is comfortably sustainable. Also, note the business is seasonal and cash conversion is always better in H2.
All IMHO DYOR
Happy
Thanks - the debt is in line with their projection at mid year.
It's a long long time since Wood posted numbers with no surprise and above expectations. Fundamentally I think they are through the worst of the transition away from oil and gas and skeletons have been cleared out from legacy contracts etc. Market is crazy at the moment and may of course see things differently but I think the results are strong and will help stabilise the share price if nothing else
Remember they had to pay $115M to settle the Enterprise claim in America in November last year.
RNS of 13-7-23 shows this net debt figure. GLA
Didn't they already signal this increase in debt?
I tend to disagree actually, how can they have got into over £600m of debt in the space of a year since the disposal!?
Https://www.londonstockexchange.com/news-article/WG./half-year-results-2023/16092631
Great results. Should see a good bump up on SP today.
All IMHO DYOR
Happy
SP falling away. Whose got wind of the interims?
Thanks. Nice when the 'gut feeling' is right, although time will tell of course.
I just felt the SP had had a really good run, and had become overbought.
Especially in a wider market that I felt strongly was going to correct any day. Not necessarily the mother of all crashes type of event, but a general correction at the very least.
Results should be solid. My decision was not driven by a feeling that they will disappoint. Equally not expecting anything above expectations either.
If we end up revisiting 130's ish on no company-specific news, I may well simply jump back in, but that is just based on guess-work to a degree, nothing seriously technical.
Ultimately, that is simply in the region that I currently feel offers attractive value right now. While 160's feels fairly valued IMO. At the time of print of course. Upgrade to results, or another bid, and my opinion would obviously change, even if I was unable to get back in, in such scenarios.
Timed well. See what results are like on 22/8
I decided to take profits here, the other day.
The 165p level was simply too tempting on the second visit, so I hit the button.
Might be one of those that I end up kicking myself for, but it will remain on my watch list, in case I get the chance to return.
If that day never comes, then GLA.
MaryBr190
All good headline stuff but personally I would like to see some awards which contain stated scope and value. The last few awards have been headliners for sure but they are all "framework" or "MoU" awards which may or may not add significant revenue.
Just my thoughts really - not trying to downplay these strategic awards merely saying we should not anticipate great financial contributions from them in the short/medium term
Firing on all cylinders
https://www.offshore-energy.biz/wood-allies-with-transitus-on-decarbonization-in-united-kingdom/
Seems to be build on a firmer foundation with all the speculators chastened when Apollo walked away. Looking like a true recovery stock now with the Directors needing to prove themselves to shareholders.
I was wondering if it was a result of shorts gradually closing, but I see that Qube actually declared a small increase in their short here on 2nd August and no declared changes one way or the other this morning.
Very, very interesting times coming here again perhaps!
Continuing to GLIDE
mms aren't dim, they know
It is rather tempting. Especially as it seems to have glided above the 200 DMA effortlessly, which I did not expect.
If there was another bid in the offing, I would imagine it would need to be in excess of 240p, because the most recent update, IMO, showed clear improvements on where the company stood around the Apollo time.
Macro stuff still not great though, so 275p would be enough to get shareholder approval IMO.
I appreciate this would not appeal to some of the LTH PI's, based on comments on this chat board back at the Apollo period, but those are my thoughts.
Could be.
HOLD4GOLD.
perhaps another bidder stepped out into the light before the Apollo rejection. The directors know you know ... nudge nudge wink :)