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I've averaged down with a decent buy at 58p today. Still some way to go to breakeven though so hope the news stays positive.
Have to assume that there's a correction to come (be bloody miserable if the drop WAS the correction!)
Should be coming soon, prompted by this agreement (though it's still to be formally accepted).
Should alleviate some headwinds to the story...
8m free cash flow and currently 63m EV
Grossly undervalued this company. Perhaps when the Japanese acquisition is finally completed it will rerate.
Interview with Stuart Green for this morning's results.
https://youtu.be/Uyvjqe89Jts
I was expecting around a 15% uplift today after reading the results. Still time of course but the Bull didn’t exactly charge out the gates at dawn today that’s for sure.
Clearly the investment community on not aligned with you Trotsky regarding II’s and what’s reflected in the SP. My sense is there are few things we are not being told about aside the reasons / excuses shared and the timing of them so soon after a capital raising.
The issues do not appear in the main unique to ZOO and many related companies are having what are hopefully short term concerns. Unless the whole industry folds (unlikely) its short term uncertainty where people may chase other opportunities before coming back. The question is what is short term? For some its 1 minute, others 1 Day or 1 Week, for the more patient 1month or even 1 year
I got out in time but was looking at 60p to purchase - now wondering if this share has a longer and slower way back?
Good point on Directors not buying in.
Looks like we could all have got in at 55p at this rate. It’s all rather disturbing I feel. Wonder why the Directors are not buying on mass if they really believe in the recovery
I’m in at 63p
Significant sales volume all above 60p today, this should be near the end of the sell off and tomorrow buyers to take this back above 70p. Sell off overdone IMO.
Punt trading is for the brave only.
It looks like selling frenzy over, should bounce from here. Sell off overdone as is often the case.
Unfortunately with shares like this when negativity takes hold the only way is down . I’m sitting on a large loss but I think I will sit it out before trying to average down , the old catching a knife scenario.
Wait for 40p !
Maybe I should have paid more attention to the Q1 update rather than the IFRS 15 adjustment. Mea culpa.
On the one hand, I can see why the Writers' Guild strike would be having an impact (it's affecting production and looks set to get worse before it gets better). This is beyond ZOO's control and will be affecting the whole industry.
As regards the wider economic problems and the consequential cost cutting measures being implemented by customers; it doesn't sound far fetched. Inflation was bound to have an impact at some point; the whole point of Central Banks raising interest rates has been to try and dampen demand.
In the short term there's not much ZOO can do other than grit its teeth are ride out the storm. In the medium to long term, if it continues, ZOO will be forced to downsize its workforce. It's a predicament. Businesses, certainly in the UK, don't like to lay off workers unless it's absolutely unavoidable because there's a degree of uncertainty about their ability to re-recruit people of equivalent talent as and when business starts to pick up again (they'd rather bare the cost for now than miss the opportunity when business pricks up; not being able to fulfill customer demand when business picks up can be lot more damaging for the company in the long run - once a contract is lost it can take a lot of time and money to re-engage, if ever).
This doesn't look like anyting other than a normal business "blip" that can happen from time to time. It's part of the normal business cycle (there will always be periods of "boom" and "bust" sprinkled in and around business as normal)
I think the market has made more of this than is warranted. It's simply a timing issue; it doesn't affect cash flow. CY EBITDA actually increases whilst PY EBITDA reduces! They were just trying to match income and expenses; IFRS will play havoc with their KPIs. Depending on the timing of when expenses are incurred you could see their gross margin and EBITDA materially changing from one period to the next without any real, underlying cause, other than simply timing - yet another thing that'll no doubt have to be explained away in the notes to the accounts.
Personally, I don't think IFRS is fit for purpose. It creates far too many wild gyrations which are more often than not taken completely out of all context and often leads to unwarranted share price movements because investors haven't got the time or the knowledge to delve into the notes ot the accounts to undertsand what's actually going on. More and more you are seeing companies providing "alternative" metrics in their accounts so that investors can better understand the underlying trends. IFRS has become a farce.
Well we had a solid interims update, all is great in the wheelhouse, then an II and PI capital raising oversubscribed at 160p now in few short months disaster at 70p. I would imagine significant shareholders will want the BOD or most of them removed….No one likes surprises like this, damages investment proposition credibility.
Well u got your 10%. Now jump the ship
Drop looks overdone here.
Time will tell.
here's a nice short vid on the Spain & Portugal update- possibly worth sharing on twitter:
https://twitter.com/fiveminutepitch/status/1654405575055138816?s=20
• miss on revenue
• acquisition price not disclosed
• acquisition done at a deep discount
looks a bit fishy...
Interesting movement for ZOO shares today, including an Intra-day high of 210p.
One thing worth noting is that ZOO released an unscheduled Trading update prior to the March year-end last year, on 22nd March.
It said that revenues for the full year would be ahead of expectations. With the recent Hollywood studio contract and other other trailed positive business, could we see a repeat next week?