Member Info for 42trader

I had to laugh yesterday when someone replied to me saying that retail was fine and they had seen loads of people with shopping bags. Ofc people will always shop, but facts are sales are down, not just here but all over. There is always a sector or two within the markets that are out of favour whether it’s gold, oil, banks or the current one, retail. Retail will come back though one day when the rot is cut away and in the mean time there is always bargains to be made. Look at pub trade, you wouldn’t want to be in it, unless it was JDW.

It’s not dying, the sector is just unloved due to too many big firms collapsing as they struggle to cope with drop in revenues partly due to internet shopping but also people do not have the same disposable income any more and ofc they have more things to buy these days that years ago were seen as luxury.

Quite possible market is pricing in more profit warnings. If people are buying now, hold some cash back for any lower prices. Might not see lower but still possible. Obviously there is still sellers so who really know? No one. Yep it certainly is like a casino is aim.

STAR is very much under valued. Just need to wait. The figures are improving all the time and the bottom is quite frankly not going to be seen again. There is a lot of resistance at this level so it’s always going to have some red days until it’s broken but if the company carries on like it is, then multiples of this sp will be seen over the coming year. Where it gets to, who knows but it is likely to be bought out one day in the future.

Well that dropped easily so I’m guessing wait for 25p. No point in trying to catch that knife. Let it settle. Even though it’s still profit making, its missing targets and who is to say there will not be more profit warnings on the way? Market will not want in this until they see a reversal of fortunes and that will be a way of yet. When it settles it will likely go sideways. 22p broker rating does not help either. This is uncharted territory and so there is no support anywhere. Just wait for it to settle and go sideways. You may miss the bottom but you could still buy at a lot lower than this. It’s all very negative but NO ONE knows where the so will bounce from and so the sensible investors will wait.

As I said yesterday, massive support was at 5p so if it was to bounce anywhere that was the place. Even if NAV is much lower than it is, it is still under valued. Wouldn’t hold for years as there is still a lot of questions unanswered but still good for 2x3x current mcap.

Quiite possible they wrote the wrong price on the rns? lets hope it wasnt actually a sell LOL

I was going to post earlier about large support around 5p and that would be a great place to buy in while moral would of likely dropped through the floor. Seems Pelham has fixed the bottom personally. For the record I have now dived in and added as I do not think I will see that 5p mark myself now.

Been waiting to buy lower close to 5p myself but the sp didn’t go that low. How the hell has Pelham managed to buy at 5.16p at that amount?

Looking for 35p for a short term trade as it settles around this level and the mms drop it slightly lower to catch out all those who jumped in on this drop.

Agree.
Just goes to show how badly the bod have got it.

Yet loss making, issued previous profits warnings and yet again today and massively dropping y19 expectations. Can not even make an ebitda profit. As for saying I do not know what I am talking about, well I did suggest this would drop lower back in June and July. But all you need to do is read the rns's as it is all there. They are telling you they are missing their targets and that there is no end in sight to the slump in retail.
I am not suggesting you do not invest here, that is your decision to make, what I am suggesting is to wait and let the company sort itself out. Let the sp settle down, you may not get the bottom but it is a far safer way to invest.

Nice rise of 5% so far today. Fundamentals are great, technical's are showing resistance at this level but an overall uptrend movement. Time for the next step up I am thinking.

Investors really need to stop catching the bottom. These ipo companies need time, as in a few years and imo this company is trying to run before it can walk and is getting it badly wrong. Speaking a few weeks back to a company director of one of Foot's suppliers, it was obviously clear he believed that foot had made some big mistakes.
These mistakes are shown here in this trading statement:
66 stores and the company can not even be EBITDA positive
Delays in new store openings
Reassess y19 expectations and expects revenues to be below market expectations
Lower overall gross margins
at less than half of the FY18 adjusted EBITDA of £12.5 million

As I said, stop trying to catch the knife, let the company settle down and show signs of improving.
There are way too many red flags here even without the facts that retail is suffering, record levels of food banks being used, decline in house price % rise and less people migrating into the country. It is not looking pretty and the signs of a market crash are here and people will look back and wonder how obvious it really was.

Investor chronicles done a small post in their share tips and have this down as a buy. No UKOG though.

Well there it is. MXCP fully out at 97p. I'm guessing they have another company lined up to invest in. Good that the sp has held up nicely.

Yes SDX results were very good and they are up today. The companies are ofc completely different but both are hinging on what is going to happen in the rest of the following year.
STAR has demonstrated that they are progressing very well and as previously stated STAR has shown that they have the funds to more than likely see them through until they become cash generating. Add to this what will happen upon the back of BOSCH this is looking to be a rerated some time soon in the future. Even without BOSCH this share is looking very attractive.
The sp drop i would hazzard to say will be down to the previous placings and lack of understanding that the company is no longer in need of another placing due to the secured bank facility.
Looking at the previous placings, they were not huge and managed well in regards that just enough was made for the company to keep progressing for the short term. Based on this, even if another placing was to occur it would likely be very small and nothing to worry about. I doubt a placing will happen though as its not needed unless it was to massively boost production.
The company is in very good shape and the drop in the share price is a buying opportunity.

Atb

Well despite the negative posters and the share swapping around by Pelham another ii has increased holdings to above 3%. Was not so long ago Pelhams right hand man added a large amount. As they say, buy when others are getting nervous and selling. I have. Atb

Good post daft63. What people really expect is beyond me.
The company is debt free, profit making and on target to hit it's targets. What more could you want?
There are always people who will sell, after expecting huge rises but it is unrealistic. The rise will come if SDX do double their production by the end of 2018 and so far they are telling us that they expect to do just that.
This extract was taken from the link parislse has just posted.
"SDX - Great Q2 and H1 2018 results
▪ Netback/gross profit of $19.3MM increased by US$6.3MM (48%) over 2017
▪ Cash generated from operations increased by $9.2MM (83%) over 2017
▪ Current entitlement production up by 1,210 boepd (37%) to 4,444 boepd
▪ 20 of 23 (87%) wells drilled were successful!
Well Funded
▪ US$36.3 MM of Working Capital (US$ 25.2 MM in Cash), No debt
▪ Generating +/-$3.5MM of cash flow/month in H1 2018
▪ Entered into credit facility with EBRD in Morocco for US$10MM
Looking Ahead
▪ Currently running 3 drilling rigs and will decrease to none during Q3 2018
▪ NW Gemsa –
▪ 1-2 workovers (maintenance)
▪ Maintain guidance @ 4,400 boepd
▪ Meseda –
▪ 1 infill well MSD-15 – Meseda
▪ Maintain guidance @ 3,800 boepd
▪ South Disouq
▪ Drilling and testing now completed
▪ Development activity underway – targeting 60 MMscfd initial rate
▪ Sign GSA, Development Lease, JV structure
▪ Acquisition of 170 km2 of 3D seismic, commence Q4 2018
▪ Morocco
▪ Production: 8-10 MMscfd
▪ 3 new customers acquired
▪ Complete 240 km2 of 3D seismic in Gharb Centre
Exit rate of 2018 anticipated +/- 8000 boepd 2X entry rate"

Thanks. Quite happy for this to be a quite board as useful info does not get lost in all the trash talk that happens on other boards.