Member Info for aarya

This is response I got from the company. I will wait and watch and can't bring myself to sell such a cheap stock to buy something else.

Thank you for your email, which has been passed to me by our Company Secretary. We appreciate you getting in touch. As you say, it is disappointing to see the recent fall in the share price, particularly as it only increases the gap between the market price and the value implied by the independent valuation of the Group’s assets. You are also right to point out that we cannot control the price of our shares. We have, for some time, been buying back the Company’s own shares, and since 2017 have deployed over US$25 million in doing so. At the same time, we remain focused on growth, and to that end I am sure that you will have seen that earlier this year we both opened the Group’s sixth palm-oil mill, and acquired more than 2,000 additional planted hectares.

We continue to look for further value-enhancing growth opportunities whilst, at the same time, continuing with our share buyback programme. Reflecting on your feedback, the board will certainly discuss the potential to extend/expand the buyback programme, particularly at times of lower prices.

I have sent the following email to the company and hoping they will respond:

I am long term investor and disappointed with share performance while company seems to be doing very well on a fundamental level. The company has net cash and doing token share buyback which just about mitigates new shares issued to satisfy staff rewards. I appreciate that company can't control share price but I can't understand why company will not do significant buybacks at these prices that seems to be less than the company's own independent valuation of more than £14. As a shareholder, I consider it will create tremendous value than buying more land. Looking forward to hearing from you.

15k buy is not here or there but what I take from it that he has no plans to sell his shareholding at least in the short term.

Another chart show negative divergence on RSI chart and breaking out of downward trend.
https://invst.ly/-8qdu

https://invst.ly/-8n9w
Chart of card factory and SIG (blue line). Both shares behaved in a similar pattern until recently even after being in totall different industy. Card factory share price took off recently. I have got a feeling SIG could do the same. Last few weeks price action and volumes would support this view.

Could it be a case of "Sell the rumour, buy the news" case. The stock has been volatile since the news of windfall tax in May and it is still down from that level. In July, the company was expecting eps of c.15p and that has now gone up to c.25p. It is a massive jump in a matter of months. The company announced share buyback and further help for struggling customers, and it suggests to me the company is in good shape and would be able to take on chin any further windfall tax. If that was not the case; the company would have waited for autumn statement to find out the actual hit. I am hoping that coming Thursday would draw a line under this windfall tax saga and remove uncertainty that the market hates and the share would start making long awaited steady upward trend.

I am not buying at present as heavily invested but look undervalued to me. May consider topping up if it drops further.

I agree that 1.8m trade volume does not explain the big rise today.

Volumes for the day may indicate if someone has started accumulating. I expect the volumes to be a lot higher than normal.

Chart didn't look good but today's jump has prompted me to buy back the share I had sold around £17.

Fundamentally it looks cheap but shares can overshoot and undershoot in a big way.

Downward momentum is too strong. I would not be surprised if it goes down to c.850p (last support level in 2018). So, wait and watch for me at present.

Noticed the same pattern with Mitie. It peaked around June last year and drifted down and then was up by 40% in a month in July this year. Will SIG follow the same pattern? I am hoping so.

It seems they have not been able to buy back much shares over the last few days as the price is 5% higher than previous 5 days average. So, any pull back should allow the buyback to restart and support the price.

Interesting chart pattern emerging. For 4 months in a row, it has closed between 79-80p. It is almost showing a straight line on monthly chart. I suspect it will breakout big whenever it does. Hoping it is on the upside.

Milnrowmug, I was extremely bullish at one stage but sold last year in Feb at over 80p. I am not tempted to buy at present. I will wait until I know more about how the company is doing.

I sold it last year after holding for a while. I got concerned due to rising inflation and their thin profit margins. I am concerned that market cap is too small compared to debt and from personal experience, these kind of companies don't end well. I will wait and watch and see how it pans out but not looking to buy back at present.

Thanks Tufted and Tad for the info. I am using the following site to track future elecrricity prices and so far it seems that the prices will remain high for a while so should be good for Drax.
https://marketwatch.zenergi.co.uk/market-analysis/

Tuftedduck: I am looking at the site and can't seem to find the relevant information. Would you please mind sharing the link. Thanks

"for Drax today. With very low wind, both the coal units have been bought on in the balancing mechanism at £4,000 and £4,050 per MWhr."

Tuftedduck: Where did you get this information from. Thanks.