New trading range29 Jun 2015 20:08
The rise to a new trading range is in keeping with the very positive AGM statement. Yes there is going to be an initial profit take from the short-term traders who got in a week or two ago, but that should soon fizzle out as the prospect of holding for greater rewards outweigh the 1 or 2p now. We have had a legacy seller for some time; this has nothing to do with current trading at Porta, it has been gradual over a long period suggesting either a portfolio rebalance or income take from selling over the past year. Bob and crew have done s super job in reducing free shares in the market by director buying; they acknowledge that a wider institutional shareholding is preferred. On the back of the visible and excellent progress being made, I would expect both Sanlam and David Wright to embark on a roadshow to encourage same. With the rate of increase in fee income that Porta is achieving the story should be getting a easier. The growth of Newgate Australia has been nothing short of spectacular, and from a start-up value of around a million pounds, must now be virtually equal to the Porta MCap alone. However, as it is difficult to sell antipodal success to UK institutions, it will take the increasing success of Porta here to tip the scales - that is why the AGM statement was pivotal. Growth across the company, outlook very good. £25m is seen by most analysts/journalists as a hurdle MCap below which a lot of companies are off-the-radar. We have just jumped the radar hurdle so expect more interest and coverage from now on. We are not only up; we are up AND running.
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