Member Info for Alessandro

Does anyone understand the need to increase the borrowing base announced this morning?

Thank you.

@foolishlearner Total will be about 3 billions. I think so far is around 2.5 billions. I did no maths tho, Just a very rough estimate on what I can recall

VistaMan, if any investor can be put off by what's on Simply Wall Street it means that the investment arena has become a circus. I pity those who pay a subscription fee to Simply, I would rather pay a subscription to SharePad (which I actually do BTW) where you can build an opinion based on raw data, if you have some basic knowledge of accounting and elementary maths.

Anything you can read on Simply Wall St. is worth no more than garbage. It's written by a brainless algorithm.

Generic question, with interest rates on the rise, would the average PE on the LSE come down, if a growth stock was "cheap" at a PE of 20, would that benchmark be moved lower, e.g. to 15 or something?

if JD was peaking at 240p not long back, would the same share price be our of range now in the new climate of interest rates? I.e. should the projected earning be discounted by the BoE interest of 5.25%?

Is it possible to view a recording of the investor engagement event 21/22.09.2023? I wonder if anyone asked questions about the CFO leaving the company and the response from Doug and Rusty.

Another investor event is in schedule for Wednesday 27th.

Knowing that Vanguard (38 millions shares), BlackRock (48) M&G (65) and Rusty himself (24) hold a good no. of shares somehow gives me the feel that institutions and the CEO have done their maths and know the business model is robust.

I want to remind you that the market cap of DEC is about £1billion. It takes £10 millions to move the share price by 1%, £100 millions to move it by 10%. Don't hold your hopes that the BB will be in the range of £100 million in a year. That would mean a daily BB of over £300,000 every day of the year (5/7) for 52 weeks. That's not going to happen. The market needs to respond positively to the company actions or the share price will go no where.

The capital spent on training could be partially wasted if the employees turnover is high. I imagine staff retention may be a considerable cost not to lose the upskilled technicians. I will buy in if the share price falls under 300p. I noticed that US companies listed in the UK do not receive much grace from investors. Why Water Int. did not list on an US exchange?

@Badgernator That's wasteful indeed. I hope for a takeover over £5 per share, which is a no brained considering the impressive margins Somero generates. The ideal candidate would be an investment firm rather than another company in the construction machinery industry IMO

Adding to my previous comments, delisting may not be that bad thing for DEC after all, the dividends could be even bigger considering the non recurrent cost of being listed. Certainly it will dampen any plans for further expansion, which I imagine are now on hold anyway, given the weakness of the share price.

What happens when the share price is too low?

Google search returned this (among other things):

- Once a stock falls below a certain threshold, stock exchanges will delist those shares

Is this a possibility for DEC?

What is the other BB?

Was the investor engagement event supposed to be for today? are there any presentations or recordings available?

How will companies like IG (not to mention HL with its expensive fee structure) compete with the likes of eToro and Trade 212? Sorry if the question is too trivial

@redlse: do you mean Rusty bought some DEC shares?

@Glowacki How do you think JD should fund their expansion if they pay out a large dividend? If a larger dividend was to be paid out, I would probably just reinvest it in JD anyway!

I was expecting a much sharper rise of the share price

Thanks for sharing Piworld. Somero seem to be in a good position after all, it is in its destiny to be undervalued. Little chances for an acquisition, at least, so far it has never been in talks for acquisitions, and none there are at the horizon.

A good hold for dividends, however the payout has to remain competitive with gov bonds rates to retain its valuation on the market. The management as usual does not make any forecast for the years to come. Encouraging tho, at least for me, knowing they have an impressive customer base of 6000.

The Rogue Trader pull up a nice analysis. What I was convinced of is that derivative losses are paper losses, i.e. "what was earned" minus "what could have been earned without hedges in place". Therefore numbers not to be concerned about. However my previous understanding isn't matching what I seem to understand from the Rogue Trader, and derivative losses need to be covered at some point in the future. Anyone has insight on how hedges and derivatives work?