The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Institutional placing at 240p, that should be the bottom but it’s not. I am looking at 140p if we get there to increase my holding with reserve cash.
Was the CEO sacked, thought he left for a much better job
He likes his transport companies, and with a strong balance sheet this could be the time for him to pounce.
I would like to think that within 12 months normality will have returned apart from maybe more people wearing face masks. But transport networks are critical and NEX are in a pretty good place for the future. Still believe £3+ is possible in 6 months.
Could be an interesting investment for him. Fits the criteria that he sets, and he is a lover of transport stocks.
Short term this is at the whims of the shorters and traders. Long term there is no doubt with a strengthened balance sheet at 220p they are in a very strong position to return to 400p+ within 2 years.
Remember the CEO cannot sell if he is privyv to bad news. He is still employed until December. His circumstances have changed and maybe he needs the money. My point is why not sell at 290p if you knew something was off
Why not sell them at 290 a month ago. Maybe he needs the money or there is a corporate reason, or he needs the money for his vested options.
I smell a rat. Why so much and why PIs locked out. I suspect that they needed to show they had the funds to manufacture and where committed. Maybe a large buyer golf the product in the wings. Maybe even a national government. Dilution is never fun, but if they didn’t have and II in the background they would have kept the offer open for longer for PIs.
The departing CEO sold all his current shares. He still has 1.2 million vested options. Not good on the surface, but he is leaving and maybe needs the money now for some reason or there could be a tax or corporate reason. Otherwise why not sell at 290p a month ago. If other directors then it maybe a worry.
Just drawing out the weak holders. Will be a while before this recovers but will be back to 400p within 12 months.
Could be viewed negatively. But so am surprised he has stayed so long at NEX. CEO’s tend to move on pretty quickly. I would also given the opportunity in the building sector and improved remuneration. He will still be there until the end of the year so operationally they have time to recruit a new CEO.
The towers business is undervalued within Vodafone shares. A natural split would realise value for the Towers business and boost the bottom line. Renting them back makes sense from an accounting point of view. I expect £2 within the next 2 years.
Let’s be logical here. This is a coach company within countries. None or limited national travel options. The govt need to keep transport links running within countries. Coaches and trains offer these solutions. My view of coaches is this, I can ask the driver to stop at anytime and get off if I so wish.
But I am sure NEX will only allow people to travel with masks and be temp tested before they board. I would feel the safest travelling by coach than any other travel format.
If they provided complimentary bottles of hand cleaner to each passenger (small bottles), this could work.
I would start buying in small amounts at this price.
So if I had sold at the beginning of April at 150, as this systems stated you should I would have lost out on the price going to 290. That’s why in this market charts and technicals are a waste of time.
The Simple fact is, normal will return once a vaccine is found say 12 months. This is really one to tuck away for a couple of years. Will be 450p within 2 years.
I am looking at this and thinking this is a major opportunity for an institution to stake build at a low price. Pension funds would be really interested in this. Imagine if you tried to buy 20% of the company in the open market, the price would fly up.
Traders are seeing this as a shorting opportunity, but I believe this is huge long term positive. They have cast iron contracts that are still paying and have positive profit.
If I had more money I would be buying