Off topic but relevant IMO24 Aug 2019 11:45
Courtesy of LIION on the BMN chat board. Real world (cash generating mature Company) evidence of the investing community being risk averse. Its been posted on BMN because the broker rating to share price ratio there is 92p to 21p. With the value of Kibo all aspiration and no cash this post shows we are not alone. I'm heavily under water with this share but its like I've put all my money on zero playing roulette - smelly stuff or bust.
"I've recently been asked by many of you what I think of the current share price.
Our recent strong half year results gained lots of positive reactions from media and market commentators - and from our major shareholders. All of them see clearly the pace and sustained progress,in our transformation; our cash generation, which doesn't lie, our balance sheet strength, best in sector; our growing order book. In sum, our very strong position versus our competitors to turn the significant opportunities we see in our pipeline into our strategy of managed growth.
As they say - what's not to like?
The analysts rate our share a BUY, with an average target price of 337p." ( Currently 212.6)
"So yes - it's frustrating and disappointing if one looks at the current share price, that we nowhere near that target price. We're succeeding and it looks as if no one is ready to admit it.
So what do we control?
1. Our focus on margin and cash, when we prioritise the work we bid.
2. Our strong investments portfolio (real assets)
3.Our management of risk.
Concludes As analysts at broker Numis noted, the valuation is "ludicrous" and must eventually rerate.
I couldn't put it better myself. Be patient, focus on what we control; do our absolute best; ensure we receive the right price for our unique capabilities and the value we add and when everything settles down the market will follow.
I'm a buyer.
Leo."
The above was sent to all employees by Leo Quinn, CEO of Balfour Beatty on 23 August, I found the similarities to our own position staggering and thought that I would share it with the BB. It seems the current downer on industry and investment is not peculiar to Bushveld or indeed AIM.
More importantly good health and progress to all those who have been struggling lately.