RE: Results27 Sep 2022 10:11
I agree that the sp is too low, but imo it is being legitimately held back for a number of reasons:
- no market interest caused by no news flow and a Board which is bizarrely reluctant to get out in front of investors. Perhaps this is because it is a Plc in name only and the real interests of the Board are only to serve the major shareholders. Why bother with anyone else?
- not classed as a reliable income stock due to the suspension of the dividend despite the H1 report saying there is £19.3m of cash - 60% of which is immediately accessible. That accessible cash is £11.5m - or 85% of the current market cap. There is plenty of headroom to maintain a dividend at the current level
- the shares are very tightly held which is causing a serious liquidity problem. Would-be larger investors have a problem getting in and therefore would also have a problem getting out. This, combined with the dividend point, makes it very unattractive to add to a portfolio
- the long awaited 'strategy', or 'change programme review' as it is now being called, is taking far too long for what should be a relatively simple exercise. It's unclear whether this is general incompetence or whether there are internal conflicts / issues / disagreements preventing progress. Either way, it's not helping
- CPP is an Indian business. This latest set of results serve to re-confirm that. It has no place being listed in the UK (or even listed at all in reality) and the UK market either doesn't like or doesn't understand businesses like this.
All a bit of a mess really.....