RE: Buying more tomorrow29 Jan 2021 14:06
I suspect the costs between gross margin and net margin are largely fixed (there is overheads only), so I would expect net margin to creep up as revenue increases - to service £200m of revenue isn't going to cost double the amount of overhead to service £100m, it will be stepped.
My personal feeling is that the journey to £10 won't happen, sector consolidation is likely, the weak will fall by and YU will be feasting on that. Its only a matter of time before YU's profit (and more importantly cash flow ) attract the attention of bigger fish and there will be a buy out.
Whilst I've got my crystal ball out, I am predicting an announcement of an acquisition on or before the final results in March (?) and as everyone else is predicting a share price, mine is ~£3.50 on the day of the results. Would love to be proven wrong in a positive way
Finally, I agree that most of the selling here is down to the traders and I think this will continue till all the T10's/T14's margin players have washed through. Then we'll get some stability and onwards and upwards - also I wouldn't be surprised if there was more accumulation in the background hidden amongst all this profit taking 'noise'