Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
What happened was the unforeseeable cyber hack which, temporarily, put the kibosh on the reintroduction of Dividends. As you are no doubt aware, the SP too was about 40p prior to that Black Swan event. Soon that will be yesterday's Fish and Chip paper and the ongoing recovery will resume. Mark my Words!
There's no reason why, assisted by utilising AI, Margins can't increase significantly. Even if we take a Conservative 6% margin and assume revenue stagnated at £3billion you can see that there is massive upside in terms of FCF, Profits and Share Price, not to mention Dividends. Scoff all you like AimM.....2018 but come back in 12-24 months and you'll realise the truth!
Announcing a target of doubling the margins suggests that a trebling of margins is distinctly doable. The Board would likely set the target allowing for a large margin of error thus knowing that the stated doubling target is nailed on. Realistically, medium term margins could easily be within the range of 6% to 9%.
The RBC report yesterday was riddled with inconsistencies and contradictions and was quite frankly amateurish. I would attach no credence to an unprofessionally worded update that uses such asinine phrases as the new CEO 'getting his head under the bonnet' or whatever. Unfortunately, it has perturbed,(probably by design),weak handed holders causing a knee-jerk reaction. However, the SP is now beginning to stabilise and common sense will prevail.
If nothing else, it has at least presented a marvellous opportunity for investors albeit at the expense of those that were shook out prematurely.
Eatstocks,if Brokers were even moderately accurate at forecasting/predicting SP's, they'd be so comfortable they wouldn't need to be giving out ratings. How on Earth can so many 'experts' have such wildly different forecasts. I've long ago learnt to take them with a pinch of salt.
It's a risk assessment we all have to make so good luck with whatever you decide is right for your circumstances. For me, the potential rewards far outweigh the potential risks. This is multi-bagger material in due course!