Member Info for BuddsoddiCymru

Price drives narrative. Ignore it and follow the business fundamentals.

Considering the opportunity for growth the M&S has, a large dividend would be a poor use of capital.

Retail traders deal in complete conjecture, using lines on a chart to confirm their own biases.

It’s hilarious really.

To everyone concerned about the current price and tomorrow's price in reaction to the results.. it doesn't matter. In the long-term, a share price will follow the EPS growth. Don't follow the advice of analysts who are seldom correct and who's only concern is short term performance.

Don't let the price drive your narrative.

Price drives narrative. They all come out of the woodwork when something changes in the price.

I wouldn't be ashamed, unless its a high percentage of your portfolio. Mine is currently less than 1%. Investing in companies that are not cash flow positive will always be speculative, so as long as you're aware of that, your position is small, and you can handle the volatility from the illiquidity, then it is one to leave for the long-term and see what happens.

I have no idea who you are.

I’m not at all impressed with the boastful arrogance of your post. Also, do not try to patronise me “sonny”. It takes away any conviction of whatever point it is you’re trying to make.

I’m simply trying to give someone some good advice. As the truth is, the average investor is far better off purchasing a low cost index fund, depositing monthly, reinvesting dividends, and reaping the rewards of compound interest in future.

Good luck with your strategy.

Don't. Read plenty of books on identifying and valuing high quality companies, buy them at a price below its intrinsic value, and hold for the long term.

Trading, especially with leverage, will only cause you stress and permanent loss of capital. The people in these forums who discuss daily trades are not investors, they are speculators, so do your due diligence.

Because they’re two different companies..? Unless I’m missing something.

This is just short term volatility, which should mean little to an investor unless you’re looking for an opportunity to purchase.

Ultimately, share price follows earnings per share in the long term.

The less you look at macroeconomics and technical analysis, the easier you’ll sleep at night regarding the stocks you own. Focus on the business fundamentals and a long-term view.

The share price is going wherever it decides to go. Not a single analyst or retail trader can tell you where it’ll be going. Stay away from the charts and focus on the business.

A PE is just that, a ratio. It should never be used in isolation to determine value as it doesn’t include many other metrics in determining value.

I suggest you read the earnings transcript

Net income, EPS, operating cash flow, and free cash flow are all lower than 2020. Look at the capex, which has more than doubled since 2020 to facilitate their expansion. Inventories are also a lot higher, which reduces operating cash flow.

JD has a 5 year average ROIC of ~14%. So I am confident that after this current growth phase we will see multiple expansion in the share price.

Why would a company that is geared for growth and expansion pay a high dividend payout ratio? All excess cash should be retained and invested back into the company. I believe their 5-year ROIC average is around 13%, which relatively high for a retail company. The compounding effect of high returns on a high reinvestment rate trumps any dividend return every time.

I hope JD continue their mediocre dividend until they have no more growth opportunities left with a high return.

EISB doesn’t trade on the AIM.

I can show you plenty of stocks that have rocketed up, mainly minding and oil & gas exploration stocks. That does not mean they were good investments. If you’re so successful at crypto trading, which you claim to be, then why are you interested in a micro cap beverage company?

Do not take this man’s advise.

It’s just volatility, take your emotions out of it. If anything, it provides you an opportunity to buy more at a lower price.

Who knows. It doesn’t fundamentally change anything about the business so it shouldn’t change anyone’s thesis.