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"since mid-2021 at the expense of regional-mandated funds. Global funds have seen inflows of £19bn, while investors have pulled a net £21bn from regional funds, including £16bn from UK-focused funds".
Thanks NICKTIMS. I'm trying to get to the bottom of it, but it seems Moibco here is less risky than RR was. Hopefully there will be similar upside.
How indebted was RR at the SP lows relative to Mobico now...?
Exactly same with me. Bought way too much at 120-130. Have bought more at 104p (before earnings!) and at 92p after earnings. If they keep paying dividends I'll be happy to hold. We are being paid to hold a stock which should double over time. They were very confident on the earnings call about H2. If they meet their full year target stock should rerate.
It can't feel good at the low.
Does anyone have an idea of how indebted Rolls Royce was at the lows last October??
Is Mobico ex-div 1.7p today?
It would be terribly disappointing if they did a rights issue here, after watching the shares drop so much. Why hadnt they done at higher levels? Why have they reinstituted the dividend? With debt ratios coming down gradually and prices rises going up in H2 and revenues growing strongly, and inflation and interest rates quite possibly peaked, seems very unlikely to me. I'm happy to be paid 7%+ (dividend yield) to hold the stock whilst they sort themselves out. Would be gutted if they had a discounted rights issue....
Maybe this is the low!?
This company will provide for a billion customer journeys this year.
The second half financially will be much better than the first.
The debt is now coming down.
The margins are now going up.
Big picture growth should be more than GDP for the next ten years because it's at the forefront in the war agains global warming.
And the SP has collapsed.
Https://www.ft.com/content/aafcf10b-a4b1-42a4-95b7-df2e76775d76
FT Article from 40 minutes ago
Thanks for this, regarding dividend. Thats a shame
I believe full year dividend is 5p + 1.7p interim. 6.7p is 7.2% with the shares here.
A fantastic return for holding the stock if you believe (as I do) that there is real upside long term.
Trouble is, a lot of people own from much higher (as I do), and its just incredibly painful.
I'm adding today. And will continue to add if it goes lower. Assuming all other things equal.
The key thing for me now is that the company will be able to continue to pay the dividend. If they are, then for 7% (at these levels), it's a great long term opportunity to be paid to hold this stock.
Mobico disappointing H1 bottom line.
But strong revenue growth and strong outlook for H2 and improved debt situation and yielding 7%.
Interestingly when asked about divestments, CEO said "there are no sacred cows".
If you are long coming in (as I am) hold, if you have no position "close your eyes and buy".
Thats great. Many thanks Gwillerz79. Not sure exactly what it means for the numbers and guidance but I guess even if we are saving 1% on revenues going forward (and this strikes me as conservative with strength of the pound as well)... then we could be saving £30mln at least. Thats decent. That's much more than the extra debt payments from higher interest rates ??
Hi Paddy. Do you know what proportion of costs fuel is? Many thanks
Looks good. High end of range. End debt has come down a lot and they've extended the buyback.
Anyone got any insight?
I'm long this stock from 125/130. Bought more today and yesterday. Very heavily underwater. Really painful.
My understanding from looking at the 2022 earnings report is that company has £1.2bln net debt. Will be £50-60mln in interest payments on the debt this year and will payout £30mln on the 5p dividend. Free cash flow last year was £160mln. So maybe it will be 15% higher this year at £185mln. When you consider they are targeting £250mln free cash flow per year in 2027. And since that target they have also said they are looking for an extra £25mln of cost cutting savings this year. So 185 minus 90 is £95mln of cash (after divi and debt payments)... being conservative because margins might improve in h2 when price rises of 13% kick in for US school buses. They easily cover the debt and dividend payments. And then in the long run there should be operational gearing to the upside when wage inflation moderates and debt gradually is reduced and interest rates level out? Next year dividend will be 5p + 1.65p so at this level you are getting 7.3%.... So assuming they can keep paying thats ok to hold until the share price goes back up a decent amount over the next few years. It's a shame they cant just pay down a decent chunk of debt. But hey, then there wouldn't be this opportunity. And the cream is that is a fantastic secular growth story because buses are key to going carbon neutral...
Thanks Sipps. Why do close end funds have to sell please?
Any kind of profit warning in the medium term also seems very unlikely now