The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Rivaldo should change his name to ramper
When a business is pre-pack stage, like this is, then the directors all have to be very careful what they say. They'll all be following the party line, driven by FRP. If any comment is detrimental to a sale they can get into big trouble.
Hate to be a downer, but what stops pinnacle from picking the bits they want out of administration
Yes, but, in order for BMS to scale in the timeframe desired, the only route is acquisition. Organic will take too long. They should be raising a bond to to aggressive scale growth. Do they have the current management capability to do that? i'm not sure
CKN good. But look, the pie is worth X. Clarkson have 60pc the pie, braemar maybe 20pc. Hyperthetical. For braemar to become clarkson as u suggest, they will need to either acquire the other percentages (people or firms, people take time, firms quicker but more expensive) or do it organically, which is really tough to take liquidity from a leading firm.
BMS SHOULD leverage up, issue a bond and buy up the market - a classic michael spencer move. Will they tho? No. And why? Because the management is rubbish.
So, keep clarkson, keep braemar but understand that for braemar to be clarkson as you suggested (without diversification from its core business) clarkson will have to lose market share to bms - which is highly UNLIKELY
To grow organically in this business is incredibly difficult, its not about creating new products that people love, its about trying to steal more of the pie through deepening relationships, you do that by hiring well, or acquisition. They would have to “steal” that market share from clarkson. This is very difficult to do, unless you hire clarkson staff (who incidentally will all have huge non competes)
In my view, acquisition is the only route.
Choose your words carefully on a public forum.. lol.
If breaking the rules of the national futures association isn’t dodgy - for a company that deals in futures, then i don’t know what is.
Again, its compliance oversight which is just horrific, which seemingly seems to be a tradition or habit for these guys.
I wonder if the de-rampers work for pinnacle...
Its a quantifiable gamble.
Equally, Pinnacle could have their investment matched or subsidized with government funding, typically 30/70, meaning less dilution.
I'm in, in small to start.
I'm not fully confident on the ability of UK Gov. However, manufacturing for the Scottish GDP is crucial. What we saw with British volt and the terrible press related to it for the UK could push UK Gov to make steps this time. But we have the VC potential buyer, which will dilute yes, but will hopefully provide sufficient capital to aid the business for a long hold. So i'm making a bet here.
Despite some larger looking 'sells' this morning, the share price is holding up. Could those sellers be buyers; perhaps.