Member Info for Danger_Mouse

1) AI Strategy: Disruption Deflected

CEO Erik Engstrom addressed the AI narrative head-on, effectively neutralizing disruption fears by framing AI as a core growth driver rather than a threat. (Check)

2) Margins & Financials: AI Profitability

Adjusted operating margin expanded to 34.8% (up from 33.9%). This confirms that AI is actively boosting profitability and efficiency, rather than forcing the company into defensive overspending. (Check)

3) Growth & Yield: The Cash Machine

RELX delivered double-digit Adjusted EPS growth of 10%, meeting the "gold standard" for investors. Coupled with a 7% dividend hike to 67.5p, it’s clear the cash machine is still humming. (Check)

4) Capital Return: The £2.25bn Buyback

The announcement of a massive £2.25bn buyback—a 50% increase—is an aggressive, high-conviction move that provides a powerful floor for the share price at these levels. (Check)

NEGATIVES:

Net Debt rose to £7,201m (up from £6,563m), moving the Net Debt/EBITDA ratio to 2.0x. (Still a strong balance sheet)

ShearClass has framed it perfectly. Tomorrow we need the restarting of serious buyback at these levels, report strong results and guide positively. Fail to do this and we will still recover, but not as fast.

I think much of the outflows we see is from software ETFs allowing some of us to get in very cheap today. Zoom out 1 month on: https://www.google.com/finance/quote/IGV:BATS?sa=X&ved=2ahUKEwi2rof7s9KSAxWvVkEAHXW5At4Q3ecFKAN6BAggEAQ&comparison=NYSE%3ARELX&window=YTD

Afraid I am correct but whoever is selling are buyback fodder!

Revenue growth: ~4–6% organic

EPS growth: ~8–12% long term

Operating margin: ~30%+

FCF conversion: very strong

Buybacks: consistent and meaningful

Typical multiple (recent years): low–mid 20s

Looking forward to the results in the morning 🤞 🍀

Threeputt, does Lindsell Train have many Open-Ended Investment Companies (OEICs) with REL in it? As far as I know LTI/FGI are both Investment Trusts and don't have to cater for inflows and outflows as they have a discount.

The sell-off ultimately works in favour of long-term shareholders. When the share price falls, buybacks become more powerful, each pound spent retires more shares, which mechanically lifts EPS and increases our ownership of the underlying business.

Short-term price swings of a few pence are largely noise if the company is consistently reducing the share count at more attractive valuations. That’s where real value accrues over time.

At these levels, RELX is no longer priced for perfection. The valuation looks far more reasonable, and you’re being paid a credible dividend yield while the buybacks quietly compound in the background.

This AI knowledge gap pushing the share price to oversold is because Investors fear this could directly disrupt RELX’s LexisNexis division. RELX isn't a legacy" type player catching up; they have been integrating AI (Lexis+ AI) for years. Proponents argue that proprietary, verified data is still more valuable to lawyers and scientists than "hallucination-prone" general AI. Just strap in for tomorrow.

The company will need geopolitical diversification if gold stays high. We all know what happened in the UK and windfall tax, so western operations are possibly higher risk than ours?

Or expect a rise. Nobody knows as all news is factored in. Any AI unknowns drive share prices to oversold until more knowledge is accumulated. I have already closed my short and going long.

LSE 2000 - RELX has been declining since May last year, which isn’t a particularly long period. It looks more like quality simply became overpriced. That said, I do agree that quality stocks had been overvalued, but markets naturally swing between oversold and overbought conditions across different timeframes.

I expect software related stocks have significant upside. REL I presume has been kept down because of the £2.5b in digital revenue in legal services when total revenue is about £12b? £10b Net Debt is not great. On technicals if the floor develops here on the 0.478 fib there is significant upside. BUY.

What I should have included was AISC is at a guess around if not less than $1500 for up to 4 years, then the higher costs.

Costs are high because the project is specifically structured for rapid capital payback through high-margin early production. The project transitions from simple oxide ore processing to more complex "primary" ore processing after year four. This second phase requires a suspension roaster to treat refractory ore, which increases long-term operating costs compared to the early years. The average grade is approximately 1.03 g/t gold, which is modest compared to some high-grade peers. Again THX is highly leveraged towards a strong gold price like we have today.

Clearly Gamma is far too small for Cathie Wood to invest in directly. But if this week’s AI developments really are pushing her thinking from SaaS toward PaaS, that shift actually strengthens the theoretical case for Gamma. It highlights the growing importance of platform layers that sit beneath applications — even if Gamma itself never appears in an ARK portfolio.

ValleyLad if the BOD do not buy after the lock in period, we have the AGM coming up and PI's should all raise the question of why the BOD have bough so few shares.

Allocate according to risk. I am slowly reducing on the the up days to simply buy the junior gold mining index GDGP. They are not as cheap as PAF and certainly not as cheap as SRB, but I will keep an SRB allocation for the long run, because risks are factored into the share price.

Yumeria when you say there are "no buyers" I missed the joke, lol, appologies!

Yeah Yumeria, and why are there no director buys, huh? Where are they? The Board obviously has zero confidence in Gamma. We are going down, down, down, blar blar blar...

Never mind the fact that the Board just authorized an £85 million buyback, which is essentially the Directors using the company’s own massive cash pile to buy back their own stock because they think it’s undervalued. I suppose we should just ignore the £4.5 million an institution hae hoovered up in the closing auctions.

And as for today? With the macro-selloff providing a discount, today will be a field day for the buybacks. Stay bearish, I’m sure that 900p floor will break any second now...

At a market cap of £829.27m, Gamma is trading at roughly 9.6 times its annual profit based on the last set of results. This is significantly lower than Gamma’s 10-year average P/E ratio, which typically sits around 20x–25x. The market is currently pricing Gamma more conservatively despite the massive growth in their German business (STARFACE).

Taken from ADVFN forum:

Dividend Yield: 20.4p / 918p = 2.22% 💰

Buyback Yield: £42.5m / £843m = 5.04% ♻️

Total Shareholder Yield: 2.22% + 5.04% = 7.26% 💰💰

The buybacks are a massive vote of confidence!

ValleyLad, the fact that the board hasn't bought in personally is already baked into this beaten-down share price. But honestly, since the actual business is performing so well, it’s a massive bullish signal for when they finally do step up!

You_Having_a_Laugh, thats true, it has "Quality" characteristics rather than "Value". Again another bullish point!