The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Thought the FCA update was released on Friday?. The FCA are now going to delay making any decision, or issue the final consultation/policy paper on 16/40, until the ESMA have finalised their proposals - so this will drag on until Jan 2018 at the earliest. DD ps it only kicked up because I sold, lol.
Today and sold up, my hope was that this would at least hit £6 by late June, then the FCA publish their paper and whoooosh up she goes, unfortunately though it hasn't panned out that way and after 5 months have only made about 5% profit (when you include the dividends). It now looks like the FCA could be dragging their heels for who knows how long and this will/has IMO put a cap on this share price...........that said I still believe this is worth at least £7, so will keep a close eye on it and may buy back in. Good luck all holders, you have more patience than me!. DD
Irene No problem. In 2014 the commercial merchandise revemuevforvRangers was £7.6m, of which SPD received a whopping £7m. The Rangers boycott then virtually halved the 2015 revenue (Rangers only got 4% if my memory serves). So say what you like about MA he's not daft, £1m back-hander (allegedly!) returned a nice tidy sum for SPD. DD
Irene, "I never really understood how Mike Ashley managed to get that deal at Rangers". Because he gave Charles Green the former Rangers CEO a £1m back hander that's how!. http://www.dailyrecord.co.uk/sport/football/football-news/dave-kings-finest-rangers-hour-10672628 DD
Thanks Matt, yes agree. I was wrongly trying to say that if they hadn't done the buyback then the profit and earnings would have been higher, but the £48m came from cash flow thus a balance sheet impact not P&L. Hope your doing ok. DD
........should have waited until today! This rarely goes below it's SMA50 (1648 at moment), another reason I bought at 1625 if it goes below £16 will be piling in. DD
Please ignore my comments regarding increased eps by including the £48m share buyback. Another poster on ADVFN has put me right, it's not a P&L item but a balance sheet item - apologies for my ignorance was not in anyway trying to mislead. DD
No TA Finn but it closed below the SMA50 (1614), next support is 1558, then 1516. There has been a down channel since March and it (apparently according to another poster called bracke on ADVFN) closed just above this channel which is a positive. However, which way it will go from here is anybody's guess!. GL DD
Hi Matt, hope all is well. Not had time to digest the results, checked first thing this morning (as usual) to see if hit consensus forvyear end in terms of top line numbers (Rev, pre tax profit and eps), and as you say they hit them all - so nothing too exciting!. Growth in revenue and profit is a lot lower than last year, on a lfl it was high teens and +24% respectively whereas this years comparatives are low teens for Rev (+10%, +13% rental) and only +7%/+8% for pre tax profits. That said they have spent nearly seven times more than last year on bolt on acquisitions (£437m) and my guess is the 15 businesses acquired have not yet bedded in and/or delivered on growth yet. Also, they generated a phenomenal amount in free cash flow, an extra £251m, plus the market seems to have overlooked the share buyback which was £48m. The buyback equates to circa 6p per share which in terms of eps would have meant +29% eps growth (110p underlying eps) compared to last year (don't know if that's allowed as not an accountant but guess it's reasonable as shares can only be bought back using profits from the business). Just a bit disappointed in the way the numbers have come across, also they were a bit stingy with the increase in the dividend, that said they have bought shares back and still increased the dividend. This is a solid well run business and continually beating expectations was never going to be sustained in such a cyclical market - it didn't last year either but I guess this year was buoyed by Mr T's infrastructure plans which have not as yet materialised. GL DD PS with 104p underlying eps the PE is only 15, excluding the buyback the PE is 14x, either way it's good value IMO.
Looks like a lot of very high PE stock took a hit today: BOO, PURP, ECSC, PRSM, KWS, to name but a few. Also believe overvalued high tech US stock were hit last Friday, so looks like a general pullback for perceived expensive shares and hopefully for FEVR its back to normal, hope so bought in at 1625 (I too thought it should be the floor). GL DD
Thanks Irene, will take a look. DD
Perhaps you have a point, I don't believe a word the BoD say, mmmm. You previously posted: "SPD reported Profit of 93 million for H1 17, about 15.6 eps, Another site I looked at had it at 17eps." Please could you post up the link or state which site it was you were referring to. Just curious. DD
"The Directors believe that underlying EBITDA, underlying PBT and underlying EPS provide more useful information for shareholders on the underlying performance of the business than the reported numbers and are consistent with how business performance is measured internally." Just saying. DD
Not just the inventory to watch - Apart from the obvious, also fx hedging, leases, living wage differentials, planes, related party & commercial arrangements, yachts, etc, etc. Wonder why buyback shares have not been automatically cancelled?, Wonder why they have been told not to buy above £3?. DD
Gino, will stick to underlying thanks. All the best. Dave
It's my understanding that the "Closed Period" buyback programme ends 20th July, there are about 48 million shares yet to buy so not possible even at 750k/day. Besides, the buyback "Programme" continues until 6th Sept. Don't know though when it will recommence following the closed period (1 month?). DD
As said before, will have to agree to disagree, I'm happy to go with underlying profit and you prefer to go with double that.........fair enough :). Good luck. DD
IreneKrapp Have explained why "underlying" is more accurate and more representative of their earnings, if you feel you should use the reported profit and eps to evaluate the value here then so be it......whatever floats your boat. You keep saying there is no definition for underlying profit, there is, it is defined in the accounts. Analysts cannot make it up, they take it from what SPD have reported is the underlying profit - its stated clearly in black and white what this is. Think we will just agree to disagree. DD
Hi Matt, I'm well thanks and hope you are too. Thanks for the compliment, as a comparative novice compared to yourself then it's high praise indeed and much appreciated. 485!, nice one, unfortunately mine wasn't so good @ 540. Should have put a caveat on that £7 - only if TM gets a majority!. Don't know about you but sitting on my hands at the moment and trimmed/sold some positions to have more cash just in cash. All the best. DD
"underlying profit has no definition, it's made up to suit SPD" No offence but you have it back to front! - underlying profit is more important as an indicator of earnings than reported/statutory. Reported profit includes one off gains that are not normally experienced during the period in question and thus underlying profit better reflects how the business is performing and is a more accurate figure of what the Company believes is its profit position. As you say, each to their own!. DD ps think you will find it is the norm for the reasons mentioned.