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@z-cars
I’d actually argue against the reinstatement of a dividend until the SP is £1+. This is a growth share and we need every penny focused on expanding the profitability of the company. Dividends often, but not always, signal that a stock is at saturation point. The dividend keeps the stock attractive to investors (see at&t as a prime example)
@beechhurst
Whilst I agree that the trading update wasn’t mind-blowing, at its most basic level you have to remember that the SP of a stock is linked to its profitability and reputation. FY20 Ending February saw 35m pre tax profits. since February operating expenses have been down 44%, 30% of staff have been furloughed, company received £50m from the CBILS loan with favourable conditions and huge tax deferrals which were originally due for HY21. So the weakish trading update doesn’t mean bad prospects for the company - and we’ll see the fruition of the aforementioned points, amongst others, in the interims in November. JMO!
Better day today. My prediction of 47p was spot on. Good volumes and a gradual, healthy rise. No doubt the MM’s wanted to pick up some cheap shares which is partly why we saw 42. Hope to be back up to the low-mid 50s by the end of the week! All imo!
Yeah I think next week we’ll see the 70s. Upon good news at the AMG it’ll gain publicity and a portion of the already small remaining free float stock will be bought up and we’ll see some investor confidence. Additionally I don’t think the global index volatility has done the SP any favours (although it won’t be kept up - FED’s printing machine and the trump’s need to keep the market confident for the election should allow for a rebounce.) All my opinion! Excited for next week
Thank you for the overview! I’ll check the article when I’m home from work. But if the algo’s are circulating the same shares and are in control of the movement - what would be needed to get It into the 80s range without it dipping back down?
It’s a part of the market that I will be doing more research on in the coming days
@ian
If you wouldn’t mind. Could you explain how the bots control this share and the impact that the lack of free float has in relation to the bots? I’ve noticed that the buys fairly comfortably outstrip the sells and have done for the past week yet the SP has continued to dip
@BazHH
With all due respect, you don’t know what you’re talking about. If you’ve bought in, look at the fundamentals (P/E ratio, last trading update profits relative to SP - look back at 2017 for this for a good picture). Additionally, look at the new structure plan from the BoD which is on the N brown website outlining growth and new digital avenues for progression. Most importantly, as others have stated, around 80% of the shares are held by large institutions and MM’s - meaning that the falls are more drastic as there’s less free float to buy, but when the rises come they’ll come hard and fast because those institutions will not be selling until way into £1. All just my opinions, of course I could be wrong but make sure you do as much research as possible
Don’t overcomplicate it. This is a solid, insanely profitable business that is absorbing huge amounts of online traffic from the younger audience currently selling at a substantially discounted price. In cases such as these, the longer the hold the less risk there is as volatility will drain and fundamentals will triumph! Here’s to a week closer to 400p
@MCprice
I’m not a chartist. I actually calculate based on fundamentals however it’s asinine to believe that the 200 day average didn’t play a part in today’s drop. Instead of coming across with that pomposity, could you offer an alternative explanation for the drop?
@MCprice
Bit of a generalisation considering you don’t know me, my investing style or anything regarding my holding. It’s a simple fact that this share has seen the depths of 10p and holders in the 60s must’ve been losing their minds and perhaps don’t see the clinical prospects for the share and want to break even after such a rollercoaster. You’re entitled to your opinion regarding ‘chartists’ however I’m simply offering a potentially plausible explanation for the drops
The reason for the drop is because the 200 day average is 64p so there will be some holders warning to cash out to break even. Also the MM’s will no doubt enjoy picking up some cheap shares ready for its rally before but more so after the AGM which is on the 10th of September I believe