Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.
As a very long term holder who saw the Board reject an offer from Carlyle over 10 years ago at around £5 more than the current offer, because it did not reflect the value of the business, I am fed up with the jam tomorrow promises. Dividend slashed, woeful share performance, share consolidation to make the price look better; around 25 years ago the price was over £20 adjusted for the consolidation. I will take what is on offer.
Great based on recent lamentable performance but the equivalent of about £5 a share less than the Board rejected over 10 years ago when Carlyle bid, because “it did not adequately reflect the vale of the company”.
I agree with you on the target market and my two daughters and their friends fall into exactly that group. The problem is that they return over 80% of the items they order. The end of university Prom is a classic example. They (daughter and friends) ordered large amounts to try on, amounting to several hundreds of pounds of product each, but absolutely every one was returned and they all went on a shopping trip to the local city and bought outfits there. As I have said before, how do you create a viable business from that behaviour?
Marconi went from having a huge cash pile to having nothing. Yes they overpaid for acquisitions but so have Capita on a big scale. I was CFO for a business that occasionally bid for the same business that Capita eventually secured and could get nowhere near the valuations they were paying and if you wanted to sell a business you started off with Capita as your target buyer as you knew they would pay more than anyone else if they wanted it.
Afraid this is beginning to remind me of the industrial giant Marconi, that was too big to fail and for me a stark reminder that shares that fall a lot do not always recover. I lost a lot of money catching a falling knife on that one so not trying to bring my average down on this one.
Predictable initial share price reaction when you look at a pretty disappointing set of results. Very vague return to dividend. Unlike what he said in his retirement announcement, the turn around is very far from being complete.
Trisor, As someone who held both RBS and Renewi at the time I was not convinced by the argument that they made about needing a certain share price to attract buyers. My somewhat cynical view is that over time people forget how bad the share performance has been. Divide their current price by 10 and it looks pretty a pretty woeful performance this millenium.
Would not be remotely surprised to see them announce a share consolidation when the results are released. Seems to be a slight of hand used by several companies (RBS & Renewi as examples) when the share price has languished as a low level for a long period.
Everything, this is my big issue with the business model. I have 2 daughters in their target demographic and they and all their friends order a huge number of items from ASOS and return almost all of them. They will order 3 different sizes and multiple colours of the same item. As an example, one has an end of term University prom coming up and ordered several hundreds of pounds of clothing from ASOS and every single item was returned, and apparently a number of her friends did exactly the same. I simply do not understand how you can create a sustainable business from this type of customer behaviour.
I thought the company was massively over valued at IPO but thought £2.00 was fair value so entered at that point. I was wrong. Still think it is under valued but needs the balance sheet issues sorted.