Member Info for GingerHippo

This thread is a bit strange. We don't know what the annual report says yet or what the RNS will say.

I really don't think this bounce should be a surprise. We are significantly undervalued, per my calculation at 16:51 yesterday.

We should be a lot higher even before you factor in future earnings growth (yes, especially from the US license).

As at 31.12.2023 Cab had net assets of £131.5M.

In H1 they made net profit after tax of £11M, giving net assets as at 30.06.2024 of £142.5M

Market cap is currently £255.2M

This means that the market is currently valuing Cab's entire future cash flow at £112.7M.

The company made £11M in H1 and will likely make more in H2, but even at current levels that's profit after tax of £22M a year, before future growth from the US license and everything else was said at the presentation.

So the market is valuing Cab's entire future cash flow at just 5 years worth of earnings before growth. Does that make any sense? Would it not be reasonable to value us at at least 10 times earnings, ie double where we are today?

Anything about the US license?

Jumbo, I’m going to have to filter you and suggest others so the same. If you have multiple personality disorder get another account.

I’m not sure why people are so disappointed. They already told us all this general terms. EPS of 4.3p is H1 equates to around 10p for the year. I’m not sure why a company that is fundamentally growing would deserve a PE of under 10.

I’ll have to adjust my DCF calculation a bit, but not nearly as much as some are the implying.

Gross profit for the year still expected to be only marginally lower than last year, and from a more diverse and growing revenue base. Sounds good to me. Will continue to hold

I don't know if they can buy tomorrow with the US license due any day.

BTW, if anyone's interested, I did a DCF valuation of Cab based on modest growth for ten growth for 10 years followed by no growth. Even at a 15% discount rate I got £1.75Bn valuation, or a share price of 690p. If anyone gets other valuations I'd be interested to read them.

Yeah, strange movement, but like donmac I'm not bothered

Dealagreed, you said you would ask my permission before posting again, yet 3 minutes later you posted without asking, so apology not accepted....... lol

Please don't take my post personally. I'm not having a go at you. I don't even know you.

LSE in general has a problem with negativity being thrown around at the slightest sight of red, and this BB has been no exception in the recent past, so it's something i mention every now and then. Nobody can time the market perfectly. It's the long term that counts.

I’ll add that about 6 weeks ago I wrote here that I topped up at 102p. A few days later we were at 82p and some trolls were on here laughing.

Did I panic? Of course not. I bought more in the 80s and currently up not just on that buy but on the one I was laughed at for doing.

Yesterday I bought more at 117 and I’m confident that that will turn me a profit before long too.

Do I look silly for buying at 117? Only if you’re very short sighted. In time the share price will be double what I paid. Am I going to panic because it’s down a few %? That would be crazy.

I really don’t know why people are writing stuff like this.

We’re up 27.68% in a month.

There’s always consolation with large gains like that. Nothing goes up in a straight line.

Relax.

If you add all the cash and cash equivalents and take off the clients balance you get £138.3M of cash and equivalents that belongs to Cab.

It’s hard to say because most of the cash on the balance sheet is clients money. But, to give a clue, free operating cash flow in 2023 was £56.7M.

Why would it be delayed at this point? They said H2. We're nowhere near the end of H2.

And someone just bought 40,000 shares in one go (over £17K).

Took a few more for 117

Let me se if I've got this straight. A rumour goes around that they've found oil, but it was over a long weekend so the share price is not affected by this.

Tuesday morning they say the rumour isn't true, so the share price goes down, even though it never went up to being with. Nice one MMs.

Interesting to see that today's buys are quite large, with several being around £10K and one even £17K.

Yesterday there were several around £4K.

Compare that to the beginning of the week where there were fewer trades and none were over £1K.

Is this II money coming in? Or just a very confident PI?

This sounds great - https://x.com/_finseta/status/1826895654347591766

What do you think this new position is for? The new engineer is expected to "lead the development of high-performance, scalable web applications using ReactJS."

Is this for a new project? Or to improve their current service? Or to incorporate new geographies (UAE license coming soon)?

Note the word "scalable" there

And we're on the move again...

MK I think you keep missing the point. The point is if it’s hard to buy the price ought to go up soon. At some point we could easily see a breakthrough taking us back above 120