Member Info for gulfharbour

I agree re the need to accelerate reduction of the company debt which is it's biggest issue, and I would be more than happy if they pushed forward with additional asset disposals to pay down debt, especially as land prices increase as inflation and interest rates fall.

The last NAV I recall was around 101p vs an SP of circa 29p underpins the debt, but I would also like the board to consider even a partial sale and leaseback programme which could be beneficial.

My other concern is that the company may have suffered from the recent poor weather and cash-stretched customers although overall I am hopeful of a slow but steady turnaround of the SP, particularly as summer approaches and if we can get a spell of decent weather.

The recent director buy is particularly encouraging and I am mulling over a small top-up at these prices even though I am well under-water with MARS

That's a ballsy call crispiano.

I've chosen to hold until after res so we can see direction of travel for the business, plus get a clear view on whether the DLG board rejection of the offers due to "material undervaluation of the company" (my paraphrasing) has foundation.

Best of luck with your decision.

@fraser in the past 12 months 7.87p dividends have been paid which gives a trailing yield of nearly 9.5%!

Sorry, accidentally posted before finishing...

Option 2 is that you do nothing in which case your shares will automatically convert to the newco shares at the agreed exchange rate at which time you will become a Mondi shareholder

Your options are:

1/that you sell out before the deal is fully finalised, in which case you get the SP at the time you sell,

I definitely believe we will get a div announcement at next res.

Remember that there is the £520m proceeds from the sale of the brokered commercial business that were earmarked to be used for a 10p April div.

And with the apparent broad recovery across the insurance sector, combined with the current low SAGA SP, it would be interesting if that Aussie company renewed interest in the insurance underwriting business!

Bhaveen,

I think you are setting your sights extremely low with those SP targets - my own target by res date is 150p.

Remember that in 2019 (leading into covid year) the SP was around 200p with EPS of 15p, and a 9.3p div and net debt around £140m.

FY23 figures were £463m revenue, PBT $52.4m and EPS of 12.9 and net debt down at £57m

For me the positive drivers should be:

-significantly improving digital and on-line presence including app and click and collect

-wider product range including expansion of the gifts offerings

-expansion of store partnerships

-projected revenue growth to a target of £650m in FY27 (nearly £200m increase from now!)

-expected further reduction in debt

-expected reinstatement of dividend

Regarding the dividend, the BOD have stated they would consider reinstatement in FY2025 (that starts in July 2024!) and I recall them stating these would be at div cover levels of between 2 and 3.

So, based on current 12.9 EPS that could imply a div of 4.3, to 6.5p, which based on current SP would give a yield of 4.7% and 7%.

This is now my 3rd largest holding which I am very comfortable with, and I will continue to add further as funds allow while prices are around this current low level,

Whatever the takeover value might be (assuming it proceeds of course), the deal should take into account the £520m cash received from sale of the brokered insurance business 5 or 6 months ago.

That cash must be sitting on the balance sheet, and if I recall correctly a 10p dividend had been mooted for April.

Me too Oiled.

This share has threatened to break above the 450 barrier a few times over the past 2-3 years but keeps dropping back, and my finger has been hovering over the sell button expecting another retrace into the 420s or low 430s.

I have decided to hold for now pending hopefully good news in the next res, but if good news does not materialise, that is probably my trigger to exit.

Betterlife,

you haven't chosen that moniker well for someone with such a bad view of the future lol.

Woody,

I wouldn't recommend taking any advice from anyone on a BB (including me) because some will say hold for £7, others will say sell and bank the profit, while others will say buy more.

However... an approach that has worked quite well for me is to sell half of the holding thereby banking some profit, while keeping the other half in play in case of further rises.

Each to their own though!

I don't believe it is over-priced for a minute, but I definitely believe it is underloved/unloved.

Additionally the prospect of a labour government who are likely to use shares such as LLOY and BP as a piggy bank they can raid to fund their spending plans fills me with dread (not that a Tory government encourages me much more)

Hi Asp, can you put me down for 64p please.

There are only a few weeks to go until the much-awaited (by me anyway) January trading update.

Christmas trading results will be clear by then, and I hope/expect them to also give an update on dividend reinstatement.

I'm also hovering over the buy button at this low SP.

Waiting for funds to arrive then will probably dip the the toe in the water.

Totally agreed Wiscos.

I took yesterday drop as an opportunity to top up further on CARD.

Roll on 2nd week Jan when we should get the next trading announcement and if the dividend is reinstated, or at least a clear timetable to its reinstatement, I expect a significant re-rate.

Next official announcement on the investor relations website is Q4 res 3/5/24, however CARD have issued a trading announcement 2nd week of Jan in 2021 and 2022, so we should expect that as the next announcement of progress.

This announcement will include an update on trading including the key christmas period.

Yes, trading update Tuesday as per DLG investor relations financial calendar.

This should include an update about the sale of NIG

Steve, while its obviously your call, I think having an objective of selling in the 120s is incredibly pessimistic given the direction of travel.

I had previously expected the sp to be close to 150 by year end but with recent macro events the target for me is in the 120 to 130 range.

Christmas on the horizon should be a good driver for further improvement to company performance

With div return next year this has good scope for being a strong income and growth share