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I thought of you when I saw the Hotel Chocolate news and wondered if you would comment. I hold here and believe that someone else will get the benefit of the recovery. I also hold PHSC and am content to continue to receive the generous dividend ,well covered, until its discount to net assets is eliminated by a predator or Mr Market.
DYOR
Good to see that the security section is performing better with the emphasis on groceries. If they can get some real momentum going there then PHSC's profits will dramatically increase. Staffing difficulties are not unique to them, good to see it being addressed in a positive manner. I think that end users accept some increase in costs as a fact of life these days.
8% yield at 22p, well covered, dividends increased ,will eventually be discovered by small company income Funds.
I personally think that it should be trading in excess of net assets, as these results validate the goodwill and remember that the security side is valued at zero in net assets.
DYOR please
I was an investor in OXB 20 years ago. Their initial strategy did not work (too many drug trial failures) so they had to have a massive rights issue and a change of direction .Adjusting for the 50 for 1 share consolidation they went from £50 to £1 to £16 and are currently , £7.39. I supported the rights issue and applied for excess shares and made my money back several times. Cash in the bank and a change of strategy can be very beneficial ,but of course not always. As always DYOR
Marlowe keep on buying small companies as bolt on additions. Last month they raised £100 m for more. They also stated that they are looking at scores of companies and are close to completing on some. So come on PHSC either sell out near asset value or do your own deals. Perhaps at the time of the results some clarity will be given.
I do not think it is connected,but I often wonder what the Ketteley family will do with their shares as Mr Ketteley is no longer Chairman. Approximately 12.5m shares and just under 15%. These would make a nice start if someone wanted to buy them. I am a long term holder and will wait for resolution. As ever DYOR
Perhaps just look at last March's price. Hopefully nothing sinister.
Since I posted in May ,Marlowe have bought 10 small companies. The latest is Hadrian Technology, a provider of CCTV and loss prevention technology solutions. I wonder if the management of PHSC have similar ambitions or perhaps the sale of the security arm? Either way it is currently a drag on both management's time and a cash drain.What do Strand Hanson do?
I would personally prefer PHSC to do bolt on deals,but a sale of the company at a price reflecting net asset would be acceptable.