The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Pre-tax loss, wholesale revenue decline significantly lower than previous guidance. I cannot see this surviving and will likely be bought out imo.
DYOR
For me, I would rather wait and see what the audit looks like first before putting any money into this. Too much of the unknown for me, I would rather wait for fundamentals and see what the risk is then.
DYOR
The divi is paid every four weeks, not a set day in a calendar month (apart from June when it was 5 weeks). To me, this is normal and does not imply anything out of the ordinary or any further payout. Of course, it would be nice if this was the case, but lets not read too much into this atm.
DYOR
Be careful here. This is not a great bargain. The price you see is the price it is worth right now...otherwise it would be higher. Catch a falling knife if you will. Plenty further to drop imo. I wouldn't be buying now. I would need to see clear evidence in fundamentals of turnaround strategy, key milestones, financials etc. Nothing to see atm imo.
DYOR
How did you come to the conclusion that MHC are dragging their feet? Are you aware it takes ages to come up with these types of product and to then design/test/launch them to market. Your expectations are a bit too high imo. How do you actually know existing shareholders are not really being considered - have you read something I haven't or drawn this conclusion from specific comments made by the management, for example at the AGM? As for 'oomph;', where did you get the feeling there was 'oomph' in the first place, as I am not sure I have actually observed any imo?
DYOR
Fundamentals have not changed. The market may be tricky atm, so it is important imo to not focus solely on the SP - this only matters when you actually want to buy or sell shares, it has no bearing if this is not your intention. So, best to ignore as it will only cause your stress levels to rise and fall regularly and for no reason.
DYOR
Great interview with Mo and Leo, with a clear indication of acquisitions / bolt-ons to come in the future:
https://www.youtube.com/watch?v=g2WaGNlQ3lw&t=16s
I believe we are going to see plenty of market volatility over the next 6-12 months, particularly when we enter recession by year-end / Q1 23 and (when, not if imo) this will last until we come out the other end. This will in my view bring oil prices back to more 'normal' levels which may in turn see oil / energy stocks at lower SP levels. That said, if we see good coming through in the North Sea, then I think this will be a big positive for the SP and counter-act the falls we will see in the bearish market more generally. So back up to hit late 20s/potentially early 30s. If we get share buy-backs, then we may get there sooner. But the bears are in control and I think oil may go out of favour for a while and PIs will move to other sectors that are growing faster and generate quicker and better returns over the short term.
As always, opinions / views are just my own.
DYOR