Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Agree that is fantastic news… wish they had left it at that and wish they had given us some idea of the positive impact of having promate. Don’t understand why they are being so cryptic. As others say why do they have to mention a £3mill loss?! It’s peanuts in the grand scheme of things.
Well this was always a bit of a gamble until FDA is approved. Prior to news we were being told there was a 90% chance of approval. Surely now the FDA have told us how to get approval we should stand a much better chance of approval within a 2-6month time period.
So why the big drop…. We are now in a better position than we were with regards to gaining approval.
Yes cash burn will continue and possibly funding needed once they have approval. But then once they have approval that becomes more insignificant.
Yeah I was pretty happy with those results. Not sure why the negative share price action today. I was aware of the supply chain issues…. Coronavirus/ brexit ect so not a surprise that there has been some impact on distribution costs but importantly revenue is growing and the operating loss reducing despite all that. Positive ebitda so it won’t be long before it’s making positive eps. Ambition of 1.25 billion revenue by 2025 at double digit margin. I’d estimate that at a target of 35eps by 2025. if it manages that it should support a pretty decent pe with that kind of growth.
I’ve topped up / averaged down at 33p for the following reasons.
1) fundamentals haven’t changed, it’s just got cheaper.
2) weekly rsi now oversold.
3) hourly rsi looks like it’s is showing divergence against price
4) very close to 200 day moving average so would think that a good buy point for anyone considering entering the stock.
I guess the market is concerned about the flat outlook for revenue growth. 40-50 million. To be honest I’m not too concerned about that as I was sort of expecting revenue to drop off a bit with Covid. If we manage to stay flat or even grow revenues beyond Covid then that’s brilliant.
Trying to use the staff costs (%) provided I estimate a worst case senario of 3 eps and best case of 6 eps. So today’s reaction may be over concern that eps might go backwards.
Against the current share price of 39p that’s a forward pe of somewhere between 6.5- 13. When you consider that over the last 4 years the eps has done 100% (25% per annum) one might expect the pe to support a higher figure.
This is before we Consider dividends and now we have almost 20million in cash and growing so there is very good potential for future acquisitive growth.
In my opinion we will see upgrades too expectations as the year progresses.
Don’t you just love it when the share price does what it’s told!!
I could be wrong but the SP looks to be at or around the 38% Fibonacci retracement from its recent high. Hopefully this is just a normal pull back as some take profit before the price finds some support and continues its ascent. Starting to look great value. The forthcoming fundamentals should support a much higher SP.
Been a busy few days on Twitter. Fundraising for Rev bars, chariot and more. Nice to see revenues will still be coming in at a decent rate.
Yes I rewatched that too. Always helps to remind yourself why you hold when the price isn’t going the right way. Looks like it bounced on one of the moving averages yesterday so hopefully we will have a better day today.
It’s holding up pretty well considering the whole market is down today. Would have thought it would have broken south if it was going too. Good support at 43p
Is Debenhams a brand? I think of it as a retailer/platform. Somewhere you can get lots of brands under one roof. So it can never really be described as a dated brand. That’s the beauty, it can’t really go out of fashion, brands that go out of fashion stop selling and get replaced with more fashionable ones. Debenhams is iconic in the U.K. Are some of the brands dated that they sell? Maybe to one section of society, but I’d argue that they only exist if they are selling so what appeals to teens will not appeal to the more mature shoppers. So all in all I think Debenhams has more potential than Boohoo. (Which is just a brand for teenagers) it has a bigger target audience and will provide a platform for the boohoo group to service a growing customer base. I wonder if we could buy a similarly large platform in America that customers would recognise.
Current EPS forecast is 10.7. Average pe of 40 would see this at £4.28. I’m sure as the year develops and the price picks up some momentum we may well see higher pe valuation.... historically it’s reached 70 plus but let’s just say pe of 50. That would be £5.35 this year. Very plausible and very little risk at the all time low pe we are at now. BOO have made a lot of progress this year so should any of the aquisitions start delivering growth we may well see upgrades to both eps and pe valuation. Based on forward 2023 earnings of 13.7eps, this will be trading between £4.80 and £9.59 in two year time. So at £3.30 I think it represents a bargain. Worse case senario 45% growth over a year and half. Perhaps there are other shares with higher growth rates but they come with a lot more risk. So I see BOO as a good low risk stock to just buy and hold and a great stock if you can trade in and out of the highs and lows or at least add on the lows which is what I’ve done.
It was up 5 % briefly this am. Looks like it is still holding in that pennant. Volume starting to build on the hourly chart as we get closer to the 50ma. I’m pretty comfortable holding this mid term based on the expected results over summer. It will look very cheap then. Got to give it time
Eh they maintained last years guidance of 25% Rev growth.... which based on the fact that they always beat this I wouldn’t be surprised if they do it again.... someone at the ft wants to get in below £3. They’ll be lucky. But if anyone wants to sell at £3.10 I’ll be happy to buy. When this turn I think it will motor back up
The current pe is even lower than the pe valuation when the Covid collapse hit and then when we thought slavery allegation were going to take down the company. We are a stronger company and a better company now then we were before those crashes yet the valuation is the lowest it has ever been
Looking at historic values this was the first year in a while that the pe wasn’t in the mid forties on results day. Probably explains why we haven’t seen a big sell off. We are already near the bottom of the valuation. Historically speaking the current pe of 36.7 is the lowest the pe has ever been across the last 3- 4 years and for the last 3-4 years it has managed to reach >80 mid year. That mentality would justify a SP of £6.88 this year. So I think we’re being offered a bargain here . Even if we lowered expectations to a pe of 60 (which would be well below previous in year pe highs) we would see £5.16 this year. No brainier buy and hold