Member Info for Hydr31

What does a buyback achieve when you have little or no earnings anyway. We’re not being valued on earnings from what I can see. It would just depletes cash further and therefore the valuation. Now if they did announce a buyback it might show some confidence that there is some serious positive change in revenue in the pipeline. But to do so without would just be a waste of cash that they probably need to spend on aquisitions

Price was 45p last year in April. I’d be disappointed with anything less than a multiple of this. I believe price is well undervalued currently. FCAP is in a great financial position despite the downturn, it’s cash position is growing, it doesn’t need the merger to get back to 30p and it’s not going bust so unless we’re looking at multiples then I’m not sure it’s in shareholders interest.

Sam smith made a sizeable buy in feb this year too….at 31pence Shows confidence.

Actually re-reading the RNS, it says rather than spending £15-20 mill on capex they are now going to spend £13-18 million on the aquisition and capex. So they are avoiding the need for capex by purchasing trouva and it’s assets, so I’m guessing they have a warehouse so there is a major cost synergy by buying trouva over building a new warehouse. And they get the benefit of the extra revenues and potential growth.

Reviewing trouva on companies house it does appear to be growing rapidly. (Estimating revenue at 12x debtors on companies house- they had revenues of only £294k in 2015 and have grown x 62 to £18million during the pandemic year. This has pulled back to £12million a year later but that is still 58% up on prepandemic. It looks like they managed to retain profit in 2020 and 2021 so with some cost synergies and continued growth it could be quite a profitable addition. Would be nice to know what they paid for it

Any thoughts on this? I don’t think much of the RNS. They don’t tell us the current revenues of trouva or how much they are buying it for. Would have thought that was standard when making an aquisition. Given we’re loss making ourselves, spending the cash on another loss making entity just before a recession doesn’t seem like the smartest move unless there is some justification. They suggest it replaces some of the capex we would have had to spend anyway so perhaps we are getting more bang for our buck which sounds great but only if we can understand the rest of the picture

I’ve had a look on companies house and balance sheet suggests £12 million revenues…. But looks like they experienced some serious growth over the last few years.

You also need to consider what the underlying profit is. A lot of investment and one off costs associated with aquisitions were written off in this years p & l. Moving on you have a company that was making between £60-80 million operating profit, so they’ll be adding to the cash balance every month. Slightly higher cost base but then they’ve raised the company’s ceiling in terms of revenue to £5billion which means sales can grow now for the next 5 years without need for new capital warehouse spend. By the way all this cash investment in infrastructure was happening at the best time in the last hundred years to be buying up office space and warehouse. So makes total sense to have made those investments now whilst it’s cheap to do so and to take on debt. As we go into inflationary environment you don’t want to be holding boat loads of cash which get devalued but you want to hold some debt and let that get inflated away.

We’ll my business is looking to trade in our diesel vehicles for electric this year. We’ve done the math and we stand to save considerably by investing in change. It’s a no brainier with petrol prices at the moment and it’s a quarter of the cost in mileage.

Yes there is or has been a short term trend in energy stocks doing well driven by developments in Russia but you only have to go back six months to a year ago and there was a bigger trend of electrification of cars and sustainability./environment. These issues haven’t gone away. I am weary of energy stocks as I feel a lot of them are pop and drop with no sustainable business supporting the fundamentals. Show me a cash rich energy stock that consistently makes and grows profit, not just making a windfall profit of the current situation and I’ll consider it. In SLP we have a cash rich business with sustainable growth potential that has a history of delivering Revenue and profit growth.

Just imagine the buying down there!!

4 billion sales
400 ebitda
That would be a minimum market cap of 2 billion - 4 billion. The path back to £4 is clear. Just a matter of patience

Pointless bailing now. You held through the demise from £4 to 70p whilst the company investing its hard earned dough in buying new brands, warehouses, office spaces and creating a company capable of delivering £4billion in sales in just a few years time. I’d suggest that since you held through that it might be worth you holding a little longer to see if the capital investment actually delivers. Look at the company not the share price

There’s a lot of people talking rubbish on here. Just having a read back at previous trading update and they reiterated 25% revenue growth and 9.5-10% ebitda

That’s record revenues of £2.181 billion

That’s record ebitda of 207 million

Which is a 35% increase in earnings. Pe is at least half of this now. It’s been a particularly bad year for the share price but I believe BOO to be a growing company that consistently delivers growth in earnings. Absolute steal at the current price

Yeah cheers…. I saw that shortly after posting. They looked good too so glad I’ve stayed in

I think the share price topped out with the rhodium price which was on the rampage a year ago, but this looks to be recovering nicely and hence why SLP has stabilised. I’m here as I think it has a very attractive valuation, pays a very good dividend, buys back shares so no dilution and has more than 100 mill cash on the books so even if there are short term challenges or slowdowns it has the ability to manoeuvre itself out, support the share price via buy backs and reward shareholders with dividends. Chart is sort of forming a bullish triangle with higher lows so suggests more punters are prepared to pay current price for it. Quarterly update due soon will hopefully provide some fuel for the fire

Research tree says short interest increased to 6.68%. Does anyone know what happens to short interest at or near the bottom ? Does it generally spike and then collapse as the share price goes up? A bit like long interest does at the top.

Nova delivering 100 million organically in 5 years is quite a statement . If they can achieve that then we’d be looking at valuation of £10-15 again

I’ll see it when I believe it though. How are they going to deliver that when the market they are predominately in is shrinking and they seem to be very slow in making in roads into other non covid revenues

Yes they really need to get the M&A moving . Sentiment around covid stocks is rock bottom and for this share to start climbing we need to see they are in control of the bottom line. We have a 5 year plan which is great but until we see some organic growth in revenues or inorganic growth through aquisitions I fear the price will be stuck. The DHSC issue is a reason perhaps to be cautious on the M & A front but at the same time with inflation where it is headed and with the market where it is, now is the time to make some moves.

Not much of a reaction at all really. Appreciate the price is almost 10% down today but that’s not a big move in this share, it looks to have shown resistance at 26p which it was at a few weeks back and I wouldn’t say volume is particularly high on todays selling and that’s probably Because at the current price it represents good value.

Growing revenue, growing profits, growing dividend yet the PE is at an all time low.

At 26p it’s now the same value as in 2019 when it only had £5mill cash, paid 0.5pence per share divi, and had op of 3 million.

It’s now got almost 5 times the cash, pays 3.5 times the dividend and approx 3-4 times the op. Yet pe ranged between 6-12 during 2019 and now it’s at 5.6.

Clearly we’re in a bear market at the moment but there’s plenty of upside here now

Sounds like nhs are pushing it through ready for a substantial order

Valju and I know a few directors, sales managers and marketing managers who can’t sell for toffee. It’s amazing how good at NOT selling product most sales people are. Majority are very good at selling themselves, dodging bullets and climbing the ladder. Very easy to hide behind Covid figures and look busy over the last year. To be great at sales, experience helps but attitude, grit and determination are way more important. You either have those qualities or you don’t .

Does Sam smiths SIPP arrangements suggest she sees long term value here? Obviously transferring to SIPP probably provides some form of tax break for her? Don’t fully understand as I don’t have a SIPP myself. Is it as easy to sell your assets as normal shares if you need too or is it a sign that she intends to hold those as a long term retirement pot type investment ?