Would any lurking long term holders/watchers like to give their thoughts on why the SP has been heading south since results that on first reading were pretty good. The company is debt free, presumable has a large unrealised gain in its meter business and is set to grow dividends for the next 4 years. I Expected more and am considering buying in at current levels.
130p looks like a consensus forecast at present with potential upside. The HY announcement listed adjusted EBITDA of 3.5m, so say 7m at FY meaning currently trading at 14x EBITDA (adjusted). If that is what singer is using then a drop to 5x implies that an average rating would produce a substantial SP uplift.
With NAV above 200p, you would think there is value here...Recent SH may be happy with 80p. LTHs would like a lot more. An early bidder may get a bargain, leave it too long and recovery From Covid might have set in
Lots of negatives for the UK environment at the moment.....as recently described by IMF and Moody’s. Increased borrowing, lack of growth, EU trade likely to cause inflation blip. Happy to hold Pru with its growth Asian franchise
Wealth Managers that own the client relationship have much larger margins than the asset manager that delivers the performance for the client - in a rational world it would be the other way round....with those that create the wealth being rewarded over the sales organisation. WM have such a knowledge advantage over customers that they can easily pull the wool over their eyes.
Wealth Management has to justify its cost. Regulators need to focus on WM to ensure it does.
Green bond and new 5% shareholder16 Oct 2020 08:38
The mysterious FIL from Bermuda (an insurance hub) has appeared with a 5% holding. Would not be surprised to see this holding grow and after appointing directors lead on to a bid - or maybe they just see value and will be gone in a year or less.
The 250m bond is more important, it is a higher capital tier than the 75m of bonds redeemed which may be the main reason for the issue. The coupon is a stiff 7% so it is hard to see how Just will make money on the investment of this cash.
Firmer foundations are worth having. Would be nice to see a run up above 50p in the next few weeks but brexit and Covid look like dragging the market lower
I think we need not worry too much about the SP at the moment.....the market is often more excited about new things. This company has a bright future.....if you want to trade and second guess the market good luck. Otherwise I am thinking that in 5years the company may well double in value (NB different to double the SP) and if it only treads water it means the global economy has been v poor, so that may well be a better return than many can offer. The SP has traded 480-520 for some time. Entering or topping up at current levels is decent value. Take advantage and add steadily is my current view.
I have used a metaphor of a fast tortoise before - I think this this is a get steadily wealthier investment. There are others out there that will go faster in The short term, but we are now in testing times and there may be major market setbacks in the next few months....This stake in the future may be more stable than most.
Thanks for posting.....it would be helpful if they wrote a few lines about what has changed. From an early scan I think these are the updates: More detail of the approach to Surufatinib approval Fresco 2 charts in Fruquintinib section
Could be updates to the early stage pipeline and news targets.
Two RNS show Pershing has been a seller of late from 9.4% to 7.2%. This perhaps explains why the SP has stalled against a large willing seller. They may have another % or two to sell down, the market has absorbed this pressure so could progress once Pershing has reduced its stake.....can’t see them wanting to exit completely, more a case of portfolio management and banking some gains.
Def not a Kate. But I assume that is some autocorrect spelling error.
I am being proven wrong at the moment....and happy for LTH to be wrong. Could be the other side f the coin....walk the SP up so that the discount looks like a bargain when sold in The US. Still think there will be a discount when the price is announced and better to buy afterwards.