Member Info for JG68

They do seem to be the only company still being impacted by covid in one way or another.

For an essential transport services company which should not be affected by recession headwinds, which has a significant chunk of revenues contracted, with the only real cost issues to have planned for being wage inflation, energy fuel costs, and increasing interest rates which started over a year ago, they seem to have been well behind the curve in foreseeing this and planning for it, unlike others such as RR, IAG, FSG, and that lands at the BODs door.

IMO IR are useless, seems natural cost reduction to start, James Stamp has overseen a 50% decline in share price since he started last year and bought a measly amount of shares, the CEO seems stale and needs changing.

This needs an activist investor to shake things up, some of the hedge funds see value here and ways to bring this on , because right now the markets and probably analysts are not buying any of it, including the shares.

It's just us mug punters.

Spot on Charlie, all their purchases were small change, and totally agree re the covid funding.

And they still sprung a large Alsa writedown at FY too.

Mav

Pretty much the same situation here and I'm averaged around 120 and in for 1300 for every penny drop. Very worried for same reasons, despite everything positive I read on here and their forecasts, market doesn't want to know. It was the figures and not the ceo that ultimately changed RRs fortunes. Would have been the same here at FY without the Alsa write down. I agree with the BOD buys, or lack of them, pathetic when you think about especially the new CFO, hardly inspires confidence.

They will eventually return to net profit, hopefully this year without another surprise write down.

I'm now giving this until March 25, I'm treating it like a tied in period and just hope that the bottom isn't too far away because it's painful to see such constant capital depreciation.

I'm surprised some of the large IIs aren't making waves here, and as for IR , what a joke they are, can't actually see what the point of them are especially here.

How can the sp be marked down to 90.85 just on the UT?

Even on LSE site, talk about kicking a dog while it's down.

Yeah I was thinking how are they going to fund that.

Even the UT 1 million sell is 1p lower than closing SP.

This is unfortunately reminding me of how low RR went last year, what was it 60-70p.

Just waiting next week for liberium to lower their sell target to 70p.

Given how large my holding is here, this is now looking like being one of those investments you're stuck in for ages and you finally sell when breaking even and feel like you're massively up.

Thanks for that Ronnie.

The thing I don't get is that it was the Alsa write down at FY that resulted in the overall loss, so as far as the market is concerned it seems to be ignoring the underlying business because of these write downs/ yesterday the covid funding which are impacting headline profit. It just seems in simple terms that they don't want to show a profit, or even clearly forewarn like they could have at FY or April that again headline profit would be impacted H1 but to be recovered in H2.

It was like getting an on the day profit Warning without the warning, feels bang out order.

Thanks for your post, very helpful.

Wondered if you could advise approximately what the assets are here?

There is a troll on another board constantly going on about how MCG has no assets.

Is the majority forward contracts ie guaranteed income? Excuse my ignorance.

I think it was sneedway who was possibly suggesting that it was the significant reduction in the US margin to circa 3% from 11% that has caused this sell off, which they state should be recovered in H2.

What I don't get is if everything is dandy in terms of going forward, even 24-25, why is the market being to short sighted here?

I think wealthtransfer suggested yesterday that a possible ( obviously unknown now) write down could come next from the US division.

It seems that there is now always the risk that some unexpected write down will dampen any positive momentum the company is making.

I'm really scratching my head now because if they meet their 200-215 operating profit target for FY which should finally mean an increase in EPS and result in a net profit, finally, why can't the market see that, its only 8 months away?

Problem is Paddyboy they keep springing an unexpected impairment, or in this case covid funding which is essentially wiping out any net profit. Last year it was the Alsa impairment, can you imagine what the loss would have been without covid funding last year?

So they forecast operating profit for FY of 200-215 , so what will be the catch in March, a US impairment next time. And why this wasn't forecast in the forward looking statement or April update is beyond me. They basically announced a HY profit Warning on the day ,without warning.

Where to next, 3 months until the October update then they're silent until FY in March.

It would seem that the market is not forward looking at all with this company, or its totally suspicious like me now.

That's fair enough but they must have known it would impact HY profitability before today like in the April update or forward guidance in the FY results.

They always seem to spring something onerous and take the market by surprise and us shareholders. Why should we have to do a deep dive to analyse that something like that will pop today?

Also the same rhetoric time and time again, " impact from covid, material uncertainties, uncertain global macro outlook, challenging "

Let's see if the directors buy any shares at all time lows. Very much doubt it.

Iknowyourgame

Well I've somewhat calmed down since I read the update this morning, didn't sell, but it just seems there is always something unexpected to significantly dampen the updates and affect headline profit which is what it's all about.

Last year the Alsa impairment, now this covid funding, what next at FY.

Wealthtransfer

Thanks for your input.

Last year the impairment was Alsa related despite improved margins / revenue in that division, so not quite getting why there could be a possible ( IF any) US impairment?

What I can't fathom is if they forecast to make fy operating profit of 200-215 compared to operating loss the last 3 years, why is the market not forward looking here?

Thanks

Can you post the link again please.

Exactly, why are they still even mentioning covid.

Excuses excuses, market clearly speaking , underperformance time and time again.

Exactly paddyboy, what will wipe out this years profit.

And yeah great dividend at todays price, not if you bought a year ago, or 2 years ago and didn't average down.

Same old same old excuses, very downbeat as you read it, I've had enough here, def selling half my holding, needs new leadership not a new name.

More covid excuses, revenue increase gloss and blag, profits down on last year. Well worth the wait, not.