Firering Strategic Minerals: From explorer to producer. Watch the video here.
I was rather hoping for this to be taken private but probably wishful thinking. Probably left money on the table but sold out on Friday.
Negotiating down with suppliers is one thing but since many are small businesses and likely insure credit, I consider that the next risk faced. They don’t have much in the tank if credit insurance limits are reduced.
Bold call to move the range up. I'm going to guess the other way and say we will see the 160's again. I just don't think there's enough participation in the share and scheduled news is quite a way off. So my thinking is this only rises sustainably (in the near term) on a general flow of money into equities again ... and more precisely the UK exchange!
Probably nice prey for low level shorting and MM play for a while...and remember they will know how many shares are sat in retail at any one time.
All guesswork but at least its something to do until we hear from the company itself.
@Mikey279 - 6 times at best on a debt free basis. VC would go for 4 and hammer the intangibles on top of that. Not enough clearly defined annual recurring revenue. It's more like a trading house trying to punch out the numbers.
When it comes to the rental/lease business, going to corporate direct is pointless. You'll jet get SME and not enough scale. It's the network of mobility providers and a model which works for them and you. They already have the lease partner finance in play but the issue is MMAG need to be able to provide repair/warranty support as well ... so going to an Ingram/Anovo for that product makes more sense.
Of course, you then have the VAT margin to consider so sending consumer sourced devices to a business might not work....
Whatever way, 25p seems fair for this ticker. Think they should sell up soon though.
HedgeHog ... Recommerce category is flogged to death. It's quite well known to those around it that if Blockbuster Video went full tilt down that road rather than 'dabbling' they'd still be around (as too if they bought Netflix for$50m when it was on the table)!! My point is it's not new so don't present it as something that's just sprung up as the new hot potato.
The issue with recommerce is structuring a business and strategic direction which delivers sustainable growth, opportunity and shareholder return (not simply capital return). It's the conundrum and why so many (very successful) recomm business end up defined as 'lifestyle' business. You seem like you might know you're way around the industry so then you will also be more than aware of the struggles equity houses have had with such entities and that includes EcoATM.
We are in agreement that MMAG has a sustainable model. However this game is all about the supply and I personally suspect that the cost of capture has escalated significantly for MMAG. In retail propositions from CEX through to Voda, set the price matrix for what MMAG must pay consumers for devices and their cost to collect, process, re-deploy might well be significantly lower. Take a look what those 'retail' guys out of Finland are now pushing through Europe ... supply is their issue and a strategic partnership/merger type deal with them would not be a bad call. I forget the name of the company right now.
You mentioned Backmarket ... they are a platform and those IT wunderkinds basically set up from a room what is a truly investable, sustainable sales platform. They don't go buying MMAG and the like ... they just take their slice of the pie without touching the product.
They said about cash outflows in h2 pretty much matching inflows of h1. So not bleeding cash and certainly not doomed for failure. However no significantly positive fcf till 2025 and even then around the 50m mark.
So my read is company stable but in no position to return value to shareholders just yet.
No mention of non cash write-downs against disposals …
Apollo failed with WG. .... so why would they not be sniffing around this one if they want such a company in their portfolio?
It'll go where the powers that be want it to until we get some positive news flow from the company. That said, most companies with debt have been arbitrarily sold last two days ... inflation data week blues I imagine. I guess the Chinese deflation marker did not help things much either.
Well done LOTM, hopefully that'll jump to the good for you by the end of the week.
The Regen repair business was just repair ... no trade-in. They supported some end of lease stuff but I think that was gate fee and triage revenue. Their non-mobile activity was the most attractive part.
Eco-ATM is a different animal. In the US it was crazy numbers but mostly low end. No idea how the Sainsbury's roll out went or shopping centres in the UK/EU.
I don't think Eco would be an acquirer. Assurion would be more likely and then of course there's EcoAsia if anything is left in the tank there.
Very leftfield but actually when they get their cash influx from the Greek sale, the CPW arm of Curry's still has a great capacity for trade-in, repair, triage. They are in a unique position to really take a lead into the asset cycle and re-deployment at consumer level. At the moment I think they still just auction out their product.
HedgeHogarth, you cannot really compare Blancco. Blancco supports the aftermarket/asset recovery industry with the software solutions for data removal and OS flash etc. Spun out of Regenersis and it was the bit they kept when they sold the 'repair' business to an American outfit based out of Salt Lake. Blancco's tech offering may have extended to white label trade-in platforms but I don't know. I believe likes of Blackbelt do.
Blancco do not handle the assets and hence you cannot come close to comparing valuation metrics. They are a software company.
MMAG sits in the space of Rebuy in DE and Recommerce in FR. Rebuy is probably the one which has the highest 'valuation'. The issue is these business are cash heavy and you need to look at the valuations the likes of Gazelle (US), Fonebank (UK) and Mazuma (UK) achieved to get a better picture of reality. I'm absolutely on the side of currently undervalued ... however 20/25p target seems sound to me, not the crazy money.
What was the similar business that sold for £170m HedgeHogarth?
I've jumped back into this today since £15m MCAP is an overdone reaction and in my view way underplays the value which I think should be more in the £25-30m region.
As I've said before on this board, they really need significant B2B both on contracted trade-in and device fill. They've done a great job on consumer but at significant cost and the issue with valuation is that ultimately there is only so much you can do to 'soften' acquisition cost at consumer level before they turn to alternatives. Simply no significant loyalty/tie in.
Ignore the naysayers LOTM.
Commentary on investment psychology is dangerous since there's always a flipside to the coin. In this instance its the 'just in case' investor who has no faith in the management of the company yet keeps hold of their holding.
As I write it looks like SYNT is on the drop again so hope you get the fill your boots for another round.
You're right, volume mildly increases and they just can't hold the SP.
Down the pub already.
Trade volume just disappeared this PM ... will grab some again at closing if in the 19's. This share is nothing but a gamble but I like the upside ... particularly if it's a metro style deal or maybe some other divestment of % holding in a project or two.
Do they have a strong presence in Germany?
He/she called it! Lot-13 does it again.
US jobs data not great ... guessing higher for longer will be the rates messaging, unless inflation readings contradict the news flow.
Whilst what you are doing makes sense, on this occasion with the news flow due today and next week I'd have kept core to hedge against climb into the 190's and resistance forming. A change in trade volumes (generally across equities) will change this particular SP trend a lot in my opinion.
I'm enjoying reading your trade action - at least you're slowly chipping away at your average. I'm too into the PFC game at the moment and wondering what's happening with WINE right now.
Decent amount of buys just went through again. Hoping for a hotel chocolat type moment….!
Pedro, whilst it shows the Cosmens are 'confidently adding', they've bought 6m shares or so without moving the dial much on the SP. I think it's more a demonstration of how weak sentiment is towards this company.
I saw Systematica reduced in WG. recently. I still can't help but think they run their shorts at the behest of 'clients' as opposed to their own fund management practice. I guess we will never know what sort of approaches MCG management have received until one they like crosses their desks.
When it comes to WM, if you can't make a part of the business profitable in line with the rest, then shut it down or sell it.