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Fairly oversold on the daily. There's a key trend line it's been testing since yesterday, seems as yet uncertain if it wants to break down below it or not. Not much further below that is another strong trend line at 205 though, so I would imagine selling pressure will be dissipating rather than increasing. Might depend on tomorrow's inflation prints for the point when buying pressure returns.
What's to stop RDW chasing BDEV down if the merger and otherwise poor results there are seen to be unfavourable? Now that RDW are essentially pegged at 1.44x BDEV. If BDEV falls to low 400s/high 300s, then RDW's holders will see no premium whatsoever, no?
Doesn't the RDW sp imply Barratt should be trading closer to 470p if there's now an implied pin at 1.44x? Is that spread just a tug of war between the two shares as to whether this is a good merger or bad?
No, me neither, much prefer to invest rather than short, but it worked well enough shorting from these same levels and conditions last week. Nothing personal against Mobico, it just looks like quite a tenuous rally based more so on hope and speculation than substance.
Who's bashing the company? It's just a comment on the balance sheet and finances in relation to the share price, that's all. It's a fine company that got hammered by a pandemic, and through little fault of its own now finds itself quite over-leveraged.
I agree, it could be, but similarly the chart from October looks like the chart from Mar to June '22; a 3 month melt up into a blow-off top. I think this relief rally might exhaust itself soon. But this is just my opinion and is as much speculation as anything else written here.
Likewise, good luck to all though. No hard feelings, just sharing opinions.
Just not so bullish that this rally has much underpinning it, that's all. Would only short once it starts to turn. Some of the posts on here sound a lot like the posts you get at the top of a euphoric rally.
"Bizarre to think the ever crept below 60p."
To be fair, this is riding a wave of speculation and very little else. The balance sheet is not pretty and the outlook for the company appears to be quite poor. They have a dwindling pile of cash and a lot of debt in a time when credit conditions are not exactly loose. Unless they can start flogging off assets in something of a fire sale, there's a real prospect of failure. So from another perspective, if no takeover offer is forthcoming, 60p might appear expensive.
From yesterday: "narrowing trading range of 65.68 to 60.72, which it breaks first is important."
It broke down just below that range at open. Would guess it's going to need some help to hold in the 60s today.
"Give it a rest Kando….you were wrong just own it."
By selling at £1?
Update is one of market share loss, revenue loss, and even more adjustmented figures. Returned to growth on a constant currency basis? What's the next accounting shuffle to sugarcoat the narrative? Revenue is still falling. It's a growth stock that stopped growing and is losing active customers (700,000 down in beauty, 300,000 in nutrition). That's the underlying business trend.
Invest if you like. Who cares. But take the rose tinted off.
Pump-and-dump
adjective INFORMAL
denoting the fraudulent practice of encouraging investors to buy shares in a company in order to inflate the price artificially, and then selling one's own shares while the price is high.