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Trying to understand why the CEO decided to invest £3m in the company at 20p a share? Usually that's a strong signal of confidence in the company. I'm guessing he's either stupid or incompetent? Is there another applicable adjective for him? Doesn't make sense. McColl's doesn't pay that well for him to throw that kind of money around.
possible takeover bid/activist investor.....have seem burberry come up in some financial articles discussing FTSE companies ripe for a takeover/activist investor
The CEO has bought in with £3m in the equity raise which is the same as current prices. That's a pretty big number for someone's whose total compensation is around 500k. He's been at the company for 30 years and he's not far off 60 now. My guesstimate while trying to work out his net worth and wouldn't put at it more then 15m considering the salary at a smaller cap UK company in 1990 onwards starting as a financial director (even taking into account his potential property/stocks appreciation of around 10% a year which he may have acquired). So for him to put in at least 20% of his retirement fund on this bet speaks volumes. There has also been smaller buys from the other board members and increases in positions from institutions. The possibility of a takeover is also there.
On the technical side, the RSI is very oversold and the MACD looking like it could have a bounce.
what do people think the trading update revenue range will be? would be an interesting discussion to see the perception of what people think and how they have worked out their estimations. this seems to have been beaten up quite a bit since the 2nd biggest shareholder sold out
i think the buyer's intentions are very obvious lol. just like any investor, they want to make money on their investment.
i think the bigger question is why is the seller selling at a time when the fundamentals look so strong?
i am very self aware that what is posted here will make negligible difference. my intention is to have a discussion on a message board with interested private investors in this stock.
i agree that on the technical side, it suggests that the rise should continue. I am just concerned fundamentally what this means and why a local businessman with links would sell his holdings when all other fundamental indicators seem so positive.
That doesn't bode well for confidence....2nd biggest shareholder selling.
From what i can see (unless i'm looking at the wrong fund), Cascade was established in 1993 by Vitaliy Khomutynnik, who is a Ukrainian businessman, President and Head of the Board of the Ukrainian Golf Federation.
Makes me wonder why a local guy with connections is selling?
Bit of a red flag for me.
1) what do we think mcap will be after dividend is paid?
2) what do we think mcap will be in 6-12 months after further announcements on their other investments?
With only 32m shares outstanding, there's gonna be a lot of tight holders waiting for the divi payout.
Share price has a lot more upside from here.
It looks like RMS holders have provided BRH shareholders with the easiest investment of 2020.
i get to own a company for basically free.
Upside from here is a lot higher then the downside. Investment/Trading is about swaying the odds in your favour.
I really like my odds here at these prices.
it doesn't look like there will be too long left to buy in the 30s....JKX should be a £70-80m market cap at least. will be a very good trading update
will be topping up if this keeps dropping. easy money once the update is out!
i thought there would be more resistance in the early 50s but it sailed through. next resitance level seems to be mid 70s. will be adding more if it pulls back
resistance at 46 seems to have been broken. well run business. good value at this marketcap.
i personally don't try to predict what's happening inside people's heads.... I just look at the information available to the public (ceo purchase, low p/e and ev/ebit ratios, incentivised business model, uk market not recovered to the same level as other developed nations) and make a risk/reward bet. it looked to me that all the negatives had been priced in and some. happy to buy at these prices.
The market is gradually realising how undervalued this company is. CEO buying £1.5million worth of shares at 45gbx at the start of the year is a strong sign of where this company was heading pre-covid.....very good incentivising commison based business model and has produced fantastic mult-year revenue growth
With a P/E ratio of just over 2, and a EV/EBIT ratio of just over 1, it's definetely in the buy zone. Have been watching for a while and the time seems to be now, so i'm in!
CEO bought £1.5m worth of shares at 45gbx in Feb 2020 (current price 25gbx). Well invested CEO (owns 11% of the company) and with a commission based business model, the group has produced very good growth and free cash flow.
will be adding to my position if this keeps dropping. this should be 40+ by january trading update
all the bad news seems to have been priced in this so far, including the grim trading update. have been watching and there has been consistent buying last few weeks but the price didn't move, suggesting a seller is finally out. Hopefully we are looking at the start of an uptrend. this is a well run business with invested management owning 50%+ of the business, and low shares outstanding of 50m. looks primed for a good recovery, with no debt pre-covid and average year on year earnings of around 8m. if it can survive until normality resumes (which biontech co-founder estimates to be next winter), this will do well from these prices. I believe it can considering it had no debt pre-covid, and with a low market cap of 22m, it could also be a takeover target. I'm in!
anyone know exact date when next trading update is due?