George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
I agree that this mornings RNS should be very supportive of the share price and gives further visibility of earnings. However I am not sure that the market will value the shares at 12 x earnings as house builders although a different proposition are only valued at circa 7 times. In the meantime, as you say Rivaldo, the dividend is very attractive and hopefully as Watkins Jones cash pile grows there is the possibility of further shareholder returns.
Meant to buy these some time ago then forgot about them. However bought whilst waiting for a flight at Manchester airport on Friday having noticed the price decline from recent highs. As a retired college lecturer I am fully aware of the marketing and recruitment value to higher education colleges and universities of having their own first class student accommodation, a trend that I believe will continue for a number of years yet.
Interesting that while Artemis has been accumulating that the share price has been held at 103 - 107, Bid/Ask. Very dissapointing to see no movement in the share price for a number of weeks, hopefully our patience will eventually be rewarded.
Yes good news, another partnership that actually merits a press release. The problem at the moment is that new business is not increasing pfbt due to a slowing spend by Creston's established clientele. Creston's management have unfortunately not found a way to increase shareholder value, albeit a much stated objective.
As private investors we do not have the same access to company research enjoyed by that of institutional investors so have to rely upon publicly available information as well as our own analysis of company accounts. In Creston's case we have Liberum, paid house broker with a target of 170p, somewhat fanciful in my opinion. Edison research using a DCF valuation of 114p - 130p, again this is paid for research commissioned by Creston and finally Peel Hunt with an add target of 115p. With such a disparity of valuations my own opinion is that the market is unlikely to Value Creston at more than 10 times earnings i.e circa 120p
Share price up this morning on one trade and interestingly the spread has narrowed. Not sure if Market Makers are trying to stimulate some two way business here or whether there has been some mention in the financial press this morning.
How many times have Edison described Creston's valuation as undervalued, yet today the share price has hardly moved with very little volume. I am not sure what it will take to get the share price moving upwards so for now it seems the only reason for holding is the dividend.
Rivaldo, noticed your second post today on ADVFN re the investing philosophy of the Argonaut Fund management. Seems strangely familiar to that of DBAY Advisors who have to date, despite having a non exec represented on the board of Creston failed to benefit from their investment other than collect dividends. Let's hope that the their combined enthusiasm for Creston eventually rewards us private shareholders. I can't help but wonder why I did not sell all my shares at last years high of 160p.
Question is, who has sold them. Obviously differing views as to the future direction of Creston's share price. It would be nice to get some indication of current trading post Brexit, perhaps a trading statement to accompany the forth coming AGM.
Bit of a tick up this morning probably on the back of WPP results. Unfortunately Creston's shares unlike that of WPP will never trade on a PE of 17. Good to see the spread close though this morning on only a small volume. Also good to see Rivaldo updating this board with relevant Creston news particularly as I have given up on these with respect to my holding for the time being.
It seems that the share price is being held within the current range probably for the benefit of DBAY whilst they mop up any share sales. Getting some what impatient whilst this plays itself out, as it would be nice to sell my holding although not at the current price.
So DBAY have picked up another million shares increasing their holding to 27.91%. Probably explains the large number of sales of late without any apparent market purchases. Interesting to see what happens if they acquire another 2%, lets hope so.
So Dbay Advisors have realised that their large investment in Creston is not performing according to expectations, hence their man Iain Ferguson joining the board with immediate effect as a non exec. Let's hope he can exact some value from Creston for the benefit of shareholders who have witnessed a roller coaster ride of late.
From last full year results Creston stated that .2m remained from their 2m share purchase buy-back scheme, this would be utilised dependent on the share price performance. At the current price therefore we cannot expect too much support from the remaining buy back programme.
Creston announced today that last Friday they purchased 30,000 shares. If Creston management now deem the share price to low to reflect prospects then hopefully we can see a floor around these levels. If we see further purchases by Creston then I shall follow their lead.
Share appreciation yesterday gave me the opportunity to sell the shares I bought on interim results day. Whilst the current rating maybe cheap the market does not seem to want to rate Creston on a PE much higher than 10 so for now I do not think there is too much upside in the short to medium term. Hope that I am wrong as I still hold shares here.
House brokers target of 190p now seems a little naive. Slightly disappointing results, over reaction by the market is not justified but reflects how small caps often react to slightly negative news. Found it very difficult to trade early this morning, was offered 109 to buy but it did not execute. Managed eventually to buy at 116p which hopefully will turn out to be a profitable buy.