The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I think you are ignoring the direction of travel Ayecuramba, rather than looking at it, the direction of travel is down 5% in the last hour and heading towards 58p with the Chairman selling just under 7% of his holding after the investor presentation! I
Looks like they will have to re-shape the business to fit demand as well as do the cash raise
Hi ID, the actual expectation of the news is/was baked into the SP, the impact on profits and cash flow is/was not baked in, hence the lag as I expected. What I don't know is how long the lag will be or where the re-rate will take the SP, but my feeling is late this year or next year.
No, Indi, it is definitely good news, but sadly as it had been expected and built in by the market, yet again it does not move the needle Northwards, it will move eventually but it may take till next year, or it may spike again like it did to 94p, but I took the view that good news would yet again not mean a big advance whereas bad news would have knocked the share price by 10-20%
Hi Dartron, yes I am like you, trying to establish a base without going overboard in case there is some adverse news but not wanting to miss out on some historical lows which will have a big effect on the overall output in 2-3 years. You might want to have a look at my other post today and cast your eye over it, a growth stock with cash in the bank and hovering around break even. Have done well with it in the early days and just gone back in again today on a dip
Hi AJP. I think the reason for the share price underperformance is contained within your post, $2.3B addressable market and revenue growth in H1 of $1m from $3m to $4m. Now you can say isn't that fantastic in % terms, but for a growth company with unique products it is pretty dismal. I know a bit about growth having grown new market entrants with multiples of million $ per annum. Having said that I bought back in today with a small purchase as the cash base is solid following the raise, but expect this to be a 12 month or longer hold.
Thanks for the great detail Dartron, the key things for me are the stable shareholder base, the Director buys and the fact that the CEO was previously the CFO and the new CFO is not new to the business either. They have had some unbelievable bad years and not sure why the cyber attack would cost as much as they say it did, but think the investment case is sound, hopefully no nasty surprises on or before 27th, then again at 8p it can only go down so far lol. Bought a few more today at close of play
Phoenix, Probably concern about the upcoming results on 27th September, hopefully not a leaky ship! Given the Director share purchases following the profit warning in late July one would hope thing have not headed further South in the last 6 weeks. My initial purchase of £6k at 1357 has just shown up
Thanks Dartron, totally agree with your view, the other share has done well for me in the early days and I can't complain overall but there are too many dreamers talking unrealistic against a market position which is not moving, if all goes well it will probably re-rate, but not without risk. Here at HSS and SFE they look more as they are approaching the bottom of the cycle and being priced accordingly, so assuming they get through the difficult downturn in 1-3 years they will be a multiple of where they are today. Appreciate your input and analysis
Hi Dartron, that's an absolutely excellent overview and lots of useful data, many thanks indeed, I am not currently invested here but have been in the past and considering a possible re-entry for a longer hold. Your input is most helpful as I have not done much research recently on this one, again much appreciated and good luck
Leaky ship just before the results ? Looks like a profit warning coming linked to the problems in construction and the wider UK economy ??
Because I think the market will not re-rate on news which has been know and expected for many months, instead it will be a gradual process over 6 months or more and with any potential risk on operations or cash creating the odd peak and trough, but that's just my view based upon how the market has reacted over the last 3 months
I did say Friday morning I was undecided, sold Friday afternoon, been bit busy travelling to post until today, think the realisation is settling in that this is going to be jam in 2024 or 2025 and not 2023, the £1 before Christmas holders seem
less bullish..
Indi / As I have said, this time I have not traded it, I have bought and held, and am still holding, so I am not talking it down looking for a cheaper re-entry and what a ridiculous statement to think that a few posts on a board would achieve that on a company with a market cap of £155m