Member Info for MattTheBrave

Wow - 'the virus has yet to be identified'. Astonishing ignorance and self-deception. Just wondering how long we've had individuals from the American deep south posting on this Board....:-)
Probably best just to filter them I think.....

Matty Boy, relevant fact is that we sold 3% of revenues for 6% of Enterprise value. Ok, but not the deal of the century. I am very disappointed not to see the net debt falling at all (it actually went up 100m). Where on earth is all of the 'Free Cash Flow' going?

..also remember cash of £120m, liquid assets nearer £350m - it's a cracking balance sheet!

Re Crypto. KR1 still my pick (an idea I got from you GS). Current price 169p versus NAV estimated to be 250p, including a host of interesting blockchain investments still valued at close to zero. Reason why discount is quite this big largely due to quote on the less transparent Aquis exchange, but I think this is an opportunity.

Good move from management - the stock is clearly too cheap. With liquid assets of £400m, the EV/EBITDA is around 1.5x - that's stupidly cheap. Management have identified that one reason for this is that their non-leveraged business is being lumped in with the leveraged business and that the valuation is suffering as a consequence - market clearly agrees. Personally, I think the leveraged businesses are also undervalued, with most regulatory bodies having already thrown the kitchen sink at them, and they remain amazingly cash generative. The business breakup might get you to £3.50, but I think the broader undervaluation means £5 is a realistic 12 month target for me. And if the upcoming results are a bit light and cause weakness, I'll buy some more.

Just reading through the Board and came across SS's post on 28 October. The 10.6m is gross profit before wages, interest, tax, and depreciation. The actual pretax profit is a loss of just over £3m (which probably means no tax, so this is also the net profit I'm guessing). It is on net profit that the PE is calculated, so it is not on 6x. That takes us back to revenues. If £50m this year then on 2.4x sales which is modest for Fintech. However, if we really believe that revenues might be i the range £80m to £100m next year, then this stock looks a bargain. That's certainly why I'm invested!

I think TP has less risk attached, but is at a smaller discount to NAV. I hold both.

Essex - It is more expensive to house vulnerable people, but doing this through the private route as they do now is actually half the cost of how they used to do it - effectively through the NHS. So for the treasury, the system is fine and highly unlikely to be radically changed IMV.

A large diversified portfolio eh Kpatel? Let's see what your posting history says about that shall we? Mmm, that's odd - amongst your paltry 65 posts, 90% of them seem too be on AVN. Still, there are a couple of other names there - this will be where you'll have made the money back for sure, right? Asos - oh, it's gone nowhere for 5 years and halved since the summer. What about Premier Oil then? No wait, it's been an absolute disaster, down 90% since 2018, and has even tried to recover by changing its name! Other one is Lloyds - well you certainly haven't made a fortune in that one (I know as I hold this one as well :-0). So where is this great diversified portfolio of which you speak? I'm beginning to wonder if you're telling us a little fib KP....:-)
Now, from my postings, you will see that I indeed do have a diversified portfolio, and of the 35 or so stocks I post on, I hold 32, so I'm afraid this completely negates your arguments about my posting habits, which you could have easily checked out before posting.
And as for your last comment, I have indeed learnt something - the number of clueless investors who risk their children's inheritance in tin pot shares is large, and it appears, sadly, to be growing (yet still they do not learn form their mistakes).

Don't think they needed to increase their stake to do this. This feels more like a vote of confidence to me.

One would imagine, given its fastidious approach to governance, and the very public nature of accusations made against CIM, that it would not have invested unless the the accusations were false?

My understanding is that we won't hear a lot more concrete stuff regarding products/trials until mid-2022, but I don't see why we can't get a recover to c3p once the current C***-up concerns recede.

...the chairman has done something stupid and been forced to resign (though is still involved as a director), and the shares are no longer pledged against the loan. Whilst one individual has clearly screwed up, I don't think this actually changes the prospects of the Company at all, and hence this has caused a good topping up opportunity for the long-term IMV.

Looks like a good deal. Small profit contributor (but large goodwill impairment contributor - anyone fancy a write-up for a change!!!), but should pay down c10% of debt. What they don't say is the extent to which it contributed to FCF, and hence whether it impairs their ability on the dividend (not at current level, but in terms of future increases). In any case, still a positive development - GLA for 18 November, eh!

So why is a cash generative/cash rich company such as IG Group entering into a Euro 1bn note programme I wonder? Not obvious to me at all. Anyone else?

...and hadn't realised just how far this stock has fallen till today. Certainly got me interested to re-look, but then I looked at the longer term earnings per share record:
2020 $1.02
2019 $1.37
2018 $1.51
2017 $1.75
2016 $1.76
2015 $0.91
2014 $1.11
2013 $1.23
2012 $1.62
2011 $1.30
Not impressive at all for a stock trading on over 20x earnings. How are holders here justifying this level? (And no, I'm not short, or a de-ramper, just an interested observer who used to have a position here).

Mmmm. Not so far......

Thanks Opt. I've had a large holding in IG for some time. Dabbled in CMC in 2019, made good money but got out way too early in 2020. Then on the recent earnings downgrade, I re-entered CMC with a small holding. Still 6% underwater on this, but I think this is a good long term story (or someone will buy them). I love these businesses because they're cash monsters (low capex) and structural growth looks good as more people trade, and more geographies are opened up.

If the management look after the business, the share price will look after itself and the shareholders, no problem. Time to remove the chip from your shoulder (and perhaps the bug from your ar5e?).

Personally, I don't have a lot of faith in TW, or any other commentators lie him. If they're that good, they should be running their own hedge funds and making real money! Certainly it will be interesting to see the RNS, but unlikely to be SF - their short position is only around 6mn shares.