PAUL SCOTT comments - Stockopedia - VIC10 Dec 2021 11:51
My opinion - I need to caveat this by saying it’s the first time I’ve looked at Victoria Plumbing, and I haven’t read the Admission Document yet.
However, I’ve digested enough from today’s results to realise that the business was clearly floated opportunistically, when it was riding a wave of strong pandemic-related demand, and achieving unsustainably high margins. The selling shareholders are laughing all the way to the bank, having trousered £286m by selling 109.1m existing shares in the IPO, at a price of 262p. The share price is now 99p (down 62% on IPO), having recovered somewhat from this morning’s low.
On balance, I think this share is starting to look decent value, providing you realise that the next accounts are likely to show a sharp fall in profitability. It’s tempting to have a dabble at the current bombed out price of 99p. Although if fund managers are sellers, then the price could remain bombed out for a long time.
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