There was a reasonable probability that they would have interment problems as they scale up but if you have a time horizon of a few year or more then these dips are a good opportunity to add at bargain prices.
I too managed to find a bit to add to my holdings, but after a tough time last year for small caps I will need even longer arms to find much more down the back of my sofa for the next 'bargain'!
The 'once in a generation' winter storm in the US will benefit Watr. After a previous icy blast their work load increased significantly due to the number of burst pipes and leaking swimming pools, it should be even 'better' this time as the freezing conditions extended to regions not usually affected. The floods in Australia will swing things there the other way though, as last year they ascribed a weaker Australia performance to the flooding. Still on balance the next couple of quarters should be very good.
Historically rsg has been much loved by short traders on the asx (over 10% at one point). it now has the lowest level of shorts since I have been following it (at around 1%) - hopefully a good sign.
With the increase share issue and the price nudging up it is back in the asx 500. With the past fall in mcap I am fairly sure it was also moved out of a gold indexes (VanEck?) hopefully an increased mcap will help reentry here as well.
I thought that not putting out a TU, as is typical pre-Christmas, would send us back under 2p but there has been a keen buyer (institutional ?) consistently purchasing .
Not complaining, but I hope it is for a longer term hold rather than a quick turnaround which would apply a brake to any significant rise on any good news.
Vel's entire share issue is 36M so unless BRH owned 100% then your calculation does not stack up.
(Vel- from October 2022 -share issuance - On Admission, the Company will have a total of 36,458,997 Ordinary Shares in issue)
That is very upbeat for you Horse!
I topped up yesterday - first I have ever picked up for under 2p . Hoping that this will go up the way vel has today which would make for an even better Christmas present for me.
This time last year I did not expect to be thinking now that if it can just get to 3p we will have had a 50% rise! I have kept topping up (or should that be averaging down?) so it does mean I now have a lot more than I did at that time.
The potential is there especially for further expansion into zoos, even when things are tight people still spend on the children.
Cenkos -
' Our forecasts, and valuation:
We are raising our forecasts for FY22E in line with the
trading update. For FY23E we are now including a significant contribution from the
US contract, and we raise our revenue forecast from £14.7m to £20.1m, with a skew
towards H2 due to the phasing of the rollout in the USA. We are raising EBITDA for
FY23E from £0.0m to £0.1m, also with H2 bias. We introduce new forecasts for
FY24E, which reflect a full year’s contribution from the new US facility. On p2 which
present our valuation approach for Velocity Composites, which gives a fair value
range of 55p to 101p.
We maintain a BUY rating. '
Although rather dwarfed by the contract news, the trading update shows that the company have done a good job in maintaining a tight control on costs during what has been a really difficult time for the company.
It is going to be interesting to see where the price settles over the next few weeks.
This deal has been moving forward in the background for a while and explains the steep rebound in the share price during October/November from those clearly 'in the know'.
Given how little volume is required to move the share price there could be a good increase on this news.
They would not have lost 3.5M on swaps (cancelation fee in todays rns)
'In light of the change in the interest rate environment since completion, the Company has taken the decision to break the swap at a cost of £3.56m and replace it with an interest rate cap at a rate of 3.96%,'
They can try and put a positive spin on it, but they have essentially just 'lost'£3.5M since October because they did not refinance their debt earlier this year and refinanced at the height of the 'Truss's downturn'. This is around a third of their retained reserves at the end of the last financial year . It looks like they may also need to dip into them slightly to maintain the current divi for two years but with inflation at 10% it really needed to increase.
They are not alone, it is going to tough for REITs in a high interest, high inflation, recessionary environment.
I chased this up with both H&L and Hendersons.
In short H&L has to request that the registrar makes the payments electronically, I have been told that they are now going to do this so that there should not be a delay with future payments.
I was surprised at the 2028 date in the briefing report as I thought that the time scale stemming from for the REMA consultation was submissions by October, response next Spring with a view to implementation of any move from marginal pricing in 2025 (it came up in a Q&A at one of the UKW presentations earlier in the year).
If you look at some of the published submissions, the move from marginal pricing may not be that easy (or even the best route) but it is something that they are considering in the EU as well.
It may be that having viewed the submissions they realise it could not be achieved in the original timeframe.?
There is an article on this topic in IC, Stifel look to have set a higher threshold for the price though.
'Greencoat UK Wind (UKW) has yet to give a post Autumn Statement update but Stifel analysts calculate that its revenues should not be affected unless power prices fall below £120/MWh next year.'
Hopefully Greencoat will provide a more definitive clarification.
Although it has been lost in the noise around the windfall tax, I can see the government being keen to bring forward the proposals to disconnect electricity from gas pricing (they were originally looking at 2025). Until this issue is resolved and the pricing clarified it will continue to weigh on the sector.
If you have yet to receive the latest divi - then the delay is due to CTY sending the money to the share platforms by cheques, these have been held up in the post because of postal strikes.
Seems a rather archaic way of doing things!