Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
It would be interesting if they do scrap the div. It would probably predictably drop at first but then it would be interesting as long term it would be more appealing. I think they should do it as if it goes too low they most likely get a bid anyway. Would all the pension funds that own it and most do, dump if the div is cut?
The motley fool is for people who have a £10 a month DD into their isa account. For me this has dropped for the obvious current stories and the fact the regulation on this sector worldwide is a complete straight jacket to try and operate within. But the downgrade from exane is a hammer blow. I’m sure most on here will know, they are very well respected and when they talk, people listen!
I don’t think anyone knows if she’s doing a good job or not as she’s not been at the helm long enough, it’s a big old ship to turn. I guess we’ll find out sooner or later. The question is do you stick around to find out? It’s currently being day traded to death. I’ve always believed the value is in the brand, infrastructure and customer base, but non of the above are liquid. Lots of people are going to do well out of this share, which side of the line that is, I really don’t know now!
US compaines are trading at circa 20x so lets say thats the sort of number paid and let's also say your right about the 50/50 cash/shares they've still had 10X in cash, being paid director level salaries in the lock-in period and they have the options that may, may do ok if he pulls it off. Worst case is you've sold and your as you were. A bit of a no brainer imo.
Think back to the time the transaction took place, the world was a wash with cash and rates the lowest they've ever been. A guy knoack on your door and wants to buy your media company that is doing rather well, hence his interest. Come on, what multiple would you want in that scenario? SMS is in no position to drive a bargain and they know he has cash to spend to get his vision up and running!
I’ve said it before, Media monks was overpaid for imo and the model of letting owners cash out of their agencies with an over inflated figure to package it all together as S4, seems bizarre to me. I know someone will tell me they have share options linked to the acquisition but if you’ve already received a number in cash that you’re happy with, they probably don’t care about the plight of S4. They’ve already had their day out!
And how would that help dave? Who is going to put their hand up to be CEO of a sh*t company , as you put it and risk their reputation and career? We've tried this with prime ministers since brexit and it has'nt worked. At least lizz Truss spoke the truth and had a plan. What she didn't gauge was just how much were at the mercy of our creditors! We need to give Margarita time rather than change, change, change. Does'nt work imo.
Any one on this board should not be in or out this share based on the comments on here. People change their opinion like the weather and make claims/suggestions that they can’t support. Everyone’s entitled to a version and it may not align with yours! Dangerous.
Definitely 2 perspectives here. Good luck to you all. Painful day.
The market doesn’t like it.