Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
Looks like Fraser group has sold abit of shares in ASOS last week. There has been large volumes in BOOHOO yesterday - not sure if it was a buy/sell . Thinking Frasers could have potentially bought some yesterday - given the price of Boohoo is still at the bottom they could have bought abit whilst ASOS has moved on from its bottom at £3.22.
Compared to the volumes which seems pretty low, the price fall looks overdone. I wasn’t expecting the price to fall this low but looking at how low the volumes are looks like this could be due to interest rate impact,rather than company specific, which is fine. In my opinion the company should be able to get through current year with the bridge loan, so a good Opportunity to average down. Just waiting for the results but wouldn’t be surprised if the price doesn’t rise as much until an offer comes in. But let’s see. GLA
Are we expecting a trading statement update this week?
Can I understand why the price has not increased despite the volume bought being much higher than volume sold. 5 times higher.
Also would this indicate shorts closing potentially?
It’s mainly the £400m that is due this year, based on the last quarterly update looks like a facility has already been agreed. Assuming this is for the £400m, we would expect the interest is 3% more than the current rate. As they are expecting the Incremental annual interest being £12m. From the last annual report , there is an £82m bank loan and the £59m overdraft plus £57m lease liability due this year. The cash assets as at 31 dec 2022 was £292m which is more than sufficient to meet the bank loan, lease liability and overdraft. Not to mention there will also be revenue for the current year which would help with liquidity. Based on Q1 update there is considerable revenue growth despite 1 week of strike and we would expect Q2 to be better with the ongoing rail strikes.
The Ebidta last year is £418m which is which is 14.9% of revenue. Based on increas3d revenue we would expect this to be higher this year. The borrowing commitment due for the next 3 years is £60m, £50m and £40m excluding interest. With the ebitda currently being generated the company should be able to meet the interest commitments and accumulate sufficient cash reserves. So expecting they will not need a right issue unless there is another COVID situation and country going into a lockdown.
Majority of the company shares is held by institutions so my understanding is there is limited float of shares hence the increased volatility in price compared to volume. But surprised that the shares are this low even after reporting a significant revenue increase year on year for Q1 despite the strikes in uk. The company has already agreed on the loan facility once the current £400m loan matures this year. The increased revenue will contribute to improved free cash and profit this year. So potentially another dividend. So from my perspective there are no immediate risk but agree the loan needs to come down to a sustainable level going forward.
From a takeover perspective, the chances are very low given the debt level but potentially possible as Apollo had bid for Wood group which had a level of debt- but given both wood group and THG have been dropped they should have funds and possibly looking for other opportunities. Apollo had bid for first group in 2018 . The NEX seems fine on its own with performance improving year on year but if it’s taken over by private equity that’s a bonus. This is all in my opinion. DYOR. GLA
Majority of the company shares is held by institutions so my understanding is there is limited float of shares hence the increased volatility in price compared to volume. But surprised that the shares are this low even after reporting a significant revenue increase year on year for Q1 despite the strikes in uk. The company has already agreed on the loan facility once the current £400m loan matures this year. The increased revenue will contribute to improved free cash and profit this year. So potentially another dividend. So from my perspective there are no immediate risk but agree the loan needs to come down to a sustainable level going forward.
From a takeover perspective, the chances are very low given the debt level but potentially possible as Apollo had bid for Wood group which had a level of debt- but given both wood group and THG have been dropped they should have funds and possibly looking for other opportunities. Apollo had bid for first group in 2018 . The NEX seems fine on its own with performance improving year on year but if it’s taken over by private equity that’s a bonus. This is all in my opinion. DYOR. GLA
Does anyone know when the ballot on the new offer is taking place.
Cine world had better results in terms of Ebitda and freecash flow compared to amc despite lower revenue for the six month period last year.
Looks like majority of the shareholding are held by institutional investors , so the available shares to close the existing shares are very limited provided these institutional investors wouldn’t want to sell. Market screener shows nearly 90% owned by the large holders. Am I being too optimistic or is their a potential for short squeeze.
How much of the shares are held by institutional investors? What would that mean when shorters try to close their position.
Pension deficit whilst being an issue it’s not a short term issue in my opinion. It’s estimate and this will change. BT has sufficient funds to meet the short- medium term deficits in case of any contribution needed. Therefore the business is sufficiently funded to continue, when compared to other businesses that are struggling to survive in these times. Airlines , cinemas etc. Whilst 7.5 pence might seem too low a dividend compared to past, come next year not many companies would be in a position to pay dividends as they find their feet. Therefore the fact that there will be dividend payment next year is good enough. Hopefully when investors realise this, I would think this should go up, in my opinion. Happy to listen to people thoughts.
The full impact of COVID would have been in Q1. When there was no sports and with lockdowns etc. I was thinking the performance should be better from q1 with sports back on tv. So in my opinion this would be a buy. But let’s see what the numbers say. I would say the numbers should be good if there are no surprising write offs.
https://www.dailymail.co.uk/tvshowbiz/article-8663871/Tom-Cruise-shares-fun-video-touring-London-taxi-sneaks-busy-cinema.html
Looks whose sneaked into watch a movie.