The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
What does a corporate broker do?
Brokers play a vital role in advising on share market conditions and the likely demand from investors for the company's shares. They also represent the company to investors to try to generate interest.
Wow what's going on here then!?
Spread looking better at the moment. Hopefully we will break 70p...
Global legal business DWF (DWF) is offering ‘significant value’, according to Berenberg.
Analyst James Bayliss retained his ‘buy’ recommendation and target price of 160p on the stock, which gained 2.4% or 1.3p, to 55.2p on Wednesday.
He said the shares had underperformed despite posting a ‘reassuring’ full-year update last month and are down 33% year-to-date.
‘We struggle to understand the severity and direction of this reaction, noting management’s reiteration of its confidence in the future; its low balance sheet gearing; its exposure to annuity-like, defensive earnings; and its significant asset-backing through the group’s case book and working capital,’ Bayliss explained.
He said the shares are trading on ‘just 4.3 times full-year 2024 price/earnings, with a 12.1% dividend yield and a 16.6% free cash flow yield’, which was ‘substantially at odds with our expected double-digit earnings compound annual growth rate and story of margin improvement and deleveraging from here’.
He added that the current valuation implies ‘a high degree of unfounded concern about the delivery of future profitability and debt forecasts’.
https://citywire.com/wealth-manager/news/stock-talk-dechra-berkeley-dwf-lookers-halfords/a2419979
Sir Nigel in the TU referred to the company performance and business as "Robust".
According to the dictionary, robust means;
a: having or exhibiting strength or vigorous health
b: having or showing vigor, strength, or firmness
c: strongly formed or constructed : STURDY
d: capable of performing without failure under a wide range of conditions
Since they are lawyers, they will always choose their words wisely.
I can't see the negative yet, just speculation. I hope I'm right here and this will correct very soon, time will tell.....
Looking at the volumes I am personally hoping this is retail panic selling with little substance.
I continue to hold as making quite a paper loss right now, and will ride it out long term.
I do believe in this company, although communication isn't what it should be.
It seems such a severe reaction one one negative review after a generally positive TS?
Granted the volumes here aren't massive so it's the retail investors who are spooked with talk of a covenant breach.
DWF advise other companies on avoiding covenant breaches so this doesn't add up to me. Their reputation would be in tatters if that happens?
This doesn’t make sense to me.
The company seems sound, doing great things, gaining new business, positive trading statement, so why are we at historic lows and sinking fast.
Guess we will find out….
Thanks for the reply.
Strange volume/price action here. Not seen like this before.
I’m long so not an issue, but was just curious.
Just wondering if anyone knows why on earth someone would buy 2 shares, or 4 shares?
The dealing costs alone wouldn't make it worth it?
Just bought in for the long term.
I think this company has a great future and top management with vision, so I'm going along for the ride.
This company is unpopular because of the commodity, but underneath it's a forward thinking, highly profitable business that wants to do well. Even with coal prices off their huge highs, this still has lots of potential upside.
With stakes being increased by institutions, I think we just need to be patient and will see a slow price recovery.
I suspect we will see more and more of this, great news for POLY;
https://www.sundaymail.co.zw/rbz-introduces-gold-backed-digital-currency
Is driving me crazy.
All buys but it goes up and down...
I found today very strange indeed, there was no selling apart from 2 very small trades, everything else a buy. Some nice large buys as well.
Not complaining, but the price didn't seem reflexive IMO.
Something definitely going on in the background. Exactly what I don't know why, and for some reason it makes me nervous...
If you put this into perspective and context of the current environment, very happy indeed with the results and genuinely positive outlook for the future based on the strategy employed.
The management team have done and will continue to do a fantastic job IMO under tremendously difficult circumstances with others actively working against them. That would have seen off a less skilled management team for sure.
They continually demonstrate proactivity and forward thinking.
Will continue to hold and stay long on POLY.