The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
It certainly seems a good point if not already invested - already having dropped back down to levels around the previous announcements and despite consistent good quarterly results. For the reasons mentioned below this current quarter might end up being better than anticipated so potentially a safer play than other equities in this coronavirus market at the moment. Strategic review whatever that might could be a catalyst but that remains to be seen.
This is a very very interesting point actually. If it comes to that (and maybe even if it doesn't but some people pre-planning in case) , many more people opting to stay in/eat/cook at home should certainly manifest in higher sales of a number of PFD's products.
This was sort of the feeling I got too watching it over the last couple of weeks. On one hand market makers / shorts who could just move this around, but at the same time it seemed that there has always been someone there absorbing the bids. After a further decent quarter and decent results and before this latest coronavirus business it didn't really make sense to be trickling down so consistently.
Given the lacklustre share price performance in recent weeks it would be interesting to hear an update from management on this elusive strategic review. One would hope there might be something to show for it sooner than later.
Very interesting to note the proposed 150m USD/per annum Uranium reserve mentioned in the US Budget proposal. Obviously this is going to be more tailored towards domestic producers should it pass but it is indicative of the US now trying to play catch up in the larger nuclear space.
Interesting that every day the sales volume is bigger than the offers being lifted, however the share price seem to have stabilised/edged higher. I suppose the volumes are not big enough to read too much into it, but it would seem some buyers are happy to absorb anything being thrown at them at this level.
Volumes haven't been that small actually relatively speaking. Two ways of looking at it just usual under performance trickling down each day, or some very slow patient accumulation with someone happy to get hit on their low bids.
Looking into peripheral issues of the fuel cycle very interesting to note that other parts have been extremely volatile to the upside. Conversion prices up over 350% in the last two years and enrichment prices up over 40% in the same time frame. Clearly a bottleneck in the chain and indicative that when the uranium price moves it will be dramatic. The question is when as darrenp says!
Sadly I think that was after and more likely for the 6 or 9% decrease in sp! Somewhat more disillusioned now and looking for inspiration!
Curious as to whether people think there is a plan or any proper strategic review going on here? I think long-term holders should be open minded about any possibilities as this needs some sustained momentum - not just a quick uptick intraday after consistently good results. Otherwise I am beginning to wonder what the point of holding this is - slow debt reduction is one thing but there have to be some other more favourable plans/ideas out there to give something more positive in the near/medium term.
Given the recent action in the luxury goods/clothing industry recently surely this gets a look from one of the larger fashion houses, especially with such a strong brand name and decent forward looking guidance...?
After a strong week there was always going to be a price correction. Combine that with a weak wider market today, including companies like Fevertree getting massively sold off and it isn't surprising that there is more volatility than usual. Obviously some large volume sales going through, however it also means someone is picking those large block trades up...
The positive side to this story still remains - despite the long standing debt issue, with each stronger set of results this looks more and more attractive for any potential bidders who were waiting for Brexit issues to be over and more importantly for consistently improving results which the new management team has shown.
We are in an economic environment in which commodities are significantly undervalued. Within that sector - Uranium - is a commodity with very very few options for most investors to be able to invest in it. Given the S&D projected and the inefficiency of the space I can't help but think that looks like one of the best potential risk rewards trades out there at the moment for the energy/commodity space. Although from the way it trades it doesn't seem like many people have worked that out yet or agree!
On the plus side I think this is an impressive update which strengthens the narrative they have been building up in the last quarters. The improvement has been consistent, realistic and the targets given achievable as the management has been showing. Ignoring some of the short term profit taking, market making, and any holder should feel more confident than they have done in years.
However, on the matter of the strategic review I think it is time for some more details. Simply saying every update or results that it is underway is a little strange as instead of being a strategic review after this long it has simply become a review - which is something I would hope the management was doing continuously anyway. After this long if there has been any work going on in this review there should already be potential options for the company itself or individual brands and more details could and should be provided.