Member Info for Nozzleblast

In the same way that Serica is now undervalued, there is a swathe of assets on the market that are ridiculously overvalued compared to their intrinsic value.

As long as Serica continues creating value (i.e. earning real money and managing assets to that effect), and being shareholder-friendly (i.e. not wasting money on bad acquisitions, paying dividends and repurchasing stock) the sentiment will change and the share price will rise. It is not up to the management to influence the share price, as it is up to the current fancy of the market, that may change on a dime. Patience is a difficult but necessary virtue for a good return.

Sasa, with all due respect, I can feel your pain regarding the share price collapse, yet, the political situation, the emergency taxes and the market reaction is not up to the company. Serica created a lot of value, it is currently not recognised by the market for the political climate, which is not up to the management to change. They are doing all the right things - a large dividend, the share buybacks, directors buying £600k worth of shares, and looking for acquisitions abroad. Good deals are not easy to come by, and finding economically justified acquisitions may take time. Serica has a track record of buying assets on the cheap and making them work, I believe the current share price decline is temporary.

If the share price is so low that creates an opportunity to buy into an amazing business which is Serica, share buybacks or even taking it private should make economic sense. The important thing is that the management is shareholder-friendly and won't waste cash reserves on bad acquisitions or wasteful practices. Serica's management has an exemplar track record of creating value, and I have faith in them to keep delivering. The current problem is that the market is ignoring it, but it cannot continue forever.

"Britain will be forced to rely on natural gas for years to come, National Grid has said, in a blow to Sir Keir Starmer’s green energy ambitions.

Demand for gas is now expected to be at least a fifth higher than previously expected in 2030, according to the National Grid Electricity System Operator (ESO).

Under three potential “pathways” to net zero by 2050, the ESO also predicted Britain will keep burning “unabated” gas for power – that is, without any form of mitigation such as carbon capture – until at least "2036.https://www.telegraph.co.uk/business/2024/07/15/britain-will-remain-dependent-gas-years-national-grid/