Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Hi initmate - good to see around again here. Now that the weekend is here, the only way really is up you: :) https://www.youtube.com/watch?v=hOMvs_1UFCk
With respect I think you are missing some very important points: - 65% of the company's US operations was up to the recent cancellation by customer, low margin business ( the customer pulled the plug not co management. Also as a shareholder I would be concerned if 65% of business activity was low margin or worse? Where is management?) - 'investors should be happy, but need to be patient' I think you are preferring to ignore the reality of just how weak this company is at a fundamental level, 'turnover is vanity, margin is sanity' comes to mind. - more concerning is the co's recent $0.8Bn US investment, do you feel inspired? If they cannot sell sandwiches at a decent profit, let's see how they manage their efforts after a significant investment to buy market share. The 'market' remains to be convinced, which is why the SP is falling. Brokers are not infallible, in fact IMO most are better ignored.
I'm pretty sure many shareholders will be aghast at the company's response to last week's fall in SP? Initial response they denied any awareness of the reason but somehow some in the market did, only shorters? Unlikely. To describe the loss of a single but key US contract (irrespective of margin value) accounting for 65% of the company's US sandwich business as 'some churn' beggars IMO the co has scored a big own goal :(
Mulder it will take a lot more than sambos for this company to have a sustainable future. I think you overemphasise the importance/value of UK sambo market. #1 so what? I prefer to see more revenue, more margin and better RoI's. Volatile at best and low margins which will tighten post brexit. I also disagree a P/E of x20 is fantasy as too your claim this is a 'growth share'. Since this co decoupled from being a Sugar producer, it has fumbled through diversification, new markets etc. Strategy was positive but results are poor, divis are poor and a growing disillusionment within market? Result : declining shareholder value :( As a LTH, and unless there is a significant upturn in SP (+100%) I will looking for the exit.
Hi Woolyback - what makes you so confident of the SP hitting £4.00 within 12-18 months, when it hasn't remotely reached this level in the last 10 years? That said, I hope I'm wrong and you're right! This share is a real grinder!!
I happen to have met Monty Don and have seen him interact many times with great many people. I can tell you for a fact, he is a very considerate, down to earth individual and much admired for his knowledge and willingness to help people who share a passion for gardening. To describe him as a 'deadcat' is not only ridiculous but demonstrates clearly how ignorant an individual you are. Now how's my language?
seems to be the prevailing trajectory? YTD SP - 20%, since announcement fall has been higher, and do not see any news reportings on any co successes in the US market (post acquisition)? Spend and fall :(
Martin - am more than aware of the potential risks of Brexit, but yapping hens discussions sheds no new light. I believe in life after Brexit, and yes if I was living in UK, I would be much more worried, losing sleep and wondering how not to lose on my investments. BTW the greatest threat posed by Brexit is for the UK and European shares will fare much better.
So the ink is hardly dry on the contracts to buy Peacock when lo and behold, one of Peacock's biggest customers goes and buys a rival sandwich maker! One wonders if someone dropped the ball during due diligence? It does look bad if the Greencore had no intelligence about this twist and worse if they had but decided to say nothing. The market has reacted, 3 points short of a short price collapse. :(