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Cash balances continue to pile up. $722.9m at the quarter end (30 June 2020: $587.8m). Add to that the increased tax repayments expected of $150mil and another $100m plus profits in Q4 we will soon have close to $1billion in cash which the share buy back and dividend will hardly dent.
ggplyr, I agree with you wholeheartedly. I don't understand why such a cautious statement. I would have thought it's blindly obvious that the company will exceed full year broker forecasts. All I can think of is that they want to be able to release a trading update early next month stating that they now expect to significantly exceed current forecasts. Overall its odd but it will be what it will be.
My forecasts was based on customer income which was $240m so actually they comfortably beat this. I don't try and forecast customer performance which should be zero over time. Q4 will be interesting. I know trading has continued a slow decline from Q2 but I think November and December could be quite volatile thanks to the US elections. I like the increased emphasis on future growth plans.
Can't say I'm too concerned about price movement tomorrow as the real prize will take a bit longer. I am very much looking forward to Q3 results which I think will be excellent again. Of particular interest to me is how well we are doing compared to the competition. I suspect that we are continuing to out perform which in the long run will be reflected in our share price. In the short term I think Q4 is also going to be nicely volatile and I look forward to an enormous dividend and hopefully new business lines being added.
Rich the reason it appears unloved is mainly down to size. At a £44m MCAP it too small for most funds to be able to invest. The other side to that coin is that it allows PI like us to get in at a very attractive valuation. We just need to be patient. This company will grow and over the years not only will its increasing profits drive its valuation so will an increased rating. I look at this as a 5 year investment.
I am only a little surprised at the muted response to today's confirmation that business continues to perform exceptionally. We should be used to it. The good news is that in the short term the company can buy back more shares at the current cheap price. In the long term as the company continues to perform well and grow, the price will catch up. I believe over the next 12 months the price will double. In the mean time I will enjoy the dividend and reading about the company's excellent progress.
For those that are getting stressed about the current SP movement just look at the 5 year chart. You will see this sort of movement in the short term is quite normal. The important trend is the long term one and its firmly in the direction of North. Let the Directors worry about the business. They are doing a great job.