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Day to day this company continues operating very much the same as it did 12 months ago or 5 years ago. The 000s of staff who work for MCG will probably be blissfully unaware of the SP. It's just sentiment & macro. The markets want change at the top here for sure. If you can't take the troughs with the peaks in this game put your money in a Building Society account.
These are Anderson Shelter & tin hat times for shareholders in lots of companies. Incompetent Governments; wars; inflation; high interest rates. There is little reason for people to part with precious cash to buy shares. It's about being able to weather the storm & see it through. Without decent macro or company specific news this & other shares will probably continue to drift. These are the times to buy shares if you have the appetite for risk. Daily moaning & fretting is not going to change where we are!
Lots of moaning on here about SP but sometimes you need to look around at other shares & how they're performing. On the one hand look at the likes of Rolls Royce. Similar price behaviour that we see here for ages & now look at it. Also look at the alternatives that i've seen being touted on here. SYNT, AVIDITY. Total disasters! This is a market & if you can't take the heat get out of the kitchen!
Well said Lara. Lots of panic here. If you don't believe this share is underpriced just sell & move on. No point in stressing over this type of thing. If you don't have the belief that this will turn, why stay? Move your money to another stock you have more confidence in. Personally i think the only risk here is the NA business fails to sell which would raise the prospect of a potential RI. That is a few months away yet. Just keep calm. Looks like this SP is being played a bit to me if shorts are reducing.
Despite the SP being where it is i didn't really see anything in the update to make me want to sell out at a loss. The divi cut was the main catalyst for the fall but for me the dividend was reintroduced too soon anyway so was the right move. Just a poor management decision. Reduced forecast. Yes ok not great but if they can get those numbers we're not bad either. Don't forget revenues are still on the up here so could be looking around £3.5 bn in annual revenue come next year. Maybe this company needs to start looking at their pricing strategy seeing as the ROCE levels are really quite poor.
JG, the cancellation of divi & asset sale has not been 'decided on' by the BOD here. it's been 'forced on' them by the lenders. That looks fairly obvious to me. The lenders will have seen the reduced forecasts & their main concern is to protect their interests. It's like when a bank repossesses a house. The property's true value is of little concern as long as they can recover the amounts owed to them. This is pretty raw economics but we're seeing this type of stuff in lots of shares now with SPs tanking on lacklustre trading reports. We'll continue seeing this as the economic outlook remains dire i think!
Locky, probably most people on this bb share your sentiments in some way or another. Since this went sub £1 a new tranche of peeps have come on this bb looking for a fast buck which obviously hasn't happened so they have cut & run or decided to throw this one under the bed. Everyone has different circumstances & for some their choice is to throw in the towel & suck up the losses. Personally, i'm underwater here for silly money now & while i'm annoyed i don't feel concerned about the long term future here. NEX/MCG has been around in one guise or another since before many of us were even born. It's not going anywhere. The leadership will change; the structure of the business will change but the company will continue regardless. The global macro situation atm is diabolical but things will improve at some point. The question i suppose is how long? For me i will continue to hold here as i see this company i 5-10 years time thriving under the right leaders. Just look at the transformation in SP for Rolls Royce with a new CEO. No reason this can't happen here in time. This is a well established , trusted brand. I used NEX coaches all the time when i was at Uni over 30 years ago now. I understand the frustration but there are plenty of shares around you could have been invested in & would have lost far more than you may be down underwater here. Sometimes best to just look away from the SP for a few months & allow the company to just go about it's daily business. I'm never a fan of crystallizing losses but there are occasions when it's the best thing to do. Thankfully, i don't consider this one of those occasions. This share is now at an all time ever low. This is i suspect more a message that the current leaders must go than a reflection of the true underlying value of the business. GL in whatever you decide to do. I am staying for a long while yet!
I remember on this very bb back post covid vaccine day people were scrambling to try & buy into this sub £2. How times have changed since then but really the company itself has not. Just the external factors. Be nice to think that some normality might return at some stage!
It's reassuring to hear that at least on this bb people realise the true value is a lot higher than the current SP reflects. Personally i'm up to my eyeballs in this one albeit my average isn't too bad ( sub £1) & i'm happy to hold for a long time. Personally i've lost trust & confidence in the management here. It used to feel like this was well managed when Finch & Davies were at the helm. Time will tell i suppose & i'm actually feeling quite relieved as some other investments i'd considered have done far worse than this one!
So do people think a £1bn offer for the whole business on Monday would be knocked back? Personally i think the whole game has changed now due to the macro etc & comparisons with FGP aren't too relevant. If any of those sale figures touted here were likely to become reality the SP would not be 62p & the company's value would be rather more than £400m!
I would guess they've had expressions of interest in the NA bus division as a separate entity in the past hence the decision to effectively put it up for sale. The important thing is getting the right price. If they can get enough to clear the debt burden then this should improve things hugely. This share has become a total dog stock!