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From a long term perspective the only real concern here would be if interest rates continued going up relentlessly & revenue started to fall. We need to see a vast improvement on ROCE in US & UK to the same levels (28%) that they are returning from other contracts. I think it will only be a matter of time before inflation starts to recede & interest rates peak & start to fall. As i see it at this SP this really is a bit of a no brainer but of course short term we could see it dip a bit lower i think but surely must be near a bottom now. With their cash in the bank they could buy back over 50% of the entire issued shares which is totally bizarre!
In what way shocking? you can't really judge them based on the SP alone. Yes if they don't deliver on FY promises it's time for them to go but SP aside i'm not sure what more they can do. This share needs time.Too many impatient hands here!
Poker, yes the ROCE number is key i think there. Looking pretty bad that atm but they've sacked the underperforming management in those areas. If they can turn the ROCE around that is key here. Interest rates/inflation etc are outside their control but the ROCE is a number they can influence.
JC, it was a tongue in cheek comment. I really think people need to stop micro focussing on the daily SP here. The markets are currently in turmoil & are illogical. Need to ask yourself: Is this company running OK? Is there any thing different to the operational business compared to pre covid that cannot be resolved in time? Is there a going concern risk? Is their enough operational cash? For me the day to day business is fine. The problems are outside of the control of the business. Therefore the lower prices are just a buy opportunity not a reason for panic & i am continuing to accumulate!
The BOD will not be micro focusing daily on the SP. They will be focusing on delivering what they have stated in the HY update. If they can deliver what they say the SP will be different to the one seen today. If they fail to deliver it is highly likely they will be looking for new jobs next year!
Just buy/hold & put under the bed for 5 years. your outlay by then will work out at 40p per share with the annual divi & the shares will be £4+. I got another lump today just under 76. Silly prices!
A lot of people on here are monetizing paper losses & therefore losing sight of why they originally bought in. It is dangerous & costly psychology & causes people to panic sell at ridiculous prices. I see no need for panic here. There is nothing in the official company statements which indicates any levels of distress. Far from it in fact. Revenue & patronage numbers are all on the up. The on the ground business is moving along just fine. Sentiment in the markets is at rock bottom & shares are being priced illogically. This will change at some point & true value will begin to be restored. Ignore the noise. Talk of bankruptcy; Cineworld comparisons; Rights issues are all just scaremongering. Read the reports & watch the webcast. There is nothing alarming going on specific to the business. It is just being mispriced!
KG, my sentiment entirely here. It's about whether you believe in the company & it's future. If you don't, sell; if you do buy. Really that simple for me! I bought into KCT & GNC in low 60s. They are both on rerates now. This will happen here too but you really need to have a 5 year + outlook on this one. I believe in 5-10 years time people will look @ the SP chart here & say i wish i'd bought these then!