Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.
People need to view their investments here in terms of the real world. I imagine most people commenting on here started buying here sub 120; then some more @ sub £1 etc. A few names have been in longer & tirelessly averaging down or getting concerned for their investments! Until about 3 months ago a sub £1 average on this share would have been unthinkable in the entire history of this company's trading history. There will be many holders out there who don't even know theses boards exist who probably bought these shares before covid or maybe in 2021 when it looked unstoppable going upwards. These people were buying this at £3-£4. 30p-40p down in context is nothing. This is a market. Noone catches the bottom all the time. Sometimes you can be lucky but trying to call a bottom on a share will drive you bonkers. We may have seen the bottom here at 55. Maybe it'll be revisited next week. Maybe we'll have a takeover RNS on Monday morning. None of us know. Remember why you bought the shares in the first place. That is the important thing. Yes, you'll get monthly or quarterly reports sometimes telling good news & more often here bad in recent times but the company continues on day to day. Today was a refreshing bit of respite but a long way to go to get to where we need to be but a rise is a rise on a dreadful market day!
What really puzzles me about this company is that they are producing consistently higher numbers on their revenues but the ebit numbers are not following suit. What i always lied about NEX/MCG as a long term investment is that their product/service offering is fairly demand inelastic & not hugely price sensitive. It is bizarre that they are achieving a ROCE of 20%+ in some areas but 4% in others. I thin this is really where the management have got this wrong.The pricing needs to be reviewed. Customers know they have to pay more when inflation & costs are increased & they will not switch to using the train @ 50-100% higher prices. MCG needs to up their game on this & in the end if people don't want to pay the prices then MCG should pull those routes or services. This is a business not a charity.
I really think some people need to stop daily watching the ticker price. These markets are really appalling & i know it's a big stresser & causes unnecessary panic selling. I alluded to this yesterday. Sometimes best to just take a step back & ask yourself. Has the day to day running of this company changed? Is it solvent?; will it still be trading in 10 years? if yo think the answer is yes to those questions just relax & allow things to play out. So many shares have been hit lately: SPT; SFOR; KCT; IBST; MSHL & so many more. I'd had those one's under my radar for last 3-6 months & all doing poorly. KCT has a t/o bid but most holders getting shafted there. Personally i bought my last tranche here @76 before last weeks dip so i thought i was sitting quite pretty & had expected this to be up near £1 by now. Obviously a rubbish RNS hits & here we are. In 7 days from hope to disaster. But that is it. 7 DAYS. This share like many others will need time to recover. It'll probably be years before these global conflicts & macro problems really calm down. None of us know what tomorrow will bring here but i concur with several on here this is not time to crystallize losses at all time low levels!
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!