Member Info for Paddyboy1

Sreves, read the results report. What if there was another pandemic for example. They have a mitigation strategy in place for all eventualities. Finance wise they have no real issues until about 2028 i think. A couple of shorter term debts have to be refinanced but nothing too major.. Personally i doubt rates will remain high for a protracted length of time. The housing market has stagnated as it is . Aside from NEX if the interest rates kept rising the whole economy would be in disrepair for a long time. Even then though people would still use buses!

Like most organisations NEX will always carry a debt burden. Debt is a good thing if ir is used for good things. The gearing ratio is the number that really matters & it shows how debt is being managed. NEX's gearing is dropping & they are working to push it down further. It was the sub 3 gearing number which triggered the divi. Had the gearing number been 3+ we would have no divi. If they can get the gearing down to 1.5-2 as they are targeting you will see a much higher divi & hopefully a much higher SP!

Noone on this board really mentioned debt here when the SP was higher. It's not like debt level has ballooned here over the last 12 months!

i remember really kicking myself back at end of 2020 as i'd sold it out too cheaply. My holding then was fairly decent but nothing like what i'm holding now. I'm not at the sleepless nights stage yet here & in fairness my overall average is about 126 so i shouldn't be concerned too much. But this one really tests the logic & you can't help thinking you may have missed something obvious here!

Noggers what is the difference between the debt now & 2021? Yes the base rate has risen sharply but the majority of debt is at fixed rates & always has been been. Fuel prices dropping; contracts being won. Not much not to like here on the face of it. Yes, i agree this will not be £5 overnight but i just can't see how the current SP is justified!

The numbers here didn't stack up during a global pandemic when it dropped to similar price levels & consequently it rerated back up. More so now 3 years later where the business is working towards pre pandemic levels & the business looks much more solid. Need to ignore the noise here. Serious returns await the brave!

The Wizard of OZ will turn up next telling us all to turn back this is not the yellow brick road!

I've lost count of the number of good, decent companies driven into the ground with no logic to it: RR;IAG;MRO;HFDS; BP;WG. The list is endless. What they all have though is resilience. NEX is just the latest victim of market nuance. This is the best buy out there now. Simple as!

i can't believe they star that out. Political correctness gone mad! cigarettes!

& being the old codger that i am i remember you could buy a packet of Benson & Hedges for the price of 1 of these shares back in 1993. That same pack of ***s is £15 now!

In the end the only salient fact here is that the SP is at one of it's lowest ever levels since it has listed on the Stock Exchange over 30 years ago for as far as i can see no glaringly obvious reason. That is good enough reason for me to be in big here!

Well, it's all a bit like the Motley Fool garbage that gets spewed out daily! Best ignored & just look at the facts from the company reports/ RNSs etc. I never take any of that other tripe or broker ratings too seriously!

The new arrivals always add some entertainment!

This board normally has about 6-7 posts a day if that when the SP is at a more normal level!

We should all bail out & invest in Hotel Chocolate!

Thanks for the information Mr Cocoa!

Charlie, yes the interest rate environment is precarious but i think far more for smaller cap businesses than NEX. Again, in this report there is an emphasis on how keen they are to retain an investment grade credit rating & they consulted their lenders on issues such as the divi reinstatement. As i see it , while the banks will be more careful with lending criteria etc they will be more than happy to finance well run businesses like this one!

When you read the results report it's difficult to see anything that is being done wrong here by the company. Very diligent & prudent management all round really. Plans are all in place for any risks which is also being spread across many areas. I can see no reason why once the economic doom & gloom starts receding this should not return to & exceed where it was pre pandemic. I would advise anyone thinking of taking a position here to read this report. On paper at least this looks like such a great opportunity to load up at ridiculous prices for a great return. An ideal share for those who just want to invest & forget about for a few years IMO.

As you mention though, cash wise the company is in a sound position. People should take some time to read that report that WealthInvestor left a link to. It's long but you can skip through most of it. Very reassuring for those with a longer term outlook here anyway!

i think he's referring to our chat about TUI LG!