Devon, do you feel there are any positive angles to the recent purchase of this stamp? You are always negative about anything to do with SG, so I am intrigued to know if you see anything positive about it?
Devon, when you advised on Wednesday: "prerinse gone in ;)" - are you advising that you have made a purchase of the shares prior to the RNS? You previously mentioned you had a holding - how many shares roughly do you hold in SG?
Devon, I think a lot of the staff at SGI are shareholders, and something always seems to slip out a few days beforehand as there's always a spate of buying in advance of the results. Perhaps over at SG they hold a staff briefing a day or two in advance of the formal statement?
Anyway, there's been no RNS so far, and this combined with the low turnover today in the shares implies it is not that imminent either. Yet I am sure on a number of stockbroker sites it is advised as being due today?
A lot of companies are delayed nowadays in issuing updates due to problems with COVID delaying auditors / accountants / senior staff etc in doing anything, I think this happened to SG previously over the last eighteen months. If you're an auditor for example, with only half your staff in, it's going to lead to a bottleneck developing and a delay in everyone getting their audits on time.
There should be no need for concern unless an RNS is issued providing a negative reason for the delay. Otherwise it is a bit frustrating, but we will all have to carry on waiting. I wondered over the last few days whether there was going to be a delay as previously there is always a sharp increase in buying before the results, but this week has been absolutely quiet. That infers in turn that the full results are not completed / signed off yet.
Whilst like anyone I see the issues surrounding global warming etc, I can equally see that nothing can be changed overnight. And USA, Norway, and Britain will not allow green lobbies to ruin cash cows in each country especially after recent COVID expenditure has meant that tax is urgently needed to mend ruined public finances. I think HBR and its peers are overly discounted currently, and there are a number of excellent bargains for share pickers in this out of fashion field. Once buy backs and dividend payments resume, on top of director buy backs that are presumably going to also become more common, I think there will be a re-evaluation of the sector, and a revaluation will soon follow. To allow companies like these to trade at such lowly p/e levels without buying up the shares makes a laughing stock of many institutional investors investment criterias.
shal, Total has advised it is going to spend 40% of its FCF on buy backs of its shares.
Shell is also doing buy backs. With the current discounted share price, buying back the shares and putting the holding into Treasury is better than buying other assets and it reduces the dividend expenditure when they decide to start paying dividends [again]. Debt is already being reduced at a fast enough rate to allow for buy backs. On top of Director purchases, these are normally top buy signals in the market so the lack of movement upwards is surprising.
Nofear, I don't think there's any real issue from the court action. Let's face it, a student taking the UK Government to court is a waste of time, the potential lost revenue cannot be replaced especially now when the Government is in such a deficit. No, if anything, it is going to increase the resolve of the UK Government to support the sector - they actually have no choice. That must be good for HBR.
Devon, out of curiosity what will be your position if SG issue a very positive update later on this week? After all, it is a matter of fact that the auctions have been sell outs, I believe a number of them have set record breaking results for various lots. You and I have discussed various issues regarding SG over time, I have to admit I cannot remember when you first came onto this board with any comments but I know it has been some time ago. My point simply is that at some stage, SG is likely to gain from a real turnaround in its trading, and if this is what is advised in the imminent update, or highlighted as about to happen, then the shares are likely to respond strongly, in an upwards direction; especially as costs have been cut to the floor. Do you see any chance of you actually becoming a supporter of the shares if their fortunes change - you are after all a shareholder [as you advised me a number of times over the years]…..
Racingcyclist, the results should be issued on Friday, but they have occasionally issued them early, so it could be anytime now onwards. As regards their results, they are for the year ending 31st March 2021 so as that was in the midst of the lockdown, it is their forward looking statement that is likely to be much more relevant. Since April for example, they have held some record breaking auctions, bought the rarest stamp in the world, reopened their London store, and begun work on NFT's. I am hoping that debt is under control, or even falling, that trading is swinging back into the black, although it may not be quite there yet [by end March 2021], and that the company looks forward to 2021 with new hope and optimism.
I’m sorry but I really think it delusional to realistically imagine that 220 - 260 is likely as the bottom for this share. That equates to 11 - 13p in old money but PMO only got to those depths on fears of insolvency. With the new owners and the much higher price of oil, how is it possible that the current price can even approach those distressed levels, never mind actually reach them??? The current price under 16p is basement bargain level, and I for one, will be stocking up each month until we get at least back to 20p.