Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
This is one of many shares - including for example: THG, ASC, DARK etc that are heavily influenced by the current interest rates cycle. It's clear that dampened expectations of interest rate cuts this week have heavily hit many shares, so it is then clear that as and when interest rates do start to fall, there should be a dramatic rise in the price of these shares.
With each day we surely get nearer such a situation arising......
In addition, at this price level, we are surely in oversold territory so it's both a great time to average down plus there's every chance of big buyers coming in and the price jumping. There's also the growing chance of a formal bid by one of the many predators out there.
It's all a matter of time - patience is required.
A bit more meaningful than the previous purchase!
Given average daily turnover in this stock, continued buying at this level would definitely support and probably raise the share price back to a more reasonable level.
But when are the Directors going to buy in as well?
Let's face it, it was a decent update on 11th January, and further evidenced how undervalued the overall company is.
Yet although the shares initially jumped, since then the price has dropped more or less relentlessly everyday. What was the point then?
There is clearly a growing and large disconnect between the current share price and what we or DARK management value the company at. Releasing good figures is not enough. Raising expectations for year-over-year Revenue growth and Adjusted EBITDA margin is not enough.
So what is and does it mean the only thing we can all hope for is a bid to force these shares to be valued properly because the market is literally otherwise refusing to do so?
Let's face it, it was a decent update on 16th January, and further evidenced how undervalued the overall company is.
Yet the price has dropped more or less relentlessly since it was released. What was the point then?
There is clearly a growing and large disconnect between the current share price and what we or THG management value the company at. Releasing good figures is not enough. Getting rid of the golden share is not enough.
So what is and does it mean the only thing we can all hope for is a bid to force these shares to be valued properly because the market is literally otherwise refusing to do so?
Here we go again, and another disappointing start to the week for SFOR shareholders as the shares dip again. You'd have thought after last week's positive news that the shares would rally a bit further than this.
Time for Directors to buy in I think..........
This morning SFOR have launched their first share buyback. In recent days despite a reasonable trading update, their shares have hit all time lows, so this is an interesting development both for SFOR investors, and to see how sentiment can be changed. The shares are up this morning and I am now hoping to see Directors buying in.
I know that many on here are also SFOR investors, and frankly I think THG should also consider a share buy back. We all think the shares are at a laughable level, presumably management at THG HQ agree. Why then do they not launch a buy back of the shares? Like SFOR, THG shares are also very oversold, and undervalue the company: at some stage the Company needs to officially recognise this and do a buy back aided by Director buys to stabilise the share price at a more stable, higher level.
It is just not reasonable that the shares are currently 67p - will management please pull their fingers out and do something constructive for a change?
Report in today's FT that as things are so cheap in the UK, Blackrock is looking to do loads more private finance type deals and takeovers.
If this share price does not move back to a more acceptable level, then they will get taken over.
In the meantime, let's have some directors making purchases.
I have bought in again today - it all helps, and averages me down nicely.
Is someone like WPP to buy a stake, or for Directors to actually buy in and it should change sentiment out there. I think the Company seems to have very few friends, and SMS clearly does not believe in wooing the City.
Yet the price is so low now that predators must be interested, golden share or no golden share.........
I think the shares should now bounce upwards - clearly today's results were signalled in fact a while ago, so representing the bottom from which the market should now revise their forecasts. Today's figures confirm that net debt is at the lower end, the company is improving operational EBITDA, and in fact the decline in like for like net revenue is less than expected [5%] at 4%.
I expect the shares to rally accordingly.
In line with revised November expectations
S(4) Capital plc (SFOR.L), the tech-led, new age/new era digital advertising, marketing and technology services company, today confirms that trading in the fourth quarter of 2023 was in line with expectations as outlined on 23 November 2023. As a result, the Company anticipates a like-for-like net revenue decline of around 4% and an Operational EBITDA margin in the range of 10-11% for the full year 2023. The Company improved Operational EBITDA margin performance in the second half of the year as a result of significant cost reductions. Net debt is expected to be towards the lower end of the guided range of GBP180-220 million, with circa GBP10 million of merger payments delayed to 2024. The annual results for 2023 will be announced on 27 March 2024 .
Sir Martin Sorrell, S(4) Capital Executive Chairman, said:
"After four years of very strong growth, 2023 was a difficult year impacted by volatile macro conditions and, consequently, cautious spending from clients, particularly those in the technology sector and from smaller project-based assignments. Our client relationships remain strong and we have also managed costs tightly."
"While it is early in the year, we are not expecting 2024 to show macro-economic improvement, and client caution on marketing spend will likely persist, although not at last year's level given interest rates are likely to fall over time. Initial indications are for an improvement in performance in the Content practice, reflecting cost reductions, broadly similar performance in Data&Digital Media to last year and a more challenging outlook for Technology Services. In these unpredictable times, we are focused on positioning the Company for medium term growth, improving profitability and returning funds to shareowners."
Once we get a few bids coming in from bidders in various fields, it will galvanise share repricing across the board. Given how low prices now are for so many shares in London, this can’t be far off.
Once we get a few bids coming in from bidders in various fields, it will galvanise share repricing across the board. Given how low prices now are for so many shares in London, this can’t be far off.
Once we get a few bids coming in from bidders in various fields, it will galvanise share repricing across the board. Given how low prices now are for so many shares in London, this can’t be far off.
Once we get a few bids coming in from bidders in various fields, it will galvanise share repricing across the board. Given how low prices now are for so many shares in London, this can’t be far off.
Just look at THG, ASOS, Darktrace, etc tonight - they have all slumped today. It’s just a general market dump today.
Obviously with SFOR we also have the all important update on Monday morning and given the nerves out there, who wants to hold the shares beforehand?
I’m hoping for a general rally on Monday and results at SFOR that don’t read too badly and allow the shares to rally again. It’s about time we had some good news…….