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Let's see Kando. But I'd much rather put money on the shares rising from the current 87p level than on the belief they will drop back to the 60s which I think is complete scaremongering.
Today's fall means the shares have fallen from say 105p to 87p - a fall of 18p = 17% in just a few days, and much more than the wider market despite the oncoming RNS in September.
Like others, I can go on about the sum of the parts till I'm black in the face, but the current share price so undervalues the whole group, never mind any one of the three arms of the company, that some sort of capital action is now inevitable. Still, if you truly think the price will fall to the 60's, then I suggest you wait it out. You might have an indefinite wait........
Kando, it was clearly consolidating around the 103 - 106p level for a while, so any would be sellers had ample time then to sell. Today's selling is clearly so one sided that it must be a fund exiting the stock, and is on a day when the wider market is falling again. Just think of all the losses racking up out there across the wider market and you will realise there must be a number of forced sellers. I don't think a pull back was especially due - if anything I believe after the period of consolidation that a further rally was due.
Today's fall is an unexpected buying opportunity for many - I hope those who were waiting on the sidelines are now getting [back] in.
The shares are surely badly oversold today with the drop probably due to some fund selling out. There's been a lot of losses on the wider market lately, I would not be surprised that some funds have become forced sellers - clearly they cannot wait until next month's update.
I notice we correlate in an exaggerated manner with ASOS which itself has dropped today.
Am absolutely sure this will turn as the market itself turns, let's face it, we cannot go on indefinitely having negative days and a rally is now due or overdue.
You have just got to love days like this. Switched some of my holding in WAND back into THG, made over 20% in less than a week. Just fantastic, and of course all profits made in Wand are tax free as it is on AIM.
Cannot believe the price drop here today, and have heavily bought in.
Cannot believe how flaky the stock market is - are most of the traders WFH?
Verney, it all depends on what you believe is the purpose both of the market and of the golden share.
If you think SMS holds the golden share to stop predators taking the company on the cheap, fair enough - that certainly blocks such attempts. But the main shareholders act in reality in the same manner. Given the current main shareholders of the company as a group, any predator has to get them on board as a group, therefore their offer would have to be high enough to attract their support. Given the current share price of say 92p, if the block wants say £2 a share, then that is the price of their agreement to any deal. I'd say the market knows this, and would price up any offer accordingly, especially if it had a chance of succeeding at that level.
However, many would be investors will take the view that the golden share stops predators so would then stop them buying a stake themselves. Clearly the price is currently under pressure, and has been since the last results - there is obviously disappointment with the RNS.
Therefore, as I have sad before, when are we going to get some good news, and given the current state of things, what would actually constitute good news?
Nige, your comments are fair enough, but the market no longer believes 20% + on SFOR. It is now downgraded to a lower growth stock - frankly, if they achieve say 15% then that will probably still be viewed as a disaster. Reality? I don't know how long it will take for the advertising market to recover but if we go into a recession, it could be a long time. In such circumstance, is 15% reasonable or even 13%? It all depends on what the market thinks at that time is acceptable for the growth SFOR is expected to do.
Auson, the problem is that the share price talks for itself - clearly shareholders are not happy.
I am also in THG which like SFOR, had a golden share until recently. When that golden share was cancelled, the shares swiftly rose. SFOR is exactly in the same position THG was in. But whereas THG had advised previously that the golden share would be going by a set deadline, we do not have any idea here when SMS will permit the golden share to be given up.
I'd say that is putting off a lot of shareholders. The current price supports that view.
Don't get me wrong, these shares are cheap. But previously they were looked upon as a high growth stock, that impression was torn up with the most recent results.
Added to this, we have the curse of SMS's golden share, which combined with his age and poor health are clearly creating a no-invest position for many.
As I said before, when was the last good news? Until we get that golden share being given up, or some actually decent trading news, I cannot see sentiment changing much.
Therefore, how low will these shares go? I don't know, but my personal view is probably they will be in the mid 80's soon at which time I suspect they will be at their bottom. One saving grace is that the company is popular with US investors. On the other hand, that golden share puts off takeover possibilities but does not stop someone building up a stake in advance of presuming the stake will be dropped.
Personally, I would have thought the pressure was now on SMS to do something about the golden share, it is now causing an issue, and the low share price means any future acquisitions will be at too large a dilution [if via share issues each time].
The strategy coming out from SFOR HQ is therefore lacking, and investors are equally selling. It's a falling knife currently, when will it be time to buy?
Https://www.prolificnorth.co.uk/news/wandisco-signs-initial-400k-data-contract-with-general-motors/
From this article: "The announcement could be another nail in the coffin of in-administration Manchester auto data specialist Wejo, which previously held a data contract with GM. The US auto giant was also a major shareholder in the collapsed Manchester business."
I wonder if GM will now seek to acquire a shareholding in Wandisco?
You begin to realise the sheer potential of what Wandisco offers once you read those articles I posted earlier. What is also clear is that a lot of the public are in the slow lane in this respect and have not appreciated the AI future and what it means. Wandisco offers a direct investing route into a leading player in the field, frankly if the share price does not get moving soon, it will become an obvious takeover target.
It will be interesting to hear at the AGM if any other deals are in the offing and how trading is now stabilising after the fall out of events earlier in the year. From the articles posted earlier, it looks to me like the sky is the limit possibility wise with Wandisco, we just need a good reliable management to see some of it come through.........
Https://techmonitor.ai/government-computing/public-sector-data-sharing
Https://techmonitor.ai/leadership/digital-transformation/meta-technical-debt-data-migration
The more I read about Wandisco and their technology, the more impressed I am, This is really an exceptional investing opportunity that I think rarely comes up and is similar to when THG was at the low 30's level.
You do not often get such 'gifts' from the market, and additionally, as an AIM stock, it's tax free. I am loading up.
US investors are going to love this news..........
Great news today.
More soon!
Two weeks until the AGM and someone is clearly buying....
I think it’s a bit more interesting and relevant to focus on why the share price rallied so much yesterday afternoon. From being down to 76p we ended up at 81p - a decent move given the wider market fell so sharply. Has a fund topped up? Will we get an RNS?
I’m beginning to wonder.
The recent results were poor and the sell off since then seems to be worsening. I can see these bouncing around the mid 80s but SMS needs to give shareholders some good news to change the current trend.
Let’s face it - when was the last good news?
Certainly we do now at last appear to be at the bottom and I will be buying more shortly as I suspect will many others. The sheer potential and unique nature of this company makes this an excellent proposition.
There will obviously be many like TW or RW given the catastrophic loss to shareholders after the recent rights issue. They represent a large body of derampers who now have “issues” with Wandisco. The key now is surely to average down at current bargain pricing levels. I wonder how many of them will now average down?