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Looking at the final year report, some things of note:
* No final dividend this year - I guessed this was going to happen since most companies are saving cash. This means bisichi's total dividend this year is only 1p
* Earnings after tax attributable to shareholders is £1,046 million, down from £3.3 million last year
- this means an EPS of around 9.6p
* Net assets still around £20million so no impairment charges for the properties
Conclusion:
* For now, I'm not buying. I'll keep it in my watchlist but the lack of a final dividend means I won't be adding this to my portfolio, especially considering the price of coal has declined.
* The positives of this are that the net assets are still very high (£20 million) relative to the market cap (£6 million) and a high cash position around £7 million
* This is clearly an asset play, so excellent price for the assets. However, I'm a dividend investor, so won't be buying
I think Pound/Rand won't have a significant effect on figures. The most important measurement is the price of coal in dollars. Although coal has declined to around $57 a tonne, most of last year it was around $70 so earnings will still probably be great
My view is that there are 2 options when choosing whether to buy this or not:
- buy: you assume the dividend is maintained (or maybe even growing) and earnings are above £5m+
- don't buy: you assume the dividend will be scrapped since many companies have done this recently and there's an unexpected hit to earnings
I agree, this year's profits should be excellent relative to the market cap. I'm also wondering whether I should start buying now or wait for a much safer value around 50p. Then again, I could end up completely missing any forms of recovery if I don't buy at a good point in time. I may just buy in small chunks over time. The FCA have given up to 2 extra months from the 30th April for companies to deploy their annual reports, so that would be latest 30th june
I agree. The retail properties are likely to decline. I'm debating whether to buy this or a KOL ETF so im exposed to overall coal. Looking at the half year report though, the company made over £3million profit and that was just for half year. Even if profit dropped to £2million for an entire year, it would still be cheap at a p/e of 3
I think you forgot the other sections of the RNS citing debt 99% paid. I.e. the company is debt free. In such an environment as this, where there are lots of opportunities for cash rich companies to buy, this is an excellent position to be in.
Here's hoping that tomorrow is a much better day for gold miners. Based on US gold miners performance today (most up double digits or high singles) e.g. barrick gold, newmont, kinross, royal gold etc. hopefully UK gold miners will do the same. Let's see how Australia responds during it's open to get an indication of tomorrow's movements