The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
The assumption that the 'share price will obviously drop' just doesn't happen in the market. Nothing is obvious otherwise making money would be easy, which it isn't.
And it isn't a purely traders stock by any means. Who are all these traders?
You are making generalised unsubstantiated comments. Why do traders want this low... you're just making it all up.
Anyway, I continue to buy the dips and wait.
The £2 range was before the trading update and results. The real world situation has changed significantly since then.
As for the share price it's pretty stable apart from the spike on results.
Divi will be 50p plus soon enough ..
No such thing as a save stock. They all have their dramas at some point. So 15p divi plus say another 5p at the interims mcro suddenly gone from zero to a 4% yield.
I would also focus on the words sequential increase in revenue. And look up what it means.
The margin comparatives come the interims will look good. Ending the year at just over 40% ebitda margin with a good chance of hitting 41% at the half year compared to 38% last year. So a 3% increase. Not bad.
Mcro targeting 700 million in fcf in the next 24 months. Should send the divi to over 50p, more than a 10% yield.
It's called the market..
Write down an irrelevance to traders. The just look at the cash generation and prospects. Don't care about a divi either unless they can afford it. Much more important are margins, then rate of revenue.
I quite like this up days, at least you don't hear all the nonsense about shorters and conspiracy theories by posters who know nothing ..
Debt reducing by at least 400 million a year, probably more. You need to look at the debt to ebitda ratio. Now around 3x, get it to 2.5x and it's no longer an issue.
Think you've been reading too much stuff conspiracy theory. The market is inherently volatile .. goes up and down. The reason most traders lose and that includes the hedge funds. But a profit is fine.. I'm hanging on till I see how the recovery is shaping up.
Each to their own, but the shorts can't stop the story if it's positive.
Markets are volatile... it's nothing to do with theories about shorters etc. Swings of 5% plus happen all the time. Buy more, hold or sell...
I like those words 'transition' 'transformation' 'further accelerate' ...
The message is clear here. The market will wake up soon enough.
Thanks lee that's interesting..
Mcro was a great divi player. But it didn't stop the price collapsing. It's the fundamentals of the company and cash generation not cash distribution that matters. Of course if the news in the results is negative it will be ugly. I'm betting it won't be; quite the opposite. But we'll soon find out ..
I wouldn't assume the shorters know any more that we do. It's all a gamble in the end.
I agree a positive message in needed. I disagree with a divi though if we can't afford it. Better to pay down debt. A divi is overrated imo. The market can sense success or failure and will price accordingly.
So all the posts talking about Brexit agreements and stimulus and their inevitable effect on mcro's share price, and when it all comes to pass we're up 1p.
Keep to company specifics or sector news. It's the only driver of any relevance imo.
Do your own research and make your own calls. Don't blame anyone but yourself.
I lost money for the first 7 years of trading/investing. I think that's not so unusual given all the crap that you come across. No such thing as easy money...
The santa rally more important than Brexit or US simulus as fund managers balance positions. Also, everything comes down to company specifics, so margins and debt reduction. I would look to those metrics rather than the wider market.
Bit like the Brexit debate. Success not really down to a trading licence issue in the end, it's the quality of the company that counts. Innovation, efficiencies and forward thinking. That's what drives growth; not a piece of paper.
Mcro is becoming more efficient and forward thinking so I would expect an improved share price.
Isn't the share price up almost 100% in a few weeks. I find it odd that some find it odd.
Why is anyone sitting on huge losses in the market. Just set a stoploss.
I've been doing this since 1987, and the sad thing is that most think making money is easy. But you don't get it that easy in life nevermind the financial markets..