Member Info for Quickdip

Good find longerguy

https://www.imf.org/en/Blogs/Articles/2023/04/10/interest-rates-likely-to-return-towards-pre-pandemic-levels-when-inflation-is-tamed

How much is the gov contributing? Can’t see it in the article.

https://www.intelligenttransport.com/transport-news/145454/stagecoach-places-largest-ever-electric-bus-order-in-stockport-uk/

Looks like the government is throwing money at bus companies. Dyor GLA etc

Barchid, social media has changed the way the younger generation socialise in my view. Gone are the days when you used to pop down to the pub to catch up with friends, it’s all posted over Facebook etc these days.

Locky, it hasn’t been logical but it has reached the same floor as covid, and is resistant to go any lower. GLA dyor etc

https://youtu.be/g-bYXmbwWSw

It’s hardly surprising to see the largest coach operator operating coaches in the largest coach station.

Just come out today that house prices are back on the rise due to easing borrowing costs. The same should apply to nex. Probably just need a trading update to grease the wheels.

Wouldn’t it be a shame if the greedy drivers were made redundant.

I think we could be heading for sub 25p. Bought in at 38p only a few weeks ago. Do I just cut my losses?

Most investors here will be sitting on a big loss. I assume they will be selling today to crystallise the loss for tax purposes. Let’s see what tomorrow brings.

On your 2nd point, If by some miracle someone does pay £675,000, I dare say you wouldn’t be the only one caught with your trousers down!

Paddy, the divi yield would remain about the same because the SP would naturally rise in line with the divi.

Paddy, yes 5p is a good start, and it’s a decent yield for the current SP, but my point is that if this SP was at its fair value of £2.50+, a 5p dividend (2% yield) just wouldn’t cut it with savings accounts/bonds paying 4%, so it will never get there without upping the divi. If the total divi was 10p, pension funds would be interested around the £2.50 mark as it would be more comparable with bond yields.

Hi Jed, gas prices are coming down sharply now and marstons are stuck with 2022 prices until 2025. Perhaps they think they can get round it by selling the pubs off? dyor

Sharprite

I’m rather perplexed by your logic that it would be a red flag if these shares drop another 10% into the twenties. Surely it’s best to sell at 33 than panic sell if the price drops to the 20’s.
The NAV is very attractive and is what drew me to invest here BUT it’s approx 80% debt so there’s not much room for error in the valuations. They’ve valued the crooked house at £675k, not so sure about that to say the least. A fire sale would reduce the equity value to nothing. GLA DYOR

The main reason I see for the depressed share price compared to pre 2019 is the dividend yield, and how it compares to what savings accounts are now paying.
If we only get the 5p this year then it’s a yield of 4.09% which is similar to a savings account. We really need another dividend in the second half to boost the yield/SP. Plenty of operating profit to do it. Hopefully this will be raised at the AGM.

The management is the problem here. They turned down a take over above £1 per share not long ago. Fixed the gas when prices were sky high. Now selling off the assets to pay the debt down even though rates are reducing. Not one for me, glad I got out when I did. GLA DYOR

I reckon we’ll see a big uplift much sooner. The market realised how undervalued this stock was after the results and we were in a rally all the following week until news of the strikes put a damp squib on it. We’ll be getting a trading update in a few weeks, all we need is for the strong position to be reiterated to get the rally going again. The £2 gov subsidised bus cap in a cost of living crisis is likely to have caused a big increase in UK passenger numbers. We should see at least £1.85 by next year end because of the bonus structure. The shorts have battered the SP down and now they are closing which tells us all we really need to know.

It’s more of a gamble than an investment. I’d have a punt if it drops to 35p.