Member Info for Quickdip

Paddy, it’s irrelevant that they just spent 150m on busses, it was using borrowed money. The net asset value exc goodwill is £44m. End of!

Why so difficult for you to understand? Debt holders have first dibs on all assets in the event of bankruptcy, and goodwill fetches nothing. £44m would be left in the pot.

Perhaps if I could draw you a picture on an etch a sketch?

Included in the £1.4b net assets is 1.356b of “goodwill”. So call it £44m net assets, which is less than 10% of the market cap.

So yes, 90p does look expensive. Particularly when you consider the return on capital employed is less than the return you can get on cash.

Not at all Willy, genghis.

There’s no reason they couldn’t take over the jet engines too. BMW doesn’t just make cars you know….

Manz, net assets after you remove goodwill is virtually ZERO.

Paddy, you can’t compare this with Rolls Royce, it has too much brand heritage to ever go under. BMW would just have bought the rest out. Thomas cook would be a better comparison.

Never lose hope paddy!

It’s doing a TUI/Marstons/Asos. All hammered due to debt.

Thanks for your concern Paddy. Meta has been my best purchase at 148, although I must admit I got out too early at 224. Do tell me when I claimed to have bought this at 103. I was out long before. Must be getting your wires crossed again.

Paddyboy, I’ve never lost more than 10% on anything. Where mine and your investment style differs is when I’m in a falling knife I cut my losses, you add more in an attempt to cut your percentage loss, but end up increasing your £ loss.

DB, I just said. Everything that could’ve got the SP moving upwards was out the bag, and yet it only wanted to move downwards.

It’s quite simple. ROCE is 5.9%. Its massively leveraged and the cost of capital is higher than 5.9% so how can it make a return for shareholders?

In terms of company value. What value? There’s no book value if you remove goodwill, and cash gives a better return than 5.9%.

Take over bid paddy? I love your optimism 😂 Any bidder would be better off leaving cash in the bank at 6%.

Can’t believe the BOD give a headline figure of forecasted OPERATING profit that conveniently doesn’t include interest on billions of pounds of debt.

Investors want to know the forecasted bottom line. Not some tarted up headline figure that doesn’t take all costs into account.

Dark blue, how was I so confident?

A few months ago this had loads of positive things on the horizon, yet the SP remained static around 120-122 as people expected a boost on divi reinvestment etc. it never happened. So without the positive events to look forward to, it was clear to me this would continue falling.

Yesterdays update only fuelled the flames. So now we know covid funding propped up the decent results, funny how they never mentioned that at the time…

I did warn you all this would happen at 120, but was told I was a fool, mental etc.

Paddyboy will be on here telling you all what a bargain it is all the way down.

Huh? Well obviously Steve, all dead cat bounces briefly revisit a price they were previously?

It’s up about 5% over the last couple of days which I would say is a small (dead cat) bounce

As I said, in keeping with the long standing downward trend.

What’s not to like? I suggest you read through these threads.

The recent small bounce is in keeping with a long downward trend.

Aye, HB’s are immune to market forces Steve.

They either reduce/incentivise, or they don’t sell. Simples. It’s a buyers market.

Paddy, what relevance has this got to what the OP was asking?

Your theory re the shorts is a fantasy. For them to “churn over” the same shares, they would have to buy them back as well- they can’t keep selling the same shares. The shorts see the stock is going down so they short it. You seem to be putting the cart before the horse if you think 2% short is causing the decline.

CCL was in the same boat SP wise until the CEO said there’d be no capital raise. The SP jumped about 8% on that news, and continued rising, having doubled in 2 months since then. Why hasn’t IG followed suit?

Quite simply there’s no point being invested here until such news comes out. The SP would rise less than 10% on the day of positive news like that, still plenty of upside without all the downside of being invested in the meantime.

True that nobody can say for certain where the SP goes short term but on the balance of probabilities, this will continue going down.

It was pretty clear to me that nothing this company does could turn the tide on this share when better than expected results were announced, divi announced and paid, director buys etc.

If interest rates come down, we’ll have a vaccine style rally. But interest rates won’t come down for the foreseeable so the so will continue going down.

Even the bulls are sitting on the sidelines waiting for a better entry point.

Asos worked out nicely for me overall. Personally, I buy at a level it’s previously bounced from, and if it continues falling, the trend is gone and I get out and stop the loss. I don’t stick around kidding myself with “it’s only a paper loss”- once it’s gone, it’s gone.

Had you realised the “paper loss” when you were £10k down, you’d have been in a better position now, would you not?