Member Info for Rhambo

Hm - didn't they refinance in July last year and the earliest maturity date is now July 2020? They are generating substantial operating cashflow too and have about �130m in the bank. It still intends to pay a dividend. This doesn't look like a short play to me, a recovery play if anything (and all shorts have reduced this month). I think you could get caught with your knickers down on this one.

Some really good figures today. Reduction in net debt, increase in net operating cash flow by 63%. Well spent placing cash - this could really turn into a solid income stock over the long term. Happy to have the token dividend if growth continues on the current trajectory.

Just to clarify, when I said EPS vs growth I meant revenue growth.

Well I did provide some numbers on the EPS in the other thread. Your articles do suggest that whilst EPS vs growth is slowing, there is still a bogus low valuation on this stock. I saw a pretty good DCF valuation the other week on this (not sure if it was this forum or advfn) which marries the PE valuation quite well so I'm not sure you can dismiss PE as irrelevant here, particularly as it is so low and we are expecting earnings growth. I'm just wondering how the numbers have led you to believe that a track to 2500 is on the cards, or is it just sentiment (which like I said can switch quickly and leave you with your knickers collecting dust).

Always interested to hear opposing views notgreedy. However, you don't appear to have any numbers behind the bear position and I feel you are exposing yourself trading on short term sentiment which can switch very quickly. Ultimately, the numbers will win through. The modest pessimism on the 2018 is EPS vs growth compared to 2017, not a decline in EPS itself. In fact EPS is scheduled to increase which means the valuation looks even more unrealistic. This is reflective of the investment SHP has decided to make which will slow down the rate of EPS growth. Long term this could pay off handsomely.

By my calcs at the current fx (1.40usd = 1gbp) PE on a diluted basis is just under 9 (3000 / (468 / 1.4)). This looks cheap if you can look past the dividend. Given most of its peers are around x20+, that extrapolates to around 6600 sp. OK so to calm that down a bit, there's no real reason that as a growth stock this should be below 5000, imo.

cue*

Not a great response - the points regarding the account STILL haven't been addressed. Queue a change of auditors to kitchen sink the write downs in the March results and blame it on the previous auditors.

Well not sure why the meekly positive opening, those were terrible. 644m USD write down, reduced divi and facing significant operational challenges (can't sell their product).

@Dogsy1, people were saying the exact same thing all the way down on Quindell.

It didn't address any of the accounting issues raised by Muddy Waters. It needs to do a lot better than that. Are they Rob Terry in disguise?

This is playing out like Quindell: - Accusations of dodgy accounting - Share price tanks - PIs claiming they are topping up all the way down - Funds adding then loaning out (which they make a heck of a lot of cash on other people's shares, btw, which is why the stock is loaned). In the next few hours/days - IQE will release a statement saying that it will respond in due course, but the claims are wholly without merit. - IQE releases a statement which really doesn't satisfy. - PIs engage in confirmation bias about what a Great British Company it is and how shorting should be banned. - SP continues to tank

Really? The sudden decline in the SP today would suggest a massive short has been taken out. I'm expecting the short interest to go up.

Guys, learn the lessons of Quindell (now Watchstone) and don't throw money at a shorting steam train.

Bet the ranch on it whilst you're at it. Just save enough for a cardboard box.

Not really, 2..5% drop is pretty heavy by their standards. This is a total sinker if it feeds through to London in the morning.

AAL didn't release a 'we're f***ed' RNS, it just hammered due to macro worries over China and lower commodity prices, which have since recovered.

they would only suspend if the market was disorderly or the company was about to announce a de-listing. You can't just suspend your shares because you don't like the fact there's a load of selling.

Insightful guess. Clearly this is not done falling for some time yet, I think sub 100p is coming pretty short order personally given the jitters over Carillion.

Any fund manager can look good when a bull market is in the ascendancy. Any govt contractors are in the high end of 'medium risk'. This is now in High Risk. You should go blue chips, but think logically. What is still going to be here in 25 years' time? Drugs. Insurance. Household goods. Choose safe and sturdy dividend payers like blue chip insurers for around 75% of your portfolio and you'll win in the long run. The remaining 25% should be 23% medium risk (e.g. established retail) and 2% can be high risk (tech, oil plays)