Funny old game - shares..
Obviously the Non Exec Director who bought 100k shares at 326p on 16th June, thought them good value after solid Q1 trading results, yet here we are below 300p.
Buy and hold at these levels, I reckon.
Premier Positives
- Focus on brands with higher margins (moving away from non branded cakes)
- More low sugar, healthy eating variants
- Investment in brands through TV advertising etc
- Debt being paid down and lower rate loans secured
- Pension restructuring.
- Growth in International sales and use of Local Managers and distributors who know the market
- Dividend restarted after 13 years..
However Risk and Unknown
- Elephant in room = How far will sales fall when people return to work / start socialising again going to restaurants / cafes?
- Inflationary risks to raw materials, labour costs etc.
- Can brands become fashionable again? (were regarded as very dated until people had to eat at home again in pandemic)
- Healthy eating and obesity- In a post covid world, will UK Gov regulation get tighter on sugar laden products?
There's many who believe PFD have had a "one off" bumper year with supernormal profits that won't be repeated again, once CV19 disappears. Hence the shares are still being shorted and the share price fading after the results...
I'm a believer in the turnaround story and recent success. However suspect the share price may fall back to low 90s and the 1p dividend although a start, but not enough to prop it up significantly.
Last year the trade update for year end was out on 2nd April.
I'm expecting this years update to be out at anytime. Have added more at 134.8 yesterday for my ISA.
- H2 results should be solid and we have seen decent sized contract wins in early 2021, which drove share price up to 165p.
More upside than down here IMO.
Strong buy and in good sector of market - more working from home and use of cloud etc. require stronger antiviral software etc.
Rich
If feels like something is happening here - the share price is moving in a really tight band, even when overall market is up / down significantly. This despite huge individual share trades going through on a regular basis.
Some Funds are obviously making adjustments...
Perhaps when all the business is done behind the scenes, it will start moving back up again?
Rich
Great set of results and love the dividend + special dividend, worth approx. 22p/share.
At 360p this is a 6% return.
I've noticed this morning that someone is dumping 5000 share blocks around 350p, so share price may dip a bit.
- I will probably add (and average up) if share price dips over next few weeks on low volume,
Goes ex dividend 9th April, pays out 30th April
Rich
I think its just tech stock pricing dropping following correction sell off in US last week.
Concerns over inflation impacting earnings on high p/e stocks.
Personally think its overdone and have added more.
Rich
Pleased with the RNS announcement this morning about the US acquisition - Good, growth stock making nice profits.
Looks like the market likes it as well, with SPT finishing 6.6% up on a day when the US tech markets have been battered.
Hopefully we can now push on back towards 300p with the FY results to be announced on Thursday 11th March.
Rich
Added at 229p.
Full year results are out in a week's time on Thursday 11th March.
We already know the basic results from the trade update on 18th January
= Revenue up 4% at $522m
= Operating margin at 20% (previous year 18%)
= Operating profit expected to be $101.5m (range is $98.4m to $107.1m)
Obviously some fund is reducing, but looks like a bargain to me at this price with 30%+ upside to year high price of 311p
Rich
Yes nice RNS with potential to add 400m customers!
I also like the 2nd RNS - appointment of joint brokers. Now why would AVAST need 2 brokers? Hmm LOL
Rich
MMs completely taking the p*ss here - down 10.5% to 96/92p on 63,000 shares traded.
Okay backdrop is people switching to bombed out travel stocks etc. hoping that they can make a few quid on a trade.
Selling strongly performing medical company shares during pandemic, who have just produced a great set of results and taking small profit to put into loss making leisure, travel, retail = the madness of markets!
Rich
Markets moving money into bombed out stocks eg travel, based on economy reopening..
Quick trade for some, taking money out of solid stocks that have performed well eg BOO, CLG, AVST, BME etc for quick trade into recovery stocks.
Personally I know what I would rather own longterm..
Opportunity to buy more sub 450p tomorrow??
Rich
I added yesterday. Markets currently moving money from solid stocks like BME, BOO, AVST, CLG back into bombed out travel companies etc., for quick bounce trade, in and out.
I know what I would rather own long term..
Worth taking advantage to buy more at low prices. Will take next bite sub 450p.
Rich