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It's just funds, driving the share price down to buy more shares cheaply.
Trying to shake out some loose shares from weak hands.
Everyone knows this will kick on over a pound on the forthcoming update.
Either MBO, takeover or 3 divisions split and listed separately this year to correctly value this business.
Hold and wait. Nothing to see here folks
Charlie, its not market manipulation. ITM used to be around 35p/share, before it took off during the CV19 ESG surge, when people were at home with cash in their pockets and time on their hands. Basically Green stocks were in favour for a couple of years and the price surged. However ITM's revenue was always really low, high cash burn and there was no meaningful relationship between share price and financials.
I owned shares when it was 35p and going nowhere. Thought myself lucky to sell on way up at 120p, then cursed for not holding longer!
Hey ho, that's shares for you.
The reason I'm here is that since Colley has gone and with a new CEO in place who is actually cutting costs; getting orders signed and the last update looked promising that things are moving forward. I'm actually looking to get back in below 50p (note there are still funds shorting ITM who drive the price back down, even when news is good as it was with the Shell tie up announced today) If you are a holder, I'd hold as things look promising for the future.
Yes H1 revenue down 16% v Last year H1, however operating margins on par at 3.9%
The real positives here are:
+ Net funds up to £8.9m. These were £7.5m at the end of April 23
+ Order book up to £32.7m v £30.8m in April
This sets out scene for strong H2, particularly in SE with recent acquisition and focus on commercial piling.
Not a holder here, nor a shorter - but surely BOD have a responsibility to all its shareholders, employees and customers to react to 8 days of share price falls.
Either put out "Everything is on track" to reassure OR ask for share to be suspended if refinancing is taking place behind the scenes.
What on earth would be reason for not doing either??
Amitshah - In case you hadn't noticed, we are in late 2023 and the world has changed significantly in the last 2 years!
The current market cap at today's buy price of 45p is £10.7m.
That's with £2.2m cash, at the end of H1 which is the quieter period and when monies are absorbed by working capital ready for the stronger H2.
Projected cash for year end is £5.0m (Cavendish expect £32,5m revenue, pre tax profit £1.0m, net cash £5.0m)
The net debt is the result of buying Murat Ticaret. Only acquired in Sept, so H1 results only show 1 month of revenue gains. Much more at year end. A strong hold for me, in fact added more this morning.
The price action is just the funds driving the share price down to shake out loose holders. Will push back above 300p within a few days
For those who are interested in another's more positive view of SWG - Private Punter (Martin Flitton); who is a share holder - has spoken with the CEO and new CFO today and written up a summary on his on line blog.
Https://www.londonstockexchange.com/news-article/VLG/holding-s-in-company/16221160
New interim CFO, Adam Hurst is now in place and previous CFO has gone.
The new guy has an incredible track record at very senior levels 9check out his profile on LinkedIn) and looks a cut above.
I'm hoping he can put together a great presentation for Friday's Investor session and clarify the business goals and strategy to deliver some real value for us shareholders.
Hi SheffieldOwls - I think you are right.
It looks like Otus have simply sold shares in order to return monies to private investors who have withdrawn from their funds. The haphazard nature of their selling suggests this - if they simply planned to "trim" their investment in RFX (as it had become too large in value for the fund size, with the share price increasing over the years), they would have sold one big block of shares in the summer at the highest price and when liquidity was better following H1 interim results RNS.
By selling in smaller batches as the share price fell, ironically Otus have actually significantly reduced the value of their current 9.61% holding. Like shooting yourself in the foot...
I would imagine the fund manager must be frustrated with the private investor withdrawals forcing his hand to make these sales.
Had a quick look at Otus Capital's holdings of Ramsden shares;
- First declared RNS was a 6.19% share block added on 8/12/17, as part of a 9.5m share placing at 165p.
- Increased holding 9/7/21 to 10.07% - share price at this time was around 181p.
- Further added 24/1/22 to 11.38% at around 175p.
-Finally added 10/2/22 to 12.31% at around 178p
Started to reduce holdings after June 23 interims:
13/6/23 - sold approximately 120,516 shares to take holding to 11.93%. Share price at this time around 257p
Sold 2nd batch before pre-close trading update.
1/9/23 sold approx. 313,978 shares to take holding to 10.94%. Share price around 220p.
Sold 3rd batch following pre-close trading update.
18/10/23 sold approx. 421,809 shares to take holding to 9.61%, share price around 200p.
Probably not much to conclude, other than they haven't bought at the bottom (IPO was at 100p, CV19 lowest I recall was 70p) and not sold that many at top of the market either (272p in the Summer), which is strange if they planned to reduce?
Certainly they have taken some profit on the share sales and also some decent dividends along the way.
However can't see them selling at much less than 200p when their average purchase price must be around 175p, so that would put a base on the share price.
But why reduce now?
+ Ramsdens are on for record turnover and profit this year, so its hard to see why they have reduced their position in the last 5 months. Unless its concern over a slowdown in sales on watches / jewellery or FX for travel. Not much else surely?
+ Pawnbroking side should be growing significantly in current macro climate i.e. cost of living crisis and we know Ramsdens used the lockdown period to move shops to better positions in towns with more footfall and have recently opened more stores, including in the South.
When Otus first bought RFX company shares at 165p, company was turning over £40m with pre-tax profit at £6.31m. Despite the CV19 lockdown and other stumbling blocks along the way, revenue this year should be over £80m (H1 was £38.99m) and last RNS told us that they would make more than £10m profit. So in essence business is now twice the size it was when they first invested at 165p, but share price is only 25% higher...
Perhaps I'm overthinking it and they are just trimming their position and need to money elsewhere for another opportunity??