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Thank you fleurs for posting the Grenfell towers inquiry links on here - I spent a couple of hours yesterday reading these and decided to sell into the rise this morning, to reduce my portfolio risks.
Great results - this business has loads of potential going forward and probably seriously undervalued, but I will stand aside now until the Grenfell inquiry and any fall out from it subsides. I'm worried about fines / reputational damage.
Rich
Agree about overhang - yesterday you could buy initially at 147.25, sell 147.0p, much tighter spread than shown on level 2.
However mid morning, the bid was dropped to 145p - seemingly without any major sells and you could buy £10K plus shares at 146.4p. Obviously someone had dumped a load or was selling in the background without it being declared by the MMs.
I fully expect price to be walked down by MMs so that they can blend in yesterdays big sell in as a "buy" at sometime over the next day or so.
Its frustrating as an Investor that share deals aren't more opaque - I guess we just have to read between the lines and understand the MMs little games!
Roll on next week's AGM - hoping for a positive statement over trading in H1
MMs did a lovely little tree shake in the last half hour - to finish down 5.7% on the day at 257.5p.
- they are such rascals aren't they....
Gives me a lot of confidence that we will see solid interim results on Wed 8th Sept
GLA holders, Rich
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