Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Ex-Div
Makes sense for it to be a zero commission platform - the trade was only for 18k shares @ £0.00125 = £22.50, so a tiny outlier
And hit - hope I don't have buyer's remorse in the morning
You'd think it was ex-div today the way the price is dropping (just a few pennies more and my buy order will be hit :) )
1AF2 Ltd - AZ's company IIRC - correct me if I'm wrong:
HBOS Investment Fund Managers Limited
A J Bell Holdings Limited, Asset Management Arm
IG Group Holdings Plc, Asset Management Arm
Barclays Bank PLC, Wealth and Investment Management Division
Pictet & Cie (Europe) S.A., Asset Management Arm
HSBC Global Asset Management (UK) Limited
Jarvis Securities plc, Asset Management Arm
UBS Asset Management - I Suspect that pretty much all of these are Nominee accounts for PI holdings rather than Institutional investments, same with some of the other "Asset Management" holders below 1% - happy to be corrected, and also, this list omits HARTFORD GROWTH FUND LIMITED who own 3.64% according to the RNS 1/8, so the data might be quite out of date.
"where did you get the £50k figure from? "
Read the RNS, roughly 320k raised of which SYME get roughly 270k
"Hedge Fund Bought in
at this level and higher"
No, they likely did not. The reporting threshold was reached 26 July when the SP was about 0.08, it is currently about 0.102. It had not been at this level since mid-late-April (briefly) and consistently before 1 Mar 22. So unless they have been slowly building for a long time, they likely bought in below the current SP, perhaps by about 20%.
"Is that right? Shares you own can be loaned to be shorted?"
If you 'own' them in a nominee account e.g. an ISA (maybe a SIPP - I'd have to check), yes, technically they are registered to the nominee company, not to you. The nominee company can then pocket a fee for lending them out. They will argue that such fees reduce the costs of running the nominee process for you and mean lower fees. No idea if it has happened with this share.
And the market price may not still be £0.0008 when you come to sell them.
I think there's very little existential risk to the company - debt free, own their own manufacturing and distribution chain, own their own IP, very loyal customer base. There are certainly execution risks, but I'd argue that someone like Apple/ Microsoft have probably higher risks to their performance. But then that's the fun of this game, we can both have different views and evidence for them - Mr Market and Mr Bank Account will determine who is right (and the answer may be both if looking for differing outcomes). Right now I am not putting any more in here (way overweight in my portfolio already), but if it gets down to the £60 mark again I might have some more.
"sp is way to high to justify investment.
They would need do increase profits at least 4x or 3x to get it into investable category on "level of return" basis."
EPS = £3.91, for the sake of easy maths I'm saying that's £4.00 and at a multiple of 20 that would be an SP of £80 - at the higher end, but a still growing company. At 15 (more of a steady state), that would be £60.
For your 3 - 4 * profits, you would be looking at about £12.00/ share EPS which at a current price of £75 ish would be a multiple of 6 - 7. Good luck finding a company this good on a 6-7 multiple. That would imply you'd only think this was a worthwhile investment currently at £25-30. Again, Good Luck.
Management are laser-focused on protecting their IP (intellectual property) on the one hand and improving returns on capital for shareholders on the other.
When the company makes an investment, be it in tooling to make better models, new IT systems or new warehouses to better support its stores and stockists, it is always done with the aim of driving more volumes and improving gross margins.
The firm has no debt and doesn’t make acquisitions, so it has no goodwill on the balance sheet, just cash which it distributes to its employees as bonuses and to shareholders as and when it builds up a sizeable surplus.
EXPERT VIEWS
David Beggs, analyst at Sandford Deland – which manages the CFP SDL UK Buffettology Fund (BF0LDZ3), a big backer of Games Workshop – flagged the fact core sales in both the first and second halves of the year to May were above those during ‘peak’ lockdown.
Meanwhile, royalties are making a bigger contribution. ‘This is pure profit, with no cost of sales attached,’ notes Beggs.
The drop in prices means the shares have also caught the attention of investors who had previously avoided the shares.
For Mark Wright, co-manager of the VT Momentum Diversified Income Fund (B7JTF56), at today’s price the stock ticks all the boxes in terms of valuation, growth and a solid balance sheet.
‘Having had a very good pandemic, Games Workshop was previously too expensive but the shares have de-rated along with many other growth stocks.
‘It’s a fantastic business with high gross margins, largely due to the fact that its customers consider it a hobby to assemble and paint the miniatures it manufactures’ says Wright.
‘There is unlimited scope for product innovation by virtue of the fact that Games Workshop’s miniatures and universes are fanciful and it’s all original IP.
Wright is ‘excited about what the future could bring… a TV series, film or even a theme park.
‘There are so many different growth avenues for the company.’
www.youinvest.co.uk/sharesmagazine/2022-06-23/games-workshop-shares-have-rarely-looked-as-cheap-as-they-do-today
"Fantasy games and miniatures maker Games Workshop (GAW) is the definition of a business which has chunky gross margins with high and sustainable returns on capital, allowing it to re-invest its cash flow to grow in size or hand back the surplus to shareholders.
Its strategy is simple: ‘To make the best fantasy miniatures in the world, to engage and inspire our customers, and to sell our products globally at a profit. We intend to do this forever.’
Having virtually halved in the last nine months, we believe the company’s shares have rarely looked such good value.
VALUATION MATTERS
Games Workshop shares have been drifting steadily since September 2021, after investors began rotating out of highly-rated growth companies into lowly-rated financial and commodity stocks as expectations of interest rate rises grew.
Cheap, economically-sensitive sectors such as banks and oils typically do well in stock market terms when central banks start ratcheting up rates while more expensive stocks, including those with superior long-term cash-flows, tend to do less well.
At a price of £120 nine months ago, shares in Games Workshop were trading on a multiple of more than 32 times earnings for the year to May 2021.
At today’s price they are trading on just over 15 times this year’s earnings, which makes them an outstanding bargain in our view.
LIFE AFTER LOCKDOWN
There is no doubt the company was a big winner from the restrictions imposed during the pandemic.
A generation of hobbyists with time on their hands and furlough cheques in their pockets practically competed with each other to drive up sales of Warhammer miniatures and subscriptions as they sought to entertain themselves during their confinement.
While sales of many discretionary items have since slumped as the economy has reopened, in its recent trading update for the year ended in May – which was customarily short and sweet – the firm revealed core sales would be at least 9% above last year’s record level of £353 million.
In addition, royalty revenues – which it receives from PC and console games based on its Warhammer miniatures – jumped 72% from £16 million to £28 million, and there are several more video games due to be launched this year which will generate future royalties.
SIMPLE MODEL
The firm’s business model is beautifully simple: it continually invests in making the best products on the market and making its games fun and enjoyable.
‘Our customers are global. People with our particular hobby gene, that is collecting, painting and playing with fantasy soldiers, exist all over the world. Our job is to find them.’
The more customers it can attract and retain, the more miniatures it can make and sell, and by sticking to fantasy it has unlimited scope for product innovation.
"#SYME building nicely behind the scenes. 11 months on from this post and now we are waiting on update on revenues by end of May and how well the @SupplyMECapital group have progressed since they bought
@TradeflowM."
2021 Annual Financial Report
Tue, 31st May 2022 07:00
"Consolidated Financial Summary
2021 £m 2020 £m
Total revenue 0.5 1.1"
"update on revenues", they went backwards.
If I put my pessimist's hat on, top line growth rate has slowed (although still positive). Dividends didn't grow Y-o-Y. Although profits grew, it was only by £4M when royalties (100% profit) increased by £12M, so we made £8M less profit from core operations (making and selling stuff) on £32M extra sales i.e. our margin has been squeezed, so future growth may be less profitable as opposed to the massive margin increases we have had on extra turnover in the last few years.
That's not entirely my personal opinion, but it's not unreasonable to read it with a negative slant.
SORRY - ACCIDENTALLY POSTED INCOMPLTE
" I'm getting to the point where I'm expecting a 1.5p final dividend now"
Sorry but not happening.
To raise the divi from 7p/ share, the *Annual* NAV/ share has to average over 107p (RNS 22nd March).
Currently the Quarterly NAV's have been:
103.9 Dec-21 rns date 7/3/22
103.3 Sep-21 rns date 20/12/21
101 Jun-21 rns date 7/9/21
This averages 102.73p/ share (I am assuming all quarters are equal and not getting into days). So to raise the average NAV to 107p, Q4 would need to be 119.8p/ share, which would be lovely, but unrealistic I'm afraid. I don't expect to see the divi over 7p until this sort of time next year earliest, more likely 2024.
" I'm getting to the point where I'm expecting a 1.5p final dividend now"
Sorry but not happening.
To raise the divi from 7p/ share, the *Annual* NAV/ share has to average over 107p (RNS 22nd March).
Currently the Quarterly NAV's have been:
103.9 Dec-21 rns date 7/3/22
103.3 Sep-21 rns date 20/12/21
101 Jun-21 rns date 7/9/21
RNS stating they expect NAV to rise by 13-15% when they do the full revaluation for the end of March.
From the rns
"· Opportunity, at the discretion of the Company,
o to draw down, commencing from June 2022, a bullet-loan of up to £1.95m repayable in shares with a maturity date of 31 December 2025 at a 10% p.a. of interest rate; the principal of the loan also includes also the financing of the arrangement fees for the transaction equal to £450,000."
so first up I'll give you that it's at the company's discretion, but how desperate would you have to be to pay 495k arrangement fee plus 10% interest (on 1.95M) to get 1.5M.?
Ahh - yes, like Google finance - they adjust for divi's in their gain/ drop - I've confused myself/ got excited many times through that!