exactly what they do, but it sounds good. Think the AGM may throw up something interesting and maybe even a surprise on earnings because of the acquisition. Been adding as close to the rights price as I can. Looking for 5p.
Was burned by it in the rights issue, but it seems to be doing all the right things. Think it should be higher, but there seems to be a constant seller knocking it down. Feel it'll still be 19p in the summer... but then I'm tempted. Maybe it's a case of once bitten twice shy...
Well, I was also encouraged by L&G's announcement today about the importance of investing in planet-friendly companies... so their recent 6% invest in Biffa shows that this must tick the right boxes for the Eco-focused investment funds. I think people will soon wake up to the fact that this isn't quite as boring as it seems. It pays a dividend and that's even better from my POV.
Goldman are flipping their holding in and out (not selling) and my thought is that it's to push up or down the price as they require. So, recently they flipped out of a direct holding, pushing down the price after that rise to 2.30 at a time when we'd had news. Now we're heading for the results and more news and dividend, so they are positioned out and can buy it in and help the rise with a bit of squeeze. If I'm right, I expect them to help it to go up into May and the results. That way it should touch 2.60, before they drive it back to 2.30 in August, but the level is then settling at 2.30 - 2.60. Like I say, it's only a theory... but there's not much of this stock around, so it may overshoot.
Biffa are lined up for lower debt-costs while they expand. It also secures their dividend policy. They will be the big player in the recycling market. Big fish, low price... for now. They've been down to the resistance level, now (if I'm right) they should rise... to that 2.60 ish mark. I'd then expect 3.20 when that recycling plant opens in 2020. I reckon, this is a perfect ISA share.
if Goldman's constant switching of holdings is a good time to buy for small investors. If that's the case, they are now going to short it back down in the short term to about 2.15ish before they switch back and take the rise. They make money both ways. If so there may be a good moment to buy in again soon. If not, then bang goes another theory.
Famous last words, but for what it's worth, I reckon next stop is 2.50-2.60. The original idea was to float this at 2.20, but they floated at 1.80. It is a much more consolidated company since then with an increased dividend so 2.20 - 2.30 seems a bit light. L&G wouldn't buy in for a small 30p rise and I keep wondering why Goldman have 25m shares in this. They must see the potential. Debt is high, but not a major long term issue if they keep buying good companies. The income stream from a business in something we produce all the time is secure - they just need to make sure the margins remain viable and the more companies they own, the more they can scale the businesses. I also reckon the recycling/energy from waste divisions (2020) will put this on the ethical buy lists of investment companies that want an alternative to energy utilities. So on balance, it's a good bet with a dividend - but like I say, famous last words...
Why would Avenue pick up a further 2% in this? They bought it back to market in 2017 by selling a stake. Their 17.5% + Goldman's 10% takes them (or someone they are working with) close to the trigger point... Or perhaps it's all just my over-active imagination.
that they keep winning business. Results will be in line with expectations. Also good news after the uncertainty of Catchpole's sudden departure. If the price were to double from here (not saying it will) it would still only have a market cap of 24m. It's risky, but then what isn't in AIM? Only 40 million-ish shares in issue and most of them are in the hands of long term investors/directors. Perhaps we've seen the dark before the dawn...
Why the sudden departure? Can't be a fraud, because it would have ben the CFO that went... which is reassuring. Must be something more dramatic than a disagreement on direction of policy, because he has been unanimously booted off the board without the niceties. So unless Catchpole's done something wrong in another company and got himself struck off (he did put all his shares in different family member's names recently, so perhaps he had to) this must have been a power play on the board... with the new kid on the block being the winner. The main shareholders haven't sold out... yet. I did email the company asking for a reason, but they haven't supplied one yet. I won't hold my breath.