The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I'll stand by what I said previously, the company is effectively worth nothing until we get some updated numbers, then we'll see how they are performing of late, their track record is abysmal and the SP reflects this and that is why can you buy a shed load on the cheap. I mention the spread as this affects the selling price, you would need a healthy increase of 40-50% just to get your money back let alone make a profit on the transaction as the spread will increase when the buyers dissapate after the intial spike. I've called it correctly down the years so lets see if I'm right again this year...............
PS No director buys at all, even at these rock bottom low prices - and they're in the know !
I was being kind there, its actually 18 years since the takeover and the SP has fallen 99.99% in that time so £1000 invested then is now worth 10p, not a great track record for the long serving inept management team is it? They do manage to pay themselves a nice salary though, so not totally inept. Lets not mention the offhsore accounts and undeclared third party interests in Guersney!
If you've been through the accounts you'll note that there's a figure of £2.7M stated as "goodwill" which you should take with a large pinch of salt, this has been there since inception and keeps the books tidy! There is a note from the independent auditor regards this and states "requires significant judgement" ! If you have read the last set of posted accounts you'll note that there were comments also made about this carrying on as a "going concern" as liabilities exceeded assets which isn't a great look, don't take my word for it, look it up.
I know some are here just for the punt as you can buy a million shares for a tenner so good luck to you, the key thing to remember is at some point you have to sell and good luck with that as well on the current spread
The debt situation isn't clear (and deliberatley so) you have to go into the accounts and dig out who's owed the money and which offshore accounts are owed the money! They were paying 15% interest on one loan which is ridiculous although you have to factor in who actually gains from that which then becomes a grey area as they won't reveal the actual recipients of the interest payments
The balance hseet is a joke of a docuemnt as it doesn't present the true value of the company which is zero.........
The sum of the parts valuation of the company is £100M which equates to 18p per share (as quoted), you can buy at just under 9p currently so good oppurtunity to double your money
Nice to know...........
Quite agree, they're all keeping their heads down for now, as I always say the share price is low for a reason. The market factors in all known variables, crunches the numbers and values accordingly although this is still overpriced at today's SP. If one of the main investors here values this at a fraction of the listed SP then you have to sit up and take notice