Too much doom and gloom priced in. Way too much. These measures are all temporary. Governments will take action to recover the markets. Lots of action. One day it will be boom time.
Elementis is a clear indicator that many companies are not being hit as much as you would think.
Whilst the circumstances of why shares are cheap is pretty aweful. It presents a great opportunity to pick up shares on the cheap.
I think this could push up to 80 or 90 pence you know. Very little has changed and plenty of cash to see it through
Because that was still the position a few weeks ago when it was over a quid. Nothing has changed don't you see
Question ... Is some of this rise because it could qualify for government loans in the event coronovirus affected it. It's difficult to tell as many people say coronovirus is helping it in the form of higher demand for goods it delivera
Investors are speculating it will get massive interest free loans from governments which will essentially keep it a going concern
Yuk Marmite!
The UK is still moving which should put EDSL at an advantage against its competitors in Europe in terms of non panic buying goods. Goods being panic bought will need carriers which may have presented new opportunities. I am speculating, emphasis on speculating that EDSL will come out of this very well, maybe even will benefit. Obviously I paid a higher price for EDSL shares but value is not known until sold.
On a side note, I can't believe how cheap everything is. Even if there are some further falls in the market, taking some very long term positions now would have amazing upside. GASP
I have counted 68 jobs being advertised on the Eddie Stobart website. Mostly drivers.
With descriptions like...
Due to an exciting new contract win, we are looking to recruit an experienced, innovative Distribution Centre Manager into a new site based in Hawke Way, Lutterworth.
Doesn't sound like a company scaling down
Will there be more demand for lorries to take goods into and out of Europe if planes can't do it?
I think in probability this will be taken over also the MCAP is silly, which I think is a shame because actually I rather it was not as the potential long term is potentially amazing
The MCAP is approaching its annual operating profit figure pre-suspension with no news. Wow what is going on.
Interest rate cuts should be good news.
How many people will actually get severe lung damage? Fantastic breakthrough and great news for those most at risk, but remember this is mild to moderate illness for most people and therefore I would skeptical that this is a money spinner for this company equivalent to the additional MCAP added today. How much can they sell this for and what is the margin? that would be my question I suppose.
Anyone have any idea?
Well I'm sure some short term holders have placed a few trades on oil companies. Works well on a quick trade but warnings are quite specific on further falls to below30 dollars per bl.
Can always buy more if the SP falls.
ESL has debt of 150 million quid. We really can’t ignore this factor and that makes this share risky if demand is not strong… but EDSL also has some other stuff going for it and risk is priced in to the current SP I think. MCAP 33 million.
Some stuff I have noted…
Firm could be taken over or bought into by new big player?
Company was trading over a quid 12 months ago (50p diluted), if it’s not taken over this means big upside if DBAY can do the turnaround
Evidence of people happy to place cash in if needed…
Wincanton apparently showed some interest in buying Eddie Stobart, but couldn’t do the due dil because of the ongoing accounting review. It is now cheaper than when they were sniffing around
Andrew Tinkler who is a form CEO of ESL was maybe looking to inject 80 million for a stake via TVFB before DBAY came in.
Share looks oversold given DBAY injected £70 million that valued the company at the time at 32p. DBAY have a controlling stake of 51%.
It still has big customers such as coca cola, Amazon, Tesco.. Tesco currently subject to some panic buying, though unclear if that will have a positive effect on EDSL..
Results to 31 May 2019 show a 26% revenue rise to £421.3 million, representing 6.4% underlying growth. New customers have been won such as Tilda, Metsa and Lallemand, while contracts have been extended with Tesco, Aldi and Mayborn.
Quite often when a company has had accounting problems, it pays more attention to accounting and becomes better.
Interim results showed increase in revenues but the business is expected to declare an EBIT loss and had to make a write down of 169 million.
These shares were trading as high as 14 p quite recently.
Also talk of lower oil price being of benefit, though again not clear how much exactly that will help.
All in all it’s a good gamble to take, lose all or multibag many many times. I’m in… lets hope it all works out.
When oil prices drop, Russia suffers greatly. Oil and gas are responsible for more than 60% of Russia's exports and provide more than 30% of the country's GDP.
Russia have obviously lost their memory over the dreadful shock to the Russian Ruble.
Surely they will cave in eventually and agree to drops in production