Member Info for RunThoseProfits

We’ve been here before a few times with a reduction in shorts only for things to turn again. Let’s see if the worm has turned. This will climb quickly when it does, I believe.

It’s easy to misinterpret language but my own take on the trading update this morning was that management felt that achieving this years targets might be a stretch, but remains achievable. Growth in those 4 months was 20%, excluding iTrack, whereas to achieve the year end target requires 50%. Admittedly 2H tends to be stronger and they appear to have a lot of potential in the pipeline.

This has always been a medium to long term hold but has every potential to rerate if and when SAWSense takes off.

Shorts continue to increase whilst analysts rate the stock a buy with a target price far in excess of the current share price.

This has slowly drifted from around £7 despite posting good results, making further promising investments and realising strong gains. Most odd. It’s now well under valued.

That feels like an odd broker update. The price target has barely moved and 275p is not inferring an imminent takeover. Perhaps they envisage a different outcome from the strategic review? 275p doesn’t get close to what Christopher Mills values the business at with the undervalued properties on the balance sheet.

Quite strong buying today. Good to see this turning a corner.

Peel reiterate their buy recommendation and an sp of 300p.

This could head lower still if Jet2 interims disappoint tomorrow.

My understanding is that if you lend (to a shorter, say) then you are still the owner of the share and can sell the shares even whilst they have been loaned out. So lending isn’t the same as selling and wouldn’t change your holding in the stock. I could be wrong but that’s my understanding.

A further reduction by FMR. Will they exit altogether?

An additional short has entered the fray.

It’s almost a 2% reduction (in terms of overall voting rights). If your thinking was accurate wouldn’t you see a corresponding increase in the short position as the shorting company would sell the shares? So far there’s been a modest increase this week but nowhere near the levels noted in the RNS.

Are market makers having a laugh? There’s almost a 14% spread on the shares at close of business today.

It has current and quick ratios of 2.35 and 1.97 - both very healthy. Gross margin of 75% and Op margin of 24%. Debt isn’t an issue as it’s been highly acquisitive, so not unexpected, but is generating strong cash flow and paying down its debt quickly and in a controlled manner. The board has always managed its debt within agreed parameters. Top line revenues and earnings have grown healthily over a number of years and are forecast to continue doing so. So yes, I’d say this is a well run company with a strong balance sheet.

All 7 analysts covering the stock have this at buy or outperform with median share price estimates of. Ore than double the current sp.

At some point this will rerate and climb just as quickly as it has fallen.

This is heading for less than £3 imminently, a reduction of almost 67% from its summer high last year. I’m at a loss as to why as it’s a very strong business with a good balance sheet and strong fundamentals. I note the shorts have increased again this week so presume they see further downside. They’ve played a blinder.

The sp is drifting badly. Why has there been no update on the strategic review?

Disappointing to see the share price fall back after a short recovery on some positive portfolio news. Next results are imminent. Hopefully these will provide some positive impetus again.

A good summary, Shandy. And yet the market chooses not to recognise this. It shows just how difficult it is to invest in aim where normal fundamental often just don’t apply. There are any number of other examples. One can only trust our judgement in the stock and remain patient.

Whilst the news of the new product is welcome, we need to see news of commercial deals coming through that have a positive, material impact on revenues and earnings, particularly from SAW. There hasn’t been enough of this. We need to see evidence that as track revenues drop off they will be replaced with new, higher revenue streams that deliver the growth that Analysts have predicted for some time.

I think you’re right, TP. The other notable thing about Angling Direct is that for an aim share it has been relatively stable. It’s not highly volatile like many other aim stocks.