The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Not sure where a p/e of 4 came from. Just doubling the half year eps of 4.9p would give a number nearer to 11.
Because of its name somebody might have a go for DLAR as its pension deficit is minimal, and cash will always be king, more so now that inflation is ripping through the world economy.
If this was an isolated temporary setback, it would not matter. But this is the latest in a long list of setbacks. Despite new management, their credibility is wearing thin now.
But the SP is down 30% for a reason. RTO are clearly overpaying hence there own share price rapidly heading to its own 30% decline. 80% of acquisitions destroy value to the buyer. Clearly this is not one of the 20% exceptions to that rule.
A new CEO, a new CFO, an acquisition in which the Circular suggests declining sales and an exit p/e of nearly 40x. No wonder shareholders who stumped up 485p per share before the full facts were known have headed for the exit.
Problem is that these extraordinary items keep appearing year after year. So goodness knows what other nasties lie under the bonnet. But we will find out soon enough as the new CEO gets his feet under the table. JMAT has been a great company in the past, and can be again now they have pensioned off the exiting value destroying CEO.