RE: Motley Fool5 Feb 2024 07:37
It all comes down to whether you believe in the turnaround story or not. That we have steadied the ship, rode through the rough waves and we are now searching for land.
Obviously I do. I’m not a trader and my long term view point is years not minutes, hours or days.
For me I believe that the company has been stabilised and put on a decent footing. This is because:
We have massively reduced debt and closed the pension black hole. Top up payments end this year.
We are growing revenues and have a plan to double margins. This is via no additional pension payments, reduced head count and better contract terms and AI efficiency
We have completed disposals and over achieved against our target
We are winning multi year contracts and customers are returning
We have a moat in both the difficulty in proving a track record and also the government likely restricting access for security reasons
As such I believe it’s in our gift to make a success of this and I personally believe that we will
I also believe considering all the above we are massively undervalued
As such I see current sp levels as a potential multi bag opportunity - my own target is 70p to begin
All just my thoughts and opinions