So far during COVID people have moved away from supermarket own brands and towards more premuim brands. If people are stuck at home instead of being able to eat out they want to treat themselves not buy the cheapest stuff. This matches what we see in PFD's revenue updates, with branded sales growing ahead of non-branded.
As someone invested in both BOO and PFD this is all very tedious. BOO investors should grow a thicker skin. When I like a company I welcome contrary views, they help make sure I haven't missed anything and that i'm aware of potential issues that might come up in the future.
RE: UOG : an extremely undervalued company12 Mar 2021 00:37
Jazim, when calculating the p/e ratio there are more costs to come in, i.e. drilling costs, staff costs etc. In the interim results there was cost of sales of £2.2m, admin exps of £0.6m and interest charges of £0.7m so a total of £3.5m for half the year = £7m for the full year. I would expect the costs to go up a bit with more wells online.
I agree the company is extremely undervalued based on current production and oil price.
The results looked good to me, highly cash generative which will feed into growing dividends as they pay down debt. Trading at about 10x FCF by my reckoning, and outlook says trading in line so far this year which according to stockopedia implies roughly 10% revenue growth.
If you believe the company is undervalued (and I do) then a placing would be dilutative. It's also unneccessary, they can simply pay off the debt over the next couple of years from cash flows if they don't like the refinancing rates.
At the risk of upsetting some people, I'm hoping that as we get to summer and the economy opens up, the market treats us like a covid stock and the share price takes a dip. That would be a great opportunity to buy more.