Member Info for SlickMongoose

Return on equity is 25%. What on earth are you talking about.

Surprised JSE hasn't moved.

That's because BP's investment in Russia take the form of a joint venture with Rosneft. They're operated by Rosneft not BP.

Half of BP's oil reserves are in Russia and a third of their profits come from Russia. Shell have a few investments but nothing major compared to the market cap as far as I am aware.

Tapis premium has shrunk, it's only about $1 at the moment.

Yeah, they hedge most of their production, so sudden spikes or drops in the gas price don't affect them much.

https://www.reuters.com/business/energy/global-gas-rally-kickstart-long-stalled-us-lng-projects-2022-01-28/

Very nice update. The combination of quality and value is pretty much unmatched as far as I can tell. The issue is obviously cyclicality (I remember that summer where sales were low due to it being unusually rainy) but there are significant long term growth drivers as well.

China will always be an issue because Somero's products are ssuited to a high wage environment where being efficient with labour is important. In a country with near-infinite cheap labour they don't really need automation. The company is doing the right thing by not investing into the region. Maybe in a decade or two things will change.

Brent just hit $90.

Also with worth noting the cost pressure on freight and currency movements should be temporary.

I think results are better than they look. H1 last year was exceptional due to the factory shutdown in Q4 the previous year. H2 last year had operating profit of 60m so they've smashed that. The business didn't have much of a seasonal split pre-covid.

Paying a dividend to treasury shares is a violation of section 726 of the companies act. It doesn''t happen, there's no need to wait and see.

It doesn''t matter whether they cancel them or not, once the shares are bought back into treasury they don't get dividends anyway.

Companies tend to only cancel them all once the buybacks are finished so they only have to do the paperwork once. It really doesn't matter.

General market drop.

Quiet isn't a bad thing if you ask me. Just a solid boring company at a cheap valuation.

Dividends are always variable here, they've got no interest in pleasing the market so it tends to just be whatever cash they have lying around. If they've invested in some new factory equipment, or increasing stock, or animations for Warhammer+, then they might have less cash available this month. They also didn't pay a dividend between Jan 2020 and Aug 2020 due to COVID uncertainty so the 50p this time last year could have been a bit of a catch up.

It's not a profit warning, trading was in-line with management expectations, they just don't like saying what those expectations are which is the annoying part. They could be the same as broker forecasts but they could be a bit higher.

Well that was uninformative.

Have to admit I was hoping for a trading update as well.

Yep solid results against a tough comparator.

No worries.