What in the name of god is going on here. This is crucifying. I am in at what I thought was a very reasonable price point. How bad is the bad news going to be? How much will the divi be cut by? How much is the cash flow going to suffer? According to the SP it could be severe.
I am currently not a holder and have not held this before but I must admit to being interested now at these prices. I'm sorry for all that have been caught out in this debacle and hope for a re-rate and a righting of the wrong.
I have been looking at some of the fundamentals, and it seems to me to be relatively attractive at these prices, regardless of the new EU laws surrounding leverage. I can see that they have no debt, have relatively good cash from for a company with this MC, a low PE ration now, a share buy back scheme ongoing and no mention of a cut to the divi. I guess the main worry is that the numbers are now all correct and all of the information is out in the open. Would appreciate any current shareholders opinion on this at the moment and would like to open a discussion with the possibility of a purchase in the coming week.
This new increase in the shorts. Not sure why they would decide to open them up now that the "mess" that was the flurry into the US is finished and they intend to pay down a lot of the debt. A estimated PE of 12 is not overly ambitions and achievable for something like this in my mind. We are not expecting miracle growth rates here and it is pretty boring. Should be a nicer divi per share going forward too which they will need to cover too.
Just sitting eating my lunch and a fit of rage came over me about this all of a sudden. They actually stole money and nobody cares?? How is this possible int he modern age, superficially with all the new financial fraud legislation in place!! I don't mind losing it because of a poor investment decision or the company failed trying to do what they set out to do, but this??? Sorry I had to have a rant as I have not thought about it for a few weeks!
I decided not to sell in the tender. I have an average of 1.85 and did not think the premium to 1.95 was enough for me. Looks like some of our larger holders did not sell all of their shares, or have acquired more in the meantime. Also nice to see some new larger II's on board. A nice broker target issued this morning too. I understand the margins are small here which is why I think there are relatively high barriers to entry. This also could increase the likelihood of a Takeout to drive those margins higher now with a lot of the debt paid off. In terms of the supermarkets squeezing them, where else will they go? Nobody is going to take this kind of business on in the current Brexit environment, although the way the FTSE is irrationally acting at the moment, you would swear nobody cared that there is not a function government in the UK. Thoughts welcomed.
After thinking about this and having a chat with a few mates, I have decided not to partake in the offer. I would imagine/hope that a lot of the larger holders that bought on the way down after the profit warning will partake so as not to have to take the hit on the income tax. Hopefully this will mean that it is fully subscribed and no dividend will be paid. The premium is not enough for I think and I would be happy to see an increase in the SP due to less shares being out there and a higher on-going divi per share going forward. Not sure if this is the same understanding as other, but thoughts would be appreciated.