The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
its been a frustrating couple of weeks. was hoping for more information to be provided in the trading update, but the values provided should not be resulting in a share price decline like this in my opinion. ARR continues to increase and annual performance in line with expectations yet the share price is almost half of what it was at the time of HY report release?
Nothing significant in the market environment to impact Pelatro specifically, or any worse than others, recent COVID wave would have a lower impact on Pelatro than most other companies.
Long term hold, can not see price going any lower myself.
Nice rise today, hopefully positive news coming soon. Expecting an ST article to return us to reiterate a buying position which would carry us back to mid 40s before YE results.
I am assuming you aren't referring to Subex, if you are then you are clueless.
Regardless of whether you are or aren't, that is your only reason for your plethora of negative opinions. Brilliant
Agree avocet.
If you are selling off at a 15% drop today because VC fiddled with a couple of expense receipts then you must have had little faith in the outstanding fundamentals of the company that remain unchanged.
I agree with you that people should be careful with tips.
However, I think people should be more careful of people like you scaremongering with no evidence or support for your arguments other than "inklings" that the share price will go down. Just because you add DYOR to messages does not make them any more valid IMO.
I am intrigued to know why you think the SP will continue to decline?
Happy to hear the picture is rosier! I definitely agree with your original point that the amortisation which does play a key part of the P&L is somewhat disregarded by ST but I can see why.
Yes, will be interesting to see how fruitful the reward is from the Mobile Adevrtising. From the other core operations, the performance looks to be improving, with a few additional contract wins since 27/09 which is also good.
I agree regarding the exciting buy, my holding in PTRO is admittedly too heavy in proportion to my portfolio but I do genuinely believe there is serious value here.
Thanks for the info on the Cenkos report, I do not have access myself but may look at obtaining membership.
Cheers
Massively, wiped £15m off the value this morning for an immaterial breach of internal policy.
The key point ST makes is that the cost base is relatively fixed so the strong increases in revenue highlight the potential growth in the future.
Please may I ask where you got the 50% increase in administrative costs from? Link or something as I am interested to see this
Hi Agri,
Not sure where you are getting £6m of amortisation per year from? Thats the acc. amortisation as at 30/06/21 but the pro-rated amortisation for FY21 is £2m per annum. This appears to be consistent with previous periods. I note that a third of this is in relation to the acquisition intangibles (customer relationships) and therefore not sure why you would consider that in your valuation (not in a rude way, more curious)? There is no cash element to it at all.
The chunkier element of the amortisation is in relation to the development costs, but there does not appear to be any significant increase in comparison to previous periods. The additions each year are relatively consistent and are being amortised over 4 years like you said, so it is essentially a rolling expense. These development costs wont be brought down to zero as it is a "rolling" value?
In summary, I do not consider this element of the amortisation to change significantly in the near future but I expect the customer relationships to be reduced to zero by 2028 and therefore would improve the bottom line basis. As I said above, I consider this element to be irrelevant though and think it is correct not to use the bottom line?
Not sure what you mean by "how do they determine amortisation"?
Hope that maybe helps but quite possibly not!!
Whilst I do agree with you, I find it slightly tricky to take much value from someone who only ever criticises shares. Is there any evidence to support your strong sell opinion?
Significant shift of revenues to the recurring model can only be advantageous and there have been a handful of contract wins announced since the latest results.
This looks like another opportunity to top up for me.
I agree, not sure what the cause of a 9% drop is today. The RNS regarding CFO is no explanation.
Too hard to resist an additional top up. Media scare causing 10% share price decline?
"As a software business, we can continue to function efficiently even if most of the employees are working from home. The Group has no supply chain dependencies and Pelatro's software products continue to be available without interruption."
Pelatro are functional regardless of lockdowns, and with the new recurring revenue model the impact and risk is reduced further.
I have significantly increased my position today, share price has fallen back to pre-HY results level even though several contracts have been won since and the company was materially undervalued anyway based on ratios.
im almost getting bored of buying kmk low and selling high, time to buy me thinks
its because of IC article issued late last night rather than presentation/RNS. Highlighting the company as significantly undervalued
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think the 26% increase revenue for H1 2021 v H1 2020 at an improved gross margin of 48.7% sounds positive. Is anyone surprised that YE Apr 21 was difficult??
you've hit the nail on the head yrab, the drop last week was ridiculous as a result of nothing. This SP increase is just offsetting that, looks very positive though so hopefully continue to rise back towards 200p
I have noticed this as well, there always used to be an article at least once a week on Mondays around 12pm but now every article is published on weekends/after hours. Interested to know why, possibly because of impacts on share prices but would be surprised. Nice 5% rise for LIT this morning anyway!