Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
From trading update 27 Feb 2014: "2013 results, due in early April, will not be particularly meaningful in view of the company’s start-up status and the exceptional problems, both financial and commercial, which prompted the formal business review in the second half of last year... First half EBITDA was a loss of £3.6m on revenue of £5.1m..." So we would need to see a substantial increase in second half year revenue to merely recoup first half loss. It does seem that ZZZ is expanding rapidly, but part of the reduced operational costs included "permanent headcount down by two-thirds". Still will surely impede growth longer term? Further, without the prospect of a div, why exactly would a loss making business see its share price almost triple? May do so in a few years time but don't think we are there yet. I know loss making OCDO may be in people's mind, but that had Goldman's backing and technology to boast. Not sure what the case for ZZZ would be? Just my 2 pence and as I am long would be happy to be dead wrong.
I suspect some people had brought in just before on the hope that DPP had finally made a profit. (See the likes of French Connection's SP turn around). However DPP is a much younger company and will still take longer to mature in Poland.
Final results made available yesterday: http://www.dppoland.com/index.php?option=com_content&view=article&id=67&Itemid=79
http://www.dppoland.com/attachments/article/67/Final_Results_2013.pdf Continued sales growth with double digit growth in five consecutive quarters. Strong like-for-likes (based on first 13 Stores). Like-for-like Store EBITDA (pln) improved by 52%. Like-for-like Gross Profit (pln) up 46%. Like-for-like Sales (pln) up 43%. Like-for-like Order Count up 39%. Increasing number of stores breaking even on a monthly basis. Online sales channel becoming increasingly significant: delivery sales online at 59% in January 2014. 5 stores opened in 2013. First sub-franchised store opened in October 2013 – reported EBITDA breakeven in 3 of first 4 full months. First stores opened outside Warsaw and trading in line with expectations. New S2 Format delivering significant cost savings in store fit-out and rent. Significant increase in brand awareness and over 50,000 Facebook fans.
Can anyone shed light on what these two opposing trades are? Is it a glitch in the LSE system feed etc. I've seen a number of opposite trades like this for other stocks too but they tend not to be too significant. Many thanks.
Indeed, Paul Scott's article is utterly negative towards DQE but let's remember that the share price is ONLY back to where it was in early Dec. DQE is an AIM stock with a tiny market cap. Expect a lot of volatility. It was remarkable that the price rerated up close to 30 in the first place on so little real news - a clear sign that the day traders were looking to make a quick buck. For the record, I'm happy for this to happen. I bought in and sold out quickly too. But I am also a long term holder. The way I see it, for the shares I held from pre-Dec, nothing has changed. Finally, if DQE is fake, Tapaas Chakravarti will lose a LOT more money than me!