Member Info for TrekMadone

Well done I missed 531! Still hoping for another go later….

Note financial profile. Whilst it doesn’t say specifically I think the PAY returns will be safer. Also APP have 20m in cash on book albeit that is not counted in the EV of the deal. But nonetheless it’s cash for PAY.

“ (iv) Earnings enhancing and a strong financial profile

The PayPoint Board believes that the Enlarged Group is expected to have a strong financial profile increasing the diversification and growth potential of the Group's activities. The Enlarged Group is expected to benefit from cross-selling, clear levers to drive meaningful revenue synergies[1] and to support cash generation. The strong cash flow characteristics of the PayPoint business enhanced by the contribution from Appreciate Group will continue to underpin a strong balance sheet and an unchanged capital allocation policy including ongoing investment in the combined businesses.

The Acquisition is anticipated to deliver a pre-tax return on invested capital in excess of PayPoint's weighted average cost of capital by the end of FY25. The Acquisition is also expected to be earnings enhancing in FY24.”

Usual caveats

Trek

Not seen before….

https://youtu.be/tSI2G66vnCs

https://youtu.be/1X9bcyw3NJQ

https://youtu.be/a1V8fRwilgY

I have zero temper, too chilled! Will check out Jocks way when we go touring in June!

I note ALK doing well…. Why does that always happen to the watchlist! Lol!

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Trek

Well done Saab! I’ve been in and out again only for a small profit.

Once I saw those liquidity trades it was obvious what the mm was doing!

Beauty is if wrong side of trade I am happy to hold.

Gonna have one more go later or at bell tomorrow. Rest can ride!

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Trek

Thanks mick I’ve traded the **** off of it there today. Won on every trade so far!

Trek

Sold the cheap ones on the bounce for a profit 557. Average is down back again later to work this lovely opportunity!

Trek

Got another look at 544 based on intraday TA indicators. Bounce is on IMO!

Folks got calculators out lol!

Have more cash to cover if it goes lower!

Usual caveats

Trek

It’s in cash (RCF) and shares (5%).

“ 11. Financing

PayPoint has entered into an amendment to its existing unsecured loan facility arrangements with effect from 7 November 2022 (the "Amended Facility Agreement"), pursuant to which an additional term credit facility is being made available to PayPoint which, together with part of its existing revolving credit facility, will be used to finance the cash payable to Appreciate Group Shareholders under the terms of the Acquisition. Further details in respect of the Amended Facility Agreement and these financing arrangements will be included in the Scheme Document.

Jefferies, in its capacity as financial adviser to PayPoint, is satisfied that sufficient cash resources are available to PayPoint to enable it to satisfy in full the cash consideration payable to Appreciate Group Shareholders under the terms of the Acquisition.

Further information on the financing of the Acquisition will be set out in the Scheme Document.”

Mcap has reduced from 400m to 370m! Nuts!

I added at 542.85 at last! And am in for more later!

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Trek

Told ya the MM’s are fkd here …..no liquidity!

They have put through 87 AT sells for 3 trades each at 569 to keep price down!

More AT sells to deter buyers and attract sellers!

https://api.londonstockexchange.com/api/gw/lse/download/PAY/trades

They have had a liquidity scheme running here for ages!

PAY have come up with accretive finance against the MM procrastinations. We have a likely bidder in Asteriscos Patrimonial SLU sat in background picking up any slack. The MM’s are doing their best to hold the SP down.

That SP is underpinned by a recent bullish trading update and an increase in divi in a business that benefits from higher interest rates and can offset inflationary costs.

Whilst the sp may not spike up yet it is unlikely to go lower or for that matter tank! That’s something in this market! I keep getting NT for any decent buy and my buy orders have been constantly ignored here.

Even TA is a bounce!

A classic case of DYOR! Lol!

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Trek

Another shake. Can’t buy under 570!

Hoping this goes lower. Where are the trolls when you need them!

Mind you hardly ever any posts here. Lol!

Anyone looking in as I posted earlier the yield on google finance is wrong. The forward yield is 9p per quarter. The last two were increased giving 6.28%at 573p paid quarterly.

Watch this likely finish blue today once the MM’s get caught with genuine buyers that do math!

This is less than 400m mcap and is cash generative in any cycle, the bid may get the attention of our major fintech investor!

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Trek

It’s the $187m debt repayments that they no longer have to make which now provide huge dividend headroom or acquisition opportunity going forward.

This is significantly undervalued or probably overlooked at virtually any metals price.

I flipped more into here last week and am looking to add more.

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Trek

Question is is the premium too high. Well APP SP has been depressed of late like many but it is a highly cash generative business and the over the counter live-to-shop brand is a great gift option especially for those on a budget or with little time. Or indeed in my case for relatives that want to choose their own gift but you don’t want to give cash.

https://www.hl.co.uk/shares/shares-search-results/a/appreciate-group-plc-ord-gbp0.02

They are yielding 6.9% atm and bar the pandemic the divi has been increasing. With interest rate rises they should do well from holding customer cash. For sure during a recession people ease off on gifting but wether that will be a benefit or a gain to APP due to its convenience is unknown.

As for corporate side I was astonished at FOUR’s results earlier. They smashed their guidance with excellent growth. It seems that corporates don’t want to ease back on employee/customer gifting or branding.

You can read the comments here

https://www.hl.co.uk/shares/shares-search-results/4/4imprint-group-plc-ord-38-613p-shares

So all in all a good acquisition for PAY because it won’t pull on our divi and is cash generative with immediate gains from interest rate rises.

A good fit!

Wonder what our major holder will think!

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Trek

Nasams …. Interesting

https://youtu.be/kzkDd3Okc8s

Trek

Will they call the state controlled bots ‘flocks’ now or will it be ‘turkeys’ voting and folks ‘crowing’ for ratings.

I stay out of it LSE is the only social media I use as it’s mostly free from the ugly side like cyber bullying and child abuse that plagues the likes of Facebook/Twitter. Oh apart from our occasional visitor that is who seems to be barred quickly by the moderators here.

I see Telegram has managed to race to the bottom with the others regarding moral standards!

https://www.bbc.co.uk/news/world-63491977

https://www.ft.com/content/ffb79368-daac-4bc3-80dd-dd24063579a7

https://www.ft.com/content/d5549d48-8f02-464c-9c7d-17404a5b6d02

I appreciate it’s nearly impossible to avoid using these platforms and for the most part they do a lot of good to but I refuse to set up accounts with them until they improve their regulation. Probably one of only a few ‘boomers’ that does so let me know if I am being cyber bullied!

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Trek

Hi Legal,

I think aimofthegame covered it. The fact that this company was suspended over an irregularity will be enough for many to sell or reduce. It’s sloppiness no matter how we dress it up. Therein may lay an opportunity for others.

Of course it’s all conjecture but unless they list with or after finance news the odds are pretty much that the SP will go down.

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Trek

I am still holding, obviously! Lol! And am actually thinking about buying more at the bell if there is an overreaction.

However, I don’t get why if it’s ‘insignificant and shouldn’t take long’ then why suspend the shares. I hold JIM which referred themselves to the FCA for MAR compliance concerns and they are still trading through the enquiry/resolution.

If it was accountancy then that’s past. I think it’s about the number of shares in issue as that would impact on holdings RNS’s which could misled the market going forward. It’s also something that we have picked up here and fits the MO of being ‘quick’ to resolve. But then if that’s the case why wasn’t it fixed earlier.

The guessing continues and following the interview which was extremely bullish there could just be an opportunity when trading resumes.

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Trek

Hi MJ,

Thank you for that very helpful assessment.

Incidentally I note from your posting history that you have been an investor here for a while and only post on DEC. Some very good posts. Let’s hope for that $2bn mcap soon!

Thank again.

Trek

UK starstreak…interesting

https://youtu.be/AdzBbl6GX4Q

Trek

The courage of this guy!

https://youtu.be/vKJ5amFLTGA

And a rusky column destroyed with unbelievable accuracy!

https://youtu.be/5HQZZGoMXLA

Trek

Just when I thought my luck had finally turned completely having traded my **** off the last six months probably more than that the Dow gives up a 600pt rally! Ouch!

Got 20 stocks in the pf, 3 are red albeit they could all go blue over a couple of sessions including one which is currently suspended. All the rest are blue and getting 8.44% from a diverse range of stocks with a well covered yield. I have to! Yikes!

It just goes to show though that you gotta sell the ones going down and buy the ones that are going to go up unless of course you have massive conviction! That’s 2 of my 3 red ones! And furthermore, inertia, is often a missed opportunity in this ‘game’!

Still looks like Monday is back to Hokey Cokey but I don’t think it will be a trading day. Other than selling any big cap miners at the bell that realistically should have been sold today or at least partially reduced with a view to ‘recycling’.

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Trek

Tro,

I agree PRU could well will follow any China bounce. It’s virtually become a proxy. But imo trade only hey! Damage is in the numbers.

Aside note this from Guardian today…..

‘Sainsbury’s shows how close UK came to crisis
It’s all ancient history (we hope), but Sainsbury’s made a startling revelation alongside its half-year numbers: amid the wild moves in gilt prices that followed the former chancellor Kwasi Kwarteng’s mini-budget in late September, the supermarket group made a £500m loan facility available to its pension fund.

The purpose was to avoid having to sell assets at distressed prices to meet demands for collateral on liability-driven investment strategies. In the event, the loan wasn’t needed. Kwarteng was sacked, Jeremy Hunt became chancellor, the policy U-turns began and a degree of calm returned to the gilts market.

But the episode underlines how close the UK came to a proper financial crisis in which corporate coffers would have had to be raided for emergency pension loans. Sainsbury’s, one strongly suspects, will not have been the only corporate sponsor to make a loan offer to its pension fund (and Serco injected £60m); the full tale of that frantic fortnight is yet to emerge.‘

Usual caveats

Trek