The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
I think this is a good deal. We gain size and reach the £1bn turnover "target". I trust the management to improve EBITDA and become an attractive target for the yanks.
However from a short term sp point of view we are headed for low 40's IMHO. After all, many of the reasons given for the poor valuation this year are caused by anticipations re falling demand, inflation and high debt costs and this deal will magnify such fears.
I doubt the short term johnies who bought previous placings care as they will have sold out as soon as they could get their greedy little hands on cash.
Re valuation comments from SRC.
Presumably Max is reluctant to say "Valuation is dictated by the market and the large shareholders who can manipulate the market to satisfy short term trading strategies, even though they are aware that the medium term valuation is much greater than currently."
Maybe...
Bangrak>> I agree with much of your post and can only see catastrophe beyond 10 years. However until then we can make money from the PGMs. People will not give up their cars and cannot afford electric so exhausts will be here for at least 10 years. How many of those cars are new cars consuming new or recycled PGM is a moot point. We have seen over the last 20 years virtually all new cars being in effect rented because people cannot get the finance when mortgaged up to the hilt. Many people continue to want a new car partly because they want to show off and are fearful of repair bills from second hand.
Our incompetent Chancellor recently, haplessly addressing the cost of living crisis, reduced the cost of fuel slightly, despite it providing no relief for non car owners and contravening climate change commitments which we all knew were BS.
There really is not even the remotest chance that we will avoid mass( minumum 1 bn humans)death from flooding and starvation arising from climate change - not to mention the loss of habitat and species of animals and plants.
While we are pi**ing about with electric cars the UK along with most countries are spewing CO2 into the atmosphere in growing quantities.
There is no solution to this problem as insufficient country's will come off the population growth/ economic growth /globalisation / habitat destruction/ global catastrophe bandwagon.
Any challenges to this gloomy weekend post most welcome
I agree that unlikely to be significant damage to turnover as long as confined to present combatants. However sentiment is a different matter especially for investors with short time horizons. Certainly an element of dash to cash in the market.
Last year our results were on 13 April and will be great for 2021. Clearly the fwd looking statement will be material especially if the conflict widens. Already Finland has been mentioned but seems unlikely to me as the Russians will be bogged down in Ukraine for at least 12 months.
What do posters think about the possibility of a dividend for 2021?
I hadn't really expected one but would be a pleasant surprise.
A 1p divi would only cost around £6m and would put SRC on the radar of income funds and the wider market.
I know the Company focus is to use cash generation to buy businesses but a £6m divi would not make much of a dent in the cashpile.
Thanks silverblade - I concur with your estimates.
Those shares where I have had success have been consolidaters such as Northern Leisure in the 90's and Ashtead in the noughties so that is the attraction here coupled with a solid track record from sound management.
The sort of "we can fix it by using hydrogen" bxll**** will be used by society desperate to cling to the unsustainable way of life that we have experienced over the last 60 years or so. Of course there has been a massive deterioration with internet shopping and globalisation that have accelerated the problem of global warming.
Lets stop calling it global warming that implies we will have a lovely riviera climate in the uk and call it mass overcrowding and starvation. Perhaps only then will politicians listen.
Hydrogen is seen by JCB as preferable to electric vehicles as it more closely mirrors the use of diesel and it helps marketting their product. However the hydrogen is made by electrolysis - splitting water using electricity and it becomes green when they say the electricity comes from renewable sources. It is debatable just how sustainable those renewable sources of electricity actually are when scaled up for world demand. The article states that JCB alone will use 10% of the whole production from FFI.
So if anyone thinks that world use of oil is in decline and we will avoid the catastrophe of global warming they will be dissapointed - or dead.
How can Boris be credible at COP26 when fuel duty has been frozen for a decade and home insulation funding has been cut.
As for SLP our PGMs will still be required well beyond 2030 as the ICE continues to pollute the world with CO2.
Over the period of 3 days spanning the trading statement Blackrock have bought approx 1.5% of SRC or £10m worth of shares yet the sp has declined over this period and the trading volumes have been less than £6m.
Not sure how this is achieved but maybe some posters have been closely involved with market makers and might explain.
Nevertheless there seem to be 2 conclusions
1 Blackrock is really keen on SRC
2 The mm's are encouraging weak holders to sell to supply Blackrock until the order is satisfied.
Coupled with the trading statement I consider the target of 125p by Liberium to be very modest.