Member Info for usually_right

of the rev increase, 1.3% was price increases, 4% was sales growth. the margins overall were down 1%. this is why they opened lower and stayed lower.

its all about the margins. they havent raised prices as fast as input costs have gone up. this has been the underlying issue for some time.

those levels would put the enterprise vaue at 1.5 times pre covid. i think thats a stretch. but i can see the sahres testing the upper end of the 28-36 range this year.

some value 35-40 quid. at those levels youll have larger investors making noises and probably activists involved too.

the mkt sees a data point and draws a trendline. they said margins are down 100bps and that forecasting these margins in the nearterm will be difficult given the changes in input costs. the mkt doesnt like uncertainty.

around 31 quid is the 200dma. there are quite a few cyclical reopening or recovery shares testing this average today eg. tw. nex and quite a few others. so its a natural resistance level where profit takers or seller may come in. closes above these averages will draw in buyers but you need to remember may of these shares have come up a long way in a short space of time. sometimes consolidation is no bad thing.

action is going at at least double in size over the next few years. all things being equal this should take the 3i shares up towards 15-16 quid at a minimum. one of the best shares you can hold. add on weakness.

if holds 41 quid it should be ok. if can close close to 42 then it shouldnt drop further tomorrow. however, if under 41 it could be down 7-8%. margins down 100bps is all mkt is seeing right now so if continues to fall no need to fight the tape.

if you like PE, look at 3i Group, the biggest listed PE group in London.

still under pressure technically while below the 200dma and ideally needs to regain 3285 on a closing basis in order to open up a test of upper end of range. the big range is about 28-36 so really not doing too much.

over in america HCA talked up surgeries in its earnings update yesterday so i think things are heading in the right direction. one to add on weakness with a 12-24 month view.

vod is on about 11 times fwd 22 and 9 times 23 earnings. 5g will be a game changer for it when third party commercial products come to market over the next decade at which point it will be able to materially grow its earnings.

they turned early spring by 27 and a half quid so that acts as a support. right before that you had the vaccine spike from 24 quid to 28 quid thats why theres not much support until 24 quid. but honestly i would love to buy more there. i doubt i will get the chance and i will probably need to look for a pullback to add to my underweight position.

ive sold out a couple of times at those levels you mention. you were priced at more than precovid levels at one point. but under 28 looks good value to me. im not forecasting 24 quid but id happily add there if seen.

i think it could stretch to 2400-2450 at worst. time will tell. but much of the rout is over judging by the bond market which doesnt have far to go before its completed a full retracement.

theres a gap at 3541 which has yet to be filled. given the steepish nature of the drop so far, id expect that gap to provide a tradable bounce. if its the bottom only time would tell. below that gap there is 3258

cable is about 2% lower than early may when bid talk was at its peak and the shares were close to 5 quid. i added yesterday and will be prepared to add by tech support in 325/375 region if seen.

you can access the latest results online but as of the april report, they had 1.256 billion in cash and cash equivalents. in june they release a trading statement which underlined improving trading conditions. at that time they said sales were down 27% from pre pandemic levels but continuing to improve.

their cash position for 21 is more than 50% greater than for 20 given the equity and bond issues. and its likely they will spend a portion of this on picking up distressed assets. they certainly wont be paying a dividend this or next year, but they are one of the best positioned outfits in this sector in the uk. the shares wont double tomorrow, but there is plenty of upside over the next couple of years. its one to tuck away at these levels and add on further weakness.

bought back in today. underweight position because you just cant time these things but its possible that the market rebounds overnight and a toe in the water is better than none. if we go much below 28 then you can expect 24/25 quite quickly and that would be an area to add to the position. on fundamentals, we are now quite a fair bit below pre covid valuations if you take into account all debt and equity raises since then so there is a case for making an investment here particular since many other competitors arent quite so well off in terms of funding and quality of assets.