I bought yesterday and prepared to see it go down another 25%-40% as a possibility. They will have problems passing on input cost rises and there is no major reduction in the hit of covid. Med-long term I think this will offer a sensible CAGR and can add further on weakness. Much if not all of the bad outlook is known and priced in around here in my opinion. Always the chance it deteriorates further so no rose tinted glasses.
For anyone noticing I only post negatively it's because the positives take care of themselves. There doesn't appear to be much trust here. For what you believe to be clear in the numbers the market says "meh".
Why?
Take some time and investigate. Dyor etc. Careful following tips.
If I get the impression it has bottomed I might buy. Small businesses will have a hard time for a while. Those that manage to survive or even prosper will fly once through the coming period.
I really hope this prospers and you ultimately get a decent CAGR. I've been there myself, more than once or twice.
Buy & Build is risky and runs down cash. Meanwhile passing on higher input costs will be hard and supply chain issues. Variables that cannot easily be predicted and can (probably will) wreak havoc.
Its likely to get nasty for a while, 6 months minimum in my opinion and possibly a couple of years.
No surprise to me, lets see what comes out. Good luck. Market isn't always wrong, think for yourself and don't follow IC. Seriously, do it yourself, trust no one.
Interesting they appear to me to be in breach of AIM rules with major shareholder list not updated since 23rd April '21. Nearly 2 months delinquent. Would have though that was easy to do.
They are a basket case. Buy & Build is asking for trouble as no one sells an asset unless it is also a dog or they are getitng top $, ideally for a dog. I read up the management pronouncements going back a while and it struck me they are constantly looking for excuses to hide behind.
Perhaps I'm just a skeptic and cynical but the share price performance doesn't surprise me at all.