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Until October last year, for the most part the share price for BEG tracked slightly ahead of that for the FTSE 350 index, a measure which I feel is a target to better, which, for the most part, so it did. Since then, the FTSE 350 index has out-performed BEG by a margin that has worsened since mid-January 2023.
A disappointing reflection of the share price for this business whose prospects as business casualties are increasing should be improving. The market can and does get things wrong. Perhaps it is right now having been wrong in the past. I do not like to average down, but I am sorely tempted at this lacklustre price. The managers are not exactly falling over themselves to buy shares to provide any lead and I feel there is no compelling reason other than to wait and see.
An interesting post Alas. I have held these shares around 1 year and still at my entry price. You would think BEG is a buy, but I cant justify it, when FTSE stocks are climbing. I really think there are many better stocks to buy. On Aim there are many far more beaten down than this, offering higher yields and growth potential. On the FTSE, that seems to be where the recovery is. Will BEG be an 'also ran'? As the economy improves, the investment case reduces. I still hold as it is also quite stable and pays a yield.
Despite the doom and gloom in UK and Europe with rising interest rates, inflation and continued mutterings of recession, press reports and statistical “evidence” for increasing business failures are not translating to a rising share price in this company.
Looking at the 2 year chart, at best the share price is treading water. This seems illogical for this business whose core competence should find the business environment a sort of goldilocks time.
I remain of the opinion that recent add-on businesses have been a distraction but I do believe these should be helpful in future years. Quite content to take a loss on the chin to put the proceeds to use elsewhere. Always disappointing when an investment sours, but my faith in the managers to take advantage of the poor business environment has rather evaporated.
Although I have now disposed of my shares in BEG at a loss, I maintain an interest in this company. Has all the implied hallmarks that it should be thriving, but it is just not reflected in the share price. I’m sure the article below will have been seen by many. FWIW, my holding in RFX is not looking too bright either but at least it is in positive territory.
https://www.theguardian.com/business/2023/jul/11/zombie-firms-uk-interest-rates-insolvency-begbies-traynor-profits
Sorry to see you go Alas_Smith, I enjoyed your unblinkered analysis. I was lucky enough to buy my first tranch in Q1 2020 when Covid hit at 61p, if I recall. This has helped my average. I only hold currently because it is a contrarian investment with growing dividend. I'll be looking to exit in the next 12-18 months by which time I hope the economy will have some green shoots.
The main problem for me has been the incentive plans for staff . Not wholly against it , but some companies tend to be rather more generous than others. It seems noticeable in pegging back this sp . The other problem maybe performance related takeover bonuses. All seems a bit too cloudy for my liking. The shareholder is the last to benefit
At last, an acquisition that makes sense.
Don’t get me wrong, I want this company to do well, it should be doing well as company failures are a broad penalty made worse through squeezed margins, inadequate capital, tightened bank lending, rising wages and all the other negative elements that business juggle with on a daily basis.
As far as my decision to sell was concerned, it enabled me to put proceeds to work and begin to recover lost ground. Investing is not a race and has many influences. BEG remains a business I want to own shares in, but until there is convincing evidence that the market cap is growing, I shall avoid. I also have no problem in buying shares in companies that are at or close to a 12 month high. My purchase last week of shares in Alphabet followed on the heels of a purchase a month or so ago of doubling my holding in Microsoft.
The level of hypocritical nonsense posted here, is truly astonishing.
Somewhat bewildered with your caustic remark, Chelsea11. That I do not share the same contention that the spate of acquisitions are beneficial in the short term does not mean that I am wrong in my analysis or hypocritical in my wish to own shares in this company. That I invest for capital appreciation does not mean that I will not sell those that are not performing well.
I have made no bones about things, the decision to invest in BEG was made some time ago; that the price I paid for the shares was higher than it is currently is a mistake of timing. This remains, as far as I am conerned a business that SHOULD be doing very well with a market capital that is benefitting from business failures. That it is not is perhaps reflective of the competency of the managers directing the company and the decisions that they are taking and it was with that in mind that the decision to cut losses was made.
As far as I am concerned, todays RNS is beneficial to the company (and shareholders) to expand by way of acquisition of core expertise rather than speculative areas in which the company has little core competence. If this really seems to be hypocritical nonsense, I apologise.
The share price has had no meaningful reaction to todays news, and volume of bargains executed reflects this.
I find a distinct level of irony in the post from Chelsea11.
Regarding the acquisition, we have no details of what multiples were paid, or how it was funded, which I think is rather poor. Also could the headline names be approaching retirement age?
A_S. As recently as 27/07.
“My investment psyche is long term” Really? Not here it seems.
“I have confidence (well, no reason to doubt their talent) in the managers to manage their core competence” Really? If so confident, why sell up so soon after writing that then?
Why would you be bewildered when it’s clear you type one thing and then do the opposite? Maybe you can’t remember what you typed.
Chelsea11, you really are perverse and obtuse. I want to own shares in this company for a long time, perhaps not the almost 45 years that I held Shell, but nevertheless for a long time. In the time that I have spent building up my portfolio, the mistakes that I have made include not cutting losses early. I therefore cut my loss early on BEG to put the proceeds to work elsewhere.
Essentially this is an accountancy company. It deals in companies that are in distress and once appointed makes decisions that have a strict rules. I am confident that the managers know when it is viable for a company to be re-structured and when to wind it up. What they are not demonstrating is the benefit of buying ancilliary businesses.
Please rest assured, I do not propose to engage further this futile justification for my decision to cut losses in BEG. I made a porr decision of timing and have put the proceeds to work elsewhere. That I wish to own shares in this company at a future date is my decision and will not be influenced by you or any other herbert on a public discussion board. If your or my comments are beneficial to others, surely this is healthy, but to be critical of a decision to sell smacks of flawed logic to me.
Sure it’s your decision. I’ve never once said it isn’t. Unless you want to point that out for me?
However one week investment psyche long term and confidence in management, next week sold out. All your own words in print. Now that is what you call perverse, obtuse and errr distracting.
Fear not. I will never contribute to this board again.
Hopefully, our paths will not cross in businesses in which I hold interest.
You haven’t been able to factually answer one single challenge, so no loss there.
Chelsea11, surely the point of a discussion board is to encourage debate and challenge somewhat blinkered views. I’m that respect Alas_Smith did that and for that reason this board will be poorer for it.
There really is no need to be so vindictive to others who may have a differing view.
Must admit, I laughed out loud when I read that ftse. Suggest you rewind the exchange to remind yourself of who had the blinkered view and who was challenging that view! His/her view is that acquisitions were & are are distraction and the company shows little growth. Both proven to be completely wrong when the July Results were issued and both will be double underlined as entirely wrong when the next set of results are issued. He/she refused to accept what was in print from the company and he/she even went to the trouble of asking for posts to be deleted, to cover that up! Then he/she was apparently right behind the company and long (again transparently posted for all shareholders to see here), only to sell up a week later. Hardly trust inspiring stuff from a poster, is it?
Can’t see how his/her absence from the board will make a jot of difference, other than to remove the untrue & unwarranted bleating about acquisitions being a distraction and little growth. Let the forthcoming results confirm who has called this right and only that will end the debate.
I think we can agree that this share is not exactly a city "darling". I'd even say it is disliked for whatever reason, when it should be flying in the current climate. I think myself and others have simply put forward reasons why this may be and "unblinkered" in so far as to not believe that all their acquisitions represent a good investment.
And this is the only AIM share where the SP is in the doldrums for no very obvious reasons? I think not.
Like I said below, AGM Statement expected later this month and formal Results in Q4. Let’s let those feed the debate.
YTD stats
Begbies Traynor -19.31%
FTSE 100 +0.25%
FTSE250 +0.32%
FTSE AIM -0.36%
Do you not think the AIM performance figure stated, could possibly by skewed by outliers? It doesn’t mean that the vast majority of AIM shares are level pegging. Nor does it mean that some haven’t suffered more than others, without accompanying, solid rationale.
For the 3rd time, let formal RNS statements & financial results feed the debate.
The FTSE all share AIM index is down 11% YTD, and down 16% on a 12 month basis.
I suspect the aim figure stated is the top 100 or something like that.
My source is google, just type in "aim index"