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All positive comments in the update which should bode well for the shares today. It looks like SG’s recovery is becoming much more pronounced.
Oh dear...more debt...
Carp, it’s basically extra working capital allowing them to grow the business more aggressively.
Very disappointing results. They've fallen very short of the £20m t/o and £1m profit Pearls was predicting.
They have managed to increase the debt more quickly than the sales, so I guess that's good???
Overall, it was a bit boring at best. Back in the bottom draw for another year.
You wonder how much working capital an century old business needs, more than the turnover by the looks of it....
Devon, looking at this update, I would very much think that now is clearly the time to load up with these shares. A recovery is happening here, it looks like it will be accelerating......
"Devon, I'd happily go ahead and buy if this stock was a bit more liquid. "
....just 5 days ago LOL
One thing is clear, they've fallen short of your prediction of £20m t/o & £1m profit by the end of last year.
LOL. Sounds as if the Easter Bunny not only delivered eggs, but also SGI liquidity over the weekend hahaha
It's a clearly good update. If someone's disappointed I think that they should be a little more realistic because the last few years have been terrible for the company in every respect. This report is another one that shows that things are going well!
" I would very much think that now is clearly the time to load up with these shares"
The market clearly isn't loading up, sp has gone down.
By the way just noticed some sells? No bother if you ask me…
I keep saying 1-8-2.2p, but does anyone ever listen LOL
It looks to be wanting to test that 2p, so maybe 1.8p is on the books, if it goes below that, my model has it next down at 0.5p.
As the trading update only included two figures - approximately £12m revenue for y/e 31.3.22 during which the loan was increased by £1.3m - and Guernsey and New York are still on the table without any indication of the possible costs and losses of the final outcomes, I do not expect buyers to rush in. But when the company moves forward without those two historical problems hanging over it, I feel confident of a market valuation of £80m by 30.9.27 valuing the shares at 18.5p as long as there is not a rights issue in the meantime.
18.5p by 30.9.27- A shot from quite a distance. Maybe… A lot can happen good and bad by then. I’ll want to see the next full results…
We could debate the value in 5 years for the next 5 years, but the over all time frame I think is correct.
As I said this morning, back in the bottom draw for another year.
As I see it, the trading update was definitely positive, but there are two issues that no comment was made on:
A. Is the company trading as a sustainably cash positive business yet? This aim was stated as being THE AIM back in December.
B. Like others on here I note the increasing debt, up another £1.3m, with the debt facility itself being repayable in March 2023. Will this deadline be waived by Phoenix or rolled over into another facility or extended for a further five years? Most companies sort out their banking facilities a year in advance of deadline dates, yet there’s no mention here of what’s going to happen. As pointed out earlier it is basically providing the company with working capital for a year. Yet if the company is becoming sustainably cash positive, then why does it need to increase its debt?
Sub 2p now, so 1.8 looks close, if that's breached I have it down next at 0.5p.
I'd consider taking a position c 0.5 and look for an exit in 5 years time.
Devon, you have called it correctly so far.
It looks like the addition of more debt has spooked some investors. Is this debt really going to be for investment and growth or is it merely keeping the sinking ship above water?
On the matter of increased revenue, presumably the money collected from the sale of fractions is added to the balance sheet. If this is the case the figures are obviously going to look better.
Good points, Pearls and important too… I guess we’ll know more in August. -That’s when the results are due, I take it./ Devonplay, I must admit now that the share price may fall further, however ridiculous it is. - Yes, that’s because sometimes the market simply sends the prices to insane levels… £8Milion Cap? I don’t buy that trick.
Devon, I cannot say congratulations but here we are below 2p which seems ridiculous to me. The shares will not fall to 0.5p - I guess that is just a mischievous price from you.
I wonder if the Board expected the price to fall like this - I genuinely felt the update was very positive? Yesterday's fall arose following a large sale who's publication was delayed until late in the trading day. It looks like something similar is happening today. It makes you wonder if the price is being manipulated........
Ah, but Pearls, you didn't believe we'd go sub 2p either did you, so no it's not a "mischievous price", it's what I expect if we break 1.8p. Which is still one the tables.
Still to highly priced for me around this price, maybe see where we are March '23. In the interim, it's got to be dirt cheap, which it isn't at this moment, for me to consider it a buy given the inherent risks I've out lined over the last 3 years. Just think of all that money you would have saved if you'd just be willing to take some advice LOL
No need for congratulations. ;)
Nice little rally across the market today.
DTY looks a bit sick down 4.17% and Castelnau is at a low point since the float.
Phoenix running out of steam? If they catch a cold, then, as I've said before, SGI gets double pneumonia with sepsis, but we can rely on Pearls to call it hay fever LOL
This is becoming shocking. Cannot believe these daily falls. Was the update that bad? It read well to me, I re-read it this morning and still do not see why the share price should have been so hammered.
Perhaps it is traders playing around with the shares, but the current price seems unbelievable.
1.85p BANG ON THE MONEY! ;)
If we get another few days of this, hold out for 0.5p then go long for 5 years.
......I just bet Pearls still ISN'T adding any more ! Time for a top up Pearls? Lost your nerve or still think you can't because of liquidity? LOL
On a serious, last figures showed an increase in losses, the trade update showed more additional debt and there's no sign of earnings growth. Frankly, I think the business is only worth a couple of million. Being in the debt would be much better as we now know it's compounding at 5% per year...unlike the earnings per share.
Let's be generous and let's say it worth about £3m for the equity cap.
Devon, you are bang on the money as you say, but the RNS says that the company is recovering. The recent RNS hardly indicates that it is still a declining business and the main parts of it - stamps and coins are both seeing increasing turnover. Looking at the CEO's comments, there is a clear intention to grow the business faster and more aggressively, so let us imagine for a moment that the annual turnover therefore does grow to say £16m or more by April next year. Given their overheads have been cut to the bone, and the legacy stuff is now basically out of the way, this could be possible.
Is it your view that as long as the debt carries on increasing, that the company cannot be generating positive amounts of cash / be profitable? This was not clear from the update. Please advise your views.
Also, how do you see turnover growing in the next year or two?
Another day, another drop- fine with me... Just ask yourself if you wanna hold it all the way- and that's it. 2 years ago I sold out for some reason at a loss (obviously) at the lowest offer... Not long after it went up. I bought in back. This shall not happen to me again here.
It is what the RNS didn't say which was bothersome.
Increased turnover, yes, but not surprising given almost no footfall last year.
No mention of profitability, rising costs (all salaries and bills are up substantially), or how interest charges are impacting on the business.
Also this is a debt ridden business at a time when rates are rising.
Will the next loan be at 7% or 8% or even more?
Devon has pointed out it is the lender making money here.