Morning, having not slept again due to the lurgy please excuse my coherency this morning. Being awake for near 3 days takes it toll, although very good to catch up with paperwork instead of trading. As an act of Sympathy, I got sent a pot noodle to get me better I feel so valued! Anyway, enough of manflu...
PureCircle have surprised the market with their final results. The stock is very illiquid and easy to trade, but has the company turned a corner. Their's a total absence of commentary on the Vitamin Water contract it appears to have lost (Circa 4th August) as the manufacturer reverted back to sugar to maintain the customers. Ignoring the salient point that in my view PURE should have updated the market on this, albeit depending on revenues the NOMAD may believe it was not a essential.
PureCircle have surprised the market with their final results. The stock is very illiquid and easy to trade, but has the company turned a corner. Their's a total absence of commentary on the Vitamin Water contract it appears to have lost (Circa 4th August) as the manufacturer reverted back to sugar to maintain the customers. Ignoring the salient point that in my view PURE should have updated the market on this, albeit depending on revenues the NOMAD may believe it was not a essential.
The company is on a PE (near 50 fold) mirroring Appliance Online (AO.) & Just Eat proportions. With Tate & Lyle getting into the Stevia market as well this could create some competitiveness. For myself the net debt repayments don't add up when comparing Net Debt for 2013 to 2014. Revenues are up and profit is a paltry $2.3 and stock (inventory) of $86M for a £1 billion company there's a lot priced in. The company simply aren't doing it for me, with "hopes of higher revenues this year and next" (see Higher inventory volumes have been sustained again in anticipation of higher sustained future sales volume growth. (in Inventories). The simple fact is they don't appear to be selling it in sufficient numbers to warrant the valuation. At this price you'd expect everything to be going rosy, alas until things are priced sensible there's no reason to hold.
Kingfisher (KGF), interim results came as no surprise for France contrary to the rude informing I did not know what I was talking about re: France sales. So for that person whom wished to email me with his views without acknowledging reality. Here's the out-going Chief Exec Sir Ian Cheshire words:
"This was a difficult first half with demand in our largest and most significant market, France, remaining particularly weak with a sharp market downturn experienced in our second quarter. We did though deliver flat profits in France, a resilient performance despite the difficult backdrop. However, conditions in the UK were more favourable with better weather and encouraging signs in the smaller tradesman market. We were able to capitalise on the better conditions with Screwfix performing particularly well growing sales by 23%. B&Q UK & Ireland also delivered their best H1 sales growth in over a decade as the new team start to gain traction with its re-energising initiatives and started to make progress with its plan to better position the business for the future."
After the Q2 update which enabled every man and his dog to open a PLUS500 a/c and short. Of course, PLUS500 have a unique platform etc...and costs are significantly lower and evidently only keep customers around 16-18 months but this isn't churn (scuse the sarcasm). Anyway, back to KGF, its more than likely with France's figures are still falling (Castorama France -0.6% LFL; Brico Dépôt France -4.3% LFL) it doesn't bode well for their largest market but overall group performance was a credit to cost control, management and profit. With the Share purchase programme back in force and cash up there's going to be support to the stock. For the long-termers, its likely the price is very competitive so with that in mind, from my death bed, I've opened a long. Shocking I know...
We shall move swiftly on from the obvious for New World Resources...quite why anyone was holding long is beyond me!
Now here's a surprise folks, Orogen Gold PLC announce a Placing raising £1.125m - further drilling - Mutsk, Now after the last placing, and this can someone give me reason to hold the stock. This company's share price speaks for itself, and the closer to zero the more chance there is for a bounce. I've been following ORE for some time (short) and have no reason to change this, albeit I am closing as there's nothing left for me. The last placing in October 2013 came as no surprise...here's my twitter feed I only allow myself to read, (its a good thought banker for me):
Just look at the RNS flow up to the last placing and then this placing, coincidence. As such, any good news now has a risk associated with it, best of success to the long holders.
Premier Oil (PMO) have their Solan Facilities installed with the subsea oil storage tank, jacket and topsides all in place. This, plus Catcher, is key to cashflows in the short term and expect some positives in the price and certainly now deserves a fresh look.
With the dollar surging ahead, base metals have had to give, with an obvious trade due to the strength of the dollar. With secondary supplies of copper swelling (repossession) its likely the price will come under pressure with a potential $2.85/lb but certainly $3.00. All the PGM's being kicked save for Gold and Silver which saw some knife catching overnight in Asia. Its more and more looking like the bottom is near for gold by the trades, but will to be proven wrong.
As a result of the downfall in metals prices (contrary to the Chinese Growth story), its likely those ingredients used for steel production are likely to come under pressure. It would be wise to watch the producers/prices of coking coal, limestone, dolomite manganese, aluminium and nickel.
Atb Fraser (typing with the grim-reaper at his side).
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