Me too! Despite people speaking about software being disrupted the reality is most software development is complex and time consuming- the share price punishment is unwarranted- delayed because their customer has grown and the contract has grown too!
Most UK landlords are selling out. RGL is investing in their properties. Time will tell who is right. Management has been particularly unsuccessful in adding shareholder value in the past. I tend to avoid dividend cutting stocks out of principle. Massive dilution in the past with the number of shares outstanding always increasing. Not a sign for me that this stock is run for shareholders. If the stock is so cheap why doesn't management not buy back the shares instead of invest in their properties?
Why? Legislative change as I point out the MEES is a bigger opportunity than buy backs. Landlords exiting due to compliance costs but many are residential landlords not commercial so “who’s right” think you’re conflating two separate markets. Agree massive dilution 2 years back and this is a hated share by many for that reason - but that is also an opportunity to buy at an unreasonable discount
With RGL I think to understand the muted SP, one has to look no further than past missteps (think that's a word!) and what are now strong misperceptions. I remain invested patiently and may add on this weakness.
Ps ESO results today look very decent, hoping for a re-rate there also.
Pps with irrelevance warning... I see that PINE is -10% this morning on news of a delayed roll-out. So I added there as seems overdone.
Me too! Despite people speaking about software being disrupted the reality is most software development is complex and time consuming- the share price punishment is unwarranted- delayed because their customer has grown and the contract has grown too!
Most UK landlords are selling out. RGL is investing in their properties. Time will tell who is right. Management has been particularly unsuccessful in adding shareholder value in the past. I tend to avoid dividend cutting stocks out of principle. Massive dilution in the past with the number of shares outstanding always increasing. Not a sign for me that this stock is run for shareholders. If the stock is so cheap why doesn't management not buy back the shares instead of invest in their properties?
Why? Legislative change as I point out the MEES is a bigger opportunity than buy backs. Landlords exiting due to compliance costs but many are residential landlords not commercial so “who’s right” think you’re conflating two separate markets. Agree massive dilution 2 years back and this is a hated share by many for that reason - but that is also an opportunity to buy at an unreasonable discount
With RGL I think to understand the muted SP, one has to look no further than past missteps (think that's a word!) and what are now strong misperceptions. I remain invested patiently and may add on this weakness.
Ps ESO results today look very decent, hoping for a re-rate there also.
Thanks for another quality and timely article.
After the £50m retail bond debacle / equity raise it was once bitten twice shy etc even with OB's eloquently researched articles.
I don't think you can trust the management to have shareholders best interest front and centre. Some stocks just have a whiff...this is one for me.
Agree about the whiff but it also means they are unreasonably discounted and the supply/demand dynamics look good too
Your analysis is second to none so you should back yourself.
I own paypoint which has it's own whiff for a fair while 😂
Bought in yesterday. Down 6% in a day. Crock of gold or a crock of sh one t? I’ll give it 3 months.
That's an interesting investment horizon. Good luck as you make your investment decisions.
Typically (?) I missed the entire IMC presentation as either they or I experienced severe technical issues!
I rarely get the chance to attend IMC live - too busy!