SCVR Podcast 12 Nov 2022 is here, and on podcast channels.

Here is the transcript, for Stockopedia subscribers only.

My usual weekly summary of the SCVRs.

Just my personal opinions, not advice, please DYOR (do your own research).

Monday 7 Nov

Joules (LON:JOUL) - another business update. Financially distressed special situation. Another profit warning. Running out of headroom on bank facility end of this month, looking for bridging financing. Looking increasingly precarious. I hope they reach a solvent solution. A multimillionaire car dealer has bought a stake in it, so I imagine he might want a solvent solution, or is it just to get a seat at the table for a pre-pack administration?? We don’t know. Too uncertain. I’m nervous about the outcome here. Will look at it afresh if/when it refinances.

Loungers (LON:LGRS) - bar/cafe chain. Mgt highly regarded. Diversifying into roadside cafes, like Little Chef, called “Brightside”. 3 sites to open in the S.West in early 2023. Significant diversification. Quite an interesting development.

Appreciate (LON:APP) - Graham reported on takeover bid by Paypoint. Decent 70% premium. Mix of cash/shares. Paypoint is a good value business, mature, so looking to diversify. Good deal for APP shareholders.

DWF (LON:DWF) - Graham covered an acquisition.

National World - announced a big investment in The News Movement

Frasers - massive share buyback to be launched. [Correction: I got the figure wrong here, sorry about that. The actual figure is 10m shares, costing no more than £70m. Nowhere near my mistaken £3bn figure. Profuse apologies, I should have checked before saying a ridiculously wrong figure).

Tuesday 8 Nov

Housebuilders -most interesting sector, I think valuations have overshot on the downside, and are below NTAV. i don’t think a major housing market crash is likely, because long-term interest rates have already started falling, and there’s a long-term structural lack of housing. Plus sector balance sheets are now so strong, with net cash, as opposed to net debt in previous recessions. Stock & WIP are in at cost. I looked at Persimmon (LON:PSN) - yes it’s a mid-cap, not small cap, but we’ll look at anything that helps us understand what is going on in the economy, especially important right now. PSN looks interesting but I’m concerned at the scale of increase in its cladding remediation provision (£75m to c.£350m, could it be even…

Unlock the rest of this article with a 14 day trial

or Unlock with your email

Already have an account?
Login here