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Real-Time news about Broadcastle (London Stock Exchange): 0 recent articles
|diogenesj: Nice results - thought they must be due about now! I expect it's the threat of a capital raising that has affected the share price. Still a good hold, I'd say, although not terribly cheap after the good rise over the last two or three months.|
|ben franklin: Rivaldo
There's been a steady stream of BCS selling over the last couple of years from several sources and it may still be holding back the share price. A private company, Marsh Finance Limited, had a meaty shareholding in Broadcastle. They sold down below 3% a while ago but they may still be sellers.
At one point in the last year some of the Exeter split capital funds seemed to be distress sellers and the price dropped back to around 46p, before climbing slowly. A former chairman also owned over 3% a couple of years ago and I noticed in the latest annual report that his holding had disappeared from the 3% plus holders. He might still be selling.
For a real breakout BCS probably needs some serious institutional buying (it's already been tipped to retail buyers in Shares as well more recently the IC). There was at least one new institutional name in the 3%+ holders in the latest annual report, but a couple more wouldn't go amiss. Something the board should be pushing the company's brokers to get sorted.
|ben franklin: Good results but as ever with Broadcastle a little demand soon generated sellers - a couple of blocks of 25,000 took the bid price back from 53p to 51p in a very short time.
The solution to this is for management and the company's broker Williams de Broe to generate new institutional interest in Broadcastle. This won't be easy in today's markets but on a prospective PE of 8, a yield over 6% and realistic prospects of continuing growth, it shouldn't be impossible either.
As part of this they have to place the shares owned by the larger sellers - Marsh Finance and the Exeter funds. Otherwise the flow of stock onto the market will simply continue and hold back the share price, just like it's done today.
At some point Broadcastle will want to raise funds from shareholders - management says as much in the results. Institutional shareholders last put their hands in their pockets at 46p - they'll want to see rather more share price progress than low 50p's before they do so again.
|ben franklin: It's good to see yet another director buying after the already substantial recent purchases. The board must be very confident indeed of the full year result with 11 months sales figures now available.
However there still seem to be plenty of shares available, either from Marsh Finance or various Exeter funds. Until these are cleared it will be almost impossible for the share price to make serious progress and as a result the company will remain undervalued.
Management needs to pay some attention to attracting new institutional and private shareholders, and possibly to buying in some of its own shares. There is currently too little demand for and too much supply of Broadcastle shares.|
Broadcastle share price data is direct from the London Stock Exchange