Ramsdens Share Discussion Threads

[tudes100] 12/5/2023 03:08

Liquidity across the board in small caps has been terrible YTD & almost dried up for companies that have been thinly traded like RFX. Not sure it ever says too much about prospects. HY results on June 7th

[doobz] 11/5/2023 08:41

Really strange the volume is basically non existent here now, any thoughts?

[tp6] 19/4/2023 09:58

Looking good. I do think 280p is on the low side, time will tell.

[doobz] 18/4/2023 16:12

decent momentum to make new highs here now, added yday

[tp6] 13/4/2023 16:37

Head office growing. Recruiting for area manager to help with store growth in south east.https://www.google.com/amp/s/www.gazettelive.co.uk/news/teesside-news/ramsdens-track-expand-middlesbrough-headquarters-26627614.amp

[yump] 11/4/2023 15:31

I don’t think growth company investors do the calculation you’re doing. If this was any sort of bull market, I think ratings would rise regardless of interest rates and bond yields, because investors would be looking more for potential growth. I don’t think sme growth investors shift their money into bonds as an alternative growth strategy.

[hpcg] 11/4/2023 10:43

yump - I don't think so. Equities are interest rate sensitive. The higher rates the lower a multiple the market will apply. A 25 time earnings multiple is a 4% earnings yield. Anyhoo, the market will go where ever, but personally I would not pay 20 times on a small cap in these conditions.

Looks like here, as elsewhere, there was plenty of tax selling in the lead up to the end of the year and now the bid is somewhat stronger.

[yump] 11/4/2023 09:43

hpcg
I think we might be talking about different things.

[rimau1] 11/4/2023 09:30

Nice bounce on no news? I also hold HAT, but find RFX marginally better value, both have advantages and significant growth drivers and i can justify holding both in this environment.

[hpcg] 06/4/2023 14:49

yump - 20x isn't unusual for a growth share in a ZIRP environment but when short and medium term risk free bonds are at 25x, at least in the first year, one needs to see strong and sustainable growth or a step back in interest rates.

[asagi] 06/4/2023 13:52

ST has just updated his buy rec in the IC. Target price £2.80

very surprised that we haven't seen a better response from the share price if that's the case rimau1 (not that I disbelieve you).

Asagi (long RFX)

[masher69] 06/4/2023 11:50

Company developing multi currency card which if it takes off help to offset any decline in cash.

[yump] 06/4/2023 09:54

Hpcg

15-20x isn’t unusual for a growth stock.
The income is secondary here - I don’t know what that has to do with it, other than its nice to have a bit while you’re waiting for the capital growth.

Agree risk is gradual cash decrease, so maybe 70% of pre-covid might not give much upside, if covid period “convertedR21; a lot of people to cards and the 70% is not a result of less travel.

[gswredland] 05/4/2023 15:18

Thanks rimau

[rimau1] 05/4/2023 14:40

ST has just updated his buy rec in the IC. Target price £2.80

[hpcg] 05/4/2023 00:00

20x would be rich when one can almost as well off Gilts; circa 3.5% for YTM for a 2028 10yr for example. The risk to FX is the decline in cash use rather than a decline in travel.

[yump] 04/4/2023 19:11

Woops I missed off the tax, but in any case, its not unusual in normal markets, for a reliable business to end up with a p/e of 15-20.

Times won’t get much better for quite a while, so I imagine everything apart from FX will continue to do well.

Whether there will be a tail-off of FX is tricky to know, but staycations have become a silly price thanks to the second home airbnb lot. So as long as there isn’t any gross travel disruption surely FX will be resilient. Its only at 70% of pre-pandemic levels, so plenty to go for.

[rimau1] 04/4/2023 13:24

Strip out £7m of net cash and this is on 9x

[tudes100] 04/4/2023 11:49

Revised Liberum forecast 9.6m PBT & 23p EPS.

[gswredland] 04/4/2023 10:07

Great statement. Glad I loaded up a month ago
Really think so Yump?!

[yump] 04/4/2023 09:54

9.5mln pretax gives about 30p earnings.

Ridiculously undervalued, given its growth.

In a better market p/e 15 - share price nearer 500p

[tp6] 27/3/2023 12:41

Maybe more room for growth at Ramsdens. H and T have more physical stores, but Ramsdens have a better on line presence.