Appreciate Share Discussion Threads

[taylor20] 27/10/2022 08:45

Taken an initial stake, been 14 years since I looked at this company, thought the retail business was an anachronism even then so surprised to see it still have 120-200m of money held in trust.

Rising interest rates should provide a healthy tail wind to profits, based on this 'risk' in the final report:

Interest rate risk
Due to the significant levels of cash and cash equivalents held by the Group and in trust, the Group has an exposure to interest rates. In respect of all other financial assets and liabilities, the Group does not have any interest rate exposure.
A 0.5% movement in the interest rate applied to cash and cash equivalents, monies held in trust and other current financial assets would change the profit before tax (PBT) by approximately £846,000 (2021: 0.5% movement would change the PBT by approximately £884,000).

[petrencf] 25/10/2022 13:25

Thx for sharing the article, it sounds promising.

[velocytongo] 24/10/2022 18:12

hxxps://bdaily.co.uk/articles/2022/10/12/profit-and-loyalty-boosting-engagement-platform-launched-by-appreciate-the-home-of-love2shop

interesting times at app

[topvest] 04/10/2022 19:38

Yes, he knows him from Easy Hotels I believe.

[velocytongo] 03/10/2022 17:23

The good news is that we are aligned with LSE hardman, Chris Mills! He does not suffer idiotic management/fools and he must rate the new Chair.

[topvest] 03/10/2022 08:17

I've added a few more after North Atlantic Smaller Companies took a 10% holding. Christopher Mills getting involved on a bigger scale is normally a positive sign and you can buy at virtually the same price as he purchased from Unicorn. P/E of 6, dividend yield of 8%+, massive cash pile earning interest and a chart breaking upwards are all good signs.

Positive news on the UK this morning that Truss is going to be forced into being more moderate as well.

[topvest] 29/9/2022 19:29

Yes, forecasting 6.25% in UK versus 4.75% in US. I think this is probably an overshoot for the UK. I suspect that would crash the economy big style - not a great growth plan after all then!
The Fed seems to be bringing things home in style by comparison.
I think the Western world is so indebted that anything much above 5% brings big trouble. A sorry state of affairs.

[petrencf] 29/9/2022 17:02

Wow, a fund bought/sold 14,3 million shares.

[velocytongo] 26/9/2022 10:57

Implied base rate of 6% by March next year. That's more than going to double earnings!

[boonkoh] 20/9/2022 10:23

My view is that I'm sanguine about the upcoming critical quarter. I expect corporate bookings to motor ahead. There's still a labour crunch, especially low wage and temp, for the high season coming up. Vouchers from Appreciate as used as incentives and to boost pay (without raising the basic wage).So I can definitely see good corporate billings in the months ahead, and therefore APP meeting market expectations. If they do, we're looking at an amazing 8% dividend yield share, cash rich, and barely 5-6x PE.For me it's only a matter of time before APP is trading at 35p+, and I'm not selling till it hits 40p+.

[topvest] 20/9/2022 08:06

Not a bad update in the circumstances. As we all painfully know, the previous CEO added enormous cost and reduced profitability of this business. Quite encouraging that they are focusing on profitability by product etc, and further simplification. To an outside the branding and complexity makes no sense as it is, so more work to do. They just need one simplified brand really, don't they? The new Executive Chairman seems much more on it to me, which bodes well.

[cfro] 20/9/2022 07:25

Inline with expectations then ...but...the all important Xmas season still to come (and will be even more important this year than ever).

Looking at ways to save costs but surely the last CEO was looking at that or was he...???

Still awaiting a new CEO and CFO. A decent growth strategy is badly needed otherwise we continue to go round and round in circles.

[powerp2] 07/9/2022 10:47

Just looked at share price over entire period of last CEO and Chairwoman and they destroyed about 70% of stakeholder value. So I'm grateful we still have a business at all! I suspect recent cup is market sentiment given current macro outlook and not much confidence in new govt as 10 year gilt rates say

[velocytongo] 07/9/2022 08:53

Not sure there is anything suspicious because most of their customer base could get wiped out unless there is serious govt intervention, which looks to be on its way.

[topvest] 06/9/2022 20:25

Its the same with a lot of small caps at the moment. It will be interesting to see if Harwood snap up a few more!

[boonkoh] 06/9/2022 18:40

Something is up, 20% collapse in share price in less than 3 weeks. Low volume. Wonder if its a big shareholder offloading but we've had no RNS.

[velocytongo] 25/8/2022 11:34

APP should finally get its day in the sun!

[velocytongo] 25/8/2022 09:09

Interesting. UK's problems are supply (gas, food etc) and demand (labour). The latter a result of brexit (some 200k left hospitality), people leaving the labour force and the low skills of school leavers and grads. We have 1.3m people available for work and more than 1.3m vacancies. The US has demand issues as it is more energy independent and Europe has supply. As usual, we have the worst of both worlds.

If even when gas goes away, food and energy challenges are now here to stay due water shortages that affects crop yields, inland transportation and power (reduced hydro (norway has a problem and there are power shortages in china) and any inland nuclear reactor that relies on fresh water for cooling (think france).

And the UK's labour issues will not get sorted anytime soon unless we allow lots of immigrants to come and do jobs that we are either unprepared to do or can't do!

My point is that inflation is here for some time, this gives power to workers (maybe this was the levelling up that the tories are thinking about) and will impact profitability for years to come. Getting invested in the right companies and instruments will be critical to capital preservation. The days of the rising tide are over, I fear.

[topvest] 24/8/2022 20:36

Yes, 10 year gilt rates up from 2.3 to 2.7% in the last week and back to a high (up 2% in the last year) - markets are moving fast. It wouldn't surprise me if central banks have to at least double from where we are now.

Significant hikes in interest rates are still needed, given the existing rates are massively negative in real terms, but its a blunt tool given it's supply problems that are the biggest issue. Unfortunately, we are heading for a hard landing and big recession. Anyway, APP should benefit from the much needed interest income.

We seem to be in a bit of a scary situation of seeing what breaks the economy first...gas prices or interest rate hikes! I'm not optimistic short-term. US has it much better than Europe as its Putin that is really causing the pain.

[velocytongo] 24/8/2022 16:33

Lots of talk of UK rates at 4% this time next year. Good news for cos sitting on plenty of client cash (where there is no interest rate liability!). Good for APP but curiously good for Foxtons, too, who sit on lots of tenant cash.

[topvest] 19/8/2022 13:42

Chart looking very positive here.

[r9505571] 19/8/2022 11:17

Upcoming dividend of UK£0.012 per shareEligible shareholders must have bought the stock before 25 August 2022.Payment date: 03 October 2022.Payout ratio is on the higher end at 76% but the company is not cash flow positive.Trailing yield: 7.4%.Within top quartile of British dividend payers (5.2%).Higher than average of industry peers (5.6%).

[velocytongo] 17/8/2022 15:55

I think UK interest rates will have to go higher. USD 12 month LIBOR is 3.9% and GBP 12 month LIBOR 2.7%. That makes no sense given the relative weakness of the UK economy. The UK has serious demand side (a shortage of labor) issues. In the hospitality sector alone 200k have left the UK since 2019. In farming it's pretty desperate, too.

[andre] 17/8/2022 14:58

Good to see this treating since March in what is a challenging market environment. A fair bit of buying today following weeks or steady rises too. They are in a resilient business in downturns. Coming out of Covid measures is also clearly helping.