Begbies Traynor Share Discussion Threads

[sunshine today] 28/4/2020 09:35

UK company insolvency statistics for 2019
The 2019 company insolvency stats for England and Wales have been published by The Insolvency Service, alongside UK insolvency statistics for October to December 2019 (Q4).

2019 Company Insolvency Statistics
Company insolvency statistics for England and Wales 2019

In 2019, total underlying company insolvencies increased to their highest annual level since 2013.
This was driven largely by an increase in underlying creditors’ voluntary liquidations, which reached their highest annual level since 2009.
Administrations increased in 2019 compared to 2018, while compulsory liquidations decreased, and company voluntary arrangements were flat.
The company insolvency statistics for 2019 showed that there were 17,196 underlying company insolvencies in 2019, a 6.8 per cent increase on 2018 and the highest level of underlying insolvencies since 2013.

[sunshine today] 28/4/2020 07:35

The gazette puts the number of personal insolvencies so far today 7.28AM

169

[tjbird] 27/4/2020 19:42

Covid rules allow businesses to trade while insolvent

negates need for BEG

[x54v] 27/4/2020 14:08

Strong break above the 100p level today.

Really powerful recent momentum.

[sunshine today] 27/4/2020 13:01

Well 7 year high

[shauney2] 27/4/2020 12:39

It touched 190p in 2008.

[sunshine today] 27/4/2020 12:22

Well done new high here.

[farnesbarnes] 27/4/2020 11:40

IC Alpha momentum write up today, top of the pile!

[sunshine today] 27/4/2020 08:23

Might hir a new high today

[sunshine today] 24/4/2020 08:16

Moving up strongly this morning as investors see the sector a safe long term investment.
The newspapers are reporting grim economic news on a daily basis.

[x54v] 23/4/2020 15:01

Yes, positive write up in Shares Mag.

"SHARES SAYS: Begbies is a rare beneficiary of the financial angst caused by coronavirus and is therefore a good portfolio hedge. Keep buying."

[aleman] 23/4/2020 14:42

Nothing new in there but Shares Mag has a tip update on BEG at 91p that says "Keep Buying".

[rossi67] 21/4/2020 20:56

Insolvency Practices and Pawn Brokers values typically increase HUGELY in recession. Pawn Broker stocks, in particular, do well as their success, in part , is linked to the price of gold. The 2 largest quoted companies in their respective fields are Begbies & Traynor (BEG) and Harvey & Thomson (HAT)

Both of these companies have very impressive balance sheets (see Stockopedia & Simply Wall Street) and are geared up for massive growth over the next 1-3 years)

We're in for a long and bumpy ride so any other counter recessionary investment ideas would be appreciated.

[sunshine today] 20/4/2020 15:30

Beg will do extremely well but when you are up against a pure insolvency practitioner, in a savage downturn, investors don’t want to take on the 35% of BEG”S work that is cyclical. That’s why I think the first wave of new money is going into FRM. A second slight headwind here might, and I say might, because I don’t know, those that bought into the placing last year may not all be long term holders.
Over the next few months both companies will be re rated while at the same time just about all other stocks will see falls in incomes, profits and dividends. IF FRM gets a wall of money in to it and becomes expensive, buyer’s will be back here in quick order.
A final point is FRP partners are locked in for the next 3 years that gives comfort to shareholders. They own stock in amounts way, way above the average U.K. listed company .

[rimau1] 20/4/2020 15:16

Eeza - Beg has already rerated from the early 70’s, FRP has only just started and is very much below the radar. It got its oversubscribed flotation away mid covid so that says a lot. I think it could easily double from 120 but i think Beg is fairly priced around 90-100, i hold both.

[eeza] 20/4/2020 13:24

FRP the one today - so far.

[aleman] 20/4/2020 13:12

It keeps getting tipped but is not going to make more progress until it can hold onto 90p. This is the 4th attempt now. It will come.

Averages look to be moving in the right direction again for another leg up, though not immediately.

[eeza] 19/4/2020 19:16

Remoaners doing their best to keep us in, tho.

[topvest] 19/4/2020 18:46

Hi Aleman. Looks like the recession is finally here. The yield curve inversion was correct again, albeit the pandemic is the main causal factor. This looks like a very nasty recession on the way to me. Certainly could be a whole lot worse than the Global Financial Crisis, which in itself was less painful than some recessions in the 70s, 80s and 90s, notwithstanding the risk of financial implosion of the banking system.
How many people are going to be caught without trunks with the tide going out? I feel it’s going to get very messy as the average person (and company for that matter) is way too leveraged. It’s certainly feeling less painful with no debt and with 35% of the portfolio in cash, but I fear my excessive caution is rare. Many appear to have a big mortgage and/or a buy to let property portfolio and expensive cars on finance. How are they going to finance such, when they lose a job, the property market plunges 25% and their tenants lose their job or overseas students go home?
The other worry is the central bank printing of money which is the only way to keep countries solvent.
The UK publicly marking the end of austerity and having a Spring Budget giveaway was as big a red flag as any? Top of the market stuff. Luckily, we did push the Brexit escape button in time as the UK is better prepared than the EU and will not have to bail out the Southern European countries which have gone into this in a terrible state and will be bankrupted by it. Bailing out Spain, Italy, Portugal and Greece is going to finish the European dream.

[aleman] 19/4/2020 11:43

Lockdowns being partially lifted all over. Texas reopening all retail immediately subject to staff protections and customers collect at door, after ordering online, on phone, at door. (Schools not reopening until August but they normally close in May anyway.)



Business is trying to return to a semblance of normality but with collapsed demand and ongoing restrictions. Now, we start to work our way through the recession.

[lefrene] 19/4/2020 11:28

I take the view that the State wants rid of private landlords and wants rental property in the hands of pension providers and insurance companies. The screws have been gradually tightened over the past 7 years or so. I have a business friend who has some 35 rental properties now with substantial equity only about 40% mortgage debt, but recently he handed them over to a professional management company at a 9% fee, simply because it had become too time consuming and possible penalties too onerous. He said that if he had had less than 20 properties he would have sold them, as it would not have been viable in terms of time and risk and management fees.

I feel there are going to be a lot of changes 'for our own good', the pandemic provides an ideal cover for the economic crash yet again created by the reserve Banks in the USA and elsewhere.

At least from an insolvency firms point of view the assets of a landlord business are straightforward to identify, and auction off. I suspect BEG will have a department that specialises in the sector, seems like they could be busy for sometime.

[sunshine today] 19/4/2020 11:09

Rental market chaos as tenants struggle to pay and 80,000 landlords fear bankruptcy
Concerns that properties may not be in a habitable state after lockdown
By
Adam Williams
18 April 2020 • 5:00am
Premium
landlords and tenants
Critics say there are major gaps in state support schemes
The coronavirus crisis has plunged the rental market into turmoil as tenants struggle to pay bills and landlords fear financial ruin.

Property owners are struggling with unexpected costs and are concerned that when the outbreak is over they may be left with rental homes that cannot legally be let.

According to one estimate, as many as 80,000 landlords may be forced to quit the sector.

One in five private tenants face losing their job, and Shelter, the housing charity, has warned that gaps in the social security system could mean renters are in financial trouble long after the pandemic ends.