Best Of The Best Share Discussion Threads

[this tea tastes of chicken] 14/2/2021 14:37

Question for Peart, quoting from post 981

"In the next breath at current prices £60 million plus might be a bit steep for management to find"

What do you mean please and what is the "£60m plus" for?
TIA
TTTOC

[this tea tastes of chicken] 14/2/2021 14:28

Could it be the case that whilst an outright sale isnt on the cards (if it was then a fleet of foot investor would have made their offer no later than December 2020) that an investor could take a minority stake and take part in the international growth side?

[peart] 13/2/2021 13:27

In many ways I hope the company does earn £1.50+ for the year and the FSP is dropped, fwd earnings are scheduled for £3.00+ and the share price does nothing.
Quite simply, I'd buy more as the stock would be on sale!
I suspect if that were to happen the stock would be at £60ish, but we'll see.
Patience is required regardless.

[peart] 13/2/2021 13:13

We all seem to be noticing the increasing advertising. The management team are a very shrewd and careful lot, so if their detailed planning of these increases bears fruit the 2nd half could be an absolute blowout. I'm guesstimating £0.90 for the 2nd half, maybe even that will get blown away (Based upon actual been 50% higher than my estimate last year - 40p became 60p for the 1st half. At the time my estimate for the 2nd half was 60p, so 50% up equates to 90p). Simply the earnings growth is clearly accelerating, backed with increased advertising, so I really feel, as I keep saying that the risks are to the upside. 1st half really proved that. We must all remember that this is still a real minnow stock market wise and huge growth can sometimes come to small companies who happen to hit the sweet spot with all of the stars aligning, as it were. Perhaps BOTB will be one of those. Fascinating and hopefully profitable times ahead.
Following Paulypilot's comment re the managers, I've spoken to Rupert Garton I think twice and possibly William Hindmarsh once many years ago, although I'm not sure if I asked for him and he was busy, so Mr. Garton took the call. In any event my memories of talking to certainly Rupert Garton was that he was utterly charming and forthcoming with obviously only what he was allowed to say. I felt he was a good manager and I believe we are in good, ethical and capable hands. I believe they want a stock market listing as it offers the business flexibility with what they can do moving forward. Fundamentally Paulypilot and I are in agreement from our own experiences. I'd be surprised if others had different experiences. Some people are not utterly ruthless and remember when they raised monies from investors in the early days and have some morals where they will keep us on board until the end. Mind you they do have control and all holders, if they've done their research, will be aware of that, so anything could happen. In the next breath at current prices £60 million plus might be a bit steep for management to find. They could borrow it or issue bonds perhaps, loading the company with debt, but I'm not sure they can force people to sell. I'd imagine the vast bulk of their wealth is tied up in BOTB stock. Also, I might be wrong but I think that perhaps businesses with a listing can often receive a better buy out price if sold to those that are private seeking a sale. I know that is a nonsense really, but that is my understanding. I would not sell my stock if they delisted - they cannot pay themselves a dividend without paying all shareholders! All in I feel the company is best served as it is and I think another option might be for management to offload some of their stake to realise some capital and increase liquidity - mind you I'm not banking on that in the short term as things are going too well!!

[mysteronz] 13/2/2021 12:13

Just advertised on BT Sport 1 before the Liverpool/Leicester game - moving up in the world, and my third largest holding.

Business booming, shortage of stock around - perfect combination.

Great contributions recently.

PaulScott great to see you posting, hope you are well

[paulypilot] 13/2/2021 00:01

Think long term.

[paulypilot] 12/2/2021 23:59

William, Rupert & team, decent people. Every year I meet them. Hello Paul - this is what we're doing with the business. We think it can expand. We're careful, leave it with us.

[qvg] 12/2/2021 20:54

sorry Paul, mine are not for sale

[3ootuk] 12/2/2021 20:32

I hope they maintain their integrity then. All my shares are in a sipp, so a cheap delisting would be the worst option for me personally.
You always have to query the outside chance though, so it's good that other investors can vouch for the management, unlike some listed companies.

[paulypilot] 12/2/2021 19:30

I've held this share for years, since it was just over 100p.
I meet management once or twice per year, in the results roadshows.

In my experience, you couldn't wish to find a more decent, and ethical management.
The track record speaks for itself. Superb stewardship of the company, wonderful growth, carefully planned & executed strategy. Also their remuneration is reasonable, and shareholders are rewarded with special divis.

I cannot sing their praises highly enough.

The trick here is that they really cracked digital marketing, and the 20-year history of the company, and everyone knowing it from airports, means it has become a valuable and trusted internet business.

Look at the profit growth now - it's going exponential! I sold some of my shares in the teens, and have been trying to buy them back now in the twenties, after those insanely good interim figures! Trouble is, you can't buy any, nobody wants to sell.

[investographer] 12/2/2021 19:03

The Board have been always under promised & over delivered.I recently had a very decent exchange of emails with one of the Directors. I trust their integrity.I personally believe that they will never stitch up loyal shareholders, most of whom have been in since IPO.A life changing share for many.

[3ootuk] 12/2/2021 18:23

I wonder if we could get stitched up in one particular scenario? Delisting.

We all pretty much agree that there's no point in the company having a stockmarket listing. It doesn't need to raise money, the main holders account for 70-75% of the shares so liquidity is low, and certain communications (like a lack of update on the FSP and the odd email to certain people do seem to point to a certain disdain for shareholders). I may be mistaken in that, but feel we are an annoyance.

We know the main shareholders have just over 70% of the shares. Delisting requires 75% shareholder agreement, so they only need a few % extra to force that through. We could then be delisted at a slight premium, with a SPAC acquiring the free float

The directors could have an agreement for the orderly passing of shares over to the SPAC for inheritance planning, or other such agreement to ensure a certain control of the company. As a private company they could then make their own rules about who owns and runs the company.

Thoughts?

[investographer] 12/2/2021 17:09

Someone bought 2,250 shares just before 3pm in 3 lots of 750 at the full asking price of 2500pThat explains the big rise today.Has something been leaked?Im really hoping that the FSP falls through, as i will have great difficulty finding another company like this.

[investographer] 12/2/2021 16:28

Remember that William Hindmarch is the largest shareholder here with half the stock, 4 million odd shares.He is getting millions in dividends & special dividends, even in this early stage of its growth.For him to give up this amazing yield/ income, he would only accept a figure way ahead of the current share price.My only surprise is that there are still interested parties with the current share price where it is.

[shanklin] 12/2/2021 16:15

The other side of this is that we are completely at the whim of the large holders, who could choose to accept a bid that PIs, holding a small minority of stock, think is far too low.

Obviously no sign of that currently

[investographer] 12/2/2021 16:04

Which will add to even more illiquidity.The bulk of shares here are in sticky hands & have never been traded.This really is the dream share for early shareholders.The ironic thing is, the story has just begun!

[serratia] 12/2/2021 15:57

In previous years they've also bought back shares with the free cash flow.

[jlstocks] 12/2/2021 15:31

I just bought another 160...

[ryanc106] 12/2/2021 15:24

Fair point well made Shanklin

[shanklin] 12/2/2021 15:17

No but WDIK.

JIM did a 1 to 4 split fairly recently. The FD told me it cost less than £7k, but I don't think it has aided liquidity at all.

In both cases, a large section of the share register is held by insiders, or those very unlikely to be selling their shares.... ...it doesn't matter what split you do, they are still off the market.

[ryanc106] 12/2/2021 14:49

Does anyone think they should do a say 1 to 5 share split to help with liquidity?
I think this lower perceived share price would make the share far more attractive to the majority of Investors.

[shanklin] 12/2/2021 14:47

Nice one Ryan

[ryanc106] 12/2/2021 14:29

Averaging about 7 quid Shanklin.

Haha that would be bloody tremendous if that did happen Investographer. You are right though, there is absolutely no reason why we not.

Most people aren't even aware of this hidden little gem :)

[investographer] 12/2/2021 14:14

With 40p so far in first 6 months, I expect 60p for next 6 months. That is 100p per share special dividend this month, not forgetting the normal dividend on top of this. Why would it not be possible for a 300p per share special dividend in a couple of years if this carries on growing?

[shanklin] 12/2/2021 14:00

LOL Ryan,

I now have a similar number of shares, but suspect you paid a lot less for yours