Best Of The Best Share Discussion Threads

[peart] 23/11/2022 11:20

I agree re div/capital return of circa 50p, unless the cash is needed for GIL expansion - probably special dividends this year, judging on history.... There have been comments for years suggesting it being taken private, but I feel the directors like having a public company - with the benefits that that brings. I also believe they have honour, decency and code, and will want Slater Investments to realise a return that they themselves are no doubt striding for. Then again GIL may offer to buy the whole thing out, but I doubt the Board would agree unless it was a substantial premium. Also, the board do not have 50% plus of the shares now, so I don't believe they have control anymore, so who knows. Just an opinion, obviously....

[feverfan] 23/11/2022 08:16

Disclosure: I’m long.

Agreed. If you strip out the covid bump, and look at how it was valued previously, this looks cheap (FCF yield 13%). There’s barely any volume traded - all the PIs have been burned and are too scared to come back. But they’re trading in line for half year and forecast FCF £5m, with net cash at £9m. Given the mcap is only £39m that’s pretty chunky! And all before the GIL deal which would appear, details pending, to be very helpful and must be earnings positive for next FY….there̵7;s additional uk revenue from the marketing agreement albeit it will potentially be lower margin than current agreements, but more importantly there is the licensing revenue from international agreements. The setup is quite clever as BOTB appear to be taking the more low risk option for intl expansion. I’m happy to let the dividends keep rolling in! Given they usually pay a dividend similar to EPS I’m expecting some form of capital return c50p which is a chunky yield. Medium term I still think this is going to be taken private with mgt and GIL buying out some of the IIs that bought in and can’t hold privately but want to get rid of it and move on…I can’t see what the benefits of being public are anymore and they’re only £39m MCAP and with no volume traded already.

[bridggar] 23/11/2022 08:06

Hope so. Worst performing share in my portfolio.

[peart] 23/11/2022 07:57

Solid update today in my opinion. The forthcoming agreements with Globe Invest should be very interesting and hopefully very positive for the company. We'll see, in time.

[purplepelmets] 11/9/2022 03:45

Certainly a correlation between the toxic obnoxiousness of a bb and a share price collapse. BOTB and LIT, both utterly arrogant cesspits of bulletin boards pre-shellacking, sneering at casual observers. Serves you snobs bloody well right.

[feverfan] 09/9/2022 12:30

The recent buyback at £6 was a way of returning cash to shareholders - the valuation there was irrelevant as it was over market value intentionally to give back cash.

Your point about £4 though I agree - it would appear they timed their covid sale at the top.

[n0rbie] 09/9/2022 11:10

Amazing that Teddy Sagi got to buy from the directors at £4 a share, whilst loads of others bought from the directors in their secondary at £24 a share just over a year ago.

What mugs we look like now.

Also the recent buyback at £6. The directors have no idea how to value their company?

[se81] 09/9/2022 10:27

Re Slater I was actually wondering if he’s been involved in the transaction in a positive manner- thinking to his previous and current involvements with SCH & KAPE?
For me, can’t see past the might of Sagi trying to reignite the growth prospects here. If Sagi wanted to buy outright then it’s not as if he couldn’t afford it….

[feverfan] 09/9/2022 08:31

I’m split. Directors selling most of their holdings in part looks like a capitulation. The 29.9% holding is noticeably just below 30%, I presume this means buybacks and further tenders are out of the question unless they get dispensation from takeover panel? I guess that’s not a big issue as the shares are already ridiculously illiquid so further reductions in share count is perhaps not very helpful.

Directors stepping away…and with no genuine need to be listed anymore, I can’t see how Teddy doesn’t end up taking this private in the future. If you add c7% that Stancroft trust own to the 30%…you’re not getting far away from a majority. Slater presumably will be the challenge. CEO William has previously said that listing was all about credibility for the brand so people didn’t think it was a scam, but BOTB has literally zero need to be listed anymore from what I can see…it’s just compliance cost now.

On the upside…not one person has commentated on the potential upside growth from international. And as far as I can see they’re doing this in quite a conservative way with the licensing arrangement where non-UK risk sits with GIL but BOTB gain in some of the upside (at little / no cost?). UK the business also benefits from increased revenues from GIL’s advertising might, but presumably at a lower margin.

Thoughts?

[se81] 09/9/2022 07:51

Surprised at the non reaction here- serial entrepreneur worth billions with a string of stock mkt successes (SCH, KAPE, PTEC) taking an interest in BOTB....

[terminator101] 09/9/2022 07:40

Yes mate, and have you researched Teddy Sagi?

[bridggar] 09/9/2022 06:31

Did you actually read the previous rns???

[terminator101] 09/9/2022 06:10

Oh dear. Directors bailing out huh.

Not looking good here with the cost of living crisis impacting on consumer discretionary spending.

[peart] 17/6/2022 13:49

A P/E of under 9 on current year, is cheap in my book, with nearly 20% growth forecasted, in a cash generating business with no debt. There is definitely a solid floor under this stock, and the mega blip that was Covid is behind us now... I'm sure a lot of us on this panel wish we'd sold in the early 30's, but hindsight is a wonderful thing. Who knows, in a few years we may get there again.....

[glavey] 16/6/2022 20:11

Can't see a reason for the bounce here, save misunderstanding by a few.

[bridggar] 16/6/2022 10:50

I'm sure they would have closed last night.

[milliecusto] 16/6/2022 10:41

How's your short

[peart] 16/6/2022 09:50

Nice set of results.

[alfonsomg] 16/6/2022 08:36

@n0rbie directors are cashing out while keeping the same % of ownership in the company. The company is reducing the number of outstanding shares, so directors are selling shares to the company in the same % as shares are reduced. It sounds like a repurchase of stocks but instead of going to the open market to buy they go to the shareholders to buy from them. I guess if they go to the open market to buy 1 million shares, it can end up being costlier than via a tender offer.

Repurchase of stocks, in general, is normally good for the shareholder. In this case, for the directors, is a clever movement (for them) because they keep the same entitlement to the company profits while they put cash in their pocket.

I hope that if decided a tender offer for 600 it is because in their projections the business is worth more.

[qvg] 16/6/2022 07:27

but you can only sell 10% of what you buy? and price seems to be more like £5.20?

[babbler] 16/6/2022 07:19

so you buy today at £5 and sell them back at £6 in the Tender Offer?

[n0rbie] 16/6/2022 07:06

Directors sold shares to people like me at £24, and are offering to buy them back via the company at £6…

Why are they also selling some of their own shares at £6 in the tender offer though??

[bridggar] 16/6/2022 06:34

Of course you are - Lol

[alfonsomg] 15/6/2022 08:53

Once I read that in times of crisis, when people have no money for big ticket items, they spend more on lotteries. People like to have hopes and dreams. And we seem to have a recession ahead. If you look at google trends for searches of the term "botb" (yes, people tend to enter sites typing in google instead of typing the full address in the address bar), after the peak the stock it had during covid, it seems it bottomed in March, and since then, slightly up, but it might be a coincidence.

Numbers in last published report weren´t that bad, according to the stock price at the time. They said they have to spend more on marketing for acquisition. The question is if they can keep acquisition costs reasonable.

Tomorrow release is important. So we´ll see.