Braemar Share Discussion Threads

[deadly] 09/3/2021 19:02

Seems the market would prefer trading to be below market expectations.

[mayojames] 09/3/2021 18:49

Agree and seems market less upbeat about loss of Chairman and new strategy with 264 going to to current level and no divi to balance - let's see next few months

[kiwihope] 09/3/2021 15:57

pipeline1,

I think the safest thing is to say it's mixed...!

[pipeline1] 09/3/2021 13:56

Weird tone to the trading update. I can't work out if it's positive or negative.

Needing to "strengthen the balance sheet" sounds ominous but then they state some figures suggesting they're close to their targeted leverage anyway.

They say trading ahead of expectations but then say the exchange rate is going against them and revenue in sterling terms will drop?

Confusing at best

[this_is_me] 09/3/2021 09:02

The growth plans look promising and by focussing on areas they already are involved in will be less risky. These plans will, however still require investment cash either for organic growth or bolt on acquisitions or both. There is also a serious risk that interest rates will be much higher in a couple of years from now.

[kiwihope] 09/3/2021 08:50

I never mind when a company aims for lower debt. Leveraging is a once only benefit - at some point you need to stabilise income and expenditure so why not do it at low debt rather than high debt. I think interest rates are on the way up later this year so it might not be such a bad thing to do it now...

I also don't mind delaying dividends. In some ways I would rather the company invest surplus earnings in the core business rather than handing them to shareholders, provided it generates sufficient growth.

[edmundshaw] 09/3/2021 08:38

Wanting to improve the balance sheet: "EBITDA sustainably below 1.5 times on average over the seasonal working capital cycle. Net debt to EBITDA is expected to be [...] on average approximately 2.2 times during the 2020 / 2021 financial year."

"The Board's renewed focus on growth opportunities means that it will continue to review the Group's ability to recommend a dividend as part of its determination of the optimum use of available profits/free cash flow. It will not be recommending a dividend until the balance sheet has been strengthened sufficiently to support the growth ambitions."

Add these together and we get another year without dividends, and of course if they make further expenditure to support growth, and/or acquisitions, that could be extended. Given BMS's weak performance up to 2019 something has to be done, so a growth strategy is to be welcomed. Not sure why they want to deleverage though to this extent...

[this_is_me] 09/3/2021 08:12

"...underlying trading performance for the year ended 28 February 2021 will be above market expectations."

[this_is_me] 05/3/2021 21:26

That is the problem with round figures, particularly at historic resistance or support levels - people sell for no other reason keeping the share price from rising until they are cleared.

[haywards26] 05/3/2021 13:36

I sold out today for a less than 3 months 65% gain at my target 250.

There might be more legs on the rise, you can never time the top or bottom exactly.

Will be watching the price action, good luck to holders

[this_is_me] 05/3/2021 12:21

Still going up like a lift.

[haywards26] 03/3/2021 09:51

I did not expect my target of £2.50 to be met as quickly as appears will be the case.

[this_is_me] 03/3/2021 09:33

Yes, the share price has now reached a level not seen since 2018.

[haywards26] 02/3/2021 17:17

Up we go again :)

[this_is_me] 24/2/2021 16:44

Another big jump today.

[this_is_me] 19/2/2021 20:04

They didn't have a capital market event last year so they are likely to have things to boast about this year.

[edmundshaw] 19/2/2021 10:36

@Tomps2: Generally I look at these posts trying to ramp a particular investor-oriented website and filter pdq... but this guy has actually got a reaqsonable understanding of the company, and there were some good questions challenging his views. So to my surprise I actually quite liked that link! Cheers...

[tomps2] 19/2/2021 09:44

Braemar Shipping Service (BMS) on the Stockopedia / Piworld February 2021 StockSlam. John Sladden’s thoughts from 23:27.

Video -

Podcast -

[haywards26] 18/2/2021 12:42

Further strong moves today, it feels like something is brewing here, either news of strong results to be issued next month or something else.

But feels like my 250 may be reached sooner than I expected...

[pireric] 16/2/2021 20:07

More interesting is what they might say on the Capital Markets Day. Perhaps some more medium-term ambitions could be set out.

On freight rates, would caveat that BMS isn't particularly exposed to container shipping (was a question asked about this on their last conference call). The LNG tanker rates should have been a net positive but oil tankers will have been pretty slow activity-wise I suspect. However, given the good first half there is some potential for them to beat on 2020 earnings

Eric

[this_is_me] 16/2/2021 19:48

Yes, doubled since last May. Trading update 9/3/21. Considering the spike in freight rates from China I am expecting good results despite the virus.

[haywards26] 15/2/2021 14:58

A lovely share price movement and great looking chart :)

[haywards26] 05/2/2021 11:37

I am waiting for divi increases and £2.50 region before considering a sale of shares. I am happy to hold long term. Having said that a profit is a profit :)

[hybrasil] 05/2/2021 11:30

Decided to end my involvement here for the moment.

A profit for a change!

[mayojames] 03/2/2021 19:33

Maybe share price dropped as cannot understand why sell half the holding to get some cash from a company that may add real value linger term