Frp Advisory Share Discussion Threads

[epicsurf] 18/5/2020 18:42

The owner of High Street restaurant chains Cafe Rouge and Bella Italia has filed intent to appoint administrators at the High Court.

Owner Casual Dining Group, whose brands also include the Las Iguanas chain, employs about 6,000 people.

The company said the move would give it ten days breathing space to consider "all options" for restructuring.

Hopefully someone like frp can restructure and save people's jobs

[johndoe23] 18/5/2020 18:26

With EPS at interims of 4p, surely 5.6p at year end is too conservative??I would have 8p EPS, meaning 16 x forward earnings. Or am i missing something?

[hawaly] 18/5/2020 15:00

Personally I'm not drawn to stocks with a 15% spread such as syme.

Call me uber cautious if you want.

😎
GLA

[sunshine today] 18/5/2020 14:09

It appears that more than one investor got the PE wrong, at least it’s now in the open. It shows that some so called great financial research sites, are rubbish without the human touch. For the reasons posted earlier I now no longer hold shares in FRP.Today the shares stand in the odd couple of pence below the stocks all time high and up from its 72P low. I think the company over time will thrive but with just 16% growth forecast and the government about to probably mess up the long established insolvency laws the case for investment has changed.I do hope those that have invested since I created the thread have done, and continue to do well. They should all be in profit.I hope to do as well with my next investment SYME where the shares have fallen 70% since the IPO 8 weeks ago.
Those have have the time can look then up on Proactive Investors. I like what they are doing, news since the IPO has been good with more due in June.

Finally good luck here,I am moving on,and will no longer post on this board.

[farnesbarnes] 18/5/2020 13:25

from twitter today...

Frankly I’m surprised at low forecasts rolling to FY22👇ㇿ5;I believe est. v conservative BUT assumed (incorrectly) that op profit would be materially higher. Hadn’t factored members get c.£14m PA (Face with open mouth) PER 23 for FY21.

[moormoney] 18/5/2020 12:36

Sp is holding well today as this company is still below the radar.

[jeanesy] 18/5/2020 08:18

MM's playing a blinder this morning. Couldn't sell a bean for first 15 minutes. Now dropping price to allow selling .

[sunshine today] 18/5/2020 06:50

allstar

Profit forecast for this year is £16.2M. Tax on that reduces it to £13M.Market cap today is £294M Forward PE is 22.If insolvency’s double this year then, at least in theory the shares are dirt cheap. If the rate of growth is 16% that the broker currently predicts, then the shares are valued about right. Brokers don’t like to get ahead of themselves and companies like to beat expectations so that growth rate is probably on the low side.The U.K. economy is in a crippled state and I personally see massive numbers of bankruptcies on the way.The government wants to reduce that amount by changing the law. It’s a great idea on paper but in practice it will I think just increase and delay the pain that should be taken immediately. That would at least clear the decks to make a fresh start. The U.K. is already stuffed with zombie businesses.

[nimbo1] 18/5/2020 06:48

A change in the insolvency law is a good thing for FRP imo - shows how bad things are getting. Bad companies will still go bust and need restructuring as whatever policies are put in place you cannot survive as a business without enough sales...

[melody9999] 17/5/2020 23:27

Think the government need to very wary of any long term change to insolvency law. To make it legal for companies to continue to trade without the funds to pay their suppliers / provide goods to customers is a recipe for disaster.

Having said that, would not be surprised to see an extension to the current 3 month window to give otherwise profitable companies the chance to get going again.

[allstar_07] 17/5/2020 23:02

Hi, just started looking in here. Can you explain what you mean in that the pe is now 20? I can't actually see any eps forecasts in the MOS tip nor on stocko. Thanks

[daneswooddynamo] 17/5/2020 22:53

The ftse recovery isn’t totally irrational, if you look to see which companies that have recovered its generally the more defensive plays. Most of the travel, leisure and financial stocks ( eg. Banks ) haven’t recovered at all

[epicsurf] 17/5/2020 22:19

There should be further growth. Begbies publishes regular research into struggling companies and its latest 'Red Flag Alert' – for the three months to March 31 – showed that 509,000 British firms were in significant distress, the highest quarterly figure ever. 

This number is widely expected to rise substantially through the year, and many firms will turn to Begbies for help. Begbies is set to release a trading statement this week and brokers expect a positive update. 

[jeanesy] 17/5/2020 21:28

Thank you for your honest input sunshine . When a share gets tipped in the Mail On Sunday shares generally rise by 10% , sometimes more , and are often marked up first thing as a result. Sounds to me like you will be selling early doors. The government may well change insolvency laws , who knows, but we are heading for the worst recession the world has ever known imo. Countries can't keep printing money for ever , without an impact. I fear for where we are heading, never mind what a second and more serious wave of COVID may do. As for shares here , i think they may well be one of the few shares that does well in the long term. I think the stockmarket is heading for a serious correction long term . We saw what happened in March .. how can things be any better now .. but the FTSE has recovered remarkably and imo totally irrationally. I will watch with interest what happens in the morning.GLA whatever you decide.

[johndoe23] 17/5/2020 20:48

Thanks for that post, food for thought...

[daneswooddynamo] 17/5/2020 20:15

Not many investors here who were in at 72p!

[sunshine today] 17/5/2020 19:54

Today is the first time I have seen forecasts for this year, thanks to the Mail on Sunday.My own expectations have been way higher based on a massive increase in insolvencies i expected in 2020 2021 and 2022.I absolutely believe FRP will outshine others in the sector and most in other sectors. A week or two ago I gently warned those investors who believed the shares were trading on a PE of 10 that they had come to incorrect conclusions because they were working off pre IPO numbers that failed to account for partners pay going forward. Today the shares trade on a PE around 20 with forecast growth of 16%.
That said, it appears the U.K. government is about to change insolvency law in an attempt to avoid covid bankruptcies.I honestly have no idea what effect this might have on FRP, if any. The potential risk is the possibility that FRP gets de rated and suffers a sell off in its stock. Investors here have had a great run from 72P and I think I have a responsibility to flag the above, as I flagged the incorrect PE of 10.Its a bloody shame because I thought this was a forever 3 year plus stock.

[epicsurf] 17/5/2020 18:18

Turnover rose from £17.4 million in the year to April 2011 to £54.3 million in the year to April 2019, while profits soared even faster. Last week, Rowley revealed that turnover would rise more than 16 per cent to £63.2 million for the year to April 30, 2020, comfortably ahead of expectations. 

Profits of just over £14 million are expected, rising to at least £16.2 million in the 12 months to April 2021. A dividend of 0.7p is forecast for the year just ended, rising to 3.9p for the current year. 
Just a small extract from tip today

[epicsurf] 17/5/2020 08:14

Nice spot,and write up hopefully will benfit from a uplift on Monday

[x54v] 17/5/2020 07:37

Nice one. The Midas coverage should certainly attract a few new investors.

“MIDAS SHARE TIPS: Economic woe as a result of coronavirus spells good news for one corner of the economy – insolvency practices”

[sunshine today] 17/5/2020 07:34

MIDAS SHARE TIPS: Insolvency practices boosted by coronavirus

This link should work.

[rimau1] 17/5/2020 07:08

The Midas share tip should raise the profile of FRP with private investors and of course give us a decent bounce on Monday

[pastybap] 16/5/2020 22:58

MIDAS SHARE TIPS: Insolvency practices boosted by coronavirus https://mol.im/a/8326155