Judith Mackenzie (Downing) on FLO on Vox Markets : minute 39:28 |
Now 100p how low can she go ? |
Are you watching ?. Now 100p......
How low can she go....... |
Are you watching ?. Now 100p......
How low can she go....... |
Double oops....now 100.5p all you pundits talking about 180-200 can fill your boots. What price do you bend to the market and bale ?. 100p ? 75p ?.
Or you can buy a few million more, as a plethora over hanging the market looking for (mad) optimists. |
Oops...now done to 101p chance for you bargain hunters to buy another 1m. a bit like the Bank of Eng propping up bonds, your own kind of QE. Others may wish to get out before the sub £ l told you about materialises VERY soon. |
MJ, lots of companies have lost out in share price recently. This one has been remarkably stable I think, lately. When there is news that is when I will re-evaluate. Warren Buffett stated that “in the short run, the market is a voting machine but in the long run, it is a weighing machine,” I will weigh up the evidence when there is some...
FWIW I sold a fair few around 120p and 150p, so am somewhat underweight here. I will add later IF I see deeper value after news. |
Edmundshaw was quite bullish a while ago, l trust he is content with the continuing slow but persistent share price decline. I recommended getting out at a higher price, now down further to 102p so some of you are no doubt congratulating yourselves at dropping stock. I explained there might be a bottom below 100p which is likely soon.
You can't keep a business strategy of increase stock, then reduce stock, then increase stock then reduce it again and expect success. Reminds me of the old hokey cokey !!.
This management being really proactive and on the ball as apigeon puts it, is the same crew who have seen the share price collapse over recent yrs !. Can't resist that scenario is definitely one for the birds, or he is out on a wing and a prayer. |
Let’s see if the e-commerce investment starts to pay off and if it doesn’t, the management is strong enough to make relevant changes to ensure bottom line gains. The performance doesn’t match the optimism and at some point there needs to be something to keep everyone interested. |
If you no longer wish to hold then sell.
It's up to you. |
Who are Downing trying to convince here when milliejade1 stated all you need to know about the fact this share is lower than when it floated. Keep seeing restructure and e-commerce but no proof it’s working. This is the worst performing of my portfolio and I’m getting tired of the fluff and bluster. |
 Downing Strategic Micro Cap I. T. August Investor's letter comment :-
FLOWTECH FLUIDPOWER, as with other distributors, should be an inflation beneficiary. We also think that revenue risk is reduced due to Flowtech’s market position as a master distributor – in effect, a distributor for distributors, with relatively low industry and customer concentration risk. As with
Ramsdens, Flowtech has been a post-Covid recovery play, and this has played through in revenue terms. The business is now investing in its e-commerce platform which will allow it to better target existing customers and open up new revenue opportunities. From a margin perspective, we think that there are gross margin tailwinds, and the effects of the ongoing re-structuring should provide a more scalable operating cost base which can deliver improved drop through on revenue growth. While the net effect of these will be diluted by higher operating costs, we still believe that the effect will be accretive to margins overall.
Cash flow is likely to be weaker this year as the business has had to re-invest in inventories as we emerge from Covid. At the interim period, net debt had increased to almost £20 million, from £15.4 million at the full year. Inventory levels increased by £11 million over the twelve-month period. This has reduced
headroom to just over £5 million which may ordinarily be concerning as we would expect working capital to continue to expand as the business grows. However, we expect the opposite here since the crux of the opportunity is for management to begin improving the cash flow profile of the group by improving
inventory turnover. If trading conditions were to deteriorate materially, management can take rapid action to improve headroom by slowing or stopping re-investment. We saw this through Covid where the business generated an accounting loss but over £10 million of positive operating cash flow. The
banking facilities were recently renegotiated and therefore do not present a current refinance risk for the business.
Management has a job to demonstrate reasonable top line growth combined with improving margins and payback from e-commerce investment. Working capital efficiencies should be well within their grasp to execute once trading conditions normalise. We remain confident and view the equity as significantly mispriced.
[...] |
Sounds good. Trouble is this optimism has been a constant since AIM launch in 2014 and has never been delivered. Price in 2014 end of 1st day 116 now 105 and crashing, says it all. Still, as you say, you can buy millions more at less than 8 yrs ago. Good luck. See who is right !!. |
Nope. No intention of getting out.
The company is in the middle of reorganising the focus which promises to improve margins and shareholder returns, and then return to acquisitive growth in due course. But then my investment horizon is years rather than weeks.
Current market conditions may not favour the share price in the short term, but in my view that just creates the opportunity to add cheap shares.... this is not a company saddled with debt that might sink it in a downturn, and it has leadership in a resilient business whose products are not optional. |
Double oops....105p You are all very quiet. Hope you took my advice and got out. |
Oops....107.5p well, you were warned.
Heading sub 100p and soon. You can't go after your customer's customer's and expect that to be well received. |
I note that advfn failed to record the payment in July of a 2p dividend based on the FY results to Dec 2021. The yield on that basis is about 1.8% at current share price
"Moving forward we will maintain a balanced approach to dividend distribution," they say,which usually implies an intention to maintain or gently increase distributions as circumstances permit. |
Reasonable update. They have a bit to do ib H2 to accelerate the growth rate to meet mkt consensus turnover, but the cash situation could be a bit better than forecast. |
Milliejade1 is right. I told you back on 30th March to get out at 115p which I calculated.
People going on (still) about 180-200p are living on a planet with a different colour sky.
Reflect on the fact the price is still BELOW 2014 float price. WOW. |
See my post of 30th March calculated 115p why you guys keep mentioning 180-200p in another universe perhaps.
Still BELOW 2014 float price, WOW. |
I had assumed it would automatically fall today being xd 2p overnight. Instead it is tending higher in a weak market background. Interesting. |
Wow, going after the end user market and cutting out the distributor seems a bold vision especially when distributors has been a cornerstone to their previous success. Maybe Milliejade1 was right all along. Could this change be affecting the current price? |
shaker44 Judith McKenzie agrees with you - this is what she said in her report on March:
"We continue to believe that the company should fare well in this high inflationary environment as over 50% of the business is in essential MRO (maintenance, repair, and overhaul) spend thus Flowtech should have strong pricing power. The e-commerce rollout has been delayed, but we expect to begin seeing data from this at the half-year results and overall, this should allow the business to take market share at a faster rate as they begin selling directly to their customers rather than through local distributors".
and click on Factsheet March |
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