Luceco Share Discussion Threads

[castleford tiger] 24/3/2023 11:37

cyber
I think thats a good idea as debt is still 3x last years profit ( and will be getting more expensive).........

174 market cap its at best fairly priced until we see the profits starting to grow

tiger

[cyberbub] 24/3/2023 10:32

The company said they're focusing on paying down debt in the short term. Quite a lot paid down last year.

[castleford tiger] 24/3/2023 09:48

market cap still looks high including debt for the profit being shown.

tiger

[jltaylor1001] 24/3/2023 07:28

Bargain territory , dividend % improving by the day ! Has shown great resilience in the past and recently over 400p. Well run company

[cyberbub] 23/3/2023 16:27

Whoever claimed that there was a gap at 107, let's see if they were right and get support now?

[cyberbub] 23/3/2023 14:06

Still dropping down the toilet unfortunately.

[pugugly] 23/3/2023 09:37

john09 - Can you say which tip sheet?

[john09] 22/3/2023 08:52

Yep seen it now. Not good but not as bad as some RCH and MMAG.

[john09] 22/3/2023 08:51

Missed that one

[bigbigdave] 22/3/2023 08:37

MPAC their latest casualty today

[john09] 22/3/2023 08:05

The 3rd share this month where ive been encouraged to buy ahead of results by a certain tip sheet. All 3 have tanked. Not impressed

[juanpel] 21/3/2023 19:53

Just by incresaing revenue 5% in 2023 (if destocking ends, this is quite feasible), achieving the target 15% operating margin, and with an AVG PER of 15, the price for 2023 should be around 230 (in my opinion)

[masurenguy] 21/3/2023 16:06

Many retail investors are just dividend promiscuous and often don't consider longer term fundamentals.

[cyberbub] 21/3/2023 15:30

Masurenguy the divi in 2021 year was an exceptional one, it was never going to be replicated and I don't think Mr Market expected it as such.

[masurenguy] 21/3/2023 15:19

I suspect much of the selling today has been prompted by the 43% cut in the dividend from 8.1p to 4.6p. Otherwise, the results were as flagged in the January y/e trading update. Cash flow improved by 63% from £18.8m to £30.7m while net debt fell by 22% from £30.6m to £23.8m.

[ymaheru] 21/3/2023 13:41

Cutting divs is in line with their payout ratio and earlier guidance, so is as expected. 3.8% isn’t a bad dividend, though.

I was disappointed with reported EPS, but haven’t looked properly at results. Hopefully, 2023 will see good growth from these results.

Free cash flow was great…and really that is important (though I’m sure they’ll have reduced inventories).

So, price behaviour seems reasonable today, but I’m more likely to buy than sell.

[volsung] 21/3/2023 12:16

I will look to buy at 100p
Cutting divi in this climate is not conducive to buying

[simmsc] 21/3/2023 12:13

There is no hiding from the fact that there is a keen seller here.

[simmsc] 21/3/2023 10:00

Just waiting for this seller to finish before i buy some more. Feeling car sick looking at the screen for so long (5hr cab journey!)

[cyberbub] 21/3/2023 09:55

Brokers are often cautious, they prefer to be caught out underpromising than overpromising, especially for decent-sized, respectable companies.

[simmsc] 21/3/2023 09:50

They did end the sentence with "see scope for more as end markets stabilise"

[cyberbub] 21/3/2023 09:45

155p seems a bit cautious IMO, on a 12 month scale anyway.

[masurenguy] 21/3/2023 08:34

Cheers simmsc.

[simmsc] 21/3/2023 08:31

Liberum target 155p (from 130p). Highlights de-stocking coming to an end (essentially meaning revenues will start to increase) and gross margins already at 38%+ at the end of 2022.