Ramsdens Share Discussion Threads

[lammylover] 13/12/2023 14:08

Not that simple, yump.

The market makers always keep the spread wide, so its not easy to trade. What is ludicrous is that year high was 265p, so at 200p its 25% lower.
And yet with every trading update, the results improve.
The madness of markets and too many weak hands.

[yump] 13/12/2023 14:02

Must have been a great trading stock for some - it seems very volatile but no idea why. You wouldn’t have needed to be clever - just sell on 20%+ gains and buy back on 20%+ falls

[lammylover] 13/12/2023 13:41

I think its because Shore Capital wrote a report on H&T yesterday, to the effect that the increase in Living Wage in April 24 will affect their margins (as a labour intense business) and risk of dividend cut.

Ludicrous over- reaction in my view, but PIs are scared and run in herds!
Take the opportunity to buy more, early Xmas present from Mr Market.

[doobz] 13/12/2023 13:32

Are we missing something here? Making little sense

[yump] 12/12/2023 14:02

I suppose a special dividend would help if they’re swimming in cash.

[hpcg] 12/12/2023 09:35

On a recent trip to Thailand I used the multi-currency card. It is excellent, the app is good. I have no fears on future business for travel fx.

[lammylover] 11/12/2023 20:16

Yeah crazy valuation here and the market makers love to drop the bid and open the spread, as soon as there are a few sells.
A buying opportunity for the wise!

Share price will probably need a tip (Simon Thompson of Investors Chronicle) or more detail about their full year performance to end of Sept (due mid January in the annual report)to lift price significantly.

I'm keen to know the cash position, which was described as more than £10m in the trading update for year end.

[yump] 11/12/2023 19:00

The valuation here is bonkers: a p/e below 10 on expected annual earnings figures, which will have risen by at least 20%. So the PEG would be 0.5 !

In the old days there would have been a flock of growth company investors pursuing it.

Perhaps they need to change to a techie name and do a Kings new clothes thing.

[eeza] 08/11/2023 11:22

Not to mention the under-valuation of the UK stock market which acts as a sweetshop for the US.

[hazl] 07/11/2023 10:41

Sad reflection on the times.

[tp6] 06/11/2023 18:43

If you want to borrow less than £500, and Iimited financial standing, pawnbroking is now the main route..

[se81] 20/10/2023 15:14

Interesting divergence here with the recent performance of HAT and the move in gold price since the start if October

Looks bang on the bottom of that upward trend channel but liquidity so poor here that the actions of a few insti shareholders appears to completely dictate the price!

[yump] 12/10/2023 10:35

Pawnbroking doesn't take the place of payday lenders. That hole left in the market is not necessarily a benefit to people who needed it.

[tp6] 11/10/2023 17:03

Star bargain of a share if you have a little patience.The paybday lenders have been put out of business due to unscrupulous practices. A facility to borrow small / medium sums on fair and transparent terms is needed and pawnbroking offers that.

[lammylover] 10/10/2023 12:26

Also lets remember RFX sell watches, foreign exchange and also buy / sell gold and other precious metals. Its not just a pawnbroker!
Over £10 million profit on company that you could buy for £64 million. Plain daft!
Bargain of year, hiding in plain sight!!

[edmate] 10/10/2023 11:37

yump. I often think the same, but any share you invest in comes with varying degrees of moral and ethical liability. Atleast RFX aren't a diamond miner or oil company. Could be far worse...

[hpcg] 10/10/2023 11:14

yump - pawnbrokers serve a useful social purpose - secured short term loans to the cash poor. The alternative is loan sharks or payday lenders.

[yump] 10/10/2023 09:04

Just saw that. Feel a bit uneasy about my investment being a hedge against economic pain suffered by others. I guess there are worse hedging activities.

[solarno lopez] 10/10/2023 08:01

Over the last year there has been a 25% increase in the number of new loans from pawnbrokers, according to figures from the Financial Conduct Authority.


Thank you to the BBC for the above who mentioned pawn broking loans are up 25%

Must be good for Ramsdens !

[tole] 09/10/2023 07:23

https://citywire.com/funds-insider/news/expert-view-imperial-direct-line-capital-unite-and-ramsdens/Liberum: Ramsden's track record not being priced inPawnbroker Ramsdens (RFX) has delivered record lending in August, bolstering revenues, but this is not being reflected in the valuation, says Liberum.Analyst James Allen retained his 'buy' recommendation and target price of 290p on the stock, which rose 5% after a full-year trading statement on Thursday to close the week at 201.5p. After falling from a 262p peak in June, the shares are up just 0.8% this year.The update showed trading in line with precious metals 'the standout in the mix'. Allen left his forecasts unchanged for now but noted 'year-end adjustments are still being finalised' and profit before tax is expected to be more than £10m versus our current estimate of £10m.'A very strong second half in precious metals, driven by higher volumes and the gold price, helped to offset weakness at forex,' he said.Allen noted the loan book for pawnbroking increased from £8.6m in full-year 2022 to £10.3m in full-year 2023, and is now at record levels.Investments made in store and in its online proposition also 'continue to pay dividends with revenues up 20% year-on-year' but Allen said 'the track record of delivery is still not being reflected in the valuation'.

[lammylover] 07/10/2023 08:03

Just a summary of this week's Year End (to end Sept) trading update:

+ FX revenue up 8% v last year.

+Jewellery revenue up 20% v last year.

+ Pawnbroking loan book up 20% v last year. This part of business up to record revenue of £10.3m

+Precious metal buying up 50% v last year.

+ Opened 8 new stores and acquired a pawnbroker in Bexleyheath.

+ Profit before tax to be more than £10.0m (last year was £8.4m, so 19% increase in profits)

Now here's the weird thing - the business is worth just £64.0m (31.7m shares at £2.02/price per share)

That's with no debt and in the summer they declared £5.5m net cash holding.

Having made more than £10.0m profit in the year to end Sept 23, surely this is hugely undervalued??

p/e around 6x

Paid out 9.6p total dividend per share in last year (so that a return of 4.75% at share price 202p)

A screaming BUY, surely!!

[hazl] 07/10/2023 07:58

Or they know the general market is going to get worse.

Good post though.

[lammylover] 07/10/2023 07:32

Thanks tole for useful information.

Clearly there is an anomaly here with the share price v value of business based on excellent results.

So what's it going to take to get price up to a realistic level? My thoughts:

a) Broker upgrade and / tipsters like Simon Thompson at Investors Chronicle or Midas etc in the main stream media (Mail, Times, Telegraph) telling readers that share price is an anomaly and massively undervalued. Rate a "screaming buy"!!

b) Institutional investors buying more.

Now here's the weird part - I've been back through the Holding RNSs and the last 6 are declarations that funds have reduced slightly.

Otus Capital have reduced 12.31% to 10.94%; Downing Trust have reduced 10.37% to 9.99%; Close Asset Management 11.17% to 10.99%; Dartington 6.05% to 3.56%.

Now it may just be Funds taking some profit; trimming positions slightly etc in a gloomy market for shares when people can get 5% on deposit accounts..

However by selling some blocks, its more shares in free circulation; i.e. more potentially that can be traded and not in "sticky hands". So just a few more PIs selling each day (as they need cash for day to day living expenses etc, can drive price down hard)

Conclusion - We clearly we could do with another fund buying to show support for the business at the current level and reduce the free float of shares.