Redde Northgate Share Discussion Threads

[deanowls] 28/7/2023 13:04

Buying a share Swiss is like making love to a beautiful woman, first you meet, your intoxicated, it fills you with hope and expectation, the early exciting days, and then reality it kicks you in the balls, takes your wallet and leaves you until you stumble upon the next beauty!

[schofi2] 28/7/2023 12:35

Another totally underated share. No wonder they are buying back, it makes more sense.

[zho] 28/7/2023 08:21

RNS - £30m share buyback following "record revenue and profits and strong levels of cash generation in the year to 30 April 2023".

[strollingmolby] 25/7/2023 18:19

From the recent Investor Meet webinar I made a note that REDD has various debt maturities (6, 8, 10 year) at 1.3%, starting in 2027. 62% of the debt is on a fixed rate.

I got the sense that the Board is well aware of interest rate risks and loan maturity cliffs so have a very good handle on this.

They mentioned they have £290m of headroom currently as well.

[riverman77] 25/7/2023 18:06

Yes debt is all asset backed, and I believe fixed at quite an attractive level for several years on average (can't remember the exact details, but when I looked I had no concerns about the debt situation).

[deanowls] 25/7/2023 13:43

Debt is asset backed. They could reduce it if needed I guess but previously it wouldn’t have been expensive debt.

[vikb] 25/7/2023 13:30

Given the debt they are carrying, why do they have such a large dividend yield?

[skinny] 19/7/2023 10:48

Barclays cuts Redde Northgate price target to 500 (556) pence - 'overweight'

[skinny] 11/7/2023 11:19

Panmure starts Redde Northgate with 'buy' - price target 500 pence

[brucie5] 10/7/2023 21:15

But seems to have held today!

[brucie5] 10/7/2023 14:29

Thanks Zho. It does seem to be testing the support level, with prospect, if that fails, of further decline to 3.00. Market currently seems to demand extreme value in value case shares - otherwise seeking refuge in bonds.

[zho] 08/7/2023 16:01

Paul Scott liked the results – thinks the shares looks v v cheap and the balance sheet rock solid, but suggests that the low rating may reflect a market view that current profits are not sustainable, perhaps because profits on disposals could turn into losses as second hand values moderate.

from 28:50

[volsung] 06/7/2023 09:07

Bought a few

[deadly] 05/7/2023 17:44

topped up at 340 today.

[schofi2] 05/7/2023 13:35

Another underated growth stock. Deserves to be up to £5 at least.

[rogthepodge] 05/7/2023 13:18

Every now and then short traders have a pop at this company. Always comes back to bite them though. 7% yield is a no brainer in such a quality outfit.

[rmillaree] 05/7/2023 12:45

I suspect here there may be algo's at work here ref shareprice - surely most of the negatives are already known about. If its flagged as possibly being bad news and sell orders are generated - its supply and demand though at present for whatever reason looks like there is simply more sellers in the market tha buyers - or the sellers are dictating the shareprice direction. If we take JohnDoe as an example if debt and other items are enough to put them off buying perhaps thats a symptom of what others feel too - stay away from indebted companies however reasonable the reason for the debt being there.

[skinny] 05/7/2023 12:05

@343.50p, the yield is 6.98%

[zho] 05/7/2023 11:54

That IC article end with:

Higher borrowings, and potential fears about a decline in the residual value of its fleet as shortages ease, may explain why the market was unimpressed – the shares fell by 6 per cent in early trading and are priced at under seven times forecast earnings.

Its borrowing costs are low, though, at just 3.1 per cent – almost 40 per cent of its debt is long-term notes that don’t mature for another four years. Cash generation also remains strong at just over £190mn and the company continues to win new business. Given the 6 per cent dividend yield on offer and the fact that the jobs market remains robust, we upgrade to buy.

[sfreeston] 05/7/2023 11:48

Apologies in advance for my lack of understanding but a holder of shares, why the big drop today??

[zho] 05/7/2023 11:31

Van shortage could last for two more years, Redde Northgate boss warns




Redde Northgate has record revenue and profit as soaring van hire demand outstrips supply




Van hire demand and strong Spanish economy drives record Redde Northgate results




Redde Northgate still moving forwards

[johndoe23] 05/7/2023 10:06

I'm not knocking the business, just adding possible bear views. Not a holder but have been close to pulling trigger previously!

[deanowls] 05/7/2023 09:57

True John but they have additional business to finance and an additional 4000? Cars plus taken over a business and bought back 7% of the company?

If anything rising rates will squeeze out smaller suppliers and the scale in which they operate with vehicles continuously in/out of the fleet they should be able to react accordingly with the scale they have.

Anyhows I remain a holder and will continue to add when dividends are available as I think this is mid priced.