Shearwater Share Discussion Threads

[northwards] 29/5/2020 13:56

I'd be more concerned with the drop if it was accompanied by high volumes.

[2lb] 29/5/2020 13:50

Anything is possible Husbod, but the volumes of SWG are genrally very low, absolute fractions of the shares in circualtion, even after dilution, so I don't see the evidence to support any king of material single seller.

Downside form here likely limited to 10%, upside dependanet purely on perfomance where the track record isnt great but at leaves means material room for improvement.....

[tole] 29/5/2020 13:44

Also worth remembering that two directors took 52000 shares each in the placing.

[jh59] 29/5/2020 12:43

Likewise ChannelP, Husbod, we’ve seen these rapid descents before, especially after a placing. Worrying I suppose if you’re trying to make a quick 10%, but not if you’re an investor!

[husbod] 29/5/2020 11:54

Have to say that somewhat unusually the share price does not in this very particular case, reflect the market value of this stock.As cp has already said the placing was at a 20% discount to the then share price and I would have thought that the large investors who bought in the placing would have done some due diligence before forking out their dosh.I may be fooling myself of course but I reckon this fall is a function of a single large seller rather than a general negative view of the company.. so hopefully 2LB you're wrong.

[channel pirate] 29/5/2020 05:51

Agree jh59. Been "sitting on the fence", not bought (since 232p) or sold, watching and waiting to see what happens before adding any more

[jh59] 28/5/2020 22:33

Last buy went through at 16:41 at £2.15.
You’ve got to have a screw loose to sell down here! Especially with the audited yearly accounts due within a fortnight.

[channel pirate] 28/5/2020 21:34

I would imagine the company has a few disappointed £2-40p fund raising participants, so also having to provide those that took part with an explanation or two !!

The placing (240p) was @ 20% discount to the then share price (295p), and here we are today at a further 15% drop to the placing price at 205p.

I am no chartist, but looking at a 1 year graph, I would not be surprised if we end up somewhere back down between 180p : 200p

[nw99] 28/5/2020 20:12

Low volume would imagine 200 will be a good entry point

[spooky] 28/5/2020 18:20

Sorry but you don't use EBITDA to calculate PER.

[northwards] 28/5/2020 17:04

£3.2m ebitda, cash c £3m. Market cap c £47m.

[spooky] 28/5/2020 16:59

nortwards, how do you manage to arrive at a PER of 14 based on last years numbers, ex cash?

[jammytass] 28/5/2020 16:51

£2.00 on cards

[northwards] 28/5/2020 16:36

Now on a PER of 14 based on last years numbers, ex cash. That feels cheap to me in what is a growth sector and company.Trying to figure the share price weakness on relatively small volumes - I just wonder if they are now eyeing a larger acquisition that will require more dilution and word has got out.

[tole] 28/5/2020 16:33

Quite surprised by the fall back here. However that's the first gap fill complete on the retrace. Wonder if it will go for the lower one now at c185. Will pick up a few more if it does.

[tole] 28/5/2020 16:30

Added here

[northwards] 28/5/2020 08:28

Audited results for year ending March 20 to be published in June.

[imjustdandy] 27/5/2020 10:12

Should move towards 3 quid in next week. Vastly oversold

[imjustdandy] 27/5/2020 05:15

Whatever the reason for the pull back to 2.16 it was vastly overdone. 3 pounds is fair value but closer to 4 pounds for a sector that's about to explode

[nightswatch] 26/5/2020 17:18

A couple of thoughts on share price activity. Given that a PE company has inherited a big shareholding from Laurence Jones is it not feasible that this might not be something they want to continue to hold and are winding down the holding. I guess it’s kind of free cash for them at a time when PE companies are short of cash. Just a thought.
On acquisitions the RNS effectively said they had £700k at the end of March which is effectively working capital. That’s the £3m less the £2.3m owed. SWG then raised £3.75m in the placing plus a facility of £4m. So roughly £8m give or take. On acquisitions why would a profitable company want to sell. For me two key reasons firstly the owners want to cash out or secondly they need investment. SWG will have to use shares for a big portion of any sizeable acquisition which I would think is challenging given the current yo-yoing in the share price but more importantly do they have enough cash to provide the investment capital required to build out any acquisition and existing businesses.
It is a challenging market with a number of cash rich players in the market as well as SWG. It is going to be interesting to see who is bought and for how much. I

[rockstar10] 26/5/2020 16:59

Jammy
Given the number of times nw99(aka top up Tony) has said he has topped up his holding I can see where you are coming from. That said there are so many people trying to ramp the price on here who knows.

[northwards] 26/5/2020 16:21

Feels like that overhang is super close to being cleared.

[imjustdandy] 26/5/2020 15:49

Yes by pounds - 4 quid is fair value

[nw99] 26/5/2020 15:47

Does look oversold