Triad Share Discussion Threads

[netcurtains] 27/11/2020 13:46

Most recent director buys (such as they are):

20-Feb-20 Buy John C Rigg 38.50p GBX 75,000 4,609,400
03-Feb-20 Buy John C Rigg 36.00p GBX 25,000 4,534,400
03-Feb-20 Buy Charlotte Rigg 35.00p GBX 100,000 100,000

[sunshine today] 27/11/2020 12:11

The Group continues to operate an efficient low-cost and cash generative model. For the six months ended 30 September 2020, the Group has not utilised any external debt or lending facilities (2019: nil) with no exposure to bad debts in the period.


NO EXPOSURE TO BAD DEBTS.


If ever you can purchase a share and be able to sleep at night it must be this stock.

Bags of cash is a fantastic cushion.

[sunshine today] 27/11/2020 12:05

No reason at all why a special dividend could not be paid to shareholders next year.

The cash could also be used in other ways to move growth sharply upwards.

[amt] 27/11/2020 10:49

Very encouragingly they still broke even and cash went up. All that in the worst business climate since ww2. Imagine next year when all the projects that have been on hold are instigated.
It seems to be one of those companies that doesn't make a lot of fuss over its share price so its under the radar.
I had a similar case with Tandem. Shareholders got fed up but since it was a bike seller the market eventually cottoned on during the Pandemic and the share price has been shooting up ever since.

[netcurtains] 27/11/2020 10:28

sunshine Today: £1.9 is a SIX BAGGER from 37p 38p so its quite good, even if underestimated.

There are different types of NAV value and the good thing about Triad's NAV is that a lot of it is cash. This means, if they think the market is stable enough, they can reintroduce a good dividend quite easily...

Another good thing about the working from home model is they pay £215,000 rent. Perhaps they can get rid of that soon?

[sunshine today] 27/11/2020 10:19

I think you both under estimate the potential here.

Look at the rate of new hires

Look at the words re higher margins than in the past.

Look at the improved utilisation rates.

More importantly, the whole show less the cash comes in at under £2M.

That’s plain daft

[sunshine today] 27/11/2020 10:13

Understood.

For those that want to ten bag, buy and hold stocks like these.

Just sit back, and wait.

Shares like this, can often rise today’s share price (37P) , in a single day.

[netcurtains] 27/11/2020 10:11

Belfry17: exactly!
And once they reinstate the dividend 80p might seem cheap (if they make £2m).
Assume they make profit of £0.5m to £1m then I think trading range should be 48p to 78p (going by past share graph)
Thus its reasonable to assume we should hit that range soon...

If we make profit of £1.5m to £2m I think trading range should be 89p to £1.90p

[belfry17] 27/11/2020 10:05

Sunshine: the netnet being referred to is a huge discount as it excludes fixed assets and only uses current assets less total liabilities compared to the market cap. It is cheap still based on other methods, I think.

[netcurtains] 27/11/2020 09:54

sunshine Today: I think CJohn is saying he agrees with you that its a great NAV and PROFIT play but its not a NETNET play.

[sunshine today] 27/11/2020 09:52

I can’t agree it’s not deep value right now.

Your in effect paying £2M for what is likely to be £2M profit next year.

That £2M is the extra your paying after deducting the cash.

Plus you get a massive safety margin built in

[belfry17] 27/11/2020 09:49

Yes, this rise came quicker than expected so it is pleasing and there is a good rise to come, I think. It is another example of how, as you say, lots of bargains were created recently.

[cjohn] 27/11/2020 09:45

Delighted with these results and with the excellent update. I thought it would take a while longer to turn trading around.

Only in moments of serious market distress, do you get asset-light companies like these trading at a discount to net tangible asset value. A real bargain. Still a way to go, in my view, though no longer a deep value buy.

[amt] 27/11/2020 09:31

I doubt a pe of 20 is likely for a while.
However once and if it becomes clear this is a strong growth company then yes market caps of £40m plus are in reach. Its only 2 times turnover.
I put this into my 10 bagger possibilty portfolio.

[sunshine today] 27/11/2020 09:30

I can’t see the stock not being double today’s opening price by Jan 21.

[nobilis] 27/11/2020 09:30

Bought these bad boys

[sunshine today] 27/11/2020 09:26

Must be a good case for £2M next year on a pe of 20 is £40M market cap.

£6M market cap today.

[amt] 27/11/2020 09:19

Yes working from home could be a big driver here.
They seem to have now come up with a very good business model helped by their excellent software.
Clearly a very nimble operator and one that looks like it will come out of the Pandemic in very good shape and very efficient.

[imastu pidgitaswell] 27/11/2020 09:19

Well done netcurtains, pleased for you. I remember discussing this earlier in the year, but it is just too illiquid for me - but well done!

[sunshine today] 27/11/2020 09:13

In prior years , working on a much poorer business model, the company made £1.5M in profit.

Now they have large cost savings working from home, staff on the books, and a vastly improved business plan.

[sunshine today] 27/11/2020 09:09

@40P your paying just Two million, for a company that could in my opinion make that next year in profit. ( £4M cash ) Today’s market cap £6M.

Could be on a forward PE OF ONE.

[sunshine today] 27/11/2020 09:06

This share will double from today’s opening over the next few weeks.

It’s grossly undervalued, cash makes up most of the companies value.

[ntv] 27/11/2020 09:02

Good call nc
I have only just arrived though

[amt] 27/11/2020 08:50

The market likes the numbers.

[amt] 27/11/2020 08:49

Managed to buy a few more.
The large increase in headcount indicates a strong outlook and with increasing margins this bodes very well.
Haven't they done incredibly well during covid, no furlowing is incredible and just wait until business gets back to normal.