I took a starter position in this company (too early) after their last profits warning, and today might just be the day when I decide to either make it a serious position or to sell it entirely.
Continue reading “7:59 cut – G4M, BME”
In my last update I wrote that if they could return to 2017 operating margins / ROCE and continue to grow at even a third of their recent rate then the shares would begin to look good value.
Today’s statement is good progress towards this situation – gross margin have improved to 2018 levels, overall growth is 16% (exactly a third of 2019 levels) and the costs of the European distribution centre are being rapidly diluted with 33% revenue growth there.
I continue to hold, but perhaps a small bounce would be justified this morning.
It isn’t only the ticker of this company that is colourful – they have recently suffered multiple manufacturing issues, cancellation of a distribution contract and legal action (edit: more accurately: a contractual dispute). This has precipitated management change and a March rescue fund raising.
Continue reading “7:59 cut – FA., MER, G4M”