Sobart Group Shares

A_Flock_Of_Sheep

Stobart Group Shares 75p each down from year high of £1.31 approx per share.

Dividend Yield 9p per share

Opinions on investing would be most welcome

redbuzzard

About 9% yield, rather than 9p, if the divi is maintained at 6p. Some speculation that it will be cut.

The City doesn't seem impressed that it's a business of two halves, with the traditional and unexciting logistics side, and debt funded diversifications.

There's speculation it will be taken private, but that would imply a higher share price so presumably the jury is still out on that one.

Based on my skim reading of this:

http://www.iii.co.uk/articles/84645/edmond-jacksons-stockwatch-stobart-group

mystic_trev

I used to hold Stobart,but sold out about six months ago for a small loss. There's something not quite right about this Company, and there have been some dubious matters concerning Directors, this being the latest.

http://www.ft.com/cms/s/0/0710af70-a2bf-11e2-bd45-00144feabdc0.html#axzz2R8UZcgnY

Avoid. IMHO

Hominu

mystic_trev wrote: »

http://www.ft.com/cms/s/0/0710af70-a2bf-11e2-bd45-00144feabdc0.html#axzz2R8UZcgnY

Got a link to a site which doesn't ask you to login?

grizzly1911

Hominu wrote: »

Got a link to a site which doesn't ask you to login?

http://www.guardian.co.uk/business/2013/apr/11/stobart-lorry-chief-contempt-trial

grizzly1911

Corporate bond offer last year that had an attractive headline rate for some but not others.

http://www.iii.co.uk/landing/eddie-stobart-bond-offer

http://www.investorschronicle.co.uk/2012/11/28/bonds-and-forex/news-and-analysis/stobart-bond-flops-SV49Gsfs4jTefa7bGG0D3L/article.html

It has had an "interesting" history over the years.

IronWolf

High debt, negative free cash flow, rights issue last year to avoid insolvency

Bad business that's badly managed. Avoid.

lvader

You can still make money on badly run companies as long as you buy at the right time. You can also lose money with great companies like Apple.

thegrind

I heard there were questions needed answering that the company was buying "questionable" personal assets from directors which subsequently were written down on the companies balance sheet. No wonder no one wanted in on their bond issue. That is not the sort of company id like to invest my money in.

IronWolf

lvader wrote: »

You can still make money on badly run companies as long as you buy at the right time. You can also lose money with great companies like Apple.

You can make money playing roullette too, but the longer you play the more you stand to lose. Same thing with bad companies, the odds are stacked against you

sabretoothtigger

^^ sound logic would be to always back the better company especially in an inflationary environment. Even at a bad price a good company is worth having.
It is totally true you can make money on bad companies but its not advisable

Even if apple never brings out another product, they'd still be worth their price now ? Just residual sales and gigantic amounts of cash, not that Ive added it up but pretty sure thats the case