Market's view on Big Yellow
Published on April 2024
- A stock was discussed regarding its qualification for IHT as it used to be on AIM but is now on the main market.
- There is a commentary on a recent purchase made through PrimaryBid for inclusion in a SIPP/ISA, bought at a price deemed reasonable by the stock watcher.
- It was noted that an offering on PrimaryBid was oversubscribed, receiving less than 25% allocation for non-existing shareholders.
- A £1.6 million additional fund raised through PrimaryBid was highlighted, bringing the total to £110 million, described as a decent entry point for long-term investment.
- Another stock, BYG, raised £108.4 million, which was close to its target of £110 million, and was not oversubscribed.
- Comments were made on a minor recovery in stock price with no significant news.
- Observations were shared about a stock regressing to its 2019 price levels despite the company being larger, providing a 4% dividend yield.
- Mention was made of discussions regarding a potential takeover.
- Financial results were discussed, showing revenue and profit increases alongside a rise in dividends.
- Concerns were raised about lowering occupant rates, suggesting people might be looking to save money.
- Discussions pointed towards Big Yellow’s historically low stock price point, with a PE ratio of 4.85 and a dividend yield of 3.67%.
- Speculation about stock price movements correlated with the FTSE 250 index performance was mentioned.
- Queries were raised about the reasons behind a company’s stock price falling more rapidly than others in the same sector.