Market's view on Character
Published on April 2024
- A stock watcher reviewed the company’s ability to generate significant free cash flow even in poor years, with an example of generating around £8m against a market cap of approximately £50m. The dividend yield is highlighted as nearly 7%, and the balance sheet is strong. They praised the company’s management of the interest rate cycle and noted that the board has adjusted their remuneration in response to investor feedback, suggesting that the company is currently undervalued.
- Concerns were raised about the potential emptiness of the company’s coffers by the end of the next financial year if performance does not improve, questioning the decision to pay a dividend of 9p under such circumstances.
- A stock watcher expressed disappointment over the company’s lack of product releases for the 60th anniversary of a major franchise, indicating a missed opportunity given the show’s worldwide reach.
- Discussions included the company’s profitability and cash reserves, despite a challenging market, with speculation on the impact of a key executive’s retirement on the company’s stock.
- The company’s management is noted to have sizeable stakes, which is generally viewed positively by stock watchers. However, there was criticism of the board of directors’ high salaries and bonuses, especially considering the company’s average performance.
- A positive trading update was mentioned, with hopes expressed that it would lead to an upward movement in the share price.
- Continuous monitoring of search impression data was discussed, reflecting interest in the company’s online visibility and potential customer engagement metrics.
- A sentiment of frustration was evident regarding the lack of recent company news and the stagnant share price, leading to considerations by an investor to sell their holdings.