Market's view on Network International
Published on April 2024
- There is anticipation of a potential increase in share price due to a prospective deal agreement at 400p, considering current selling prices are significantly lower.
- Discussions reveal expectations of an auction possibly driving the share price up to 450p if the interest from potential bidders remains strong.
- Concerns are raised about the perceived undervaluation of the company due to a problematic perception and past management issues, despite it being a profitable, cash-generative business with genuine growth prospects.
- Stock watchers express frustration over the influence of short sellers and algorithmic trading, which have been perceived as dominating the share price movements.
- Observations are made on the potential influence of private equity, with suggestions that management might be persuaded to accept buyout offers that do not align with shareholder interests.
- There are comments on significant revenue and profit growth reported by the company, but the share price lacks momentum despite solid financial performance.
- The geographical focus of the business in Africa and the Middle East is highlighted, alongside the challenges of engaging UK investors and achieving desirable shareholder returns.
- The potential positive impact of increased payment volumes due to tourism related to sporting events in regions close to the company’s operations is noted.