Market's view on Petershill
Published on April 2024
- Stock watchers discussed the recent market reactions to dividend announcements and a tender offer, noting that the offer seemed underwhelming in terms of premium and size.
- A stock watcher expressed dissatisfaction with their investment approach, suggesting a shift towards global trackers due to mixed results with individual stocks.
- Concerns were raised about an impending 80% controlling shareholding stake by certain investors, potentially impacting minority shareholders and speculating on the future delisting of the company.
- Mixed feelings were shared about understanding investment details, with one stock watcher admitting to profiting by fluke and recommending against investing in what one does not understand fully.
- The timing of dividend payments and their influence on share prices was discussed, with predictions about the company’s stock movements around ex-dividend dates.
- A proactive approach by the company to close the gap to Net Asset Value (NAV) was appreciated, though concerns about the true value offered to shareholders continued.
- Skepticism was expressed about daily share buybacks and the cost-effectiveness of frequent public announcements regarding small-scale buybacks.
- The company’s financial health was discussed, with references to strong balance sheets, cash flow, and a robust capital return strategy, including a share buyback programme.
- Petershill Partners PLC’s annual financial results were summarised, highlighting a swing to profit due to gains from investments and a proposed increase in dividends.
- Frustrations were voiced over the opacity and complexity of assessing the company’s value and the strategic financial maneuvers, which might obscure the real financial health to the average investor.