Market's view on Roebuck Food
Published on April 2024
- A stock watcher mentioned the possibility of company expansion due to available cash, despite its small size.
- Another stock watcher provided a detailed financial breakdown including a tangible book value of £7-10M, operations in food sourcing with an approximate turnover of £18m and a small dairy farm operating at a loss, suggesting all operations be sold and cash returned to shareholders.
- A stock watcher noted the company’s shift in operations following the disposal of their cold storage division in 2021.
- There were discussions on the company’s past stock price volatility, with specific percentages of increase and decrease noted, along with speculation on market makers’ activities and the impact of news on stock prices.
- Concerns were raised about the exorbitant spread between bid and offer prices, highlighting market challenges.
- A detailed discussion took place about the company’s declining earnings per share and management’s expectation of improved results in the second half of the year, amidst critical commentary on the company’s financial performance and stock promotion activities.
- The impact of increased costs and reduced margins despite higher turnover was highlighted, affecting the company’s profitability.
- Stock watchers discussed the manipulation of share prices through pump-and-dump strategies, emphasizing the risk of such practices to investors.
- It was suggested that the company’s financial performance would need to eventually align with its share price, as speculative increases were unsustainable.