Market's view on Speedy Hire

Published on April 2024

  • There is speculation on whether the stock has reached its lowest point and considerations about the impact of a recent unexpected takeover.
  • Observations were made on unusually high trading volumes on specific days.
  • Discussions involve Speedy Hire’s financial status, noting a forecast of low year-end results but optimism for future improvement backed by recent contract wins and investments by directors.
  • Concerns were raised about the company’s use of ‘exceptionals’ and ‘adjusted’ financial metrics, suggesting these may distort the company’s actual financial health.
  • The potential impact of lower capital expenditures affecting future growth was debated.
  • The financial analysis by some brokers suggests undervaluation, offering a substantial value and potential for stock price recovery.
  • Doubts were expressed about the management’s effectiveness, hinting at possible needs for an overhaul.
  • The company’s strategic initiatives, including green energy projects and the ‘Velocity’ strategy for long-term growth, were discussed.
  • Negative sentiments were noted concerning past partnerships and strategies, particularly with B&Q, which have not met expectations.
  • The potential for the company to be a takeover target was suggested, due to its current low valuation and strategic positioning in green energy.
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