Market's view on Volvere
Published on April 2024
- Shire’s sale is anticipated to demonstrate its value, following a period of underperformance.
- Shire is recognised for its strong compound growth in top-line and profit over eight years, indicating robust performance despite its perceived lack of excitement in the market.
- Significant trading activities include share buybacks and increased holdings by Crucible Clarity Fund Plc, signaling confidence in undervalued shares.
- There are discussions around the high cash reserves and the potential for acquisition opportunities, as well as suggestions for managing excess cash through dividends or tender offers.
- The company’s financial health is highlighted by a strong balance sheet, with substantial cash reserves and net asset value per share increases.
- Market optimism is noted due to new business opportunities and a promising trading update, despite the challenges of liquidity and corporate action.
- Expansion plans by Aldi are expected to positively impact Shire, considering its strategic position in the market.
- The acquisition of Naughty Vegan is seen as a move to elevate Shire’s position in the value chain.