tag:blogger.com,1999:blog-4631423976894080706.post6712829213402272936..comments2023-10-17T06:55:06.255-04:00Comments on the red corner: Northbridge Industrial Services Plc -- Industrial Equipmentred.http://www.blogger.com/profile/04089263693762295793noreply@blogger.comBlogger20125tag:blogger.com,1999:blog-4631423976894080706.post-5804359164143350102016-10-06T02:06:24.652-04:002016-10-06T02:06:24.652-04:00Eric Hook, the Chief Executive, is going all in:
...Eric Hook, the Chief Executive, is going all in:<br /><br />http://www.investegate.co.uk/northbridge-ind-serv/rns/director-pdmr-shareholding/201610060700098167L/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-9544941492456794102015-11-03T09:46:55.888-05:002015-11-03T09:46:55.888-05:00Based on their website, it looks like the CEO, Cha...Based on their website, it looks like the CEO, Chairman and an NED purchased 850k shares (5% of the company) at 70p a share.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-4213753146783783662015-11-03T04:36:32.211-05:002015-11-03T04:36:32.211-05:00Well done chapsWell done chapsred.https://www.blogger.com/profile/04089263693762295793noreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-43400180998931098562015-11-02T09:41:52.813-05:002015-11-02T09:41:52.813-05:00Volume today is very high, 25x to 30x daily averag...Volume today is very high, 25x to 30x daily average, 7% of the company's shares...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-11168184634886295522015-10-22T11:24:08.090-04:002015-10-22T11:24:08.090-04:00Wording is comprehensive and unequivocal. Interest...Wording is comprehensive and unequivocal. Interesting. Thanksred.https://www.blogger.com/profile/04089263693762295793noreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-55764268299396296982015-10-22T11:21:06.347-04:002015-10-22T11:21:06.347-04:00Company issued the following release today:
"...Company issued the following release today:<br /><br />"Northbridge Industrial Services plc, the industrial services and rental company, notes the recent decline in the Group's share price and would like to advise the market that they are not aware of any operational or Group specific reason for the share price movement.<br /> <br />Neither the Company's circumstances, nor its trading environment, have changed in any material way since the last trading update on 30 September 2015."<br /><br />They shouldn't be putting out a release like that if the covenant negotiations are going poorly, so I think it's a good sign. But of course, it wouldn't be the first time I've been misled by management.Unknownhttps://www.blogger.com/profile/18210316005314807384noreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-34867159472025687732015-10-22T10:54:55.752-04:002015-10-22T10:54:55.752-04:00I've also pencilled in 15M in FCF over that ti...I've also pencilled in 15M in FCF over that time frame. I agree with your other insights, too. Not trading at a super-low enterprise multiple yet, though, so maybe more puke-age to follow. Trick is deciding whether to leg in now or on the way back up. I'm already exposed to O&G sentiment so I'd prefer to wait and see what's what after December.red.https://www.blogger.com/profile/04089263693762295793noreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-61908078457434363172015-10-22T10:45:37.223-04:002015-10-22T10:45:37.223-04:00Shocking price move, down 85% in the past 6 months...Shocking price move, down 85% in the past 6 months. They just renewed a 17.1m revolving loan and 5.75m facility agreement. The banks obviously had to foresee the business decline when extending the loans, so doesn't the chances seem very very remote they would enforce covenants due to a slowdown? NBI's rental equipment is very new (net PPE:gross PP&E ratio), so they should be able to just let the fleet age, sell of assets, and delever very rapidly. I have them generating 15m in cash by the end of 2016, which is now more than the market cap...<br /><br />Would be curious if you see it differently?AnonValueInvestornoreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-64436371111411632432015-10-22T10:24:25.460-04:002015-10-22T10:24:25.460-04:00GotchaGotchared.https://www.blogger.com/profile/04089263693762295793noreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-13352466870361925442015-10-22T10:21:06.257-04:002015-10-22T10:21:06.257-04:00Yes, I know those negotiations are ongoing. The s...Yes, I know those negotiations are ongoing. The statements in the interims about them were quite rosy, but it does make sense to be somewhat cautious. But it seems to me that they have a good business in Crestich and the ability to limit capex by not reinvesting in new rental equipment. Unknownhttps://www.blogger.com/profile/18210316005314807384noreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-30032800226476940392015-10-22T08:14:21.436-04:002015-10-22T08:14:21.436-04:00Careful -- it could be related to the covenant neg...Careful -- it could be related to the covenant negototiationsred.https://www.blogger.com/profile/04089263693762295793noreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-18759108736448674682015-10-22T08:03:04.545-04:002015-10-22T08:03:04.545-04:00Down big again today. Somebody seems to be sellin...Down big again today. Somebody seems to be selling without regard to price. I still haven't seen any recent news.Unknownhttps://www.blogger.com/profile/18210316005314807384noreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-85304954166442933322015-10-21T10:32:24.496-04:002015-10-21T10:32:24.496-04:00Wow. Hadn't bee following the price action. 88...Wow. Hadn't bee following the price action. 88p doesn't look right & I'll have to look into it. red.https://www.blogger.com/profile/04089263693762295793noreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-32001558182748927362015-10-21T10:25:09.441-04:002015-10-21T10:25:09.441-04:00The bottom continues to fall out of this stock. I...The bottom continues to fall out of this stock. I couldn't find any news for today's 20% drop. Have you seen anything after the interim results? Is this beginning to interest you?Unknownhttps://www.blogger.com/profile/18210316005314807384noreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-43273265778202396852015-05-29T11:14:56.049-04:002015-05-29T11:14:56.049-04:00Tweeted an opinion this morning as it happens. I t...Tweeted an opinion this morning as it happens. I think Crestchic and the O&G consumables business can support a market cap of 60MM. It's a puzzle piece of acquisitions so unpacking those and the financials in the RNS for each should be more useful than trying to piece the valuation together via the company's segments. red.https://www.blogger.com/profile/04089263693762295793noreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-41294940695919904812015-05-29T11:09:26.199-04:002015-05-29T11:09:26.199-04:00European operations are still doing well, and the ...European operations are still doing well, and the company should remain cash flow positive as it limits new rental capex. So, the recent share price collapse seems overdone, assuming the energy services business rebounds within a few years. If you're still following, do your thoughts differ?PJKnoreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-18981459761929213782012-10-08T19:35:16.291-04:002012-10-08T19:35:16.291-04:00You are quite right, I've inadvertently double...You are quite right, I've inadvertently double-counted the 2011 extraordinaries. My apologies and thanks for spotting it. I'll fix the spreadsheet in the morning.<br /><br />My email is theredcorner66@gmail.comred.https://www.blogger.com/profile/04089263693762295793noreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-55010141791215281982012-10-08T18:37:45.835-04:002012-10-08T18:37:45.835-04:00Red,
Firstly, let me say that I greatly enjoy you...Red,<br /><br />Firstly, let me say that I greatly enjoy your blog. <br /><br />I agree with your write-up on NBI and think it's a good long, even (especially?) with recent hiccups in the price post interim announcements, though had a question about how you normalised earnings.<br /><br />Reported numbers from 2011 annual report (£m):<br />----<br />Revenue of 24.9<br />Gross profit of 14.7<br />Selling and distribution costs of (5.5)<br />Recurring admin costs of (4.3)<br />Exceptional admin costs of (1.7)<br />Reported operated profit of 3.1<br /><br />Your EBIT of 4.84 seems to have the 1.7 (1.688 to be precise) of exceptional admin costs added back in (3.1 of reported operating profit plus 1.7) yet you add the 1.7 of exceptional admin costs again to go from EBIT to adjusted EBIT of 7.38.<br /><br />This seems to double count the 1.7 of exceptional admin costs. Or am I misunderstanding your normalisation? Apologies if so.<br /><br />Secondly, do you have an email address I can contact you on? I can't see one on the site or twitter.<br /><br /><br />Sincerely,<br />Onoreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-91547085947325748952012-09-14T11:44:10.495-04:002012-09-14T11:44:10.495-04:00Thanks for the question.
I always calculate ROIC ...Thanks for the question.<br /><br />I always calculate ROIC without acquired intangibles and I always calculate RONIC with acquired intangibles.<br /><br />The former tells me the quality of the business as-is, and the latter indicates whether value is being enhanced or degraded in the pursuit of growth.red.https://www.blogger.com/profile/04089263693762295793noreply@blogger.comtag:blogger.com,1999:blog-4631423976894080706.post-18470095786627287052012-09-14T11:27:43.979-04:002012-09-14T11:27:43.979-04:00Are you calculating return on new invested capital...Are you calculating return on new invested capital with our without intangibles?Anonymousnoreply@blogger.com