Insider: Three big money bets on laggards
4th March 2016 11:46
by Lee Wild from interactive investor
Share on
Poundland shedding pounds
has halved in value since floating at 300p a share in March 2014, following a string of disappointing updates. Critics claim it isn't just lower footfall that's the issue, but rather "serious structural problems" such as competition in branded products and falling demand for own brand goods.
Indeed, Ben Hunt at Haitong Securities has downgraded profit forecasts for both this year and next by 12% and 6% respectively. The shares are only worth 140p, he says.
And things are so bad, chief executive Jim McCarthy has handed in his notice after a decade in charge of the company. New man Kevin O'Byrne will take over on 1 July. He's been a director at both Retail and , most recently running B&Q UK and Ireland.
A day after confirmation as Poundland's new top shopkeeper, O'Byrne coughed up £575,000 for 321,107 shares at an average of 179p. He now owns 340,000 shares in the company.
Backing the Regus bounce
Workspace provider has quadrupled in value since 2012. It perhaps explains why, despite decent results, interest in the shares has waned in recent months. Shareholders who've stuck by it have trousered profits as sentiment in the wider market deteriorated.
But after a 28% plunge since December, buyers are back and the share price is up 18% in the past three weeks.
And Regus has just put in another big year, growing underlying earnings per share in 2015 by 45% at constant currency to 11.2p.
"Current trading is in line with management's expectations and we remain confident in our prospects for 2016," said chief executive Mark Dixon.
An increase in net debt of over £50 million to more than £190 million was of little concern to finance director Dominik de Daniel. Four months after taking up the role, the company's chief number cruncher left it until a day after the results to splash out over £444,000 on Regus shares. He bought 151,112 shares at an average of 294p.
President Energy demands attention
A dive to record lows has triggered heavy buying by Peter Levine, chairman of Argentina and Paraguay-focused oil company . He's just added 4 million shares to already substantial holding at just 5p.
Levine has been a regular buyer over the past year - in November he picked up over 25 million shares at between 6.47p and 7.08p - and now owns 23.2% of the company. President shares surged by 13% on the most recent buying to 6.6p.
"There is no doubt that the company firmly believes that this investment in Paraguay is 'laying foundations' in country and these new resource estimates, combined with vigorous cost cutting, will see them successful for the long haul," said industry analyst Malcolm Graham-Wood recently.
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.