image

Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

Latest issue now available

Photo-Me - Low-ball mandatory offer

March 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • PHTM
  • Price:
  • 74p
Having revisited Photo-Me last May at 62.5p  (originally a star performer of Trader Portfolio 1), I have mixed feelings about the CEO’s mandatory bid at 75p for the company, after he had acquired 7.7% from the Dan David Foundation to increase his stake to 36.5%. It’s clearly low-ball, with Photo-Me’s markets firmly in recovery mode and this was reiterated with a “trading ahead of expectations” update on 9 February for the first quarter of FY’22. At 75p, it implies a forecast FY’22 enterprise value / EBITDA of just 3.2x. I’m voting against the offer. ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Related Articles

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

author

PHTM

LIMTED TIME OFFER

SUBSCRIBE TODAY AND SAVE £30 USING OFFER CODE 30OFFTMI

To access our archive of articles and receive current issues you need to subscribe