UK 17:37 Friday, 23 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
In this podcast I start with a few words on Berkeley Mineral Resources and its quite amazing statement of yesterday (HERE). Hats off to Alex Borelli but why is no-one going to prison? I then go onto look at Slater & Gordon in light of a very interesting piece of research pubished in Australia overnight by Merrill Lynch on S&G post the Quindell deal.
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Comments
alex cliff
is it possible that the deal wont go through?
Mac
Tom
The S&G price for Quenron was also over priced to flatter the existing S&G share price and market cap.
As I’m sure you know this is an old trick to pull but had S&G paid just £200M for a very comparable business to itself then questions would be asked about the underlying S&G sp and valuation metrics. In other words, they paid full price to create a precedent that that is the right sort of price to pay. Ridiculous logic I concede but I’ve seen this a dozen times with struggling overpriced PLCs who acquire something very similar to their own POS business.
Forty Two
Mac
I think that’s a very plausible line of thought. If instead of paying 7x EBITDA they paid 3.5x then SG shareholders might have said 1) is this business so toxic that you only need to pay a quarter of our own multiple? 2) If the assets are as good as you say why are we trading on 4x that number?. Reminds me of the Mitchell & Webb Germans sketch: “Do you think we might be the baddies?”…