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Well done
We find out if any new information is realsed tomorrow,
no one is buying for now people are buying for a possible
2 to 3 fold return within a hand full of years and what could be the best paying dividend.
We will find out in 6 months.
Multiple issues here (1) FCA + Martin 'Look at Me/Alternative Regulator' Lewis campaign (2) FCA unquantifiable liability (3) Winterflood trading exposure to small cap - a market that is being crucified by lack of UK institutional support (4) Cancellation of 2024 Dividend +uncertainty over 2025 and beyond knocks away a key prop for sp as no income fund will buy if income so uncertain.....
Did a readd to have a better position ahead of a double dip or a rally on the results tomorrow. Expect is to hit £2.80 or £4 - certainly will be an add again on weakness.
But who has brought them.
Not 5%? It does not look like a profitable trade for them. Unless they have bought a lot under 300p. Strange.
Https://www.lse.co.uk/rns/CBG/holdings-in-company-t8d9hcok9phkk4h.html
From Apple News - https://apple.news/ARtLnCj1bSpa6w2x2WQVt8Q
Key bits below…
Some companies almost certainly were guilty of failings in concealing commissions charged on car loans, the chief regulator of the City has suggested, but he played down speculation that redress would cost anything like the £50 billion bill for mis-sold payment protection insurance.
Nikhil Rathi, chief executive of the Financial Conduct Authority, told a City conference yesterday it was “improbable we will find nothing to report as we look at historic motor finance sales”.
However, he added that the investigation and compensation arrangements would not be on the scale of the PPI scandal or as protracted. The last PPI compensation payments were made in 2021, 16 years after the first official review began. “I do not anticipate this issue playing out as PPI did, not least because we have intervened early in the interests of market orderliness,” Rathi said.
If they get stung by the FCA, then yes with what they have in the bank, a RI may be the only way to pay any compensation.
Ticking over nicely - no chance of RI - why even raise this?
Asa - agree no chance of a bid until the liability is known. Not sure a rights issue will be required though
Karlo
That is the second time now that you have talked about “market report” without any reference or back up. Unless you have some evidence please stop spreading wild rumours.
There is no bid and no company will be interested in making a bid for a bank with an unknown liability that could potentially put it in to liquidation.
A very large Rights Issue for CBG is a far more likely outcome at the present time.
Twice it has been mentioned in market report about a predator. Hedge funds and institutions are stake building. A matter of time before a bid is launched but at what price? Highly cash generative business. Middle East will be interested to gain a London foothold.
A takeover attempt is not that impossible to consider. CBG shares are going for a song compared with a couple of months ago. CBG ia cash rich and cash generator company, so a very rich business could perhaps not be too bothered about the FCA thing which is probably only going to be settled ages away. iT'S not my thing to know but a large company could just use things like a fine against their overall profits ? Seems to be non UK predator companies are eyeing up UK cos. as a target for gobbling up on the cheap.
Externally I mean extremely Agreement I mean argument it hard to check the text on a phone they really need to add an edit button. Like the other chat
I agree it externally unlikely a take over would happen but Just for pure agreement sake and topic let say it did.
The company had been valued at 2billion in pass so a take over would have cost say 2,5b to 2,75b .
currently has 1.5 billion in assets and is making plenty of money.
Currently valued at say 500m we could now get for 1 billion , the take over boss says with unknown amount of fines that might be nothing to 200m with some extreme views saying 1 billion, so a worst case would be 2 billion cost.
Best case 1 billion for a company that could make 300m pre tax per year in the future. With 1.5 billion in assets it still sounds like a win win for the takeover people.
1billion is nonsense it would be like returning 8% of everything lent on a authorised FCA system.
It seems confidents is returning institutions are buying
And what if the final liability is £1 Billion?
CBG would not even be worth a bid of £1
This reminds me of the guardian article on how the London stock market is failing on values.
One could argue that if any offer for 1 billion happen while knowing they may need more for a worst case pay out they would still be getting CBG cheap .
I would suspect the board would decline any offer around that amount.
He is just talking nonsense
There is no bid
Who would bid when there is a huge unknown liability?
Can you provide a link to the statement about a 700p bid?
Monday might be interesting. Bid rumours of 700p eod market report. What's the average vol here? Was Friday heavy?
Abrdn went over 10% Thursday - they in the frame??
This has been a great share and I am confident of the future. Did not expect nearly £4 so quickly
Maybe - having done a bit more scribbling on the back of an envelope like the yappy BILLIONs Lewis bloke does, they might re-think a special small divi after all.
The bad news is out the way imo, this share was trending downwards in anticipation to the announcement of the FCA investigation. Results on 19th March should give an indication of how much money they're setting aside...I doubt we will see low 300s or even 200s again