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Buy more ? Sell? People's thoughts please?
To............................ SIPP
20 to 1
They have hit a massive vein of gold and diamonds, some kryptonite too i heard
Well whats happening here?
be ahead of take off coming soon further announcement Hotel Corporation's EGM passes resolutions 8 February 2016 | 11:29am The Hotel Corporation said all resolutions put shareholders at its EGM today were passed. The change of name, which was approved at the EGM, to Specialist Investment Properties plc and the adoption of the new ticker "SIPP" is expected to be completed later this week and a further announcement will be made at that time.
Why would it take off?
before this really takes off !
The mainstream care home sector has seen strong institutional investor interest recently, and HCP-SIP's more specialised focus looks to be ahead of the curve. With good scope to build a sizeable property portfolio in this area relatively cheaply, before institutions start bidding prices up. Moreover, unlike the shares bought by an investment trust, HCP-SIP's investments will not be buyable elsewhere. And to buy similar investments directly would be financially onerous for most retail investors, and without the liquidity of owning shares in a listed company. Shares are often temporarily weak at the time of a fundraising, as with HCP at 0.825p, but that can often present a god buying opportunity, as in this case.
It's also important to note that HCP-SIP will be undertaking an element of actual property development (with its increased scope for value-creation), as opposed to just buying 'completed' facilities for its purposes: "Initial Programme ... Two of the properties are already in operation as care facilities for children and available as sale-and-leaseback opportunities while the two other properties would be open market purchases of standard homes for conversion. The adaptation work required is modest with a subsequent local authority compliance check prior to receipt of a designated change of use." I.e. HCP-SIP will be more of an active business than an investment trust is. And HCP-SIP's investing policy focus has shades of how Duncan Bannatyne built a large part of his initial fortune: "The initial and primary focus is to make investments in purpose-built homes for adults with learning difficulties requiring support from carers (for example adults with autism), purpose-built care homes for the elderly and infirm and converted dwellings accommodating young adults/late teens requiring extensive support from social services." Duncan Bannatyne: "Net worth £175 million" "He eventually sold the business for £28,000, founding a nursing home business called Quality Care Homes which he then sold for £26 million[7] in 1997 and children's nursery chain Just Learning for £12 million.[9]" https://en.wikipedia.org/wiki/Duncan_Bannatyne
HCP (currently 0.825p mid) looks to have attractive potential in both the short, medium, and longer terms: 1. SHORT TERM. • Currently looks to be returning back up the the fundraising price of 1p, and a slight premium to post-fundraising cash of circa 0.9p per share. • Active positive February newsflow: 20:1 share price consolidation and name change to Specialist Investment Properties (both 8 February), and news re. completion of the fundraising. 2. SHORT/MEDIUM TERM. • Strong positive newsflow as the company executes its initial property investment programme during March - June. • Follow-up company development: larger fundraising(s), and further acquisitions. • Dividend policy: "The Company is targeting a dividend yield of seven per cent. per annum, and your Board expects to pay the first dividend in Q1 2017." 3. MEDIUM/LONGER TERM. • Growth in dividends. • Capital growth: " ... these properties can offer attractive returns on equity and the prospect of medium term capital growth as the chosen specific property category grows and becomes better appreciated by mainstream property investors." • Move to increased rating as the company grows, develops a track-record in its new sub-sector, and becomes more widely-appreciated by the market.
From HCP's 15th. January 2016 circular: "2.3 Initial Programme The Property Investment Adviser has initially identified four properties for the Company to look to acquire. The acquisitions would comprise a combined investment of around £1.3 million, of which it is expected that around 70 per cent. can be financed by debt. The Company would seek to raise the debt initially from Heritage Square a specialist property lender advised by Puma Investments as the Company believes this offers faster execution at competitive pricing. As the Company acquires more properties and builds up a portfolio of income producing properties, it will look to refinance this initial debt with a longer term facility. Two of the properties are already in operation as care facilities for children and available as sale-and-leaseback opportunities while the two other properties would be open market purchases of standard homes for conversion. The adaptation work required is modest with a subsequent local authority compliance check prior to receipt of a designated change of use. The Company would endeavour to acquire each home with an existing lease in place and with an established care operator. In relation to the two open market purchases, leases would be entered into with the care operator on acquisition which would be subject only to approval of the change of use. The Company will target such leases to be for a minimum term of 20 years (25 years on properties initially identified) on full repair and insuring (FRI) basis, with annual rent increases linked to the consumer price index (CPI). The care operator for the four properties has recently secured a substantial, term care placement contract with Birmingham City Council and needs additional space. This contract will support the care provider’s ability to meet the lease payments. The care provider is a well-established operator with over 10 years’ experience, already operates a network of 19 residential care units, one specialist school and has 36 young people in its care. It is a substantial enterprise with 250 staff based within five local authorities and also undertakes ad hoc work nationwide. The Property Investment Adviser has additionally identified a pipeline of similar transactions which it will introduce to the Company for the Company to seek to execute within two to three months of the close of the Capital Raising. The Property Investment Adviser would then aim to identify further acquisitions which would be part financed through raising further equity in a larger fundraising or raisings." HTTP://www.thehotelcorporation.co.im/
At 0.725p mid HCP is now looking very oversold, and great value compared to the £2M. + fundraising just arranged at an equivalent of 1p (20p post-consolidation). At this level the share will be trading at a big discount to cash after the fundraising, and operating in a defensive area of the property market that looks a nice haven in these uncertain times. Cur Bid Offer High Low Open Volume Chg Time 0.725 0.65 0.8 0.725 0.725 0.725 500,000 12:10:00 PM Sector Turnover (m) Profit (m) EPS - Basic PE ratio Mkt Cap (m) TRAVEL & LEISURE 0.0 -0.1 -0.29 0.0 0.4
Has anyone got an opinion on where the open offer is a good deal for a small private invested? Kind regards
raising money 5 times the cap + they already have £300k "HCP is pleased to announce a proposed capital reorganisation together with a placing and open offer to raise up to £2.5 million gross for the Company (and a minimum of gross £2.0 million).
I'm still hanging in here. They've written off millions in value of the PUMA holdings and shafted us good and proper, but the shares are worth nowt a yard so I might as well keep them.
No, there is you and me, Marcus Yeoman and whoever just purchased 300,000. Probably many more living in hope that we will get some action and a rising SP soon.
I the only share holder here😊?
In the BOD. So much for their adding shareholder value! Drop in sp says it all really. Wrong result at the EGM. Let's hope Marcus Yeoman keeps in and keeps adding.
For control , should be very interesting . Dynamism sounds good to me . And May
Both propositions have their merits imo, income and capital growth or a general investment company, of which have proved very successful of late. I can see the yoeman bid being the more spectacular in the short term imo. They probably have several ready to go investments. Seems like the more dynamic proposal imo.
Mr Yeoman and Mr Jackson's Requisition Mr Marcus Yeoman, together with another shareholder Mr Mark Jackson, represents the first shareholder group mentioned above. This shareholder group has requisitioned an Extraordinary General Meeting and put forward three resolutions: 1. That Marcus Yeoman be appointed as a director of the Company. 2. That Derek Short be removed as a director of the Company. 3. That subject to the passing of resolution 1, Marcus Yeoman be appointed Chairman. Together the Requisitioners, were, at the point of receipt of the Requisition, the registered holders of 6,385,000 Shares in the Company representing 12.82 per cent. of the current issued share capital of the Company. The Requisition was received from Dartington Portfolio Nominees Limited (on behalf of Springtime Consultants), Quetzal Securities Limited and Ventura Finance Limited (together the "Requisitioners") pursuant to section 113 of the Companies Act 1931. Mr Marcus Yeoman first contacted the Board approximately 12 months ago to say that he would be able to bring certain expertise to the Board and that he would look to bring propositions for the Board to consider. At that time he wished to become a Board member but your Board asked him to come back with more concrete proposals before due consideration could be given to granting him a board position. We have not received any proposal from Mr Yeoman that we can consider, nor had we had any correspondence until we received the Requisition Letter of which he has the support of Mr Mark Jackson. Mr Yeoman has still not presented any material proposition to the Company with the Requisitioners for our consideration and therefore we question what benefit there is to changing Board structure without a transaction. We are also aware that Mr Yeoman has been a director for some time of other quoted cash shell companies yet to undertake transactions and has a number of other business interests. Even in circumstances where your Board did not currently have a concrete alternative proposal for the Company's future, the Board would have serious reservations about Mr Yeoman's resolutions: · Our first issue is that Mr Yeoman's other quoted shell companies might receive (and might be entitled to receive) preferential treatment in being offered any deal which might come Mr Yeoman's way or which he might introduce. · Our second issue is more technical but also important to shareholder value. If these resolutions were passed then your Board would consist only of one UK resident director and one Isle of Man resident director. We have received advice that such a situation would potentially give rise to United Kingdom Tax Authorities considering the Company to be under United Kingdom control thus jeopardising the offshore status of the Company. The only way to remedy this would be to appoint a third non-UK resident Director, who would of course need to be remunerated from the Company's lim
The Hotel Corporation plc ("HCP" or the "Company") Proposed new Investing Policy Notice of Extraordinary General Meeting Further to its announcement on 10 August 2015, the Company today announces that it has posted a circular and notice of Extraordinary General Meeting to Shareholders ("Circular"). A summary of the key parts of the Circular is set out below. The Circular (which includes the notice of EGM) is also available to download from the Company's website hxxp://www.thehotelcorporation.co.im/ For further information: The Hotel Corporation plc Derek Short / David Craine +44 (0) 1624 626586 Sanlam Securities UK Limited (Nomad and Broker) Simon Clements / James Thomas +44 (0) 20 7628 2200 Letter from the Chairman Introduction As Shareholders are aware, your Board has for more than a year been actively seeking an opportunity to deploy its public company status and remaining cash to enhance shareholder value. The Board has entered into discussions with several parties who were looking to introduce investment opportunities, but following further detailed diligence it became apparent that these opportunities were not appropriate for your Company. Your Board has now been approached separately by two groups of Shareholders, one of which has requisitioned an EGM and the other which has put forward concrete proposals to adopt a new Investing Policy and deploy your Company's cash in what the Directors believe to be an exciting new investment activity. Under the AIM Rules the adoption of a change in the Investing Policy requires the approval of the Shareholders at an EGM. Your Board has considered both the requisition by the first group and the proposal of the second group and has decided unequivocally to recommend the proposal of the second group to Shareholders. This Proposal will therefore be adopted upon Shareholders approving the Investing Policy at the Extraordinary General Meeting. The enabling Resolution is contained in the notice of Extraordinary General Meeting. Background to the Proposal The Company was admitted to trading on AIM in 2004 with an investment policy of investing in businesses within the hotels sector in the United Kingdom and served as a feeder fund into a particular company. Unfortunately a combination of the financial collapse of 2008/9 and the severe economic downturn in the hospitality industry eventually led to the insolvency of its main investment. For close to a year your Board has been seeking an opportunity to deploy its public company status and remaining cash in new investments or businesses which would generate shareholder value. We are also aware that one of the Company's valuable assets is its status as an investment company outside the net of UK taxation. This status makes the Company particularly attractive to proposals where it is important to avoid double-taxation, first on the Company from ret
and up a bit more.