The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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According to fundamentals there are 889,000,000 shares in issue. Something really does not add up here
Did they mean 100,000,000 shares or £100,000,000 share buyback (as per res AUG 6th), cos somebody better tell their broker 34,000,000 + shares purchased at around £4 per share = £136,000,000 approx and they actually have over 900,000,000 in treasury now.
So Pru and M&G demerge which results in Pru reducing stake to zero from 7% but M&G take 4%, whilst across the pond Softbank take 80% stake in WEWorks. Is the market slightly rattled or just confused.com?
Clearly the SP would be lower without buy backs they are 25% done so lots of buying to go assuming £100 million buyback target continues and this will support price going forward with further positive news flow on franchises I would expect this is a good long term investment opportunity
can't help wondering where the sp would be if not for the almost daily buybacks.
It doesn't in a normal market, whatever that is. Everything is in limbo at the moment. I'd say hold on for now as I think there will be plenty of buying opportunities appearing over the next few months
Interesting article in the current edition of Shares Magazine (subscription so can't post link). Rates IWG as a buy. Talks about revenue generated by the franchise model potentially equating to £4.90 - £6.40 per share. Sounds too good to be true?
Good to see that Mark Dixon is reported in today's FT as saying: "It’s about being everywhere — every town, every village?.?.?.?We’ve been growing [revenues] at about 12 per cent, 14 per cent. The objective is to double that growth.”
The other spin being, rival Wework not only pulling IPO but may get wound up. Implications or opportunity arising for IWG? Could buy back money be better spent on grabbing more USA market share.....
positive is they seem to have upped the size of buy back trades to 500,000 per day as the price has dropped back
Very news driven, except when it comes to Canada's possible franchise sale. Seems to be in lots of talks. Waiting for action. The WEwork IPO has been halved to 20 billion and still their broker is advising against the float, but the loan agreed is conditional on it. Caught between devil and deep blue.
Looks like the wework IPO is'nt going to plan, FT says Softbank want them to pull it, given their cash burn they will need money soon, doesnt help IWG share price IMO
ok. I'm convinced. Back in. Been joining in the buy back scheme! Cant see the price running away all the time the company are trying to buy back shares in tranches. Presumably hoping the sp doesn't run away too until they have finished. If they can get the American arm floated soon I guess there is a reasonable chance of achieving a flotation or outright sale.
A sale generates cash from the IPO investors, that cash goes to IWG
What they do with it is the question but to me it’s positive
Well yes, but the funding is, apparently, to be raised in the US for a stand-alone US business. Question is: how does that money reach the UK business?
The WW valuation is ludicrous so to sell off with an initial price tag of £3 billion should be doable it values the overall business closer to £6 billion what is not to like I am hoping for another major move north
Yes it depends on a number of factors and could they exceed the £3 billion if there is a big appetite for this, will they hand the money back to shareholders as a one off special dividend who knows? But I don’t understand the negativity if they get this away it is massively earnings enhancing
Not a great fan of buy-backs in the first place. If they can do this why do they need to raise more money? All seems a bit counter productive. Who doesn't like to be bought out at the right price? But If they couldn't find a buyer with the means to do it last year when the share price was practically half what it is now, not sure thats too realistic either. Franchising route seems best option. Only really Dixons shareholding makes me optimistic now.
You'd have thought that IWG was worth more than WW, and yet IWG are reported as looking for 1/10th of the amount that WW hopes to raise. I question if IWG are:
1. Serious about this.
2. Trying to talk down the WW valuation.
3. Looking to get themselves bought out.
It kinda sounds odd to me. I know the WW fund-raising is for the whole business, and the IWG idea is just for the US, but 60% of IWG gross profits comes from the US. AFAIK, this is not a la Japan.
Another thought: how does any US stand-alone fund-raising flow into IWG PLC, and us?
That aside, I dare say the SP will be up come Tuesday.
Sky news saying they may seek to float the US business for £3 billion talking to investment banks float could come soon after we work
way to go then!
RNS of 6 August answers your question regarding share buy-back programme.
Another 500000 shares purchased in the continued buyback policy, making a total of 28 million in treasury. Wonder how many more they are planning on buying. Hope that steadies the ship in turbulent US falls after more recession calls. US market is way over priced and due a correction anyway Imo. UK market has barely moved from its position in 2000 before tech bubble. All that has happened in that time is new entrants have propped it. The 250 is where the innovation and growth is coming from.
yes this is great news - there are some aspects we do not understand: We do not know the details of the franchise specifically how much IWG will be paid per annum by the franchisee but the up front payment is large. Also not clear what the NAV is in the accounts for these properties. .....
And the news just keeps getting better.
Sparkling performance. Well pleased.