Volvere Share Price (VLE)

Last night's and this morning's RNS's suggest that Canaccord Discretionary Clients were the sellers, and their shares were picked up by (1) the buybacks and (2) Crucible Clarity Fund Plc, who increased their holding to 6.55%, or 152,393 shares.

Wow - a really NAV-enhancing move just announced. Over £916,000 of buybacks, and there must be a belief (rightly imo as above) that at 1160p the shares are extremely undervalued:

https://uk.advfn.com/stock-market/london/volvere-VLE/share-news/Volvere-PLC-Transaction-in-Own-Shares/93481302

Re the prior post on valuation, he's used a straight 25% tax charge on Shire's £3.64m contribution to VLE after intra-group management charges et al.

Firstly, the tax charge is unlikely to be precisely the full 25% due to capital allowances and super deductions. Let's call it a conservative 22%. Secondly, imo we should use Shire's PBT before intercompany charges etc, which is £3.86m. Thirdly, let's be a tad more generous and use a P/E of 8 given Shire's terrific track record and apparently excellent competitive position.

That gives Shire a £19.3m valuation. Add in the £23.74m cash and the total is £43.04m, which is around £18.50 per share.

Happy to be corrected/struck down!

A starting point for discussions re valuation posted from Jeff256 elsewhere - will have a think myself about this tomorrow:

"Well, the pie business is making £2.73m after tax. Apply a PE of 7 on 80% ownership and we get about £15.3m. Add £23.74m cash and we get £39m

Approx £16.90 per share."

Given NAV of £14.82, I would expect "enhancing shareholder value" to mean that we should expect deals to increase beyond this - otherwise they could just enhance value by liquidating and giving us the £14.82, which is almost 30% above the current SP.

I think I will sit tight and wait to see what the future brings...