Member Info for Bazzaman

Vodafone (VOD) is creating Europe’s largest tower company. Its European tower infrastructure is to be legally separated into a new organisation (referred to as ‘TowerCo’) which will be operational by May 2020. This will comprise 61,700 towers in 10 markets, with potential proportionate cash profits of around €900m. Preparations are underway for various monetisation alternatives (subject to market conditions) including a potential IPO of TowerCo. The proceeds will be used to reduce group debt. Vodafone also released its first-quarter numbers. Revenues were down €0.2bn to €10.7bn (after exchange-rate effects). Organic service revenues dipped 0.2 per cent – better than the fourth quarter’s 0.7 per cent decline. Management said “[…]we expect the gradual recovery in our service revenues to continue, underpinning our financial outlook for the year”. The shares were up by around 7 per cent at the time of writing.

Hi Tom, hope you're well. Good to see the SP above 168p which takes me back into the blue, been a while. BOL

Lots of buys since Simon's article in IC at 12pm today. https://www.investorschronicle.co.uk/comment/2019/07/23/exploit-trinity-s-undervaluation/ GLA

Keep it up boys. GLA

Enjoy. I'm in sunny Malaga 30 degrees here. Hope all is well with you.

You may be right dividend reinvestment pushing this north. BOL

Always good to diversify your ISA portfolio. Have a look at LIT, TMMG, SBIZ, SLP. Good luck.

Sold all my TEF now over the past few days all at a little premium to 350. I expect the deal to go through so no point hanging on when could be investing elsewhere. Have a look at WJG as Simon at IC has a target price of 250p. Looks a safe bet to me & could be interesting if they set up a separate company which is being looked at. They have a pretty unique model. I'm also in INL as well. BOL

Hi Nige, I'm only sharing what they reported yesterday as Tom was saying they were down 2.4%. I personally don't have any of them in my portfolio. BOL

Telford Homes
At the end of May when commenting on its full-year results,
I remarked on how I quite liked Telford Homes’ (TEF) shift
to a build-to-rent business model, but that I didn’t think
that its shares were compellingly cheap at 290p.
Commercial real estate services and investment firm
CBRE has taken a different view on Telford’s valuation
and had offered to pay 350p per share to buy the business outright. This has been accepted by Telford’s board
and CBRE has said that the offer is final and would not be
increased.
The investors on my Twitter feed seemed quite underwhelmed by the comparatively stingy 11 per cent premium
to Tuesday night’s closing price. It values the shares at a
2020 forecast PE of 13.4 times and a 3 per cent premium to
the forecast March 2020 NAV.
I have some sympathy with this view, but Telford’s
board of directors accepting and recommending the offer
makes it clear that they think it is a fair and reasonable
offer for the business at such an advanced stage of the
current UK house price cycle.
Whether Telford’s shareholders think that this is the end
of the matter is far from certain. As I write this, Telford’s
share price is 354p – above CBRE’s offer – which suggests
that some investors think a counter bid is possible.
Who from is anyone’s guess. Bovis recently tried to buy
Linden Homes from Galliford Try, but they have yet to
express a desire to enter the buy-to-rent business. I think
it is possible that a financial buyer or even an institutional
buy-to-rent investor could throw its hat into the ring.

IC have a sell recommendation on PSN from yesterday.
Persimmon (PSN) reported a 4.5 per cent reduction in revenue for the first-half, following a 6 per cent fall in legal completions as the housebuilder tried to improve the quality of its buildings by taking a more targeted approach to the timing of new home sales releases on certain sites and plots. As a result, the average number of active sales outlets was down around 8 per cent to 345 sites. Management guided towards an underlying operating margin of 30.8 per cent for the period, in line with the prior year. Sell.

The Mission Marketing (TMMG) kept showing up on share scans and it was chosen by two at the follow up - it looked good fundamentally so I bought some live.

Most investors are too fearful to buy shares that have already gone up a lot but always seems crazy to me, why not buy a winner?

This marketing outfit is strong and keeps on performing. Profits are up and they are paying off the debt and there is not much of that left.

I agree with the NT, topped up recently so my average buy-in price is now 62p. My new target for year end is 110p. It goes ex-div on 11th July as well. What's not to like. GLA

The premium offered to investors may not seem awe-inspiring – in line with forecast book value at the March 2021 year-end, according to Canaccord Genuity, or 1.05 times book value at the end of March this year. That is below a sector average multiple of 1.4, but that reflects the portfolio’s still considerable weighting towards the higher-priced London residential development market, which has been worst affected by slowing sales. Given the depressed valuations being applied to housebuilders across the sector, it seems likely that more takeover activity will follow. Await documents.

https://www.investorschronicle.co.uk/tips-ideas/2019/07/03/challenged-telford-homes-recommends-cbre-bid/ 75% of shareholders need to approve the takeover according to IC. The board said it had considered “the longer-term structural reduction in profit margins inherent with the move to be more focused on Build to Rent”. While the Build-to-Rent market is less capital-intensive than the London residential development market, this would take time to be reflected in the group’s trading performance, management said, and risks from a slowdown in the Buy to Let and owner-occupied market persisted.

Discussions with investors had also revealed that Telford would be required to take longer-term equity stakes in developments and become more involved in the management and leasing of rental properties, which could require additional financing.

The offer – which requires 75 per cent of shareholders to accept – has already received irrevocable undertakings representing 3.86 per cent of the group’s share capital. GLA

Should give the sector a boost as prices are cheap. GLA

When it's tipped in IC on-line on the Monday, you get a double bonus when the mag comes out on the Friday. GLA

comments to sort out stamp duty ahead of Brexit seems to have livened this up today. GLA

https://www.investorschronicle.co.uk/comment/2019/06/20/futura-s-huge-potential-arouses-investor-interest/

Simon from IC says that the offer is a fair price & should be accepted. GLA

It takes a couple of months to come through but you don't need to do anything. Hold for the dividend & no commission on the sale of the shares when it happens BOL