The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
These shares haven't been £2 for a long time - over 5 years. £1 three years ago, but that is ancient history. Today, the true value of the company is a lot higher than the figures on the balance sheet. But, not the historical value. Exactly where the true value is may be revealed in the coming few weeks or months. I've been in at just over 1p real terms (I sold and bought in again) but some of the corporate guys will be in for 30p or much higher. They are holding. That is good enough for me. If the future RNS shows these investment companies are reducing their holdings then I'll reconsider.
Just be wary that many of these trades seem to be from small investors. My view is that 6p is the true mark of this share for now.
Started well. If this goes well today the weekend newspapers will be full of it and that will put the stock in the public eye.
If you have the time look back into the 2010 and 2011 accounts statements. Before the contract problem these hotels were valued at over £400 million. Now they are zero on the balance sheet. There are less than 50 million shares in circulation and the majority are in the corporate hands of around 8 investment companies. That means any takeover will not be done on the cheap IMO.
When I got into this stock last year it was on the basis of HCP writing down their value of PHP to zero following contractual problems with BARCA. I couldn't believe that PHP had no value and believed, and still do, that the board of HCP were protecting the company from predators. Perhaps someone has managed to look behind the headlines? Problem with this stock is that it rises and falls on a sneeze despite a large portion of the shares being in corporate hands. My Stop / Loss setting dumped my shares for half price when it suddenly dropped a few months ago, but I bought them back and am only about 10k less than my original holding. I think we might be going to see some real action soon.
I said a few weeks ago that I would expect this to settle above 2p. Looks like we might be getting there.
More Buys shown as Sells. I wish LSE would sort this out.
Just received announcement.
Peel hunt have been selling and re-buying tranches of shares for months now. I think they have been trying to create volume and therefore interest. I would expect them to re-buy the 4 or 5% they have sold. On the subject of share value; in 2010 HCP valued their holdings in Puma at £455 million. The following year and again this year they valued these holdings at zero on the basis that they Puma might go into receivership. That now does not seem the case. If Puma are worth half their 2010 value that is still over £2 per HCP share.
Look again, pre last year's statement.
The BOD wrote down the bricks and mortar value to zero last year. Before that the value per share was many times 1.6p Are you aware what the current value of the property holdings are?
Cash value 1.6p? The value of one hotel divided by the number of shares is 10p and that is before adding the business potential on. How many hotels do the have? If you sell at 1.6p you will miss the ride of your life IMO.
the true worth of these shares could be around 50p to 75p although I'd settle for half that :)
Everything is in place. Just needs a major investor to create some volume to get it on the radar.
If that is confirmed by RNS then the only way is up next week <insert smiley face>
Maxtheaxe posted: "once reached an rns will confirm the 30% and almost immediately they will announce the bid offer....otherwise no point,,,,next week should be good if they can get the other 4 mill but i think they will need to up the bid towards 8p to get the rest..."
A lot of trade pension funds invest in companies in their trade. Even the soon to collapse UK Mining has mining pension funds holding shares.