The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I've read on the irish times forum that there is a rumour of this spliting into two companies?! Has anyone else heard this - if so do they have any info to share?
Moody’s Investors Service cut the nation’s credit rating by five levels, citing its declining financial strength and the cost of bailing out lenders. Ireland’s rating was cut to Baa1, three levels above junk and the same as Russia and Lithuania, and given a negative outlook. Moody’s said confidence in Irish banks “evaporated” in the run-up to an 85 billion-euro aid package from European governments and the International Monetary Fund agreed by lawmakers this week. Hopefully this is now priced in and any further good news on the $96m funding should reflect well in the SP
THE ISEQ ended the week in negative territory, slightly underperforming its European peers, as financial stocks plummeted yesterday after more than a week of gains. Having held up relatively well before lunch, the three listed banks fell sharply in afternoon trade. Bank of Ireland suffered the most significant falls, losing 18 per cent to €0.387, AIB shed 12 per cent to €0.439 while Irish Life Permanent fell 7.8 per cent to €1.16. Having rallied for more than a week, the falls were unexpected – and due to profit-taking according to traders – mirroring a trend across Europe which saw profit-taking in shares of financial institutions after a 10-day rally. The decision by Fitch to downgrade the Irish banks’ guaranteed debt had little impact on the equity side of things, according to traders. http://www.irishtimes.com/newspaper/finance/2010/1211/1224285302086.html Not sure this applys as much to Irish Life given the smaller number of trades on Friday. Lets hope Friday was the worst and hopefully we should see some further gains in the coming weeks. Still believe this has lots of potential left short/medium and long term.
Still think its going to rise after a slight dip next week... Arbitrator rules Irish Life must proceed with €170m office deal IRISH LIFE has to go ahead with a three-year-old €170 million property deal in Luxembourg that it believed it was no longer obliged to honour after losing an arbitration case. Irish Life agreed to buy a 240,000sq m office block from developer Vertigo for €170 million in 2007. The deal was due to be completed in January of this year, but Irish Life believed a clause in the original contract allowed it to back out of the agreement as the property’s price has fallen sharply since 2007. The dispute between the Irish bank and life assurer and Vertigo went into formal arbitration in April. The arbitrator has ruled against Irish Life, which must complete the deal and buy the building for €170 million. A spokesman confirmed yesterday that the Irish company had lost, and said that it would be bound by the ruling. Irish Life was understood to be relying on a clause in the original contract that allowed it to walk away if the value of the property fell by €8 million or more. The group believed that this was the case. The building that it is taking over is 75 per cent empty. Its sole tenant is Bank of New York Mellon. When the dispute first broke out earlier this year, it sparked speculation that Irish Life wanted to exit some deals it had done in Europe during the latter years of the property boom. It denied this. Formal arbitration proceedings are a common method of resolving disputes over property deals. The parties normally include a dispute resolution clause in contracts and anyone involved has to agree to be bound by the final ruling. http://www.irishtimes.com/newspaper/finance/2010/1203/1224284681594.html
Beatthehouse... Your assumption is correct - this is going to a rights issue and will dilute the shares but as the price paid is higher at 0.5 then the average will be c0.5 - albk will be c94% nationalised (if nobody buys there rights - which they wont at a higher SP!). Afterwards the shares will still be worth 0.5 and will continue to rise or drop with market expectations. However due to such dilution of shares I dont see any rapid gains in SP as the market value of the company will be c€7b after the rights issue. This will however right off the bulk of bad debt and the company should become profitable quickly again!
Looks like a very good interim statement. Think the most important part is the new aerospace orders now being required and the fact they beleive their 2010 full year out look to be well ahead of last years pre tax profits. Given the possitivity in the statement and looking over the 2007 - 2009 historical figures (SP vs Pre tax profit). My estimate (with the absence of actual forecast numbers in the statement) is that this has to be worth in the high 140's if not more. Think there is still alot of real potential left. IMO anyway!
Things still looking good, nice steady rising after financials
I brought these at 34p when the market was unstable. SNR have strong books and are growing. I currently work in the engineering industry and know there is a large increasing demand for the flextronics buisness and the parts make excellent margins as its still classed as a bit of a black art. The dividends are still good and there projected profits are improving. IMO theres room for it to hit 100 - 110 within the next 1-2 quarters.
How will the share price be impacted by the 20% holding interest by Parkdev International Asset Mangers? This will surely make SP rise rapidly as a shortage of available shares will be left on the market. There looking to buy £25m! Views on this will be more than welcomed...
Sorry the last post was suppose to be titled PRE RI !!!!
Lack of funds to buy more shares / Inexperianced traders not wanting the hassle / nervous sellers that have already made a good return. This is why it will tail off just before the cut off date. Investers will return after the RI is fully purchased (which will happen as its underwritten). This is only my opinion as nobody can predict the future. However I dont see this as a gamble, but a good investment opportunity!!!
IMO this money will be well spent on aquiring further assets at knock down prices (given that they dont have to give much back to their lenders if they are in violation of any equity terms on current loans). It will open at 9.5p and propably tail off slightly during the purchasing period. However as it is a fully underwritten RI and the economy appears to leaving the recession, this share will climb post final RI date. I see this being over 15p / share by the end of september. GL to ALL who those who are purchasing their rights. I purchased a RI in ICP last month and they rose 50%!!!
If the price is 39p close of play Thursday then friday morning the price will be then the diluted price will be... (39p +(7x6p)/8 = 10.125p
Thanks for letting me know. I've just read that if the rights issue is successful Wichford will also be paying a dividend of 3p per share on the pre ex rights shares held.
Wichford have just annouced a rights issue 7 new shares for every 1 ordinary share... does anybody know when this will be as I will need to get hold of the funds to buy more!!!
Yesterday share holders voted by a massive majority c99% to go with a rights issue. For every 2 shares held you can purchase 7 more at £1.21. This is to raise £350m creating liquidity and allow further asests to be purchased. The new price today is a diluted price and will continue to trade at such a price. The entitlement letters to qualifying share holders were sent last night and you have until 4th Aug to reply. This should be seen as a positive RI as they are already performing well in the current climate and this will allow them to purchase further marked down assets that will be worth a lot more in the future. I will be purchasing my full entitlement... GLA
Does anybody believe this has the potential to keep rising over the next few days?
Interim ex dividend date should be 11 June. expected to pay circa 3.6p / share (not confirmed yet). forecast 7.25p for the full year.
I've just purchased some of these. Think the worst is over and the share price looks like its recovering. When their assets mature as the housing market recovers theres no reason they shouldnt' reach 150p over the long term. Whilst I wait for that Im taking advantage of the 20% yield on the current price.