Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
at some point people will realize that excluding hub locations conventional office leases are inefficient, corporate membership to occupy space as a service will become the norm, paying by subscription will be the way to go as people do for software, cloud computing etc, IWG are already leading the way, they have always talked about building a platform , this will be the way in future, short term pain will exist, but space as a service will come of age post covid , they need to take out inefficient competition grow the network/platform this has huge potential, Wework just got it wrong
not sure another placing would be necessary with £830 million of liquidity and now in a cash neutral position according £180 million in savings and hit taken to date should see them through, capex and new centre investments will be minimal until they have a clearer picture, expansions may come through management agreements, franchising or M & A which will either be cash neutral or cash generative
i don't think you can base their PE on last years operating profit, the sale of franchises changes the numbers in a big way that has only started in the last 6 months operating profit should also continue to improve after this year once they've tidied up their inventory which will always be work in progress but this year more so. Softbank were pouring billions into this space because it is clearly a disrupter to traditional office leasing with massive growth potential but i refer back to Dixons comment re Softbank - WeWork 'right bet - wrong execution'
I don’t think there is anyone to compare with IWG given their size and geography
What will the PE of Iwg be next march when they report annual results they will have grown the business by 250 plus locations they’ve sold around 190 in 3 deals for around £450million they will probably make another £100 million in operating profit so that’s £550 million with 888 million shares in circulation that’s 62p per share, I think the market is oblivious to analysing quarterly numbers they make take notice on full year results
I don't think that's a bad call, lots of opportunity in a growing market very well positioned to move forward positive cash flow huge experience etc etc - wework has huge brand damage with customers and employees to sort our whilst dealing with big cash burn - Bill Ackman may have called it right - opportunity id say
market reaction maybe down to broker sentiment Peel Hunt upgraded target yesterday to 500p on back of Swiss deal lowered it to 480p today probably because of rationalisation costs, all in all they are in a very strong position with lots of opportunity and very low debt leverage considering swiss money to come in and still carrying £150 million of owned property ,
the value of the buyback will be £100 million at say circa £4 a share that would be 25 million shares they are not buying back 100 millions shares, the value of the demerger by Pru & MG led to a sale of circa 11 million shares
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
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
https://www.marke****ch.com/story/you-can-buy-this-wework-rivals-shares-at-a-fraction-of-the-price-2019-07-30
According to the WSJ, Wework valued at $47 billion are now planning to IPO in September, they are also raising circa $5 billion in bank funding to aid the Issue and reduce the amount being offered in the IPO, be interesting to see the impact this will have in creating awareness of the Sector and IWG's August numbers should help massively