The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Donnt get your hopes p. Greencore has a habit of surprising on the downside by underdelivering and being oblivious to the context that the company is operating in (at the present moment that context is potential bagain basement takeover target with enormous potential for any would be bidder.
Using the ADR market in the USA to launch a bid for a company listed on the LSE is a new one for me. But then again, stranger things have happened in the past so far as Greencore is concernef. Do you know what volume of SDRs were traded ? I believe each ADR represents 5 shares, so easy to work out number of shares traded once you have ADR volume.
Oasis is the news, and eill continue to be the news as the Hong Kong based ivestor engages woth the Board of Gteencore, encourages operational and balance sheet improvements, and argues for Greencore to be more investor friendly (press comentary suggests Oasis favours a return of the Dividend). If those things come to pass it can only be positive for the share price and Greencore will cease to be an obvious bargain basement takeover target. Onwards and upwards ?
This article is spot on except for one important yhing. OItdoes not even mention Oasis, which is now one of the latgedt shareholders. If Daniel Wotner of Oasis can do for Greencore what hr did at Premier Foods a couple of years ago (google it) then Greencore will be reborn and the share will rise to reflect the company's inherent value badef on future prospects. Press comentary suggests he wants the Dividend reinstating. If that happens the bird, Greencore , will have 2 wings again. Stand by for take off.
The Oasis purchase of a stake in Greencore has the potential to be extremely significant for Greencore , bssed on ehat happened at Premier Foods after Oasis took a stake and Daniel Wotner of Oasis joined the Board of Premier Foods. Media comments suggest that one of Daniel's first objectives will be to have the Dividend reinstated. Something that I fully support and have actively campaigned for since the Buyback bean 2 years ago. Things, as they say, can only get better. Onwards and upwards.
Can anyone remember a company (not Greencore) that in the past axed its Dividend and instead launced a Share Buyback before launching a Management Buyout.
Completely agree . The company has enormous potential , but the shhare price is going nowhere untill the dividend is reinstated, and as a result the company will continue to be a potential takeover target.
Sad, but true. That's why most companie that manufacture "sin" products, e.g. alcohol, tobacco and junk food, do so well and their products are msass-market staples. Definitely not good re. Potential health outcomes. I know it's not fashionable to quote from, but the Bible does warn that the wages of sin is death.
If the dividend is reinstate, say 2p interim plus 5p final and at a consrrvative uield of 4% yhe shatr prie will be £1.50. However, if the buyback continues the share price will continue to drift. Yield equals demand, no yield and a potential capital loss equals little demand. The only positive with regard to the current abysmal share prive id that the company is an obvious takeover targrt for any funf looking for a cash cow it can milk for regular dividends (adjusted profit of up to £80 millionprojected for this year and likely higher in future), as a result my stake in Greencore is currently a takeover arbitrage position.
Apologies re. typo, should have read "bonds" not "bons"
Greencore's share price is going nowhere untill the dividend is reinstated. Lack of demand for Greencore as an investment at the moment because the shares do not provide a return and have not done so for years. Who in their right mind is going to invest for no return wnen they can get up to 5% guaranteed elsewhere from safe government bons and no chance of a capital loss which is all that Greencore has provided since 2019.
Thanks for responding. I koww from the RNS how many shares are in issue. More interested in finding out how many shareholders there still are. I suspect up to 30% less than before the buyback started, and that most of those who left did so at a loss, which will have negative impact on the share price. Once bitten, twice shy.
Does anyone know how many shareholders Greencore currently has ? I ask because am interested in understanding the efect the share buyback has had. On 29.11.2021, before the buyback, yhere were 8,537. Now ?
Do you mean the FTSE 350, not the 250?
Can anyone tell me if Greggs had done a share buy back in the l ast three uears. Since January 2020 ?
I am new to Grrggs so please excuse my ignorance. Can anybody tell me whether Greggs has had a share buyback in the last three years, since January 2019 ?
Need to reinstate dividend asap to boost share price or there is likely to be a bargain basement takeover given the company's current low value.
Got it. Many thanks. Conttadictory nonsense, in my opinion. The companys best days are behind it but it should do well as a result of Brexit. Makes no sense. In fact the companys future will be determined by how well the BOD performs in a market in which the company is a dominant player. No US distractions now. So no significant progress means the BOD has questions to answer.
Do you have a link to the Times article ?
I can understand why shareholders may or may not be in favour of accepting the Tender Offer of £1.95 per share. However, I do think even shareholders not interested in taking a capital gain at this time would be wise to vote in favour of the AGM motion authorising the tender offer (motion 7), for the simple reason that the share price will fall if that motion is rejected and quickly return to where it was before the Tender Offer was announced, which was somewhere in the region of £1.60. The Tender Offer is the only thing that is proping up the share price at the moment, and at a price not warranted by the performance of the Continuing Operations which produced only a minimal 1.7% increase in Adjusted Profit last year.