European Islamic Investment Bank Share Discussion Threads

[shaunstar] 03/6/2014 20:24

Wexboy explained current share price reflects weighted average of expected 5p tender and share price expectation after tender. Hence 4.2p.

The potential share buy back and fact that this has finished above its 5 yr high mean i'm have doubled my stake here.

[shaunstar] 03/6/2014 08:18

Why is share price only at 4.1p presently - doubts about tender offer resolutions being passed?

[sitiain] 11/6/2013 13:36

share buy back denied as it didnt get the 75 percent
what a bunch of jubs there are runing this company.

[safetymargin] 12/5/2013 12:15

Latest Wexboy:

[safetymargin] 29/4/2013 12:41

This is a transformational set of results demonstrating substantial progress in the implementation of the new management's strategy at the one year mark.

Highlights for me:
- "Assets under management increased 53%, with strong support from new and existing clients"
- "Staff costs at EIIB (excluding Rasmala) reduced from GBP5.0m to GBP2.5m and Other operating expenses reduced from GBP4.0m to GBP2.1m"
- "Ongoing fee income now some 69% of total operating income"
- "We have also attracted a number of significant new client mandates, including our first from the Government Pension Fund of Norway, representing the world's largest sovereign wealth fund."
- Share buybacks in the pipeline [Shame it's not a tender offer though]

[safetymargin] 18/4/2013 13:47

Just bought in.

Good write-up from Wexboy today:

The following is worth highlighting from the interims:

"Capital distribution

Until recently EIIB was constrained in its ability to return capital to shareholders by the lack of distributable reserves. In July we addressed this issue through a reduction in the Share Premium account, transferring GBP20m to Distributable Reserves. We are now reviewing options for possible future capital returns to shareholders and expect to reach a conclusion early next year after having finalised our long term capital requirements in consultation with the regulator."

[rj allen] 12/2/2013 15:44

If this happened in March 2012, why was no mention made of it in the Interim Results to June 2012?

[wexboy] 03/7/2012 16:32

EIIB, my largest portfolio holding at 8.3%:

[vision88] 03/5/2012 17:47

Well Wexboy i dont know why your pluging an upside here, In 3 years the price has been 90% of that time 2.75p to 3.75p hardly an impresive record over 3 years , the maxium upside from its bottom is 1p minus your spread and fees hardly worth a punt at all. better off getting interest from a bank at least its a profit however small.with no fees no spread and no stamp duty .



5

[wexboy] 07/3/2012 07:23

Hey folks,

Just posted a fresh commentary on EIIB, and increased my portfolio stake:



Cheers,

Wexboy

[wexboy] 17/2/2012 01:39

Hi folks,

I've included EIIB in my latest Catalyst article, where I look at 4 interesting companies/situations with activist investor(s) on board:



Cheers,

Wexboy

[wexboy] 31/12/2011 13:42

Hi Folks,

I've included EIIB in my Baker's Dozen for 2012 – see my latest blog post on:

wexboy.wordpress.com

Best of luck in the New Year!

Wexboy

[wexboy] 15/11/2011 00:51

Folks,

As I mentioned to mronionbahjee2 elsewhere, I've just launched a new value investing blog. My most recent post (plus a couple of others in the past few days)is about, yeah you guessed it...EIIB.

If you have a chance, please check it out, and if you like the blog any recommendations/referrals/links etc. would be greatly appreciated! - here's the address:

wexboy.wordpress.com

Thanks & Cheers,

Wexboy

[vlain] 20/10/2011 20:55

anyone know whats going on!

[wexboy] 02/9/2011 22:06

actually HBG, a middle eastern funded private equity house (but they appear to be UK focused as they also hv an 11% stake in Northbridge), have now amassed a 15.6% stake in EIIB and have got 2 representatives appointed to the board recently - so i think you can certainly count them as an (activist) catalyst also, whether behind the scenes already or potentially in the future if things don't improve!

[wexboy] 02/9/2011 20:44

not sure if i've posted on the EIIB thread b4, but after adding to my stake (this has become a top 3 portfolio stock for me now) as price drifted back to GBP 3p level, i thought i'd post my updated fair value analysis:

i) starting pt is latest GBP 143.076 mio Equity value, ii) for all negative cashflow cos (and investment cos with an expense ratio > 2.5% of NAV) i deduct 1 yr of (7.309) m estimated underlying cash burn, iii) fair value adjustment for diamondcorp, which i estimate at 1.772 m, and iv) fv adj for completed tritech sale, estimated at 7.194 m - equating to:

143.076 - 7.309 + 1.772 + 7.194 = GBP 144.733 m / 1765.659 m shares = GBP 8.2 p per share, a potential 179% upside from current share price

one cd argue that cash burn and specific investments on the b/s argue for a haircut to Book for fair valuation purposes, but i'd point to the margin of safety (Price/Book @ 0.36, and Gross LTV of 19% which cd easily be eliminated with available B/S cash/deposits) & the banking licence (people are significantly underestimating its value in terms of potential future growth and/or takeover value) as reasons to set a basic 1.0 P/B target price

i can't assess other potential fair val adjustments on the B/S, so i'll assume they average to zero - otherwise, one cn but hope that EIIB manage to reduce or eliminate cash burn with better returns/lower costs in 2011/future yrs...

finally, i'm a little bemused by the ceo/board crowing about their investing success recently...in essence, all they've managed to do is hold equity steady for past 2 years! - i guess it cd be worse!? - however, tritech sale raises an interesting prospect, perhaps one that is going unnoticed currently: the board flagged a potential dividend for 2011...

it wd have to be a final div, as tritech sale was nt completed for half-year end - this is quite an about-turn, as yr-end 2010 Retained Earnings were @ GBP 0.629 mio, leaving no real room for a dividend - obviously for year-end 2011 i'm projecting an unchanged Equity balance, but if you drill down to Retained Earnings, it shd reflect annual operating losses (which wd have precluded a dividend) plus full realized gain on tritech (remember that will be the 2010 AND 2011 tritech uplift) - overall, i reckon Retained Earnings will stand at a level that permits a maximum GBP 0.5-0.6p div

who knows if they'll actually declare a max div, but why not? - in terms of the current share discount & B/S cash capacity, it's about time the shareholders got some value enhancement, and a div's cheaper to accomplish than another tender - so a potential 18.7% dividend yield is certainly possible!

i'd make 2 pts abt this: i) nt clear if there will be any 2012 div capacity, so board may well characterize 2011 as a special dividend, and ii) obviously this div wd be a return of capital/reduction in NAV, so share price may adjust down to compensate - both fair pts, but don't underestimate (less value focused) investors' ability to salivate/obsess over current div yield and it may well draw in (more value focused) fresh investors alerted to the upside potential

so, to recap, EIIB has a strong margin of safety, a potential 179% upside to fair value, and a (potential) significant current div yield as a catalyst (edit: plus, of course, the recently built 15.6% stake by private equity house HBG, with their 2 reps recently appointed to the board)! - good luck!