Armour Group Share Discussion Threads

[callumross] 16/10/2014 12:36

Excellent risk/reward purchase at these levels. Trading below the 4.1p net cash. No debt. Plus the asset of the £1m loan earning 10% per annum owed by the old business worth another 1p per share. Plus of course they retain 25% of Armour Home which may or may not be worth a lot in the future but is worth over £1m currently based on the transaction when Armour Home was disposed. Away from the turbulence of the markets while fully in cash and likely to mean the valuations of any businesses acquired will be cheaper and better value. Only reason share price has languished is because someone is looking to get out. Perhaps the director Bodger who recently left (he held a quarter of a million shares) or perhaps an institution who is not allowed to be holding shares in a cash shell or non operating business. Hence the 150k sale at 3.5p delayed by a few hours. As well as the shares traded on LSE, though, another 175k has been bought already today through ISDX at 3.75p so may not take long to clear this overhang at this rate.

[eezymunny] 16/10/2014 12:05

Bought a few today for the EezyMunny portfolio FWIW.



Looks on balance the wrong price here tho clearly we depend on BM's savvy in investing the cash..

[sonofbanjosinger] 17/8/2014 08:41

I agree the downside risk is minimal, with potentially some good news coming at anytime.

[callumross] 16/8/2014 00:05

Not a bad entry point. £5m in cash and loan notes equals 5.1p in liquid assets plus the value of the quote and, of course 25% of Armour Home kept in house which could be worth several million in due course depending on how good a job the new management make of turning the business around. The success of your investment will depend on whether Bob Morton still has the connections and expertise to instigate a value enhancing reverse takeover. His record has been mixed over the years and he must be approaching 70 now but at least the shares have been largely derisked given the asset backing. The remaining risk I guess is that no deal will be done within 12 months in which case the listing will be withdrawn under AIM rules. I am happy to hold as the risk reward ratio is good at these levels. The 10% yield on the loan notes should cover the ongoing costs of the business (but not due diligence costs).

[sonofbanjosinger] 15/8/2014 21:20

Thanks took the largest amount offered, been accumulating for a few months. Looks an interesting play medium term.

[callumross] 15/8/2014 20:26

Yes it did - done on ISDX market, not LSE. See below:

14/08/2014 16:27 110,000 @ 5.3

[sonofbanjosinger] 15/8/2014 09:22

I see my 110,000 buy never showed up yesterday.

[envirovision] 28/7/2014 10:27

Have not seen these so well bid for quite a while. Clearly either someone is in the know of what deals afoot or investors are starting to get rather excited about the developments on the table here.

Either way can sell 100K at a premium right now. I should not be surprised to be seeing fresh multi year highs at this rate.

[chrisdgb] 23/7/2014 10:39

Interesting volume just ticked through, someone recognising an interesting situation..??

[chrisdgb] 21/7/2014 08:17

He sure is, I wonder if there are any Tech companies where Peter Webb has a decent holding, wants to get something going..??..

[envirovision] 18/7/2014 13:46

Bob Morton still very active:

hxxp://citywire.co.uk/money/bob-morton-buys-stake-in-peter-webb-s-fund-firm/a761291

Hi holding in AMR is in Hawk, I guess he is very well connected to say the least.

[envirovision] 18/7/2014 13:04

So anything could happen now, not what I expected at all although I thought it was odd they had recently cut back on their advertising activities.

[callumross] 18/7/2014 09:42

Just rechecked my calculations as slightly out. 93.6m shares in issue. Divide the £4m cash plus £1m loan by this we get 5.35p per share net liquid assets and a healthy 10% interest coupon on the £1m. This asset value is supplemented by whatever 25% of Armour Home is worth. Hard to determine that at this stage and I guess it very much depends on how the new management manages to turn round the business. Not quite sure that I thought I was investing in a cash shell, however!

[loverat] 18/7/2014 09:40

I believe it was Bob Morton and colleagues who ripped off investors in RIIG some time back. Still, this may be completely different once the facts are digested.

[callumross] 18/7/2014 09:37

And I guess the share has been totally derisked.

[chrisdgb] 18/7/2014 09:35

I guess we need to take a view on the value of Bob's connections as to what will be reversed in here..??

[callumross] 18/7/2014 09:34

Are we being ripped off here? Only retaining 25% of Armour Home and assets of only £4m cash plus a £1m loan to the acquirer i.e net liquid assets of only 5.2p and an illiquid shareholding in a private company.

[chrisdgb] 18/7/2014 09:28

I guess I am the only one who is excited by the disposal..!!??

[chrisdgb] 18/7/2014 08:57

Wow, cash shell, technology focus, Bob Morton will certainly have no shortage of things to buy, exciting times..

[chrisdgb] 15/7/2014 10:05

Indeed, should at least be back to the 6p level....

[callumross] 11/7/2014 15:33

Yes, this stock is well bid by the MM's - offered me 4.9p for 100k of my holding. Nowhere near enough to tempt me :-)

[cockerhoop] 11/7/2014 13:59

Liberatingsteptoe,

You appear to be correct - current price 4.9 bid, 5.25 offer.

[liberatingsteptoe] 11/7/2014 12:18

Judging by the first buy today, would I be wrong in saying that the two 35k trades were actually sales at over the mid price? If so, our shares are wanted.
Ls

[chrisdgb] 11/7/2014 11:10

Good to see more volume ticking through today..

[chrisdgb] 10/7/2014 15:02

I notice Finncap still have their rating under review...would be nice to have new forecasts/rating in the market....Mr Buxton pull your socks up..!!