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Real-Time news about Beeson Greg.Grp (London Stock Exchange): 0 recent articles
|scotgard: anyone know the reason for the share price drop today?
|blueday: A very nice piece on Active Investor :-
Mistakenly, most investors seem to have the view that Beeson Gregory (BGG) is just another quoted stockbroking outfit. It is, rather, an excellent way to play this coming market move -- see my Private Investor Alert for more -- with almost no risk.
Beeson Gregory, founded in 1989, is a London-based investment banking business with a focus on growth companies, predominantly in the UK but also in Europe and the US. It provides a broad range of corporate finance and broking services to its corporate clients. For its investment clients it provides sales, trading and research.
It has three main operating divisions: corporate finance; sales, trading and research; and IndexIT.
The corporate finance side generates fees and commissions for issue management, underwriting and corporate advisory services. It provides corporate advisory services to over 90 quoted clients, more than 30 of which are capitalised at over £50m. It is particularly strong in the technology and biosciences sectors.
The sales, trading and research side generates revenue from primary and secondary equity sales and trading. It makes markets in over 140 companies and covers equity research for over 150 companies.
The IndexIT side generates revenue mainly through providing advisory services and raising private equity for unquoted early-stage companies in the enabling technology sector. This part of the business has a natural synergy with the corporate finance side, servicing clients from start-up through to IPO and beyond.
When the group went public in April this year it placed 6.7m shares for vendors and placed 10m shares for the company at 300p a share, valuing it at £196m. Of the £27.3m net proceeds the company invested £20m in the Beeson Gregory Technology Investments fund (BGTI).
BGTI, with its focus on investing in companies in the enabling technology sector, including semiconductor intellectual property, e-commerce, infrastructure software and certain other technology subsectors, has no external investors.
Certainly not to be confused with an incubator fund, BGTI is a very interesting part of the BGG framework. By the end of June it had invested some £8.5m of that £20m.
Those investments include:
Amino Communications (3% equity stake); interconnect technology.
ARC International (0.8%); configurable processor cores.
Beach Solutions (12.5%); hardware-software interfaces.
BrightCom Technologies (7.9%); Bluetooth chips.
DigMedia (undisclosed); music content management tools.
Eliad Technologies (2.1%); rapid visualisation and manipulation software.
Elixir Studios (undisclosed); computer games.
Epoint (15%); e-commerce access technologies.
GameCluster (10%); 3G mobile devices architecture.
Immersive Education (2.5%); interactive educational software.
PalmChip Corp. (4.9%); semiconductor IP cores.
Planet Group (1.8%); Internet payment solutions.
RF Engines (10%); digital signal processing with radio frequency.
Wolfson Microelectronics (3.3%); high performance mixed-signal chips.
On September 8 Beeson will announce its results for the six months to June 30. They should show a very useful set of figures and describe current trading and prospects.
Broker Donaldson, Lufkin & Jenrette, which acted as both sponsor and financial advisor on the float, is looking for pretax profit to almost double from £6.7m to £12.6m, lifting enlarged equity group earnings per share from 11p to 16p. For the coming year, DLJ expects £15.5m, worth 18p per share. For 2002 it goes for £18.1m, generating 21.1p per share.
However, DLJ strikes it absolutely right when it concludes that Beeson shares are a "buy". Using discounted cashflow, it values the core business (excluding BGTI) at 400p a share. BGTI it says is worth £200m -- another 300p a share.
Now I have no problem with taking a bullish stance on Beeson Gregory shares, but a target of 700p does look a bit fanciful. Even at the current 292.5p, the shares have come up 60p in the past week or so. I still feel that they have a lot further to run. My target price would be around the 500p level.
Next week's figures could help push them higher, as could news that ARC International is to seek a £400m float within the next four to six weeks.
ARC International, in which BGTI has a 0.8% stake that cost £1,629,864, designs and licenses configurable processor cores that provide a rapid design solution for embedded ASIC chips. These chips substantially reduce development time for telecom, networking and consumer electronic products. That relatively recently purchased holding looks as though it has already doubled in value, in less than four months. A successful IPO could move the share price another 50% higher, thereby trebling the original investment.
It is the potential of the IndexIT boys and the BGTI fund that makes Beeson so much more than just a plain broking and market making operation. It also makes the shares an absolute steal at the current 292.5p.|
|capitalist: Could not find a thread on these guys so thought I would start one.
Strange happenings today, as far as I can see, Zurich Financial Services Group, through its subsidiary Gresham Trust plc, announced that they no longer have a notifiable interest and the share price jumped up 15%. Trades figures don't look too amazing, so what is going on?
Beeson Greg.Grp share price data is direct from the London Stock Exchange