Cls Share Discussion Threads

[colan] 02/5/2004 21:31

Hi,

Do you understand the CGT / Income tax implecations of the share buybacks?

Do you know why the payments last year did not have the usual tax credit vouchers that I am used to for other companies.

Any informed help apreciated.

[diogenesj] 15/4/2004 10:15

C: my ignorance on the subject of Spring Gardens and Government plans (if any) is total, I'm afraid.

Tender offer to buy back 1 share in every 36 at a price of 360p launched today (in lieu of last year's final dividend). (Compares with the current mid price of 309p.)

[colan] 18/3/2004 18:33

All the following iss imho, dyor etc

Anybody know if the government plan to move civil service jobs out of London will effect Spring Gardens?

[diogenesj] 03/3/2004 22:44

This board seems to have gone a bit quiet, but the shares have done remarkably well (up 76% since the low last April). Excellent results last week seemed to pass unnoticed. Still at a 26% discount to this year's forecast net asset value, and the share buybacks seem unjustly unpopular (they're equivalent to a distribution of 16.5p to shareholders for last year, a historic yield of 4.94%. Shares are bought back at a premium to the market price, but below net asset value, which has the effect of increasing the NAV of the remaining shares). This is a well run company with a remarkable record. Perhaps there is just nothing much else to say about it.

[ed 123] 26/6/2003 13:11

It looks like someone bought 200,000 shares today. It pepped up the share price a bit.

[skyship] 05/3/2003 16:37

At least they are mopping up loose stock again - 1.05m bought-in @ 200p. The tender offer will further reduce the issued equity and further boost NAV; but I wish they would pay us a proper dividend and underwrite the shares with a proper yield.

But overall I do agree, why not take this company private amd make a nice turn for themselves in doing so. I can't imagine anyone not being happy with a 15%-20% discount to NAV, ie c.320p-340p.

[hybrasil] 05/3/2003 09:20

What is the point of retaining the quote when the market treats results like these. Put us out of our misery please and take this thing private.

[hectorp] 28/2/2003 17:04

Pretax profit up ovr 50%
NAV discount is almost 50% link to excellent results


- I feel like tucking a few K of these into the long term portfolio or pension fund. Notice the French and Swedish properties are not subject to the market downturn of London and '40% of our London properties are let out to HM Government'.

[mimur] 30/11/2002 16:51

There's no trading in the stock.
No-one seems to know it exists.
Do a little research into this stock to see the potential value, and be amazed at how much it is discounted to NAV for the last few years. Hence, the Directors seem to be working towards taking the company private again.
Of course the later is just MY opinion.

Anyway, more coverage on the stock would certainly help.

[soheil] 28/11/2002 14:09

Does this share ever move????

[mimur] 13/11/2002 16:10

Can you feel the heat.
Eruption soon.

[skyship] 19/9/2002 17:21

Glad to see the Company is now back in picking up its own stock at these crazy prices. The quoted Real Estate market is really weird - flat on its back when the physical market is sooo strong. My finger is twitching over the buy button on a number of the plays from earlier this year - HMSO & SLOU in particular are getting to very tempting levels. Can Real Estate (UB86) detach from the wider market. Any views ACOL? (Still holding HNN incidentally)

[skyship] 12/9/2002 23:25

Well ACOL - we may be an endangered species around here - but with results like today I'm quite happy to be in the minority & with that NAV it looks as though we are well on course to hit my 425p yr end target - no wonder they put on 7% against a 3% fall in the FTSE!

[kenny] 25/8/2002 09:37

From the Guardian 24.08.02

"Among the smaller stocks, property group CLS Holdings marked time at 204p despite whispers that chairman Sten Mortstedt, who already owns 43.3% of the company, is planning a management buyout. With the CLS trading at a steep discount to its net asset value, estimated at somewhere in the region of 350p, traders believe there could be some truth in the speculation."


Looks like things may get interesting!!

[acol] 24/8/2002 12:25

titonboy

I can confirm that your analysis (post 20) is incorrect. One of the trades @ 204.4p was mine and was most definitely a 'Buy' Enjoy your "jollies".

[skyship] 24/8/2002 00:45

WARNING: For Investors only – not for Traders……;..

It is possible that a large line of stock over-hanging CLS Holdings (CLI) is about to clear (see below), in which case this is a property company likely to show a good return over the next few months. I’ve collated and updated a few of my comments on the old FreeBB thread, so as to make the case easier to follow:

I remain very much a commercial property bull, as really it is only in the City and London West End that rental value falls have not outweighed the increasing values arising from lower yields. CLI has actually pulled back by 21% from the May peak of 260p to the current 204p. At this level it stands at a 44% discount to the historic (31/12/01) 365p NAV; and a 49% discount to a concensus 400p NAV for the end of this year. Each year the NAV is marginally enhanced by the policy of share buybacks instead of dividends - these give a yield equivalent of 5.4%.

However, even though the "FRS 13 Fair Value" adjustment knocks 16p off the NAV, I believe that concensus figure will be left far behind. ING Barings estimate 416p, but even that doesn't allow for:

1. The effect of the Euro appreciation on a property portfolio historically 42% on the Continent (France-22%; Sweden-20%; UK-58%); but apparently now much nearer 50%.

2. The likely rise in commercial property values in H2

Having such a high %age exposure to the Continent is now viewed by many property followers as a significant benefit. Property yields are considerably higher across the Channel; and the sector as a whole is viewed as "under-played". It is interesting to note that of last year's £30m revaluation surplus 36% came from France; 39% from Sweden; and just 25% from the UK.

Being a family controlled company, CLI has historically traded at a larger NAV discount than its peers; however the Swedish Mortstedt family adopt a far more open and approachable policy than their British counterparts. Also, CLI is a freely marketable stock being now quite a large company with a 31/12/01 Year End portfolio value of Gross £728m and a Market Cap of £197m. The 76 page Annual Report is commendable in its detail; and well worth a detailed read.

I think there was a very good reason for the recent decline, essentially Govett Strategic I.T. (GVS) was a forced seller in view of their winding-up/restructuring. We know they sold 740,000 @ 220p; and they must remain the favourites to have been the rather crass seller of another 1.75m shares @ 188p on 15th July - 12.5% below the then market price! It may not have been them of course, but whoever it was, it wasn’t a smart move as CLI was and is in a closed period, so unable to buy-in the stock. If they'd thought of that they could surely have sold the line back to the Company on 30th June - CLI is a confirmed buyer-in of the Company's shares.

Such poorly handled transactions present profitable opportunities. To my mind the market-maker who took the stock will remain a tap seller until the Interims next month. The results will clear the way for the Company to buy-in loose stock and for the Market as a whole to be reassured as to the Company's value. HOWEVER, the loose stock may not be around much longer, as a look at the ADVFN Trading history shows (according to my allocation of the Trades) that since 2nd August the market has sold no less than 1.56m CLI. All this stock comes from the GVS "forced sale" of 740,000 @ 220p on 21st June & the further sale (possibly GVS again) of 1.75m @ 188p on 15th August.

Assuming the 740,000 were absorbed by the market between 22nd June & 1st August (and I haven't the trading history to check that), then the astute market-maker who took the cheap stock @ 188p may now be down to his last 200/- shares; in which case we could be in for a run sooner than anticipated. Still anchored @ 202-206 today.

With gearing @ c.100%, I have a personal target of 425p for the y/e NAV; and a share price target of 255-260 over 6 months. For me this is a core long-term holding. With solid support evident @ the £2 point , the potential upside shows the right sort of multiple to the downside risk. Looks like a safe BUY.

[skyship] 24/8/2002 00:00

I should have done this earlier, but anyway....Today I went back over the past three week's trades (ADVFN 21 day history); and the result is that according to my allocation of the Trades, since 2nd August the market has sold no less than 1.56m CLI. All this stock comes from the GVS "forced sale" of 740,000 @ 220p on 21st June & 1.75m @ 188p on 15th August. (NB - The latter may not have been from GVS, but a £ to a p it was "The Bozo Fund")

Anyway, assuming the 740,000 were absorbed by the market between 22nd June & 1st August (and I haven't the trading history to check that), then the astute market-maker who took the Bozo stock could well be down to his last 200/- shares; in which case we could be in for a run sooner than anticipated. Still anchored @ 202-206 today.

[tiltonboy] 23/8/2002 23:28

SKYSHIP,

Sorry to disagree, but I think you will find that the deals at 204 and 205, over the last couple of days, were actually sales.

Irrespective of how much stock is in the market, if CLS come up with the goods, then a re-rating should occur.

I am on my "jollies" next week, but will follow events from a distance.

A good weekend to all.

tiltonboy

[acol] 23/8/2002 19:50

Skyship

Unfortunately there are very few 'value' posters on this board and consequently you can end up talking to yourself when you post on such stock. Years ago I posted on London & Associated and Bourne End Properties - both of which attracted very few comments. Nowadays, I tend to lurk because I rarely seem to find the time to post.

These last few weeks I have been cautiously dipping my toe in the water trying to find under valued stock. I too feel that this stock is unlikely to go much cheaper - a comment that does not apply to many stocks, as we all know too well!

I think the only other property stock trading at a similar discount is LAS. However, that stock is very illiquid and I am less happy with the retail property sector. Family ownership is an even bigger problem than CLI.

I share your enthusiasm for this stock and bought on Wednesday @ 204.4p thru ideal. The following day the buy price had edged up to 206 - although doubtless you could have got a lower price using a non-internet broker.

This recent market rally could run out of steam at any moment - in which case the downside of CLI is limited. However, the upside could easily take the share to 250p and beyond and it would still be good value. I think that is a good risk/reward ratio.

PS I also bought into DNX the other day and I am sure I have noted one or two other mutual interests.

[skyship] 23/8/2002 16:54

Tiltonboy - I read today's trades @ 204 as purchases; as with the 110,700 @ 105 yesterday. Looking back over the past 3 weeks I estimate that practically all of that 1.75m sale on 15th July has now been absorbed - possibly just 200/- odd left. If so, then clearance of a stock overhang usually brings a fillip to the price. Posted as such on that new PremiumBB thread. Yes, interesting to see yet another property company go private (Grantchester). Wouldn't mind betting that tiddler ESA will be the next.

[tiltonboy] 23/8/2002 14:48

SKYSHIP,

I have been chipping away at the overhang, but it appears that stock was replenished yesterday with a couple of large(ish) sales.

MLSB, initially, had the "cheap" stock, but HSBC now appear to be able to find stock. This is where we have been picking up stock the last few days. With a 4p touch I would normally expect to deal inside the price, but MLSB and HSBC have been resolute in their offer price.

Interestingly the other MM's have been bidding for stock, and not even wanting to match the offer.

Providing there are no nasty surprises, in the figures, I also believe the stock will enjoy a run. The company will no longer be in a "closed period" and may well take the opportunity to "buy-in" a line of stock, as well as offering a tender to shareholders.

I can't see any reason why there should be any nasty surprises, but in these markets, share price weakness makes me a little nervous.

Yet another property company succumbed to a takeover this week, namely Grantchester. I am sure further consolidation, in the sector, is going to happen. Lets hope CLS is one of them.

All IMHO and always DYOR.

tiltonboy

[skyship] 15/8/2002 16:25

Tiltonboy - likewise, I await the next set of Interims with keen anticipation.

[tiltonboy] 14/8/2002 14:13

Skyship,

Some very informative and helpful posts.

I have also done some limited research on the company, and concur with your findings.

I have made this one of my core holdings for clients, and though I got the timing wrong( started buying them at 250p) I am happy with what I see. We previously held, and did well out of Saville Gordon, which was our previous Property play.

In these difficult markets it is difficult to find value. I believe this is as close as it gets.

You mentioned about the Mortstedt family not taking the company private. In fact, they are, by stealth. It will be a long process, but each time the company buys in shares for cancellation, their stake grows. Folkes Group(another successful play) did the same, but ended up mopping the balance up in one go.

The results can not be too far away now. I await with interest.

Any other good ideas?

tiltonboy