Cls Share Discussion Threads

[sammu] 09/3/2005 19:09

Yes that's probably the bottom line.

That's also why this stock will always have a larger discount to NAV that average.

Controlling - controlling family!

Sam

[extrader] 08/3/2005 13:29

On REITS, I guess we'll hear a bit more post Budget. Remains to be seen whether it suits Morstedt's tax position or not to go down this route....

[sammu] 07/3/2005 22:03

Hello

Yes the IC is quite upbeat. Saying 21 discount to forward NAV is a bit of a push, but highlights the continued value here.

It's hard to see/work out what value the Shard would get on the books once they start construction.

As for REITs I'm not to sure on the impact. Generally it may well turn out to be a bit of a red herring?

I too like the geographic split, it's different, and adds diversification.

Hopefully they will have to increase the price of the tender offer again. :)

Sam

[extrader] 04/3/2005 14:09

No bus in ages and then 2 at once !

Today's IC -received an hour after last post - has CLI rated as 'good value' despite the 50% uplift in the last 12 months; notes that 'Shard of Glass development is still on books at cost, so offers plenty of upside' ;and that ShangriLa flagship tenant, per CLI 'is the best marketing tool we could have'; then concludes that, with disc to forecast NAV 'still a hefty 21 per cent' the shares are good value.....

Good luck to all holders

[extrader] 04/3/2005 11:06

Hi Sammu,
As you say, nice to see a post on this board. FWIW I've tried to interest other BBs about CLI, but no interest shown. I guess it's the lack of 'conventional' dividend and majority Morstedt holding that puts people off...

As for me, I like a business split roughly half UK, quarter Euroland, quarter non Euroland, with major tenancies in the multinational/major corporate/governmental sector.

One thing I'm not clear about is how the co would fare under the new REIT proposals that were all the talk a few months back and have since (?) got drowned in pre-election chatter. Any thoughts ?

[sammu] 02/3/2005 19:40

What a great company, and no posts for 10 months.

I guess it's a bit dull, but if dull is going up about 120p since the last post here 10 months ago, then I'll have some dull please.

The results last week were good, voids are falling with the letting of One Leicester Square and further lettings in Solna.

The company's investments in unquoted and newly quoted investments seem to be turning into better news with the turnaround in the new issues market.

The news pre letting on the Shard of Light at London Bridge is excellent.

The discount to NAV isn't as significant as it once was, which makes the investment case less compelling, but the Shard as a development is worth more than it was 1 or 2 years ago.

Just my musings.

Sam

[diogenesj] 03/5/2004 13:11

Colan: I'm not an expert, but my understanding is that if you tender shares and the company buys them, you have made a sale of part of your holding. If you get more for those shares than you paid for them, you have made a capital gain, and if you get less than you paid, a loss. The gain or loss would need to be accounted for on the Capital Gains pages of the income tax return.

Only dividends have tax credits, and this is not a dividend.

I'm not sure why the company does it this way: it is probably because it is more tax efficient for the Morstedts who control it. The effect is of course very like paying a dividend: if everyone tenders the maximum number of shares and they are all bought back, all shareholders have received some cash and still own the same proportion of the company as they did before. The only differences that I can see are that with this method the payment comes under capital gains rather than income for tax purposes, and of course does not carry a tax credit with it.

[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.