|Coalfield Resources Plc
||EPS - Basic
||Market Cap (m)
|jeffian: Indeed. 8-)
They (the PF) did as well, which gave me pause for thought. We've discussed before, strutt, why there may be a discount and I think the chances are those reasons will continue. Rightly or wrongly, I saw the refinancing as a chance to get out at a premium to the former share price. There clearly is value here in the long term, but I'm not sure how quickly it can be realised and I have a different agenda now.
|strutt12: You just have!!
19 Feb'15 - 14:35 - 483 of 486
As far as the share price is concerned, the market sets the price but when it comes to a deal, why would anyone sell at less than NAV?|
|jeffian: As far as the share price is concerned, the market sets the price but when it comes to a deal, why would anyone sell at less than NAV?|
The consideration will be a shareholding of between 25% and 29.9% in the Company with the balance of the consideration payable in cash from an expected firm placing and open offer to shareholders during the first quarter of 2015.
Discount to net asset value
At the start of 2014 the shares were trading at 6.0p per share which equated to a discount to the underlying net asset value of 34%. This discount fluctuated through the year. At the point of suspension from trading on 18 November 2014, the share price was 5.4p, a discount of 43%.
Whilst the discount to net asset value represents an indicator of potential impairment to the investment in Harworth Estates, the Directors are confident that the carrying amount of the investment does not exceed its recoverable amount and therefore no impairment is required|
"The share price will follow the growth in NAV and the realisation of development value as it happens, and that will take years rather than months."
Errrrr, NAV increased, more planning permission obtained, share price reduces!!!|
|jeffian: Have a look at the accounts which specifically include a section on Harworth Estates.
You tell me how much rental income they have (nil/next to nil) and what "dividend" they pay to CRES (nil).
I, too, have shares in this company because I like buying £1 for 50p, but I appreciate it may take a while before that value is realised. It isn't growing "with little risk", it has a risk that the value will not be achieved by planning permissions, by fluctuations in the property market and by delays in realising that value. In the meantime, the share price will fluctuate as the market's perception of the likely timing and amount of such realisations changes. Basically, CRES owns 25% of a company which just owns a lot of derelict land (former mining sites) which it hopes will pay out as they are developed for housing or commercial use over time. There is also, as you say, the chance that Peel will buy out the rest of the company they already own, though I can't see a compelling reason for this as they are already in the driving seat.
It is likely that the share will always trade at a discount to underlying NAV for the reasons given previously. What one hope is that current NAV proves to be vastly undervalued as the development potential of those sites is realised.|
Don't get defensive, I was just giving my opinion I didn't say you were talking rubbish either. I have a lot of faith and money tied up in this stock and always knew it would be a long time before the real value is uncovered.
When I asked about rent I was referring to Harworth Estates, obviously CRES don't receive rent as they only have a shareholding in Harworth so will only receive dividends.
What I'm unhappy about is I see no reason for the share price to fall when the company can only grow with little risk, I also feel that Peel will take them over before we get to any true value.
In hindsight I should of taken profits when I had the chance at 6.5p with a view of buying back in now, but knowing my luck they'd fly the other direction after i sold.|
|strutt12: Net assets per share of 9.6 pence (FY13: 9.1 pence)
And yet the share price still falls unbelievable!!|
|dazzaa: I would think grow and stabilise the share price.
What gives you the impression that Peel intends to do anything other than play it straight they have no track record of being devious, certainly they are good negotiators, I would think they want to get profits on track and the share price on the rise without anymore distractions.|
|badger1963: yep I should have ,in hindsight I am not a trader ,but have a few investments ..
when I bought Cres shares it was looking like a positive investment with assets value far exceeding share price ,was looking for long term investment and this looked ideal ,then Daw Mill happened ,followed by ppf taking over Harworth , thought this could lead to a buy out at a decent price ,but that hasn't happened and there is a total lack of interest by the Market ,when at this price it looks like a giveaway ,hence a little confused as to what next ,|
Coalfield share price data is direct from the London Stock Exchange