|Collins Stewart Tullett
||EPS - Basic
||Market Cap (m)
Real-Time news about Collins Stewart (London Stock Exchange): 0 recent articles
|liquidkid: Its been just over two years since Collins Stewart started its market share acquisition spree with Tullett Liberty in Jan 03. That cost £212m And then Prebon in Sept '04 which cost £125mn. Most of the price was funded by new share issues which is why the increase in value of CSTL has not had been shown in share price. Shareholders are now at the same price (420) as 4 years ago.
It has another year of high integration costs to get over as well.
Suing the FT is a waste of time and money the damages sought around £128m is said to equal the fall in Collins Stewart's share price consequent upon the FT's revelations. They'd be lucky to get this in court. Don't shoot the messenger the saying goes.
Andy Stewart's Cenkos Securities got LSE member staus on 1th April and it competes with CSTL in Market making and poaching staff!
I'm tending to be bearish on this stock.|
|broadwood: This has been overshadowed by firstly the Middleweek affair - which has now concluded in CSTL's favour and, recently the story CSTL is to sue over the poaching of its staff.
But for those things, imo the share price would be a lot higher.With equity markets recovering, their brokerage side should be doing well and they are now a major hedge fund player - for good or bad.
|broadwood: Collins Stewart Tullett, the stockbroker and investment bank, has unexpectedly headed off its forthcoming courtroom clash with James Middleweek, its former employee, as both parties agreed to withdraw their claims against each other and pay their own costs.
In a joint statement, issued yesterday, the parties said that no money had changed hands as part of the settlement.
However, Mr Middleweek added that he would be joining Collins Stewart in suing his former lawyer, Dale Langley. While Collins Stewart intends to sue Mr Langley for defamation, Mr Middleweek is to bring charges of professional negligence against him as well as his former barrister Michael Duggan, arguing that they acted without his consent. Jeremy Benjamin, a former colleague of Mr Middleweek, has already settled with Collins Stewart, after admitting to defaming the company.
Collins Stewart also reiterated its intent to press ahead with its case against the Financial Times, which it alleges libelled the company and was responsible for the sudden sharp drop in its share price when it printed the Middleweek story last year. The saga began last summer when Mr Middleweek accused his former employer of insider dealing, forwarding a dossier of evidence to the Financial Services Authority once he had been dismissed from his job. The FSA has since investigated the allegations and cleared Collins Stewart.
Commenting on the settlement, Terry Smith, the chief executive of Collins Stewart, said: "The FSA said there was no case to answer, Middleweek has withdrawn his case, his mate Jeremy Benjamin has admitted defaming us by publicising these accusations and we're told we have a good case against his former lawyer. I would like to think that a normal person would ... draw the obvious conclusions. We got a right old kicking at the time ... a real media frenzy. Someone at the Mail on Sunday even got an award for this nonsense. Now all the allegations have been withdrawn."
In a statement, Mr Middleweek's lawyers, The Simpkins Partnership, said: "James Middleweek has had a difficult 18 months.... However, there remains to be resolved his claims against his former lawyers."
Collins Stewart shares fell 2.7 per cent to 395.5p yesterday, giving it a market value of £753m.
15 October 2004 09:05
Should be good news for the share price!|
|kmd26m: Report in Sunday telegraph states that CSTL have won the auction to float off the second largest ports operator in the UK against stiff opposition from other operators. Points to another AIPO by same team that pre-sold Northumbrian & centerparcs successfully on AIM. Needless to say no news about this on RNS and the share price has drifted down this morning.|
|kmd26m: Good news - Fidelity Corp. have just purchased 1.7 million shares in CSTL - see RNS 14/4/04 - increasing their holding to 9.05% of issued share capital.(17m shares)
thereby increasing support for the share price - at circa 445-455p. This will perhaps reassure some of the holders of this stock that the main attraction of CSTL at this price is the long term earnings potential of a top flight broker - that does not need to reinvest all of its earnings into plant & machinery etc - a cash cow. Fidelity mustlike the no.s growth over the last three/four years and like the potential for continued growth based on the management teams achievements - transformational acquisition of Tulletts and innovative creativity in developing accelerated flotations on AIM. It appears to an amateur investor that backing the horses chosen by the acknowledged leaders in equity fund management is not a bad idea although i do not think this will be a ten bagger.
May be some time before stock reaches the 490p+ level given the jittery market conditions generally and sentiment towards financial stocks at present.
A lomg term buy without a doubt
|broadwood: Lloyds through Scot Widows declared a disclosable stake today. Do the investment managers just like the stock or is some stake building going on.
Would make a good fit with Lloyds who are very weak in stockbroking - share price has woken up since 1.30p.m|
|kmd26m: Daily Telegraph 4/12/03 9.00am website has reported that Centerparcs have been sold to institutional investors after a float on the AIM organised by Collins Stewart.
This is great news for CSTL. It proves that the Northumbrian deal was not a one-off - consequently CSTL are securing a step change in their earnings from investment banking operations. Collins are leading the attack on the private equity buyouts that have dominated for the last few years and this model could be replayed repeatedly. At the least I expect this news to put a new floor under CSTL share price at 430-440p, with a move towards 470p in next few weeks.
|rmilner: Although there have been substantial sells, it's interesting to note the two large buys mid-morning of around 120,000 shares a-piece.
Price is currently bang on the 375p resistance level, which I erroneously mis-read as 380p. This is a real test as it seems a fairly stubborn resistance.
( There I've said it ).
Descent from this point would be a real concern as it would indicate next resistance of 360p, and below that maybe sub-340p.
Personally, I feel that most of the bad news must surely be out by now, but we do need a quick resolution to the spat between Collins and Mr. Middleweek.
As one of the dailies said today, they could have paid Middleweek off with £3m, but it's cost Terry Smith £8m personally in terms of the share price drop.
If we assume no more bad news, surely these look fairly atrtractive at this price ?|
|kmd26m: 380p broken this morning.
1) The Daily Telegraph reports that an efinancialnews analysis on Collins Stewart's AIM IPO work concludes that the sponsor work is average (ranked 9 out of 18). If the report is correct this suggests that one of Middleweek's main allegations of minimal due diligence on new issues is wide of the mark. It would appear to be at odds with implications in the FSA document written by Middleweek - that Collins Stewart failed to do a proper and professional job on the issues that it sponsored.
2) Collins Stewart have also attacked the Middleweek allegations of ramping the share price in advance of the Tullett takeover - citing that a price of 308p was fixed several weeks/months in advance of said takeover. Assuming that Collins Stewart can prove that the price was set several weeks/months in advance of the takeover demolishes another one of Middleweek's main allegations (two nil for Smith's team)- that Paul Compton urged and encouraged the CSTL small companies team to find buyers of CSTL stock before the Tullett and Tokyo takeover - ramping the share price using price sensitive information.
I now have little doubt that Terry Smith will triumph in his personal battle with Mr Middleweek, but at what cost to the Collins Stewart business. Against the FT the result will probably be a draw - although i suspect that future coverage of CSTL will be less inflammatory.
Balanced against the price action it appears that sentiment is for taking some of the profits that are still on the table. A drop to 340-360p is very possible in the next ten days. I still expect a rally in the price ahead of the results due on the 22nd and consider that the share will struggle until this pathetic affair(bugging devices and phone cloning) blows over. I remain a LTBH of Collins Stewart.
|jeffian: RNS this morning saying that CSTL are suing the Financial Times for defamation. As someone who's been involved in quite a lot of litigation (not as a lawyer, unfortunately!), I was interested to see that the sledgehammer with which they threaten the FT is a claim for damages based on the fall in CSTL's share price. The essential element of damages, of course, is that the claimant has to show that he has directly suffered financial loss equivalent to the amount claimed. Surely, in the case of a falling share price, the losers are the shareholders (not a party to this action) and not the company itself? Sure, its business may have been damaged and the reputation of its executives tarnished, but the value of those is a different matter entirely.
I appreciate that this is a side-issue, but it struck me that it smacked of desperation and reflected some panic in the CSTL camp.
Collins Stewart Tullett share price data is direct from the London Stock Exchange