Eurovestech Share Discussion Threads

[sbs] 11/8/2011 15:45

I'm already up to my CGT allowance this year. A market buy back increasing the assets per share would be fine for me. The trick is to buy back at a low price - which I suspect won't be hard in the next month or two!

[a0148009] 11/8/2011 11:01

What about a capital distribition, this would be tax effective with relief against
CGT exemption allowance or losses depends if management are prepared to do this
it makes sense for their holdings too.

AO

[sbs] 10/8/2011 15:26

I pay income tax on a dividend - but not on a buy back, if it is just buying in the market.

So I would prefer a buy back.

[ozz2] 10/8/2011 15:17

dd776--will these still qualify for any payments from the 23/06/2011 announcement? must say I still haven't got my head around this situation yet.

Does anyone know if there is a qualifying date for acquisitions to be entitled to be included in this 12.5mil shareout? Was it only for holders pre-23/06/2011?

[praipus] 10/8/2011 10:56

Weiss leaving EVT, cant find the entry RNS on this though?



To track the rest of Weiss's holdings and see what they buy next see the WAM T
racking the Arbitrageurs thread:

[dd776] 10/8/2011 10:28

kss fuels should also be reporting soon. back in today at 13.2

[a0148009] 10/8/2011 00:33

Would expect some news on this capital distribution soon would prefer circa 4p
rather than a share buy back.

"It is the current intention of the directors of Eurovestech to recommend the
return to shareholders of in excess of half of the GBP25 million proceeds and
will provide an update as to the most appropriate method of capital
distribution following consultation with the Company's major shareholders."

AO

[kenmitch] 27/6/2011 18:06

THE classic example is Luminar. They borrowed in order to buy back around £8. I emailed (held the warrants then but sold on their stupid reply) to point out that borrowing to buyback was folly.

They replied about the need to "retire money to the business" and "investing in the business" and told me in no uncertain terms that I didn't know what I was talking about when I questioned how buying back shares and cancelling them couldn't possibly be "investing in the business."

Since when their share price has fallen 99% to about 6p.

Our EVT example has shown that even when a Company is cash rich and trading well below NAV buying back doesn't make any difference. But EVT might do it again. I usually sell whenever a share I hold goes for a buyback. Made an exception with EVT because otherwise it is good and well managed. Don't want to sell so am hoping they have learnt from the last buyback.

[griffmg] 27/6/2011 13:21

Even a cash rich company is wasting shareholders funds with buybacks imo.

Think of Home Retail, started a BB at around 280, dropped to about 180 as a consequence - and they had 400mln in cash to start with!

[ozz2] 26/6/2011 20:43

Agree with kenmitch re BUY backs, in lots of cases it is a waste of money, but I suppose we have to believe the Boss man and his decisions;Most of which have been good ones.
Nice to see a bit of northerly direction in the share price, as for being cheaper? if only the markets would see it that way.

[marab] 24/6/2011 11:07

kenmitch, I understand your frustration. Cash should go where it achieves maximum value, and a buy back generally isn't the answer.

[kenmitch] 23/6/2011 14:42

Instead of ranting about buybacks I should have reminded - in case anyone doesn't realize already - that the news today means they have now cashed in £40 million from their £2 million investment in Toluna. A stunning success. And it's not the only one with KSS not far behind.

[kenmitch] 23/6/2011 11:20

"Return of cash" does indeed include buybacks. Companies (e.g Marks and Spencer under Stuart Rose) include comments about how they have rewarded shareholders with buybacks even when as with Marks and Spencer the buybacks were at a much higher price than the current share price. I've been rewarded with many buybacks - e.g M and S, BP, one of the big banks and in each case as the share price went lower this "reward" was in fact a punishment!

Unfortunately exactly the same applied with the EVT buyback as I told them I was very confident would be the case.

Trouble is Institutions love them and ill informed journalists parrot their advantages without understanding them and so the myth continues that buybacks are a good thing.

Even Investment Trusts buying back to reduce the discount is a waste of money imo. So what if the discount is too large - that makes it attractive to astute new investors. And if instead of wasting the money on buybacks they invested it in undervalued Companies their share price would go up faster anyway. All that happens when Investment Trusts buyback is that the share price does tend to rise on the news and the discount narrows and then within a few weeks the discount widens again... until the next buyback! And so on and so on. They never learn.

Yes a very cash rich company buying back MIGHT see a positive share price reaction and if they don't at least it means the shares are even cheaper but otherwise nearly all buybacks are a total waste of money as sadly was the EVT one.

But Companies like EVT can't ignore the wishes of their larger shareholders and buybacks are a good way for them to do some selling without trashing the share price.

[marab] 23/6/2011 10:55

Can "return of cash" be achieved by a buy back? Surely a buy back would only enhance NAV which would be a bit pointless with the usual discount to share price. I agree with kenmitch, the last buy back was a waste of time and they would have been better investing the cash in other projects. Paying a divi would have perhaps encouraged new investors.

[kenmitch] 23/6/2011 10:46

Good point. Hope it is a cash return then! The last buyback achieved..... what? Trouble is their big investors will probably want another buyback and they can't ignore their wishes presumably.

[a0148009] 23/6/2011 10:06

Buybacks are often referred to as a return of capital, they are going to consult shareholders so in this instance may be cash of a mixture of both the latter the company has done in the past.

AO

[marab] 23/6/2011 09:24

That's EVT for you though, just as you are falling asleep and forgetting about it the next deal comes through.

[kenmitch] 23/6/2011 09:16

It has now.

Pleased it is going to be a return of cash and not a buyback.

Would have preferred seeing it used for further investments.

[marab] 23/6/2011 08:13

Good RNS and the price hasn't moved yet.

[ozz2] 15/4/2011 13:40

kenmitch, I agree and that is why I re entered the fray,the latest acquisition posted by Cortez could also be a winner IF it follows past successes, Richard Bernstein certainly earns his cash here so far. ---ozz2

RNS Number : 9125E
Eurovestech PLC
14 April 2011

14 April 2011





Eurovestech plc
("Eurovestech" or "the Company")


Proposed acquisition of Market Planning Solutions Inc by KSS Ltd



Eurovestech is pleased to announce that KSS Ltd ("KSS Fuels"), its subsidiary company and world leader in fuels pricing software, analytics and consulting, has agreed to acquire Market Planning Solutions Inc. ("MPSI"), an industry leading network planning services, data collection and analytics company, subject to MPSI shareholder approval and certain closing conditions. The acquisition is expected to complete during May 2011.



The acquisition will enable the integration of both companies' industry leading fuel pricing software and analytics and the combined organisation will build upon MPSI's recognised leadership in network planning capabilities globally to serve petroleum, convenience and grocery retailers of all sizes and in all segments of the market. It is also expected to enable KSS Fuels and MPSI to leverage their collective research, sales and marketing resources to diversify into new market verticals and sectors. Bob Stein, president and chief executive officer of KSS Fuels, will manage the combined entity.



Eurovestech's Chief Executive, Richard Bernstein, said: "This acquisition will reinforce KSS Fuels' market position, with more than 500 customers in 80 countries and position it as a world leader in each of its core disciplines. We expect that this will also be earnings enhancing for KSS Fuels over the coming years."



Further Enquiries:



Eurovestech plc

Richard Bernstein (Chief Executive Officer) 020 7491 0770

[cortez] 15/4/2011 12:58

Proposed acquisition of Market Planning Solutions Inc by KSS Ltd. Looks like they went private in 2004 and no mention of cost.

[kenmitch] 15/4/2011 12:50

ozz2.

It was Meldex. A rubbish company and Mike Walters was hounded for daring to say so. The more sensible of us got out when they wouldn't let Mike near their supposed site in Florida probably because it didn't exist! The rest ignored all the obvious negatives and some lost a fortune.And you're right, other blue sky rubbish including Mike's favourite, Minmet, went the same way. His site is very different these days. Indeed when I posted about Blinkx last year, around 15p, nobody wanted to know!

As for warrants and sub shares.... understanding them is very easy and time wasted on Meldex would have been far better spent on mastering them. It can be done in no time and now warrants and subs are among the most popular of the threads there with a lot more investing in them. There is also a site warrant and sub share portfolio started last July and now up around 75%.

Anyway that's all off topic and of no interest to EVT shareholders here - or EVT themselves! That there are now so few interested in EVT is because the share price has done so little for so long. It was a great investment when at a crazy 1.75p when an idiot new fund manager at Dresdner decided to dump their large EVT stake at a rock bottom price. And they remained a great buy at higher prices too.

But look at the share price chart over the last few years and it hasn't proved a great investment so inevitably a lot have moved on.

EVT have done little wrong and news flow whenever it comes is nearly always good. Also TOLUNA proved a great investment - for them and us. But the upside potential for the EVT share price looks fairly modest for now, and until that changes interest will not increase.

The BIG plus for holding EVT is knowing that the share price is at a significant discount to NAV and that anyone holding is in a quality company with excellent and trustworthy management.

[kenmitch] 08/4/2011 12:43

I did mention it there but for some reason (can't remember why now) didn't buy.

I had forgotten you used to post on Mike Walters bb. A shame you didn't get in to warrants while there (and stay there) as fans there have found some brilliant winners including one that went up nearly 70 fold at one point. A bit faster than we'll get from EVT.