Seneca Growth Capital Vct Share Discussion Threads

[ukhawk] 19/11/2004 16:06

19 November 2004

Honeygrove Group Plc

On 26 August 2004 the directors of Honeygrove Group Plc ("Honeygrove") announced
that a preliminary approach had been made to the Board which may or may not lead
to an offer being made for all the issued share capital of the Company.

Since that date, the directors have continued discussions with the potential
offeror including a review of the Company's accounts for the period ended 30
September 2003. As a result of such review, the directors have concluded that
an adjustment to those accounts is required relating to the negative goodwill
and fair value adjustments originally arising on the acquisition of Sitemaster
Ltd in March 2002. The effect of this adjustment is to reduce the value of work
in progress at the 30th September 2003 by #1,562,814. This adjustment has no
effect on the underlying profitability or cash flow of the Honeygrove Group or
on the proposed offer consideration should an offer for the issued share capital
of Honeygrove be made.

The directors expect to make a further announcement in the near future.


Looks like the due diligence is pretty thorough !!!

[ukhawk] 16/11/2004 20:59

barryrog, well the longer it goes on the more likely it is to happen I suppose. You just know if you sell up though that the takeover will be announced the next moment !
The opportunity cost is burning a hole in my pocket too !!!

[ferrettoast] 16/11/2004 08:12

Perhaps i,m being naieve but i didnt see the name honeygrove mentioned once in the above post

[shirishg] 16/11/2004 00:09

POST REMOVED BY ADVFN

[barryrog] 14/11/2004 15:49

is this saga ever gonna be finalised ???
for christs sake,how bloody long does it take ???

[barryrog] 11/11/2004 10:00

hi hawk,
for obvious reasons i haven't been visiting the thread very often.
i remember that old saying from when i was in business,'mushroom management'
keep the workers totally in the dark and every once in a while throw a bucket of manure over them.for workers,read shareholders.
this has become a farce,well over 2 months and a share spread of 14%,makes you wonder why they bother to list at all if they don't want their shares to be traded.
it should happen,surely you don't take all that time and then say "talks have broken down" do you??

[ukhawk] 10/11/2004 22:08

barryrog, sorry wasn't ignoring you. Due to a lightning strike I've been without computer, tvs, satelite, video for about 10 days. Only got reliable links back y'day.

Some interesting large trades in HYG over the last few days. For what it's worth I'm still hopeful this will happen !

[barryrog] 31/10/2004 08:25

edmund,
why not use your journalistic influence and suggest to HYG they are procrastinating in the extreme and have a responsibility to their share holders to resolve this issue one way or the other.its now well over 2 months since the initial announcement.
rgds

when you write an article,are you bound to say "i am a holder" or whatever".
or as a freelance is that not a requirement for you?

[ukhawk] 27/10/2004 16:56

Somebody bought 125k @ 10.5p, must be confident, or know something !!!

[ukhawk] 22/10/2004 11:57

Morning. Well, they can't all sit on the board. Tough having to put up with a huge pay-off !

[barryrog] 22/10/2004 11:50

morning hawk,
i don't reckon the sticking point is the price.
NAV clearly in the region of 20p,so anything less than 15p would have been rejected in the early stages.
we have assumed another construction co.is the most likely and i would think that HYG directors are looking for a continuing role in the future wich may well be the issue still to be resolved.

[ukhawk] 21/10/2004 13:54

It's a lot quicker to terminate discussions than see them through to an agreed deal. If there was a major sticking point I would have thought they would have found it before now.

[edmundshaw] 21/10/2004 12:17

mmm.... zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

[barryrog] 21/10/2004 12:10

edmund,
we had hibernated hadn't we?
it was only the announcement yesterday which stirred me into remembering i still held this share.

[edmundshaw] 21/10/2004 11:23

ukhawk, agree re: high risk. More speculative - I guess I stand to lose maybe 15% with the spread and small drops (my buy average price is about 11p), given the strong support at 10p. Stand to gain a lot more, which is why I'm here.

Perhaps we should just hibernate...

[barryrog] 21/10/2004 11:19

hawk,
i agree.we all know that even without the bid situation,HYG is grossly undervalued when you consider the fundamentals,the prospects,the NAV etc.
but the fact remains,for whatever reasons, it' share price doesn't reflect those facts.
on the other hand,thats why it has attracted a potential bid.

[ukhawk] 21/10/2004 10:47

Based on fundamentals, I think the share price would be higher than it is now if it hadn't been for the "takeover" situation. I originally bought in for that reason, and then bought a few more when the news broke. I was hoping we'd have a result by now, but not really surprised we haven't. Wouldn't put them in the "high risk" category though. Sure, there'll be a dip if the takeover doesn't happen, but nothing a bit of PR won't be able to put right.

[edmundshaw] 21/10/2004 10:39

Yuh, and it's nicer to see some progress while you're waiting I know... JBC has been good on that front.

I generally like shares with more than one positive aspect (he says having bought MPH and ASC!!!). I was kind of hoping to see a revaluation based on trading prospects and NAV backing at some point as well as a possible bid here, as the co seems quite a bit undervalued on balance, even taking into account a relatively high risk (which after all can be diversified away); but even with the two possibilities of uplift on trading or a bid, HYG is pretty speculative for me. Never going to be a large part of my portfolio...

[barryrog] 21/10/2004 10:27

edmund,
i'm only complaining about the spread.its not fair on the small punters.
nothing wrong with my patience on long term holds,i've been in SEY since april 2003 and MPH since July 2003 and my 6 months in AHT is doing me no harm either.
i intend to sell my shares whatever the outcome of the bid situation is.
undoubtably if there is no bid,despite the good fundamentals, the share price will languish for some time and there are far better opportunities around.
(take XTL for example).
i was hoping that yesterdays announcement might have indicated that the situation was close to being resolved one way or the other,maybe i've misinterpreted things.

[edmundshaw] 21/10/2004 10:08

Why would MMs try to kill trade? That's where they make money isn't it? and a 100k MM trade is only ten grand, so nothing to write home about.

Chill a bit, br, this is not ASOS or MPH, these things take time and patience. If you haven't got both of these, maybe this is the wrong investment for you?

I agree the spread is a bit OTT though...

[barryrog] 21/10/2004 09:56

hey hawk,don't tell me the MMs act totally independently from the co.
they are deliberately trying to kill trade as they have done for the last 2 months.

[ukhawk] 21/10/2004 09:43

Why ? The company's done nothing wrong here. MM's killing the market, but maybe they're positioning themselves for more news.

[ukhawk] 21/10/2004 09:02

The 100k was mm to mm. There may well be another trade not reported, or mm's trying to get stock.