Jz Capital Partners Share Discussion Threads

[grahamg8] 18/4/2024 17:38

Last month there was supposed to be $123.4m cash, so why are we only being offered $40m?

[grahamg8] 18/4/2024 17:36

Agreed topvest. I thought the idea was to sell off all the assets and return the proceeds to shareholders. If that were the case it should preclude any new investment. The complexity of some of the previous JZ Private Equity deals does make me uneasy. The share price has tanked over the years, but I suspect those in control are doing very nicely thank you. Yet another complex related party transaction would not seem to be in the interests of shareholders at all.

[topvest] 18/4/2024 16:49

Can anyone understand their announcements? The Follow-on Flex Pack deal just looks like a very complex related party transaction. Why are we investing in new structures and only a US$40m initial return? The share price goes up, but I'm confused. What's really going on?

[sharpshare] 22/1/2024 17:06

USD120m in cash or 121p per share.
Please send soon.

[eezymunny] 14/12/2023 16:04

That's the number I have. Outcome here unpredictable. They tell us more write downs likely but this sale makes it much harder to lose money from here. I added today but not all that excited, and not a big position.

[hindsight] 14/12/2023 14:57

Does todays news mean after paying all debt off then will have $120m cash plus investments

[topvest] 27/6/2023 11:01

Annual report released. -59.3% total NAV return in 5 years after a global asset bubble. Impressively bad. One gets the feeling that David Zalaznick and Jay Jordan, with related party transactions and investment advisor fees, are the only winners in this sorry tale!
One positive is that the fraud allegations seem to have little merit.
Oh well, some return is likely and no real point selling in the market at such a massive discount.

[topvest] 23/12/2022 20:21

Yes, looking much more positive here for a sizeable capital return. Still a possibility of a rollover vehicle I suspect. Great to see a sizeable net cash position once the pending deals complete. Patience needed, but 2023 should be much better.

[cousinit] 20/12/2022 20:17

I suspect that the JZ duo need cash for some new venture, so there may be a modest capital return once these deals complete.

The ISS sale looks odd given how recently the accounts were issued. Unless there was a problem with the underlying business, 'risk management' is a pretty bland rationale for what looks like a clumsy sale (when previous announcements have cautioned against expecting much deal flow in current market conditions...)

Obviously, given the history there might be a cash drain from something else in the portfolio that they've overlooked mentioning previously...

[pldazzle] 20/12/2022 19:03

Hi grahamg8, I fear you are confusing cost and book value. The assets are held in the balance sheet at market value, not at original cost, as is normal in such cases. Any change in the MV, whether up or down, is booked to profit and loss account each year/half-year.

So the book value of the assets sold (i.e. MV) totals $141.3m, less $30.3m worth retained, = $111m. Total proceeds, including delayed proceeds, are projected at $87.5m, which is a 21% overall discount.

The overall loss on sale will reduce the NAV, other things being equal, to $4.28/share or 351p/share.

The real point, in my view, is that the company will soon have (at least) $151m cash, with liabiities of only $64m and commitments not on the balance sheet of another $10.5m (see interim accounts note 19). That works out at around 81p/share net, on which it's arguable that only minimal discount is due. The balance of 270p/share is in private investments, which would need to be realised at an overall discount of less than 60% or so to justify the current price. That should hopefully be achievable but for me, when you factor in the time value of money, it doesn't quite set the world on fire (£1 of realisations in the future is worth less than £1 of realisations today, and liquidating the portfolio won't happen overnight). Not in my book, or at least not yet. But another sale at a $40m profit might change that!

[hindsight] 20/12/2022 18:31

grahanmg8, I made it $86.5m cash and $21.1m new vehicle vs $141.3m book so -23.8%
or $86.5m cash from $141.3m - 21.1m =$120.2m book so -28.0%
Probably in ball park of PE losses these days

[grahamg8] 20/12/2022 18:16

That's good to hear pldazzzle. I try to stay positive, and overall the numbers don't look too bad. Current share price 170p, last NAV was $4.59ps roughly a discount of 55% (Hargreaves say 57%). So the market doesn't believe the values can be achieved when turning assets into cash. But any series of sales at a discount better than 55% should eventually push the share price up.

As far as I can tell we have disposed of book value assets of $93.01m and received $86.5m which is a paltry discount of 7%.

Perhaps equally important just over 20% of the net assets have been turned from in the wind investments into hard cash. If only the rest can be sold with similar results.

[pldazzle] 19/12/2022 19:41

The interim accounts to 31/8/22 say that Deflecto as a whole cost $45,010, roughly the same as valuation, while ISS as a whole cost $48.25m. So based on cost, even ISS produced a small profit.

[grahamg8] 19/12/2022 17:37

Agreed on the figures hindsight, but the gains and losses are relative to the August book value. They say nothing about how much the investments actually cost. We could have lost much more.

[hindsight] 19/12/2022 17:06

If I read these right they lost $40m on one sale but made $20m on the other.

[rob the slob] 03/10/2022 18:05

Congrats to all JZCZ holders who saw this thing through. Full redemption of the ZDP's today. Money in my account. Just revisited my post from 2.5yrs ago. 30% pa yield tick!That concludes my investment here. Best wishes and good luck to all JZCP holders. Bye!

[hindsight] 26/8/2022 14:04

Zeros to be paid on time. My main exposure here but hoping same outcome for my ordinaries, problem is markets not kind to small caps now

[topvest] 23/6/2022 11:53

Yes, all looking a bit more positive here for a change. Let's hope that they have some more disposals coming through fast.

[hindsight] 23/6/2022 08:52

Sale completed so would appear my zeros payout now covered. See there was a portfolio mark down of 11c, but otherwise all going well for my ordinaries too...........for a change

[topvest] 15/6/2022 11:34

Results out. The language from the Board has changed. Very positive on a substantial shareholder return. Let's hope they get the disposals away before the economy goes belly-up!

[robizm] 15/6/2022 11:18

They always seem jam tomorrow type of share and it never seems to get better

[hindsight] 23/5/2022 13:04

If one was very generous, could say they were unlucky on property looking at the Miami boom. Im mainly exposed to the zeros, full payout there and £3 on the ordinaries would be a very good result

[topvest] 23/5/2022 12:15

So, net asset value approaching US$5 if this goes through. Probably a need to get on with things before the next recession bites, but starting to look slightly more positive. Trust is the thing that is lacking though. The Jordan's always seem to do well at the expense of shareholders.

[topvest] 23/5/2022 11:55

Yes, some good news today. Every RNS from them is shrouded with complexity though. Looking more likely that shareholders will eventually receive some cash.

[johntobin] 27/4/2022 11:38

RNS just out, NAV $4.37 31st March, or £3.47
So 115.6p to buy on Spreadex, or $1.45
Liabilities $149 million, but cash $49 million, So liabilities after cash, $100million

With this degree of discount I am comfortable with my holding.