||EPS - Basic
||Market Cap (m)
|masurenguy: Paul Scott's comment today.
Tender offer - I haven't seen one of these for a while. Regenersis has sold its legacy depot maintenance businesses, and now has a big pile of cash, plus the data deletion business which it bought not that long ago.
So cash is being partially returned to shareholders, through a tender offer, key details;Maximum £50m cash being used. Shareholders can tender presumably some or all of their shares at a price they choose, within the range of 215p to 250p. Given that the market price is currently 229p, then there's not any point in small investors tendering beow 229p - they might as well just sell in the market.
The strike price mechanism means that an order book is created of everyone's tenders, it's sorted in descending price order, and then the strike price is where exactly £50m of shares is reached. Everyone is paid the same strike price. So if not many people tender, then the price could be as high as 250p. In that scenario, everyone gets the same strike price - of 250p - even if they tendered at below that. If loads of people tender their shares, then the strike price may be at the lower end of the range, or even scaled back if more than 29.4% of shares are tendered (that seems unlikely, but you never know). It's all down to what the Institutions decide to do basically. They might want to take advantage of the liquidity to exit, possibly?
This is a big tender offer, so I suspect it probably won't be fully taken up, which might mean that the tender price could towards the middle to top of the price range perhaps, but that's a guess - I don't know the intentions of the big shareholders. My worry would be if management dump their shares in the tender offer as that would be negative for the share price afterwards. Remaining shareholders have to work out if the market cap, with the reduced number of shares (after the tender offer & cancellation of those shares has happened) is good value or not. I don't really know how to value Blannco.
Note that the remaining business will still have fair bit of cash. If in doubt, talk it through with your stockbroker, to decide what the best course of action is for you personally.
|aishah: Regenersis PLC
04 April 2016
Regenersis plc ("Regenersis" or the "Company")
Completion of the Disposal of the Repair Services Business
Regenersis plc is pleased to announce it has today completed the sale of its Repair Services Business (the "Repair Services Business") to CTDI Repair Services Limited (the "Purchaser"), a wholly owned subsidiary of Communications Test Design, Inc., ("CTDI") for cash consideration of EUR103.5 million (the "Disposal"), subject to certain post-completion adjustments (if required). The Company is now principally a pure play global software business, comprising Blancco, SafeIT, Xcaliber and Tabernus, focused on maximising the considerable opportunities in secure, auditable data erasure.
Change of Name
As previously announced on 5 February 2016, the Company will change its name from Regenersis plc to Blancco Technology Group plc and the new ticker symbol will be BLTG. The change of the Company's name will be registered shortly and the change to the Company's ticker symbol will be effective from 8:00am on 6 April 2016.
Also moving sector::
Change in Sector
In addition, a request has been made to the FTSE ICB Advisory Committee for the Group to be reclassified from the 'Business Support Services' sector into 'Software' which more appropriately reflects the Group's activities. Should FTSE agree with this request, a further announcement will be made when the reclassification takes effect.|
|rivaldo: .....and bought given the share price rise. Large volumes are excellent news in clearing any overhangs.|
|battlebus2: Thanks Rivaldo, Brokers see plenty of upside...
Regenersis PLC had its stock rating noted as ‘Reiterates217; with the recommendation being set at ‘BUY’ this morning by analysts at Panmure Gordon. Regenersis PLC are listed in the Industrials sector within AIM. Panmure Gordon have set a target price of 270 GBX on its stock. This is indicating the analyst believes there is a potential upside of 88.2% from today’s opening price of 143.5 GBX. Over the last 30 and 90 trading days the company share price has decreased 19.5 points and decreased 74.5 points respectively.|
|rivaldo: Adjusted EPS of 16.19p, plus an earnings-enhancing acquisition, and post year end trading is in line with expectations.
And most intriguingly, a strategic review, likely to sell the low margin aftermarket businesses and leave shareholders with the excellent data erasure and other high-tech divisions (Blancco etc).
All of that lot should get the share price going nicely.|
|callmebwana: Why the drop in share price today??
|rivaldo: New Edison report out:
"Valuation: Market too pessimistic on prospects
Given that the Nokia revenues were in decline anyway and the weakness of the
euro and zloty were also known, the fall in the share price on Tuesday of the same magnitude as the cut in FY16 estimates appears to us to be a severe reaction.
Our revised sum-of-the-parts calculation suggests a price per share of 307p (formerly 331p) and our reverse DCF analysis, applied to find a scenario that matches the current 167.8p share price, implies market expectations of zero growth beyond our published forecast period save for 5% pa improvements at Blancco."|
|al101uk: So no profit warning then?
I think the price "halved" because of one off restructuring costs incurred through the acquisitions and it's effects on EPS.
Looking at the dates, it appears that the selling happened between the trading update which reported "in line" and the results, so I guess someone did the sums and realised the company was overvalued at around 330p (never mind £4) with the acquisition risk and likely reduction in profits for the year. Selling begats selling especially in AIM stocks where there is a proliferation of private investors. A combination of both these factors dragged the price down to these levels and the companies share price has stagnated around this level since.
This isn't an easy company to find using filters when the PE can be reported as 30+ AFTER a massive correction and little in the way of asset backing.
Meanwhile the company has got on with being a company, it's acquisitions look to be performing well, the restructuring (I hope) is in the main finished and we can look forward to a more normalised EPS at next results with a great growth profile, and a respectable dividend yield.
A few months on from the acquisition I personally think the company more than justifies the 330p the stock traded at back in early September and I wouldn't be surprised at a second attempt to break £4 at some stage.|
|rivaldo: I look at RGS this way - it's a solid core business, which largely underpins the current share price, plus a number of other exciting businesses thrown in for hardly anything at all at these levels, i.e Blancco, IFT, Xcaliber and Digital Care.
This is one of Mark Slater's (and mine!) favourite investment strategies, where you have the current m/cap largely underpinned and the value of other "blue sky" divisions largely hidden from view - until the market suddenly recognises that value.|
|ballychan: Yeah Andy Bryant, would that have effected RGS share price?Short positions are updated daily around 5pm from FCA. We won't know until tomorrow if shorts increased today.|
Regenersis share price data is direct from the London Stock Exchange