Regus Share Discussion Threads

[johnyee 7] 19/4/2011 12:08

svo,serviced office group just announced eps of 1.19p,shares are 2.75p at the moment.dyor

[nellie1973] 18/2/2011 13:32

Broker upgrade

[bobsidian] 04/2/2011 10:01

An interesting technical picture emerging with RGU.

The inverse hammer on the candlestick yesterday perhaps signalling a reversal in the recent trend if only for the purpose of a retrace of the move made since November ?

The history of the charting patterns using candlesticks for RGU seems to be supportive of just such a reversal signal.

Maybe.

[chri5 wright] 12/1/2011 13:33

exciting times....hitting a quid now.....

[chri5 wright] 04/1/2011 22:45

its the sneaky big trades after close of business that make my shoulders bob up and down.

[rpurkiss] 19/11/2010 09:07

Could there be more news today ?

[rpurkiss] 18/11/2010 15:44

Something must be going on with the amount of frequent trades going through. Any thoughts anyone ?

[jeffian] 10/11/2010 10:41

Lord knows I'm no fan of this company, but if MWB's statement today - rising occupancy rates and REVPAW - transmits across to RGU's business, that's certainly good news for them.

[funkey n] 06/10/2010 13:46

hummmmmmmmm
well i think its takes bit of time

cr are you still in ?

[tivoliworldgaming] 06/10/2010 10:04

The way its going the bid may even come today.

[tivoliworldgaming] 06/10/2010 09:58

90p by lunchtime

[tivoliworldgaming] 06/10/2010 09:35

£1.40 bid should be anytime within the next 4 weeks.

[sajjad017] 30/9/2010 07:54

daily mail and ft.com report regus bid speculation of private equity bid at140p

[salpara111] 27/8/2010 14:55

Genuinely surprised to see it trading above the line but I guess it has fallen over 40% in the last few months so as I mentioned recently there was little downside left to play out.

[salpara111] 27/8/2010 13:06

Jeffian this morning the growth figures showed that the economy grew at the fastest pace in 9 years.....

I am actually much more pesimistic in terms of any rebound but feel that we have passed the worst point and while the rebound will be slow, I dont expect another leg down.

I guess if you feel that there will be another leg down then you shouldnt invest.

[jeffian] 27/8/2010 12:59

Thanks, both. This appears to be a one-off deal involving paying compensation to landlords to reduce rents. Whether it solves the problem if conditions continue to deteriorate remains to be seen.

[salpara111] 27/8/2010 11:59

Regus, which leases space from developers and repackages it to sell to clients in various forms, signed expensive leases 10 years ago, which were weighing on the company.

The company revealed Friday that regearing those U.K. leases has cost it GBP15.8 million, which hit Regus' earnings, but will save GBP12 million a year.

Dixon doesn't want to disclose where those leases are and how much they will cost the company from now on, but assured investors that the new regeared leases have been signed at current market prices.

He said that the leases had to be regeared because of pricing, not lower occupancy.

From the newswire this morning.

[jeffian] 27/8/2010 11:52

Salpara,

"they have been able to restructure onerous leases in the UK". I know that RGU always claimed this after emerging from Chapter 11, but do you know how they have done this and what it entails? I have never been able to find out. The Holy Grail for this type of operation would be for freeholders to be prepared to cut their rent to RGU in line with occupancy levels, or to accept no-penalty lease breaks if centres become unviable, but I have never seen any evidence that RGU have achieved this. What's the source for your statement?

[salpara111] 27/8/2010 11:37

Closed my margin position for a loss, now considering what to do with the moderate physical holding.

I guess the problem is that we are probably at/near the bottom of the cycle for RGU, especially as they have been able to restructure onerous leases in the UK.

Having said that, I have been in 3 companies that have all reported this week and in each case they fell on the day of announcement and then continued to fall over the next few days.

I guess the share price may find some support at the 60 line but good chance of it dropping back to that level.

[jeffian] 27/8/2010 10:48

Well you could be missing that all its 'assets' are actually liabilities (leases), that it is suffering the classic squeeze on the 'model' during recession as its headline revenue is falling but it cannot cut its costs in line because it is committed to paying rent and costs on empty space, that its occupancy rates are falling into dangerous territory and that what looks like a lot of cash will hardly pay the rent for a month or two if occupancy levels and REVPAW fall much further. If it follows the pattern of the last recession, once we get into the 'Red Zone', closure of underperforming centres kicks in with massive write-offs of those supposed 'assets' of unsaleable leases and valueless Fixtures & Fittings. Other than that, I can't see a problem, really.

8-)

Edit: Salpara, hadn't seen your post when I wrote that. I agree with you.

[salpara111] 27/8/2010 10:43

I guess what you are missing is the fact that all their KPIs are pointing down at present....I say that as a holder of the stock!

I am considering cutting and running.

I expected results to be poor in N. America and Old Europe but I expected a much better performance in Asia Pacific and other developing markets and that did not happen which for me is very disappointing.

I now only look at companies that have major exposure to markets outside the "Old Economies" of Europe and N. America as it is clear that futher global growth will take place outside of these regions.

Assets of themselves are a liability unless they are earning income and the percentage of time that RGUs assets are earning revenue is decreasing.