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Real-Time news about Rsm Tenon (London Stock Exchange): 0 recent articles
|bam bam rubble: Shareholders treated as cannon fodder again
In talks with Baker Tilly regarding an offer significantly below the current share price.
4 weeks later -
Entering administration allows the sale to Baker Tilly to complete with nil value for shareholders. The Directors are pleased to say that its own employees are unaffected.|
|imastu pidgitaswell: Not really. Try buying, selling and making a profit of any substance.
Also, which part of the announcement (when the shares were at 3p) is not clear?:
"The Company has been providing certain information to Baker Tilly to facilitate their investment evaluation process.
Given the level of debt within the Company, any potential transaction would require the support of its sole lender, Lloyds Banking Group plc. As a consequence, the Board considers that, if an offer is made, it is likely to be at a level which is significantly below the current market price of the ordinary shares of the Company.
This announcement is being made with the agreement and approval of Baker Tilly"
i.e. the outfit that has approached them has made clear they won't be offering much, will be well below the previous 3p share price, and that it may not happen anyway. The fact that the information has been supplied tell you all you need to know about management options. This approach is needed...|
|daz: NYB, I see what you mean, the share price is assuming a low probability of survival at current levels, so there is plenty of scope for a re-rating on any good news.
There is of course also the chance of further bad news on trading, so the company is certainly not out of the woods yet.
To my mind, it's a classic high risk/high reward situation.
Some decent buying this morning, so there may be a chance of further gains soon.|
|daz: Think you're right ip.
While I'm not sure about a takeover, I do expect parts of the business to be sold over the coming months to reduce debt and make a refinancing more palatable to Lloyds. If they can get reasonable prices, that ought to help the share price.|
|daz: Fortunately for TNO, it's not easy to move jobs, most companies including accountancy firms are looking to cut costs rather than expand and TNO have just got rid of a number of people themselves.
The writing has also been on the wall for some time, so I think those able to move probably already have. Whether they still have senior management of the right calibre remains to be seen.
I think the company is very difficult to value at the moment, nobody can be certain whether it will pull through or not, so who can say what the risk premium should be. My line of thinking behind buying today was that it is pretty much priced to go bust at current levels so any positive news ought in theory be well received.
As a consequence of the valuation problem, I think the share price could be very volatile, particularly in reaction to any news that comes out, good or bad.
The most positive sign I can think of is if any of the directors start buying, with the company in the state it is, that would be a real sign of confidence|
|bonio10000: Once the final RSM deferred payments are made - a serious reduction in debt and increase in the share price. Might take 18 months though.|
THE SHARP DROP in RSM Tenon's share price has not shaken its chief executive's belief in the business.
RSM Tenon's share price fell to 9.4p on Tuesday, from 14p, after warning that tough trading would impact on its net cash outflows.
Andy Raynor said that while 'you can't say you don't care about the share price', he was very confident in the listed firm's fundamental strategy and structure.|
|the shuffle man: Are these now on a PE of 2.5, dont understand the current fall in the share price, can anyone enlighten me.|
|bobsidian: Impressive resilience in the share price of TNO in the midst of the current chaos.
Noteworthy that the share price is currently sitting on its rising 20 day Simple Moving Average which appears to be about to cross through its 100 day Simple Moving Average to the upside. The tracking sideways of the share has allowed for a correction in its technically overbought state.
TNO looks as though it may be set for its next move higher. But given the current stockmarket mayhem, nothing is assured.|
|janes bond: RE: The dividend - 1.6p doesn't come across as hugely impressive. However, considering that this is a Small Cap company, at the current share price, the yield is 2.69% and has potential to grow. To me that would be a deal breaker, but only if there was some reassurance of value at this share price. By value, I mean for the shares to continue rising. This would present a double whammy of growth and income. It's the potential growth, (or more to the point, the possible lack of it), which almost strikes a line through the idea for me. 2.69% annual return is more than most banks are shelling out for your hard earned spondoolicks. The most juicy part about the dividend is its year on year growth which, if maintained, is both A GOOD INDICATOR OF A COMPANIES FINANCIAL HEALTH and great for overcoming the effects of inflation. A lesser benefit, of course, is help with paying for transaction costs and a cussion in the event of corrections and share price fluctuations. Admitted, holdings in RDSB, Chesnara and Vodafone, to name a few, are the real income providers for my portfolio, but I don't look on those holdings for growth.
I wouldn't, for one minute, try to fool myself that the market has overlooked this one. Financial advisors and accountants rely on a healthy economy - i.e. for their own clients to be doing well in order to continue to use, or more to the point, increase demand for the services. If Begbies statement is anything to go by, then I wouldn't be surprised to see signs of a struggling RSM Tenon at this time. The macro economic news is plagued with stories of 'austerity measures', (cutting government funds for services to the bone), as well as potential company failures etc... Meanwhile, I hope for holders, that my long established cynical views towards most companies is proved total twaddle in this case, but it has saved me from losing cash on many occassion. I wonder what the thoughts of Peter Lynch, Warren Buffet, Jim Slater etc. would be?
petersinthemarket - 30 Jan'11 - 12:22 - 186 of 186
All in all, I would also be interested in buying into TNO, but for now, I have a very small spread bet for the run up to results, (complete with tight stop loss and to be cancelled before results). I would rather see more evidence from the company on news day before risking cash which could be used with more confidence elewhere. If this boat is missed, there's always another on its way.|
RSM Tenon share price data is direct from the London Stock Exchange