Shore Capital Share Discussion Threads

[thehardestbutton] 04/4/2008 16:43

More buying of their own shares and the price keeps falling...falling...falling!!

Mind you buying shares at 33p is a bargain compared to all those shares they bought at 42p and 39p and 37p and 36p.

I wonder how shareholders feel about this 'investment' of their cash being used to shore up the share price ('scuse the pun).

Down to 20p.....sooner rather than later!!!

[thehardestbutton] 27/12/2007 17:15

Shore Capital is buying its own stock - but the question is who is selling it?

By way of explanation of what is going on here....

One reason for a company to buy back its own stock is to reward holders of stock options. Option holders are hurt by dividend payments, since, typically, they are not eligible to receive them. A share buyback program may increase the value of remaining shares (if the buyback is executed when shares are underpriced); if so, option holders benefit. A dividend payment short term always decreases the value of shares after the payment, so, on the day shares go ex-dividend, option holders always lose. Finally, if the sellers into a corporate buyback are actually the option holders themselves, they may directly benefit from temporarily unrealistically favorable pricing.

After Buyback

The company can either retire the shares (however, retired shares are not listed as treasury stock on the company's financial statements) or hold the shares for later resale. Buying back stocks reduces the number of outstanding shares. To see this, note that accompanying the decrease in the number of shares outstanding is a reduction in company assets, in particular, cash assets, which are used to buy back shares.


Question is how beneficial is this action to existing PI shareholders?

[thehardestbutton] 13/12/2007 12:50

What are the forces driving this share down?

Exposure to commercial property through its portfolios and funds.

Exposure to AIM market performance through its market making activities

Exposure to 'high value individuals' moving funds away from both of the above affecting their stockbroking business.

Short this one down to 20p - I think previous Institutional investment will be concerned for retention of dividend and long term strategy and will be slowly exiting. I wonder what there position is re liquidity in some of the PUMA funds if investors make a dash for the door?

[sandbank] 13/12/2007 10:35

JERRY: Both NRK and SGR have provided significant shorting opportunities.

[jerrymoon] 09/10/2007 13:46

looks like more director buys 250k.

i took my NRK profits and reinvested ib here. I have a good feeling. No more rollercoaster with this one. Nice steady rises.

[sandbank] 15/8/2007 08:38

When I talked to Shore Group about six weeks ago about the abysmal performance of their share price they claimed the directors were all "happy holders" as they put it. I bet they're not so happy now.

[ariesr] 10/8/2007 19:14

Nice bounce, considering the carnage all arond.

[bbbb] 17/7/2007 14:55

quite. it's win a few, lose a few.

[woracle] 17/7/2007 14:12

I think they own 20% of PTL, 16% belonging to discretionary clients, 4% ( 4.4M ) to the Shore Group which I read to mean its various funds ? Even if the 4.4M was purchased at an average of 100p, its a 4M loss spread across the a few Puma funds under management which is peanuts. Anyway, any significant loss would have been highlighted in finals in Feb but in fact we know the results came in 20% above estimates followed by broker upgrades for this year. By then, PTL had already collapsed so thats not the reason for price current weakness. Its more likely to do with the expectated sale of the Dawnay hotels which drove the price up and isnt happening now. That, and an overhang.

Reputational damage ? ..probably affected the performance for some discretionary clients but no individual portfolio/fund would have been that agressive in one company...Looking at the decent monthly performances suggests nothing was hit massively...but name me one fund manager/investor who hasnt bought a dud..

[thehardestbutton] 17/7/2007 13:45

Has anyone any ideas what sort of loss Shore cap has made on their Patientline investment (PTL) - weren't they investing in that company to the point of overthrowing the sitting chairman (and placing their own man in charge) when the share price was around 15 - 20p and its now close to 1p a share. There must be some reputational damage there at least.

And how would this affect their next results?? Were they putting their own cash in or blowing some other poor unfortunates cash?

[woracle] 05/7/2007 15:27

Hopefully, the 300k X trade suggests the seller has finished. Price responding as expected to buy and sells now. MMs books seem balanced now.

[woracle] 02/7/2007 16:45

The graph is not scary yet. It bounced right on 50d MA and right on the 50% fibonnaci today. All indicators say oversold. Did the exact same thing last year when it fell from 62 to 50. On a technical basis I added today at 72.5.
On a fundamentals basis itself, consensus estimate EPS at 5.2p gives forward PE 14.3 which is historically low for SGR and its sector. Nice bounce in the afternoon.

[sandbank] 02/7/2007 16:03

WORACLE: I have to compliment you on the bravery of your posts in the light of what the graph is actually showing us

[woracle] 22/6/2007 12:59

The pattern of big share trades lately suggests an institution off loading and another buying in the background. Bit of a cat and mouse game. Hence until its over, price isnt going anywhere until they are both finished one way or another. Wait for some holding RNSs..

[woracle] 04/6/2007 16:10

Billiant, latest Monthy report for April just out. Funds under management now $2.66b, up from $2.34b last month. Was $1.92b at start of year. 38% growth in 4 months...not a lot wrong there.

[woracle] 04/6/2007 15:19

Well, a company that shoots up 100% in 6 months needs to retrace so people can take profits. Simple as that. I think a fund is selling looking at the volumes. I tend to hold growth stocks until the reasons for the growth are gone.. In my view nothing has changed. AIM is still growing, their funds under managament grow bigger..

Use ukwire.co.uk and search for SGR..u can find all the monthly reports in RNS. Or just look here ! I use that as an indicator that its funds business is still doing well..

[sandbank] 04/6/2007 12:43

WORACLE: I hear what you say - and you have evidently been with the company a lot longer than I have - but what, in your view, explains the disappointing performance of the share price in the last 2-3 months?

Getting information out of Shore is like drawing teeth. They're supposed to publish a "monthly" Performance of Funds summary - but the latest on their web site is February's (issued in April). Nothing at all was issued in May

April's has finally been released as an RNS this morning (but it still isn;t on the website)

[woracle] 02/6/2007 12:17

sandbank,

Their attitude to business is good plenty enough for me, as its given me a 100% return in 2 years... I was first advised to look at this company through someone I know who has dealt with Howard Shore regularly and he is a brilliant businessman and visionary, and man of integrity and its paid off handsomely...

Alternative assets is the future especially as the most known assets are bubbling..wealthy people are looking at new ways to invest and divest. Shore have dialed into that niche.. one day it will be swallowed up for Shore..;) This is a solid on term play brilliantly managed.

[sandbank] 02/6/2007 09:15

WORACLE: It's a legal obligation of all quoted PLCs to produce and distribute annual reports - they can't use a "green" argument to wriggle out of it.

For a so-called "investment bank" this company seems still to be imbued with the attitude Jellyworks had towards its investors.

[woracle] 01/6/2007 20:46

sandbank,

Dont be silly. What's not sending out Annual reports got to do with company integrity or performance ? As a shareholder, I wholeheartdly applaud and am extremely encouraged if Shore Capital are not sending out realms of paper and using a costly service like ADVFN's service. Its not ecologically friendly, its costly in print costs, postage, packaging and admin. If sending out to 250,000 copies to small shareholders costs 100p each, thats 250K of pure waste. I would much rather have that as profits. You have no excuses in this day and age, especially if u call yourself a shareholder or investor..be ecologically friendly . Cant you figure out how to download it ?

[sandbank] 01/6/2007 09:35

Well - now we know where this share price is headed.

...and perhaps little wonder that Shore Capital are so unwilling to send Annual Reports to their shareholders. They are flatly refusing to supply ADVFNs Precision IR service with these public dpocuments - and they won't send them to shareholders who hold via nominees either.

Meanwhile, this share drop is not looking good

[woracle] 31/5/2007 15:24

Its taking a well earned breather after a 90% rise in 8 months..if it follows last few years pattern, next leg up should start in the next month or so. I'm waiting for a top up opportunity when RSI looks favorable ..

[sandbank] 31/5/2007 12:41

Shore Capital's share price seems to be treading water. It's about time we had some more news from the company - but the April 06 figures were not issued until June last year - and I suppose this year will be the same .

[woracle] 10/4/2007 12:45

Nice stats today. Funds under management up 12% in £ terms and 23% in $ terms in the last month. Should do wonders for the fees..