||EPS - Basic
||Market Cap (m)
|Real Estate Investment & Services
Real-Time news about Soverign Rev (London Stock Exchange): 0 recent articles
|hedgehunter1: Been watching this little group, with interest over many years, and have too say am taking a slighly different view point for the following reasons.
1. The group, now has admin expenses running at £1.9m a year, which has increased faster than the increase in the portfolio growth.Admit they bought H+C but this is a huge overhead for such a small Cap company, do they really need so much cost on such a passive business?
2. The share holder have been diluted by the raising of the £3.5 equity, which has not been deployed, and if anything PIC must feel pretty hacked off at putting in £3.5m equity now worth £3.4m after a year.
3. Profits are all through valuation upside assumptions, and portfolio has not been inspected fully.
4. SVN being out bid by Grainger and Bridgewater time and again.
5. Bank debt has doubled, and they have hardly bought any property?
6. If the value of the asset is nearly £484.5p per share VP, sell at say 80% discount for the premium as quoted in accounts they mention, less tax treatment, you get back to current share price. How do you get a decent total return, as it doesn't come from income stream.
7. What are the directors paying themselfes one wonders, in comparision to Grainger who is far larger.
Be very interesting to hear what the cunning plan is at the AGM meeting.
My view is cash flow is critical, and with rising interest rates, why increase debt, unless you can earn in way in excess in terms of total returns given market risks.
Have to say have sold large volumes, and will be selling more, when possible.|
|gelp: if the share price at 345 matches the NAV, at 345, let alone the 'embedded' value, surely the profitable business is in for free - or have I missed something?|
|alan russell: While trading at a hefty discount to NAV/embedded value may give some comfort to those holding a company or trust's shares, sometimes such companies just keep right on trading at that discount. In SVN's case as the embedded value cannot be realised by breaking it up and selling off the assets (other than to a similar company) there is every reason to believe that it will indeed continue to trade at a discount.
On the other hand the age profile of its tenants offers an expectation that there will be a significantly higher proportion of sales over the next five years. SVN appears to be play on (1) long term house prices (2) the opportunity/danger of finance raising/gearing & (3) the increased profile and acceptability v compliance costs of regulation. One would think its share price should plod steadily upwards apart from the usual short term "dips and blips" but I've thought that before and been wrong. I don't hold, merely an observer.|
|jlabrey: I thought it was a good idea to revive interest in this company. It is one of Shares Magazine's tips for 2006 and seems to be a well run company in a market where regulation will improve the company's long term prospects. Embedded value is high compared to current share price. Other views welcome of course.
|rambutan2: well, the share price hasnt droppped?|
Sovereign Reversions share price data is direct from the London Stock Exchange