Smg Share Discussion Threads

[ram376s] 19/5/2022 12:56

Pop up smh .300 nurses to train with GDR new game changer test .Anticipated news .Mutibagger potential .

[pjetr] 02/10/2008 16:47

Have been following this from a distance and I have to say: this re-structuring exercise is really impressive.

From an investor perspective I now see:

15 mn net debt.
110 mn revenues per year (with good potential to increase)
Operating profit 10 mn per year (with good potential to increase)

for me this leads to a correct (in calm financial markets) market value of about 100 mn

36 mn shares --> equals about 300p/share

so at current prices, this share is good value me thinks.

all agree?


PS: + once, in 2-3 years economy is back on track, revenues and profits can rise substantially.

[time to share] 09/9/2008 11:21

Agree 100% with your post above @ Gerry321.

I was only posting as i first saw it, i was not trying to mislead people in any way.
Thanks for putting me right @ jeffreyarcher.

[gerry321] 08/9/2008 17:16

You must be joking

[nurdin] 07/9/2008 08:17

Excellent post Jeffrey...and right on the button..:o)

[jeffreyarcher] 06/9/2008 22:12

Strewth! I really despair at times.

>> Longtech - #98
Not a great deal for small shareholders.

Of course it's a good deal for small shareholders.
1) What usually happens (although there have been some exceptions recently) is that the company pays a special dividend, thus reaming the small shareholder, because he has to pay higher rate (if liable) tax on the dividend. By buying the shares back, it is treated properly, i.e. as capital..
2) They are saying that they will not scale back very small shareholders who tendered at the striking price (which would have left them with an even more unsaleable rump of sahres).

I'm guessing most buying at higher prices, will still make a loss.
Bloody hell! What insight. Actually, I think that you'll find that all, not just most, of those buying at a higher price will make a loss.

>> Gerry321 - # 99
If I do nothing I will keep my shares and then have them consolidated free of charge at the "consolidated equivalent" of the strike price
This is nonesense, they will be consolidated at a rate of 1:20, end of.

If I offer to sell at 15p then my shares will only be bought if the bulk of current holders decide not to participate thus reducing the no of shares for repurchase and pushing the share price up to 15p
Totally wrong. If you tender them at 15p, they will only be bought if the striking price is 15p.
If all of the other shareholders also tendered their shares at 15p, yours would still be bought, but would be scaled back (as would theirs) unless you held less than 10,000 shares.

>>Longtech - #100
I would have thought that anyone who wants to sell, through the Tender Offer will put them up at 15 pence, that is plain common sense.
More bull.
First of all, you have to deicde what price you are prepared to sell at.
If you have a floor (e.g. 12p), you have to tender at that price.
If you want to sell, whatever the price, you tender at 9p.
You don't get the 9p, you still get the striking price, but doing this ensures that you won't be scaled back (this isn't a problem if you have less than 10,000 shares).
Institutions, of course, can't do that, because they would move the striking price down; but a small holder isn't gong to move the striking price.

Also I anticipate no dealing costs
Of course there won't be.

SMG I'm sure expect this and will take out the 200 million, rather than the higher figure of 333.333 million at 9 pence.
SMG have got no control over it. It depends what's tendered.
As you can see the SP, in the short term, will get quite an uplift to around 15 pence
Why on earth would it do that?
1) Purchasers haev no way of knowing what the striking price will be, and
2) SMG are only spending ~£30M on buying back shares. The higher the striking price, the fewer shares that are bought back, and the less the benefit of the buy-back to those who remain (which is the object of the excercise, i.e. to create benefit for those who remain).

>> Time To Share - #101
.. they want to cancel between 200m shares @15p and 333.333m shares @9p.
Almost right, but you've got the cart before the horse. The figures that you quote are given for illustrative purposes; the key is the £30M.
They are allowing small shareholders to sell their entire holdings upto 10,000 with no costs.
Not at all. All that they are saying is that, if a small shareholder tenders at the striking price (by coincidence, or by electing to do so), he will not be scaled back. Nobody, big or small, has any costs.

will depend on how many shares in total are up for sale.
No; it depends upon whether you tendered at the striking price, or not, and if so, how much the tender would be oversubscribed if all the shares offered at the striking price were taken up, and hence the amount of the scale back

So assuming you want to sell all your shares, if only 200m are up for sale via the tender offer, then you will recieve 15p per share.But if its the full 333.3m or oversubscribed so to speak, then you will recieve 9p per share.
No; you will always receive the striking price, assuming that you tendered at or below the striking price.

>> Gerry 321 - # 103
Longtec / Time To Share
Thanks very much indeed for such clear feedback
A shame it was so much bull.
Methinks I will hold since I cannot be sure I would get 15p and wouldnt sell below 15p in any event
If you wish to sell at 15p, but not below, you should tender at that price.
If the striking price is below 15p, your shares won't be bought.

[gerry321] 05/9/2008 16:05

Longtec / Time To Share
Thanks very much indeed for such clear feedback
As a scottish holder and user of STV I ave seen enough changes in content in the last year or so to be hopeful of better times
Methinks I will hold since I cannot be sure I would get 15p and wouldnt sell below 15p in any event

[time to share] 05/9/2008 13:15

Just had a quick look at the news feed.

The way i see it is this is effectively a share buyback.

The company is using the £30m from the sale of V.R. and instead of paying a divi to their shareholders, they want to cancel between 200m shares @15p and 333.333m shares @9p.

They are allowing small shareholders to sell their entire holdings upto 10,000 with no costs.Any shares above a total of 10,000 you want to sell via the tender, will depend on how many shares in total are up for sale.
There are 951m shares in issue and they will agree to cancel upto 333.3m.

So assuming you want to sell all your shares, if only 200m are up for sale via the tender offer, then you will recieve 15p per share.But if its the full 333.3m or oversubscribed so to speak, then you will recieve 9p per share.

If you do nothing and continue to hold,end of September,your holding will be consolidated by 20:1.
I would assume 12p will be key, because this is the mid between the tender offer`s price of 15p to 9p.

[longtech] 05/9/2008 12:11

My understanding is that if you do not participate, your shares will be consolidated 1 for every 20 you hold, at no cost.
If you do nothing, you do not participate in the Tender Offer and the value of your shares is that of the market.
I would have thought that anyone who wants to sell, through the Tender Offer will put them up at 15 pence, that is plain common sense.
Also I anticipate no dealing costs
SMG I'm sure expect this and will take out the 200 million, rather than the higher figure of 333.333 million at 9 pence.
As you can see the SP, in the short term, will get quite an uplift to around 15 pence and the exit of a significant number of shareholders, with small parcels of shares.
However after the consolidation I would expect a slight dip, unless we get further good news or the markets pick up generally.
I bought more this morning and am inclined to hang on long term.

They are clearly comfortable with the amount of debt and with Virgin radio gone, are a more focussed Scottish Media play.

This is my take, I am no expert and if in any doubt seek professional advice

[gerry321] 05/9/2008 11:13

Longtec
Can you confirm that I have understood this correctly
If I do nothing I will keep my shares and then have them consolidated free of charge at the "consolidated equivalent" of the strike price
which presumably would be roughly the equivalent of 3p per share more than yesterdays price of 9.95p
ie 3/9.5 or 30% higher share price than would otherwise be the case on the date the strike price is determined
If I offer to sell at 15p then my shares will only be bought if the bulk of current holders decide not to participate thus reducing the no of shares for repurchase and pushing the share price up to 15p

[longtech] 05/9/2008 10:44

Not a great deal for small shareholders.
The chance to get out at a higher price than today, I'm guessing most
buying at higher prices, will still make a loss.
I was fortunate to buy last week at what looks to be the low.
It's good news for those who hold, reduction in shares in issue, albeit an
increase in debt. Reduced cost in shareholder administration.
As the recession is well under way and the market is forward looking, I am
confident we will see a slow upturn in the share price from now on.

[acornoptical] 28/8/2008 18:54

i am sure part of the rights issue was that they would return the monies to shareholders in the most tax effective way when virgin was sold!! not the most complicated. where is our 3p a share. i dont like share conslidations 1 for 20 that will put the new shares at about 180p . in this enviroment theres a very big danger they could drop below 150p.when the time is right maybe but not now unhappy punter!!!

[diku] 28/8/2008 17:22

results day and only 2 transactions...

so the story goes...do a rights issue...get money off the shareholders...pay off the debt with shareholder money...sell Virgin Radio as a forced seller...the price since then drops below the Rights Issue...and then do a tender offer with a share consolidation...all very rocket science...

[diku] 28/8/2008 13:35

more details on that still in due course...does anybody get the feeling everything is just taking toooo long to put into practise here...by the time the tender offer, share consolidation and name change is complete the next results will be due!!!...he ha...

[glasgow13] 28/8/2008 12:28

interim results for info.

[acornoptical] 28/8/2008 11:48

how does the tender work where was the info.?

[diku] 28/8/2008 09:54

Well there you have it...no such thing as a free lunch...but the share consolidation...

Strategic Developments
* Virgin Radio sold for £53.2m to TIML in June
* £30.0m return to shareholders by way of proposed Tender Offer
* Proposed 1 for 20 Share consolidation following Tender Offer completion
* Proposed name change to stv group plc to reflect focus on TV business

[diku] 27/8/2008 21:27

figures here tomorrow...

[acornoptical] 22/8/2008 23:08

on level 2 it appears to be a swap between institutions no letter after the trade @9p

[diku] 22/8/2008 12:12

ok who bought those mlns today?...

[acornoptical] 22/8/2008 09:13

i was a holder of vod when that happened.the smg comment was to return the money in the most tax effective way.ipresume they wont be paying a divi on there trading success so we will have to wait and see sometime in sept cant remember seeing any dates

[diku] 21/8/2008 09:20

I think the net effect on Vod was the same...you were no better off or worse off...that is your market illusion...up today so far...

[diku] 21/8/2008 08:53

return the proceeds of the Virgin sale to shareholders...if it was a straight froward cash to shareholders than every man and his dog would have bought the shares...I think it will probably be the same route as Vod did 2 years ago...small percentage of cash in exchange for your shares which are then cancelled...a bit like a share consolidation route...