Abrdn Property Income Share Discussion Threads

[greenroom78] 05/10/2012 16:19

I've added some today, and oddly, although showing in my account there is no sign of the trade on the trade list or L2. Could my broker be lumping it in to another order?

I have seen this happen before when I have sold something, never noticed it when I bought before though.

[interceptor2] 05/10/2012 15:39

Welcome cfro

Looks like good timing, I'm surprised there hasn't been more interest. I have a take out target price of 93p, which is just working on a PE of 10 using an estimate of EPS 9.3p. Even then the company would be brought out on a PSR of only 0.63 (historic revenue) with net margins likely to exceed 5% this year.

Just trying to be conservative really, because I cant see anyone over paying in this environment. But I would be happy with 39% return from here.

ic2...

[cockneyrebel] 05/10/2012 12:41

I think there's a bit of stock about cfro.

As ever, when there's a bit of stock nobody wants to buy. When that stock clears and this ticks up and there's no stock then everyone wants to buy.

Funny how the investor's mind works imo.

I think a tip or two will set these off upwards imo.

All imo

CR

[cfro] 05/10/2012 11:48

I've bought in this morning after reading the bullish trading update.

Surprisingly you can buy very easily so im wondering if there is a seller at these levels feeding out stock or whether its just lack of any trading in general.

Seems strange that there is a lack of interest when theres clear value is to be had. Forward pe is only six and theres cash on the balance sheet to boot.

[sportbilly1976] 05/10/2012 11:39

Gg78,

I agree, given the strong update I am surprised there hasn't been any movement in the share price...or for that matter more trades. It all seems a little bit of a waiting game to see what develops later this month.

[greenroom78] 05/10/2012 08:06

It does point to some decent results, ahead of last years strong half and better margins. Things seem a little 'in limbo' at the minute market wise as nobody really knows what will happen come the end of the month*

*That is the only way I can explain why these haven't gapped up this morning.

[interceptor2] 05/10/2012 07:57

Very pleased with this mornings update, good to see the largest division Laminates performing ahead of plan, and this was without the major new supply agreement that is expected to start in early H2. With Holographics (11% of revenue) the only division with results expected lower due to already known reasons, then future looks promising. It sound like the forthcoming interim results are likely to show healthy margin improvements.

I agree API will be a steal for someone, and better longer term returns for shareholders are more likely if API remained independent. But with the two largest shareholders (62%) requesting that API are put up for sale, I feel that a sale of API is more likely.

ic2...

[cockneyrebel] 05/10/2012 07:37

Sales ahead of last years strong first half and margins improving says it all imo. With their large new supply contract for laminates starting in H2 it looks rather good here to me. They are likely to have next to no debt at the end of the year too imo

PE 7 falling to a PE of 6 next year and the co up for sale these just look so cheap imo. Perhaps with the market picking up in general and AIM stocks starting to get rewarded for consistency these might start to re-rate to the valuation they deserve - these would be better kept in the hands of shareholder so they can benefit rather than sell the co imo.

All imo/dyor etc.

CR

[bigbigdave] 05/10/2012 07:15

Nice trading update, might mean any potential buyer might have fork out a tad more.

[cockneyrebel] 02/10/2012 12:13

edging up

CR

[sportbilly1976] 01/10/2012 14:06

seems to be a fair few available at 67p

From the chart below we may see a bounce off the middle uptrend line, pushing to a squeeze and breakout from 70p.

MACD going nicely positive too...hopefully a repeat of the Feb/Mar rise to come :)


Uploaded with

[cockneyrebel] 01/10/2012 11:09

Agree it'a a damn shame if these do get sold here as they have huge potential. This was a right dog but under Turner it has become a lovely clean, lean co imo.

These could easily be 100p in their own right from eps and growth imo. Reminds me of Torday & Carlise in many ways - languised at 10p then a new CEO, became E.Wood and eventually got taken over at about 270p a share - another great clean up and efficency job like API imo.

CR

[sportbilly1976] 01/10/2012 11:02

accumulation on the quiet continues...

bids to be submitted before 31/10/12, but that doesn't mean they won't come until the 30th

[penpont] 26/9/2012 23:17

From IC:


TIP UPDATE
API Group PLC (uk:API)
SPECULATIVE
HIGH RISK

Buy
Our previous tip
WE SAIDBuy
WHEN7 June 2012
PRICE 55.8p
TIP PERFORMANCE TO DATE+23%

Interest in API (API) has been reignited after the packaging materials group, under pressure from major shareholders, confirmed it is officially up for sale. Indicative proposals must be in by the end of next month and there should be plenty of interest.

API first mooted the idea in February after US activist fund and 32 per cent shareholder Steel Partners said it wanted out. Wynnefield Capital does, too. Trade buyers in Germany and the Middle East and foil-makers in Asia are believed to be the most likely bidders. Even Illinois Tool Works, which had an offer of around 100p a share turned down in 2005, may have another look. But activist fund Crystal Amber thinks a sale could be "premature" and believes the shares offer upside "well in excess of 100p".

IC VIEW:
API's shares are up over a fifth since we suggesting buying them (55.8p, 7 Jun 2012). But, given the likelihood of a bid and the inherent growth potential without one, we remain positive. Buy.

[interceptor2] 26/9/2012 23:04

Have been driving all day, so only just logged on to see the positive development. Well done to those who managed to buy early in the day, as mentioned it was surprising to have that chance to top up.

ic2...

[m.t.glass] 26/9/2012 12:09

Altium Capital is running the sale process and potential bidders have been encouraged to contact the firm "without delay". Bids must be submitted before 31 October 2012.

In May, API reported a 14 per cent rise in revenues to £113.9m for the year to 31 March 2012, up from £100m a year earlier. Profit before tax increased by 77 per cent to £5.1m, while net debt fell to £3.6m, compared with £8.5m in March 2011.

Speaking at the time, chairman Richard Wright said that with debt "substantially" reduced and positive momentum in sales and profits, the group had "further strengthened" its platform for future investment and growth.

He added: "A second year of strong cash flow has transformed the group's balance sheet."

[cockneyrebel] 26/9/2012 11:00

And breaking out today MT Glass :-)

CR

[m.t.glass] 26/9/2012 10:58

A few stats:

After falling to that low point in November 2008, the share price has climbed sixteenfold

27% in 2009,
88% in 2010,
164.5% in 2011,
and 65% so far this year.

[britishb] 26/9/2012 10:19

The share price peaked at 180p when Illinois toolworks were contemplating an offer in 2005. Revenues were similar at that time, they were barely profitable and debt was higher.

A different time of course!

[cockneyrebel] 26/9/2012 10:02

Agree britishb - and the debt reduction here has been fabulous too. I would expect these to be debt-free in the coming year. In fact the sale of this business is a bit of a disappointment, I think it has the ability to be £1 within a year in it's own right if things are going as well as seems and and the market in general improves.

It's the two major shareholders that just want out as API seems too small for them these days, which is a shame. Andrew Turner has done a great job here and these were ell on the way to recovery sooner than this had we not been hit by the financial crisis but even through that API have done outstandingly well imo.

But as ever, nothing is guaranteed either in the micro as a company or the macro as in Europe so the illiquidity in the stock means you need to be balanced in how deep you get into any AIM small cap.

Got these in my annual stock challenge for 2012 too so could do with these being over £1 before year end, one way or another :-)

CR

[m.t.glass] 26/9/2012 09:35

The very least today's formal announcement will do is require a wider range of brokers and analysts to run the rule over this company - which some won't have done in the past few years. And at current prices the market cap seems likely to stay above the £50m level beneath which size some don't look.

[greenroom78] 26/9/2012 09:10

I guess the news only gets heard by those of us already aware, I'm sure word will start to spread before the 31st of Oct once it gets a bit of press coverage. I also expect that the price will tell us whether the market thinks a deal is likely nearer that time. I had expected a bit more of a mark up than we got this morning, am tempted to add a few.

[britishb] 26/9/2012 08:53

Given that they said in March "Consistent with previous announcements, the Board expects significant incremental volume growth associated with the Laminates investment referred to above. Barring unforeseen developments, the Board has concluded that it would be in the interests of shareholders to explore a sale process during the third quarter of calendar 2012 when the benefits of that project are more visible and will update the market on the formal commencement of any such process." one would hope that things are good on the trading front.

An astonishing lack of trades this morning. A sign of the times for AIM shares...

Agree with CR. Just about every financial metric says this will sell for £1+.

Cue no bidders and a profit warning!

[davidosh] 26/9/2012 08:20

I do not think they will be able to provide any updates to trading now that they are in an offer period though.

[nickjoseph] 26/9/2012 07:48

CR, think you are right here. Lets see what happens with the share price this morning. Would have been great if they said there were iterested parties already.