Absolute Capital Share Discussion Threads

[nickcduk] 25/9/2007 11:33

Interesting turn of events with Rialas taking Floriam homm stake. I would guess he is trying to shore up his position and ensure that ARGO isn't taken out from him from under his feet. It will be interesting to see how it develops.

[currypata kai] 25/9/2007 11:32

bought 50k of these at 52 so I am a happy bunny

[andrbea] 25/9/2007 11:21

no. 2 on the leaderboard

[andrbea] 25/9/2007 11:15

some of these 'sells' going thru' are buys IMO
eg spread at 10.08am
58-62

so if a delayed trade (timed 10.08) comes through at 62p as a 'sell', can't be right... (there were 2 of them, 40k each)

[dangerous brian] 25/9/2007 10:46

Mass cut and pastes then the dump then no more posts again !

Then andrbea moves onto the next pump and dump.

[andrbea] 25/9/2007 10:45

citywire article (5pp, 21.9.07)
sums up the pros and cons of the situation

[dangerous brian] 25/9/2007 10:37

andrbea.

Just making sure people know who and what you are on this bb !

[andrbea] 25/9/2007 10:26

another 150k 'T'

[andrbea] 25/9/2007 10:17

some of these 'sells' going thru' are buys IMO
eg spread at 8.15am
08:15 61.75 5,000 O 60.0 62.0 Buy

so if a delayed trade (timed 8.14) comes through at 61.75p as a 'sell', can't be right...

[william47] 25/9/2007 10:15

he done the same to me here on friday at 51p who cares he follows real investors onto every thread .VERY SAD

[andrbea] 25/9/2007 10:13

you took your time DB...

[dangerous brian] 25/9/2007 09:49

Watch out andrbea is another well known pump and dumper !

[andrbea] 25/9/2007 09:39

posted Monday last on another site (another poster: blackfish):



The wild card (and key hope for external investors) in this situation is Argo's Andreas Railas. He now controls ACMH and he will want to protect his funds, and the capital of investors in his funds. That he has increased his ownership in ACMH means he is staying, and his funds will form the core of the new ACMH business, the other funds will wither away and should not be used as a big part of any valuation case for the business.


Argo Capital had $882m under management at 1st January.

Argo Fund 484
Argo Global Special Situations Fund 455
Argo Capital Partners Fund 73

Total AUM as at 1 July 2007 $1,012m

Assume only 10% of the Absolute Capital funds are left in a year's time . That would be about $180m
Add Argo's AUM of 1012m to get group total forecast AUM of $1,200m.

Today's Market Cap for Absolute Capital is £35m= $70.7m. So market value could be about 5.9% of AUM. That is an only okay valuation for a long-only asset management group, and could be considered cheap for a regular hedge fund management group (reliant on performance fees). ACMH is not a regular hedge fund business at this point. If Argo gets back to its previous growth track when it is the core of the new Absolute Capital then ACMH shares should double from here (51p).

OTHER FACTORS:
1) To the extent that you believe that last week's events cause Argo itself loses investor capital from it's funds then reduce the numbers for Argo.
2) If you think that investors in ACMH will successfully sue the company because of the events of the last week then reduce the value of the group accordingly.



Press Release extract re Argo:
"It should be emphasised to investors in the emerging market credit funds advised and managed respectively by its subsidiaries Argo Capital Management Limited and Argo Capital Management (Cyprus) Limited that such funds have always operated independently of ACMH's equity funds. The Argo group, based in the UK and Cyprus, has separate portfolio advisory/management teams, risk control/reporting and external service providers from ACMH's equity fund business. Whilst Florian Homm previously carried the title of Co-Chief Investment Officer, he had no responsibility for, or involvement with, the Argo funds whatsoever. The Argo group's investment decisions are made by its investment committee, which is headed by its Chief Investment Officer, Andreas Rialas. Argo Capital Management Limited is regulated by the UK Financial Services Authority and Argo Capital Management (Cyprus) Limited is regulated by the Cyprus Securities and Exchange Commission. The transaction agreements by which ACMH acquired the Argo group provide that Argo is to be managed under a 'principle of autonomy' from ACMH, and in this regard the Argo group's original principals retain a veto over changes to operational and management matters affecting the Argo group an have remained 'controllers' of Argo UK and Argo Cyprus for regulatory purposes."

[andrbea] 25/9/2007 09:27

Wall Street journal:
September 25, 2007




In last week's letter, Mr. Homm said: "I want investors and shareholders to know that I do not intend to start another fund or compete with Absolute Capital. In fact, I remain the largest single shareholder in the company, with my ex-wife and children also holding substantial stakes, and I intend to continue the fight for shareholder value in Absolute Capital and hope to contribute in that role in any way I can."

[andrbea] 25/9/2007 09:03

2 largish T trades:

25/09/07 08:44 62.352 235,996 T 62.0 63.0


25/09/07 08:49 63.0 200,000 T 62.0 63.0

[parvez] 25/9/2007 08:08

Possibly an agreement between Rialas and Homm? Rialas gets stake on the cheap and they take no further action against Homm. If this is the case, smart move by Rialas....I have just bought some.

[diogenesj] 24/9/2007 18:19

Lol, finbarr, thanks for that one. Note that the price was wrong too: should have been 35.2p, not 32.5p. Wonder how they pitched on the 0.2p.

[finbarr] 24/9/2007 18:04

interesting correction at 18.01;"the beneficiaries of which might be..."

[zho] 24/9/2007 17:59

From the Guardian market report:

Finally hedge fund Absolute Capital Management added 4.5p to 55p. The company's shares plunged last week on news that cofounder Florian Homm had resigned, which was followed by news it was suspending redemptions in some of its funds. Homm pointed out in his resignation letter he remained the largest single shareholder in the company and he would "continue to fight for shareholder value". But he must have changed his mind about the first part at least, since on Friday he sold 10m shares at 32.5p each to Andreas Rialas, Homm's cochief investment officer. This represents 14.5% of Absolute and cuts Homm's stake to 4.8% while lifting Rialas' to 19.6%.

[diogenesj] 24/9/2007 17:58

Time will tell, mdc. Meanwhile, there's a new instalment every day. :-)

[mdchand] 24/9/2007 16:55

i reiterate - if the institutions vote to keep the funds intact, then abcap have a viable future - which potentially make the shares very cheap going forward. Florian clearly thought they were worth dumping at any price, while
Rialas clearly saw a great purchase at a deeply discounted value to NAV. You pays your money.....

[paperclip3] 24/9/2007 15:46

Looking at the activity today and Friday, it appears that a big stake building exercise is going on

[diogenesj] 24/9/2007 11:55

He lives in Majorca, slap. Needs a suntan.

Rialas is probably hoping to split his two funds off again and escape the wreck. He's been stuffed imo, and is perhaps trying to make the best of a bad job.

[slapdash] 24/9/2007 11:34

don't think he needs much more work on the suntan... slap