Avesco Share Discussion Threads

[battlebus2] 19/1/2015 11:09

Mrx9000 tangible assets 57.8 Nta 162

[quepassa] 19/1/2015 10:58

I agree that certain AIM companies treat shareholders disgracefully and appallingly. Some AIM Companies seemingly have a complete disregard for good corporate governance.

I fully concur that CAVEAT EMPTOR is of the essence in purchasing shares in any AIM company - and especially in my view in newly admitted and young AIM Companies. Many of which had previously been run as family or founder companies and where subsequently being required to comply with the standards and practices expected of a listed Company on the Junior Market are alien, if not almost psychologically impossible, territory for them to comply with.

In many instances for AIM Companies, a 30% founder shareholding is a relatively low figure.

In the case of Avesco however, I personally believe that this Company has and continues to display particularly high corporate standards and treats shareholders very well and very fairly.

In my experience Avesco have always done what they said they would.

1. I am particularly impressed that they paid such a handsome special dividend to shareholders on the Disney litigation outcome. They were under no obligation to do so.

2. They have a stated dividend policy which they stick to. They pay regular and increasing dividends. This is a sign in my view of a Company which respects its investor base and wants to reward investors for entrusting Avesco with capital. Directors of any (AIM) company don't have to declare dividends and are able to pay themselves very large bonuses instead.

3. Avesco has been listed for a long time. They are audited by Ernst and Young. It is a mature company and understands the importance of good corporate governance in my view. Avesco understand in my opinion the importance of keeping a shareholder base content and supportive.

4. In terms of the significant shareholding of the Executive Chairman, I rather take it as a very strong point that he has just the right amount of "skin in the game" at 30%. Not too high, not too low. I personally baulk at AIM Companies where the founder retains a 60/70/80% stake in a Company where small shareholders can be treated with total indifference.
A 30% shareholding is relatively benign/favourable in my view for a floated AIM company.

5. The actions/turnover/international profile/reputation and many of the high-quality clients which Avesco now commands, indicate to me that this is a Company which the founder wishes to build further. And to make significantly more valuable which will be good for him and hopefully should be good for the small shareholder.



ALL IMO. DYOR.
QP.

[mrx9000] 19/1/2015 10:16

The increased shareholding by Murray is a good thing, it gives him the eye as Slater used to say.

A few things do niggle me though. Firstly in my view they returned to much back to shareholders from the large Disney receipt, they could of returned this over a few years and in the meantime grew the business and potentially done a decent earnings enhancing acquisition. Secondly turnover seems to be up and down all the time, probably due to the nature of the business. Thirdly operating margins have been reducing and are pretty low at around 2.4%?

Anyone know what the tangible book value of this company is?

[eeza] 19/1/2015 00:12

From Michael's blog

"Finally, Murray holds near 30% of the company and is 65 years old or thereabouts. When he eventually chooses to retire (of course he may decide to continue for some time yet), he might well wish to cash in his holding."

Yes.

All the BOD in SRG were also long serving directors and mostly around 70+years old. They also decided to cash in their chips.

And delisted the Co ripping off s/hlders who held shares in ISA & SIPP who were then forced to sell their holdings at a large loss.

I am very wary when the BOD hold a large % of shares, and are getting long in the tooth - and on the AIM. More and more management on the AIM are realising their is no downside (but significant upside) to ripping off s/hlders.

Caveat Emptor.

[fingers xxd] 19/1/2015 00:05

( Copy of a post on the FXD thread )



Davidcod - AVS



Thanks for pointing out that the dramatic 'gap-down' on AVS, was due to a 'dividend payment', and not an indication of any 'problem' with the Company.

As I pointed out, I had not viewed the 'fundamentals' to identify the reason for the fall, and the comments that I posted, (in yellow), were my 'general views' relating to such a move, and not specific to AVS.

Dramatic 'Gap-downs', appear quite often, and can occur for a number of reasons. My views and comments, have been obtained from studying hundreds of such moves, and have been based entirely upon the charts.

The charts do not take into account the fundamentals, they simply plot the 'price movement', so the fact that the AVS 'gap-down' was due to a dividend, not something else, is irrelevant from a chartists point of view, so as far as I am concerned, the analysis made in my previous post, still apply.

(As usual, just my unbiased thoughts as a non-holder, for what they are worth)

[michaelmouse] 18/1/2015 20:09

Playing the long game!

Michael.

[battlebus2] 18/1/2015 17:25

Just beware the village idiot more like....how can my two or three comments be anywhere near ramping...obviously your not a holder...

[investali] 18/1/2015 15:59

A word of caution is needed when you see battlebus posting over and over.
It may even verge on ramping.

Just beware.

[battlebus2] 18/1/2015 09:51

Mesquita how can you say the director buying 29.99% of the shares in the company is not a good thing? Would you rather he sold some or for that matter took no interest at all and only holds a few thousand. I think you have missed the point, why buy the maximum he can? Well it's not because the company is in trading difficulties, no it's because Avesco is trading very well and at today's price he can see a bargain. Last time I was involved with a company the director filled his boots other directors followed suit and after doubling in under a year they where taken over at a hefty premium. Looking at the financial performance the case for buying can only be positive. All I can say is I'm a buyer first thing Monday.

Not a big fan of charts for the reasons in ither posts above but agree fingers does an excellent job when there are no exceptional circumstances.

[boystown] 18/1/2015 08:12

Fingers is very good on the TA side, but ... it would seem he overlooked the special dividend.

Yes - just a mere trifling oversight in what would otherwise have been fundamentally brilliant and detailed stock analysis! :-)

[stoxx67] 18/1/2015 07:07

concur QP

Fingers is very good on the TA side, but on this occasion , with him not being close to the stock, it would seem he overlooked the special dividend.

when one looks purely at a stock from a TA perspective without examining the fundamentals too, this oversight can easily be made.

[quepassa] 18/1/2015 06:41

What can you say??


The gap-down / "sumfink-wrong" thesis in the case of Avesco is false , purely because they paid out a 110p special dividend which had been priced into the stock. The move was expected and known. It went x-d.

"Nuffink wrong" with Avesco in my view which had held its own in the past year against a difficult and falling AIM market.

And of course, again increased its dividend.

ALL IMO. DYOR.
QP

[dibbs] 18/1/2015 01:17

Interesting analysis Fingers xxd, although AVS has thrown something of a curved ball in that the dramatic fall was due to the company handing back a large 110p payment to shareholders rather than a problem with the company. Had this not have happened the share price would have pretty much have traded sideways and now be at 233p, pushing resistance around 235p. A break above 235p should I would imagine be significant after a long range bound period.

Dibbs

[fingers xxd] 18/1/2015 00:47

( Copy of a post on the FXD thread )



Liquid Millionaire - AVS

[mesquida] 16/1/2015 17:19

Yes, strong vote of confidence, but of course he now cannot buy any more, which effectively removes what has hitherto been a safety net for the share price. Moreover some institutional investors may well now shy away from a Company which is effectively controlled by an individual whose objectives might not necessarily be compatible with their own objectives. Certainly the stock is cheap, but perhaps justifiably so.

[quepassa] 16/1/2015 16:54

Big vote of confidence by Executive Chairman.
He has a great deal at stake in Avesco, owning almost a third of the Comapany and to see further buying is a strong vote of confidence in the outlook and prospects for the Company

ALL IMO. DYOR.
QP

[sailing john] 16/1/2015 16:48

Chairman "brimming it" I see!!!

Director's Dealing

Avesco (AIM: AVS) has been notified that, earlier today, its Chairman, Richard Murray, acquired 113,000 ordinary shares of 10p each in the Company ("Ordinary Shares") at 120.36p per Ordinary Share.

Following this transaction Richard Murray is interested in 5,721,211 Ordinary Shares, representing 29.99% of the Company's voting rights.

[sailing john] 16/1/2015 15:56

Yes - it appears the big boys are shifting stock around at 120p after their long lunch!

Sets a nice benchmark price though.

Have a good weekend

SJ

[battlebus2] 16/1/2015 15:34

Bit of strength to end the week :))

[battlebus2] 15/1/2015 13:50

Finn cap reiterates their buy and 150 target..

[battlebus2] 15/1/2015 13:44

New Edison note out which reports Avesco profit and PBT ahed of their expectations. Debt at 21.4 million is less than 0.9x EBITDA with gearing of 67% which is low for a rental co.
They increase their estimates from 3.0p to 5.2p due in part to lower tax and forecast 2016 trading profit of 6.7 million and normalised EPS of 16p. F/Y yield is 6% with the co trading at a 30% discount to NAV at 167p all of this backed by high quality broadcast equipment.

Although revenues can be lumpy you cant get much better than this imv, as ever dyor etc...

[battlebus2] 15/1/2015 09:10

Paul Scott captures it all here, worth a read if your thinking of buying for the first time.

[battlebus2] 15/1/2015 09:00

Sell on results seems the order of the day, very pleased with progress here and the increased dividend.