Blue Star Capital Share Discussion Threads

[pensionfund] 08/12/2004 08:09

Topvest,

That means that the numbers do not add up; 8,500,000 * 5p = £425,000, whereas the stated BLU investment was circa £285k. Did they get the shares at a discount to the placing price?

Also do you know how the 6-7m of assets are held?

Regards

PF

[topvest] 07/12/2004 21:27

Thought I would correct the above if you don't mind. Page 18 of the prospectus of IOS - Blue Star have 8.5m shares - there are 15m shares in issue. Valuation of their investmebt is therefore c. £1.7m.

I bought some BLU a week or so - decided it was a bit of a mistake (getting carried away) and sold today at a small profit. BLU only has £6-7m of assets, so it's a bit toppy for such an investment co. Could still do well if their other floats are as successful.

[caecilius] 07/12/2004 11:53

Apologies PF, I lost 50mil shares.

[pensionfund] 07/12/2004 11:47

Caecilius,

I do not think I am wrong about the cash value/NAV that the IOS holding is worth to BLU shares

10,000,000 * 0.567 = 5,670,000 shares
5,670,000 shares * 13.5/100 = £765,450
£765,450/106,000,000 (No. of BLU shares) =£0.00722 = 0.722p a share.

Sheddy

Even at a mid of 25.5 that is only 0.14p a share (NAV) from IOS, which means we still need more further movements up in IOS share price + further successful floats + new floats constantly in the pipeline, delivered and performing in terms of share price when and how described by BLU to justify the current BLU share price.

I agree a large holding by BLU in IOS will give them good exposure to the performance of IOS (good or bad) albeit I make it that BLU is holding 37.8% of the total issued IOS share capital (I think BLU took a 56.7% stake in the 10m IOS shares issued yesterday). However with only one company floated that makes this share high risk as you are heavily exposed to the performance of a single company, when we get to say 10 floated companies the risk will be statistically less.

It would be interesting to know what the long term plan of the management is with the floated companies. Effectively there will long term be 2 sides to their business 1. Bringing companies on board to float and 2. Managing a portfolio of shares. Holding too many of their companies shares will effectievly mean that they track the index price with those holdings and make additonal revenue through floating new companies. 'Managing' their furture portfolio would 'riskier' but offer the potential to increase profits by realising share price gains in well run progressive floats and ditching those that have lost their way.

Either way once we get a few more companies floated the risk of this share will become less and should be more attractive to more than just 'us punters', which can only be a good thing for the share price

Regards

PF

[shedjock] 07/12/2004 11:44

Nah, delayed sell......... price at 10.22 was 13.5 - 15

delayed the trade notification by exactly 1 hour, i.a.w. the rules

[caecilius] 07/12/2004 11:23

Delayed 143k buy?

[shedjock] 07/12/2004 11:08

When they all realise that BLU own 56.7% of IOS and aren't going to sell their stake as IOS is going to make a fortune, BLU will take off too ! Already up and fluctuating around 10% up today.

Sheddy

[shedjock] 07/12/2004 10:56

Pension, Caecilius......... IOS is going through the roof, but at mid price of 25.5 their investment has risen to £1.45M

Sheddy

[caecilius] 07/12/2004 10:39

PensionFund, I get 1.4p per share (i.e. 1 over your figure) at a mid price of 13.5p. Isn't your 0.7 figure shares per pence rather than pence per share? At 20p it is already worth 2.05p to BLU.

[tofftrader] 07/12/2004 09:42

Looks like IOS is flying again today - hopefully punters will make the link to BLU at some stage!

[pensionfund] 07/12/2004 07:53

Further to my post 131 above; where I used 8.5m shares, which I lazily borrowed from TopVests post 110. I assume Topvest was basing 8.5m shares on 56.7% of IOS's entire issued ordinary share capital. However 8.5m * 5p is not equal to the £285,000 BLU invested in IOS. Therefore I think they took 56.7% of the 10m shares issued yesterday or 5,670,000 shares, which ties up to their £285,000 investment at 5p and makes the shares worth circa £765k at a mid price of 13.5p. To BLU shareholders this makes the IOS investment worth circa 0.7p a share. Therefore a long way to go to justify the current price.

Regards PF

[topvest] 06/12/2004 21:44

Could be an interesting day tomorrow if IOS have another good one. Still a bit of a lack of awareness on IOS at the moment.

[21richyrich] 06/12/2004 21:05

From London Evening Standard tonight

It was the first day of trading on Aim for India Outsourcing Services after a placing of 10m shares at 5p by broker Durlacher. The shares opened at 9 1/2p before settling at 14p. The company has been formed to capitalise on acquisitions and investment opportunities in Indian outsourcing.

[ichykent] 06/12/2004 16:30

If like me the RNS didn't show on your monitor, i've posted below


Blue Star Capital plc
06 December 2004


For immediate release 6 December 2004


BLUE STAR CAPITAL PLC
('Blue Star')

Investment in India Outsourcing Services plc

Blue Star Capital plc (AIM: BLU), the company created to provide seed capital
for early stage companies, is pleased to announce it has taken a 56.7 per cent
stake in India Outsourcing Services plc, a company that today begins trading on
the Alternative Investment Market (AIM).

Blue Star led the formation of India Outsourcing Services (AIM: IOS), a company
formed to capitalise on acquisition and investment opportunities in the Indian
business process outsourcing (BPO) market.

Blue Star invested £285,000 in India Outsourcing Services, in return for 56.7
per cent of the company's shares.

India Outsourcing Services is the first company to be formed by Blue Star
following Blue Star's flotation on AIM in October 2004.

Nigel Robertson, Blue Star's Chairman, said: 'The formation, funding and
flotation of India Outsourcing Services marks a significant achievement for Blue
Star, just two months after Blue Star's flotation. The transaction highlights
the pace and quality of dealflow we intend to deliver at Blue Star with the
objective of creating value for our shareholders.'

ENDS


For further information:

Blue Star Capital plc Tel: [phone]
Nigel Robertson, Chairman
Haresh Kanabar, Chief Executive

Durlacher Limited Tel: [phone]
Jonathan Retter
Katherine Roe

Buchanan Communications Tel: [phone]
Mark Court
Elly Williamson

This information is provided by RNS
The company news service from the London Stock Exchange

[pensionfund] 06/12/2004 14:13

I think the share price at the moment is largly due to 'potential'; the speed IOS has been pushed through at and what has been promised to come. Could be entierly missing the point but 8.5m * 14p = 119,000,000p, since I am not aware of any other assets although I guess they will have some cash in the bank, this translates to a NAV (at the time of writing) of 1p ish a share. Therefore anybody holding this share, which includes me, is relying on more floats and quickly to justify the current share price.

Do the directors get paid in cash or shares?

Regards

PF

[jlrussell] 06/12/2004 13:09

this looks very interesting...trouble is, after the IOS flotation dies down, i reckon these could ease off. on the other hand, who knows, may jut skeep going up and up on hopes of more deals. may dip in for a few...

[topvest] 06/12/2004 12:50

I've started a new IOS thread now that charts etc. are up and running.

[ichykent] 06/12/2004 12:49

not surprising really as IOS have not announced anything of note in their portfolio yet

[plast] 06/12/2004 12:46

surely this should be higher than this now with the first float out of the bag.

[igoe104] 06/12/2004 11:57

with alot of press coverage hopefully they should be alot more in this yet

[shedjock] 06/12/2004 10:59

Thanx, got it now, didn't appear on my monitor

[tofftrader] 06/12/2004 10:49

From today's RNS re. IOS...

[shedjock] 06/12/2004 10:45

Where did you get that TT as it sounds like a quote ?

[tofftrader] 06/12/2004 10:43

"The formation, funding and flotation of India Outsourcing Services marks a significant achievement for Blue Star, just two months after Blue Star's flotation. The transaction highlights the pace and quality of dealflow we intend to deliver at Blue Star with the objective of creating value for our shareholders."

Just what every holder wants to hear - no hanging around.

[trigsta] 06/12/2004 09:13

good idea igoe - cheers