Bodycote Share Discussion Threads

[w.bramley] 10/12/2008 09:57

The only BOY shares you can trade is ie: (above) out of your 5000 the 2895.

[waterloo01] 10/12/2008 09:48

So what's being traded at the moment? Surely only B shares now exist as all shares are now B?

[w.bramley] 10/12/2008 09:43

The B shares are not tradable. An 11-for-19 consolidation. Opt for option 1: and you will be paid 40p for every B share on or about 23 Dec.

Say you had 5000 shares, you will now have 2895 and £2000 in cash to be paid.

[waterloo01] 10/12/2008 09:38

Help!. Barclays now say that the shares that are trading are consolidated shares (ie 19 old are now 11 new). What happens if I buy or sell these? Do I get the 40p per share (the original letter states that they have to be held till the 12th Dec). Does someone understand this process. Is this right?

[gre] 09/12/2008 16:42

Surely it's the "B" shares that can't be traded because they are being cancelled by the company. The existing shares should have been consolidated this morning but my broker has not yet altered my account to reflect the lower number of shares which I now own. Good job that I did not want to deal today because this is all very confusing!

[beaufort1] 09/12/2008 16:33

Well for a share that's not trading they are doing remarkably well. You ought to sue Barclays for loss of opportunity. If you'd bought this morning you could have made 25%

[waterloo01] 09/12/2008 15:35

Thanks, I can see that and the trades confirms it. My broker (Barclays) insist they can't be traded!

[milacs] 09/12/2008 15:29

waterloo

Look at the latest RNS in the above panel and you will see that the new shares started trading this morning.

M

[waterloo01] 09/12/2008 14:58

Wierd. I've been told by my broker that these shares SHOULDN'T be able to be traded today, yet lots of trades are going through, and the price rising. Some questions from them as to if all todays trades might be reversed. These can be traded (as new B shares) from tomorrow. Anyone any ideas. Seen this before?

[drectly] 09/12/2008 08:18

based 105 close Monday, then 112 equivalent for the new shares
not showing available to trade in Lloyds nominee account at present

Monday 323.9 m shares @ 1.05 = 339.1 m
less 129.6 (323.9 * .4)
= 210 / 187.5 m shares
= 112 / share
feel free to correct

potential down side if markets pick up and cash doing nothing, or a gain if they fall

regards drectly

[w.bramley] 04/12/2008 15:29

sleveen

Thank you for the confirmation, unless you would have used their capital gains allowance, I can't see any reason to leave the 40p payback till the later date.

Must have been dreaming when I said 11 to 9, you are correct.

[sleveen] 04/12/2008 14:08

wb

Yes to first question

on the 9th Dec, 19 current shares consolidate to 11 new shares.

[w.bramley] 04/12/2008 12:52

Am I correct - if you elect for the Default Option, you will receive 40p per B share on or around 23 Dec - but if you elect to take the Final Redemption, will have their B shares redeemed on the 6 April 09 but it will still be 40p???

After the 9 Dec, 11 shares then become 9 shares.

[sleveen] 25/11/2008 07:39

Option 1 Capital gain Dec

Option 2 Income Dec

Option 3 Capital gain April 6 (new fiscal year)

Please re read the offer doc to make sure I've understood :-)

[jadeticl] 24/11/2008 21:15

What do the three options open to shareholders really mean, please?

[gjcorr] 21/11/2008 12:26

Clampit,Typo56,referencepoint

Thanks for the clarifications..excellent posts

[referencepoint] 21/11/2008 12:17

clampit:

Yes, of course you are right (thanks for putting me straight).

However, that still leaves the great unknown, e.g. whether they can maintain or increase dividends!

[clampit] 21/11/2008 11:29

referencepoint:-

You will have fewer shares but dont forget the cash returned to you. If the current dividend is maintained the yield is still 8.4%. on net cash invested.
Dividend costs to the company would be greatly reduced due to the consolidation, but if profit levels can be maintained then there would be great scope to increasing dividends in the future which would then increase the yield.

[referencepoint] 21/11/2008 09:56

The 40p cashback in the form of 'B' Shares is really just 'smoke and mirrors'.
You are neither better or worse off after this is completed.
Say you bought 1,000 shares at 95p, = £950 (ex stamp duty and handling fees).
Following the 'cashback' and consolidation, you would have:
1000 x 40p = £400 in 'B' Shares or Cash
579 New Shares @ 95p = £550.05
Total: £950

However, you now have an investment in a company which has reduced it debt and so should be better placed to handle the immediate future. But we must not forget what a tough time the company in likely to have in 2009 and beyond and what this is likely to do to the future share price and more importantly dividends.
Had you bought at 95p the current dividend of 8p is worth 8.4%. Following the consolidation you will have fewer shares. If the current dividend is maintained, it then only becomes worth 4.86%

We don't know what the company is likely to do regarding dividends in future.

I am not offering advice whether to buy or sell, but hopefully start a constructive debate on how other people sum up the situation.

[typo56] 21/11/2008 08:32

Record date is 5pm on Mon, 8 Dec.

There will be an 11 for 19 consolidation, making the parity price 95p (ignoring tax considerations).

[clampit] 20/11/2008 16:10

From Interim Statement 17 November 2008

"Bodycote expects to issue a circular to shareholders later this month detailing
the method and timing of the proposed return of cash, which is expected to be
by way of a B-share scheme accompanied by a share consolidation."

The circular due out later this month will give details of record date, etc.

[guman] 20/11/2008 15:54

any body to answer 341.

[gjcorr] 20/11/2008 12:16

What date is used to record shares as regards the cash return at 40p per share?

[chris1604] 19/11/2008 07:46

I have been away in Florence and missed the recent developements and the chance to add to my holding.

The company have taken a prudent decision to reduce the cash payout and have battened down the hatches for a long haul to improve profitability.

The current market sentiment is that we are all doomed, however,Boy is now in a strong financial position going forward and I am confident that this decision will prove a winner in the long term.

One final query, was the recent sale completed in dollars, if so, did the sale price improve given sterlings weakness.

[kooba] 18/11/2008 08:16

Financial engineering
By Andrew Hill

Published: November 18 2008 02:00 | Last updated: November 18 2008 02:00

Bodycote was probably too quick to promise a redistribution of proceeds from the sale of its testing division. In other respects, the engineer has done the right thing. It managed to complete the sale last month at a good price, confounding fears the deal might fall through. Now it has halved a planned return of funds and kept the rest for the rainy day it is now enduring.

The 22 per cent fall in the share price is understandable. Many investors had bought in expecting a larger redistribution. But it still looks harsh. The group is facing strong headwinds, particularly in the automotive sector. On analysts' old 2008 forecasts - before adjusting for yesterday's warning of slightly lower than expected second-half profits - it now trades on a price/earnings ratio of about 5, in line with many in the sector. But in so far as any engineer is well-placed for the downturn, it is much better-placed today than it was last Friday.

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