Brightside Group Share Discussion Threads

[el1te] 31/7/2013 06:34

Trading Update out this morning. Strong growth to start the year but restricted underwriting capacity will mean that full year figures will be below expectations

Which is interesting because Brightside's board will have known this when the Markerstudy offer came in and they probably knew too. Therefore by putting the 27p figure in the RNS I will be interested to see whether that caps the downside today. What it may well mean is that Markerstudy will not up their possible bid even though BRTs PE remains below the industry average

A conundrum, but if the stock opens at 27p+ (despite the effective profits warning), I'll probably take profits.

[el1te] 27/7/2013 11:02

I also fully expect an offer to be made. 30-32p would be a zone I have in mind, but nonetheless the downside is limited to a few percent in my opinion

[gargoyle2] 26/7/2013 06:54

My (wild and totally uninformed) guess is for a recommended offer at 30p some time next week. Just cos i like round numbers.

[danieldruff2] 26/7/2013 06:28

I don't see how they would get enough shares to do that at the current bid price. No sign of major holders selling out. Maybe 1-2% has been traded in the last few weeks, peanuts really.

[parsons] 26/7/2013 06:19

Eerily quiet here. The BOD and the potential acquirers are huddled together to work out a way that they can buy the group for as little as possible. Look how untrusting I have become dealing in these markets !!

[danieldruff2] 25/7/2013 10:48

I had expected more action during this potential offer period. What has happened to the trading statement? It is overdue.

[count chris] 19/7/2013 19:32

With the stock trading above 27 now the market must be betting on a higher offer.

[this_is_me] 19/7/2013 14:32

Share price ticking up above the possible offer price.

[masurenguy] 19/7/2013 08:49

Thanks Orb1t - some interesting insight !

[0rb1t] 19/7/2013 04:57

Markerstudy are actually in a privileged position to know how well the new affinity sales are going. Last Oct they pledged to provide a £80m underwriting facility. So most of the new Asda/Debenhams sales must be going through them.

The £80m Markerstudy and £25m Ageas is quite an increase in capacity. In 2012 Brightside had 400K policies. At an average of £500 per policy that is about £200m in underwriting capacity required. So £105m new capacity is about a 50% increase.

[masurenguy] 18/7/2013 14:16

Couple of 100K share sells @27.5p with no impact on the price, suggests that someone is accumulating.

[masurenguy] 17/7/2013 11:48

Todays volume is paltry - so far around 300K which is far less than 0.1% of the stock. People are sitting tight here and not selling which indicates they expect a better offer price to be forthcoming in due course.

[danieldruff2] 17/7/2013 10:31

Not much stock has been let go since the offer announcement - less than 1%

[parsons] 17/7/2013 10:24

So far all deals are sells, MMs cant get the price down to encourage selling. Having thought about this I am now convinced that a deal will be done but at a higher price. The bidders know the company well, they probably decided they could wait no longer top bid but they will have to pay up for it.

[davidosh] 17/7/2013 09:36

In December 2009 Brightside raised £20m through a placing @22p to fund organic expansion and in May 2010 they raised a further £9m, via a placing at 25p, to partially fund the acquisition of eCar and eBike for a total consideration of £15.5m.

All those who came in on the placings will not see 27p as a successful exit after nearly four years of investment !

[danieldruff2] 17/7/2013 09:36

And now we're starting to see the 1-3% disclosures coming through, should be an interesting few weeks.

[parsons] 17/7/2013 09:26

Masurenguy I agree totally !

[masurenguy] 17/7/2013 08:59

An offer price of just 27p is too low which is why you can currently sell at 27.5p !

I noted that Markerstudy increased their shareholding by 20% (42m to 52m) in February this year so either they have been working towards making an offer or, as the joint largest shareholder, they are looking to flush out other potential predators. That might result in a bidding war or it could prove to be a damp squibb. We can only wait and see but if an offer is to be successful from whatever source I would have thought that 32p would be a minimum with the potential for going higher if a bidding war did ensue.

[0rb1t] 17/7/2013 08:07

Marketstudy are currently the main underwriter for the company. So perhaps they are trying now before other underwriters are signed up and they lose some influence.

[davidosh] 16/7/2013 21:27

At least it shows there is much more value here than the measly 20p or so that it was trading at for most last year. I rather think that any bid below 35p should fail but there have been some large share sales by ex directors so the bidder is probably opportunistic thinking many are more distant from the coal face now.

[glasshalfull] 16/7/2013 21:04

I concur with many of the posts and certainly don't think 27p does the company justice. Just another opportunistic bid for a small cap.

Lets hope Brightside management & shareholders stand-up and extract a reasonable offer.

When it happened to Sprue Aegis (SPRP) earlier this year the $4.5 billion (yes, billion dollar) Jarden Corporation offered £35m for the company ... & left with tail between its legs when they only received 1.26% acceptance.



Shows what can happen when shareholders and management unite....

Regards,
GHF

[count chris] 16/7/2013 17:18

Being optimistic - a bidding war would be nice

[this_is_me] 16/7/2013 16:25

It would seem that the possible bid of 27p has not been dismissed out of hand. This is a concern.