Camellia Share Discussion Threads

[russman] 10/12/2024 06:03

It is a positive sign; £163k may be significant to directors pockets but compared to buyback it is insignificant.

[cjohn] 09/12/2024 09:52

The four main directors purchased shares totalling 163,095 pounds on December 6th after the share buyback was announced.

[russman] 07/12/2024 05:30

a small buyback is a start.
what is the current authority for buybacks; probably need a GM to increase it.
best to get the buybacks completed before announcing any "special" dividends.

[ljubljana123] 06/12/2024 19:41

No chance that an activist investor can stir it up, 52% controlled by the charity, and the leading pension fund shareholder exclusively manages the pensions of the employeees… no chance it can be shaken up….

[zoolook] 06/12/2024 19:28

If any company needed an activist investor to stir things up it’s this one

[ljubljana123] 06/12/2024 19:01

As a former group CFO (now retired ), of a multinational business sold for €400m, there is too much emotion in these comments. Shareholders should ask why a 9m share buy back, not a 100m buy back? Why is 9m the magic number, in my guess to buy out Quaero. Both former CEOs were asked to leave since they wished to return money to shareholders, the slight majority disagreed, hence they were both asked to leave…. I know them both

[pireric] 06/12/2024 12:38

In simple terms, the sooner management stop selling off genuine value and ploughing cash into limited, zero, or potentially even negative ROIC ventures, the better. It's clear you can map out whatever ROIC calculations you want for this business on a spreadsheet, but it's actually trading performance is pretty awful. Arguably worse than other agri businesses of the past like Total Produce, Produce Investments, or Fyffes, and suggesting to me that management strategy or execution historically here has been a material contributor

Eric

[34adsaddsa] 06/12/2024 11:34

Stop the conspiracy theories.

People are very annoyed because the management keep doing stupid things and not acting in the best interests of shareholders. I've never owned Camellia but I keep an eye on it. It annoys me even though I've never been a shareholder because it's just idiotic.

[nerdlinger] 06/12/2024 11:19

One possible reason for the negativity - maybe some of these disgruntled holders are shorters pretending to be disgruntled holders in an attempt to encourage genuine holders to sell?

[eezymunny] 06/12/2024 10:24

Worth remembering that the company´s fortunes can improve or worsen (they´ve made 100´s of millions of profit historically). Pretty much every post on here is very negative on prospects. If there´s a tea shortage (like we´ve had for cocoa, coffee, olive oil etc) CAM will be the hottest property on the market, for example...

The constant negativity on here is pretty sheep like:)

[ljubljana123] 06/12/2024 09:23

I did not realise that, but in full agreement with you. It may well just be a block purchase off market, and Quaero will take that multi million hit. I see no point in holding this share.

[74tom] 06/12/2024 09:18

Is it a coincidence that the maximum authority of 138,100 shares only just exceeds Quaero's holding of 135,000? I think not...

[ljubljana123] 06/12/2024 09:12

This morning directors, and by default the majority shareholder, showed their true colours, and no matter how weak the share, it will never recover with the cash remaining in the Group. I am sure Quaero will be fuming!!

[ljubljana123] 06/12/2024 09:05

The 9m buy back in the market is derisory, and quite clear that the benefits of the share sale will be used to fund continuing losses, fund excessive mgt salaries, and continue to employ for the foreseeable future all its employees. The directors are acting more to the benefit of its employees, than its shareholders. I have no doubt, its largest independent shareholder Quaero, will be very disenchanted. It’s no surprise that they reduced their stake a few weeks ago, and I guess will continue to do so. Bear in mind that they are taking a70% hit on their holding, irrespective of the time value of money (holders for 10 years). No wonder the price fell this morning.

[ntv] 06/12/2024 07:41

Looks like they are going to keep 90% of the cash to waste and keep themselves in over paid jobs and expenses

[russman] 06/12/2024 06:31

what would the trust want; it would want to maintain its majority and realise cash.
a lot of cash, it would be an enormous buyback / tender.
maybe a capital dividend for starters.

[cjohn] 05/12/2024 13:06

Exactly, crumppot.

No money should be wasted on buying more low margin, capital intensive, high risk agri-businesses.

Money after share buybacks are finished could fund a tender offer at say 75% of net book value. This would give current shareholders who want out a very profitable exit price. And increase the discount to NAV per share for those who don't sell.

Alternatively, go straight for the tender offer.

[crumppot] 05/12/2024 11:54

I wonder how they would calculate a share buyback price and would many people sell. That would still leave the board with a lot of money to spend.
not more plantations!!

[74tom] 05/12/2024 11:36

Haven't they already confirmed what their plans would be per the last interims?

"The Board restates its intention to consider a share buy-back, subject to the sale of BF&M completing, and the Group's balance sheet permitting."

Also 6th June 2023 (SP £49)

"The Board considers Camellia's shares to be significantly undervalued and, in the event of any surplus funds arising, will also therefore consider the merit of returning these to shareholders by means of a share buy-back."

Total trading value in CAM shares since the start of 2020 is just £45m, a buyback of say £30m would be monumental given the share register.

Presumably the board would consider fair value to equate to balance sheet equity / book value, so £357m / £129 a share?

[eezymunny] 05/12/2024 10:19

"The Company will update shareholders on the use of funds upon receipt of the net proceeds from the sale"

Maybe confirmation bias but that reads to me like they have already done the thinking about what to do with the cash.

After 3 miserable years and a lot of averaging down I´m considering just a tiny dollop of optimism for dinner...

Someone´s on the bid in quite some size, for now.

[crumppot] 05/12/2024 09:34

Cjohn AGREED!!!
We need a special dividend or share buyback

[cjohn] 05/12/2024 09:03

Yes, agreed, EezyMunny.

It's also the moment of maximum risk, as the management have a golden opportunity to blow our cash on another daft acquisition.

[eezymunny] 05/12/2024 08:14

Almost over the line for BF&M then.

We can only guesstimate but I reckon cash will be £90-110m next balance sheet. Tangible NAV around £350m (£125/share). One hopes for a tender offer at a very much higher price than today, or a buyback that further increases the mad discount to TNAV.

Gonna be fun to follow...

[crumppot] 21/11/2024 14:26

CJohn..agreed!