CBG Group Share Discussion Threads

[gogoalex] 14/12/2007 09:09

I think you have got wrong end of this deal geovest, these guys are no mugs and my info from manchester is that this shell was kingsbridge a top sports and wealth management IFA company so getting access to all their records, contacts, clients etc is worth serious money, it also has a large shareholder base and a another nice touch they get the cash in the bank and only pay about 70p for every pound in the bank finally they will pick up the tax losses as well, looks to me like a good little deal.

[geovest] 13/12/2007 12:43

OK, managed to shift the rest today, so I'm now out. Good luck to the holders.

[helpjoe] 12/12/2007 20:22

Hmmm not sure of the issues, is there a good tax angle here? If the directors just want to pocket a bit of profit, why not just sell a few shares, think there is more to this than meets the eye.... Will wait for further info DYOR IMHO etc...

[geovest] 12/12/2007 16:33

I'm with you on this gac. Partly out today, rest will follow soon.

[gac100] 12/12/2007 16:07

Directors and PIs interests aligned?

I'm out

[fozdad] 12/12/2007 12:43

Nice if you can! I don't think it matters much in the great scheme of things.

Let's just hope the other acquisitions are subject to better governance, although didn't someone a few weeks ago mention problems with of one of the recent acquisitions?

[geovest] 12/12/2007 10:15

How's that for corporate governance?

Some of CBG's directors made a poor investment in a dodgy AIM listed company.
Poor strategy, bad execution and the company just about goes bust.
Company admits its up the creek and gets suspended from AIM.
The CBG directors who are shareholders in the dodgy company realise they can't get their money out.
Only way out ..... get CBG to buy the dodgy company and give them CBG shares in exchance.
Simple really!

[bigman] 29/11/2007 20:44

I see BNH has been taken out by towergate

[green sand] 23/11/2007 11:02

Someone is keen, 3.8% premium for £6k worth?

Good luck

GS

[waldron] 11/11/2007 11:41

cheers don

[helpjoe] 20/10/2007 06:47

For what it is worth I think the latest aquisition looked on the surface fully priced but the board have proved that they can make aquisitions and make them more than work for the shareholders. Still think they are starting to make a nuisance of themselve's and have to be wary of predators. Either way think the only way is up... IMHO DYOR

[green sand] 17/10/2007 10:51

Could be interesting times ahead, a 150k broker to broker today, following the 60k one on Monday. Both appear to be at mid. Noticed in Octopus Eclipse VCT's report that they have now acquired £380k worth. So far the Eclipse judgement has been very good.

Good luck

GS

[geovest] 15/10/2007 13:25

Just an update on my previous post. I note that CBG in its recent interims reported:

'the underlying organic growth in turnover from existing operations was in excess of 17%' This is clearly calculated in the correct manner and only includes real organic growth

This is excellent Well done CBG.

[geovest] 15/10/2007 12:56

bigman,

* first part of post deleted as it does not apply yo CBG

As far as the insurance cycle is concerned, I think we may be near the bottom of the cycle, but I don't see a major hardening of rates because all the major insurers are still making a profit. It's only when the really hurt that you see big moves in rates. It may therefore be a 'soft cycle' with only minor adjustment in rates. Not enough to convince me that its an investment.

[bigman] 15/10/2007 11:55

thanks Geovest interesting views not so sure about BNH not being built on acquistions as from the accounts I see they spent £14M on them last year and £4m the year before, that is quite a lot of supplimention. That is why I like them as the consolodation by acquistion builds the size quickly that results in the increased margins and you supliment that with growth rather than the otherway round, From last accounts CBG say 21% increase from continuing operations and over 17% organic growth, that is impressive. Re HWY do you not think it is bottom of cycle been and gone and rates are only way to go is up. I agree with you totally on THB maybe they should be bought by BNH. I like the dividend and when you see what was paid for carol nash then THB HWY have lots of value in the share price. IMHO

[geovest] 15/10/2007 10:52

bigman, I looked at THB a wile back and didn't like it for a number of reasons. Firstly because they operate mostly in the Lloyds market which makes them much riskier in my opinion, but most impotantly because they have not been able to prove that they can grow the business profitably. This years profits and EPS (and even next year forecasts) are still below what it was 5 years ago. They've sold and bought businesses over the years but have not proven they can grow profitability consistently overall, which is something I look for.

HWY: I don't like to invest in insurance companies directly (and especially specialist motor insurers like HWY), unless maybe when they are at the bottom of the cycle with everyone making huge losses and rates are increasing almost every month. Motor insurers have a continious cost inflation on claims against declining rates for most of the time. It is nowadays way too easy to set up a new insurance company to sell motor insurance resulting in increasing competition and lower premiums.

Over the last few years i have looked at the wider insurance sector to try and look for value and every time came back to BNH because they remained undervalued. I bought some CBG earlier this year to diversify, but small beer compared to BNH. CBG has been dependant on acquisitions to grow, while BNH has grown the network organically, supplimented by acquisitions. Even now, I still beleive BNH to be better value and cheaper on fundamentals.

[bigman] 15/10/2007 10:04

take your point on jelf but i think there is value in the share price, things will develop if BNH is taken out. geovest what is your view on THB this delivers me a nice dividend and helps balance my portfolio of capital growth and investment income. HWY i really like after CBG for potential for gains.

[geovest] 15/10/2007 09:35

Can't argue with that. I think the sector will run for some time yet with ongoing consolidation and we will probably see rates starting to harden next year, which will be good for profitability.

[bigman] 15/10/2007 09:07

Geovest I fell into this investing in the insurance sector by accident ( no pun intended) and it has proved to be a real winner, beleive it or not I was into the banking sector and been switching bits of my portfolio into this for some time so it is a double win for me. i like a punt or two and what started as a bit of a punt has become a portfolio in a sector and I love it. I just can't get enough insurance

[geovest] 14/10/2007 22:06

I am positive I maybe I should be cautious if the lawyers are touting it! ;-)
Maybe a case that sometimes even the lawyers get it right.

[gogoalex] 14/10/2007 18:09

Hi guys I bought 5,000 on friday had to pay 190 for them, my first investment into CBG there has been a lot of talk about this company in manchester, a few people have mentioned it to me. Graph looks impressive wish my lawyer friends had mentioned it earlier.

[geovest] 14/10/2007 13:17

Are you suggesting we should take out some more insurance bigman? ;-)
I personally don't like Jelf as they have too much debt on the balance sheet and are therefore much riskier than BNH or CBG.

[bigman] 14/10/2007 11:04

Mail on sunday says it is Towergate bidding for brokernetwork, it will be interesting to see how they value it and if any other bidders come in, may cause the other big boys to look to CBG and JELF next, or are they already at the table, allianz bought stakes in both ! I just love a bun fight and with the big sharks swimming arround and blood in the water could be interesting times ahead in the insurance broking consolidation sector.