Cenkos Securities Share Discussion Threads

[joan of arc] 01/2/2016 14:09

I wonder if we should infer anything from the short positions taken out today.

[speedsgh] 29/1/2016 10:44

Cenkos are acting as sole financial adviser + broker for the Highlands Natural Resources's (HNR) readmission + placing...

Publication of Prospectus; Readmission; Placing -

the following is from the prospectus -

"After deducting commissions and other estimated fees and expenses incurred in connection with the Placing of approximately £350,000, the Company expects to receive net proceeds of £415,000.

The total costs (including fees and commissions, but exclusive of VAT) payable by the Company in connection with Re-Admission are estimated to be £301,000."

[bozzy_s] 26/1/2016 17:33

Still watching and waiting to buy here. Looks very compelling for both income (15% dividend yield) and capital gains (P/E of ~1 after deducting cash from balance sheet looks ridiculously cheap).

Many thanks to speedsgh for sharing your research. It's nice to see someone unemotionally posting both positive and negative updates. Much appreciated :)

[salpara111] 26/1/2016 15:37

Put simply
Either the business is massively undervalued OR there is some piece of major bad news that none of us are cognisant of.
Stable businesses don't trade with a covered p/e of 13 unless there is a clear indication that there are major problems ahead.

[gary1966] 26/1/2016 14:36

Funds raised in second half of year up on previous year and volatility/trading volume in the markets up also. Surely this has got to bode well for second half and annual figures? Share buyback carried out which will be earnings enhancing for those that still hold.

[salpara111] 26/1/2016 13:04

Agreed.....I don't expect their second half to be stellar but even if they made no profit they would still be on a p/e of about 4 for the year.
Unfortunately they don't appear to issue trading updates which suggests that it will be quite some time before we hear from them again.
I used to think that when a company's divi got to about 7% and was covered, it would support the share price but that theory has been blown completely out the window here.
My main concern is that management use the current share price as an opportunity to take the business private, I know that I would if I were in their position and for once I don't think that I would blame them given how the market is valuing the business.

[mister md] 26/1/2016 12:55

odd, don't really know whether to sell my holding or add to it here ...

[salpara111] 26/1/2016 12:49

Rather confusing given that they have the divi for the year already covered in the first half so are now yielding about 13%.
Either there is something very nasty in the woodshed or the share price needs to at least double.
They have about £40M net cash held as regulatory capital which means the enterprise value of the business is only about £35 M against first half profits of roughly half that amount.
It is clear that the big boys in the city really don't like Cenkos for taking ever larger crumbs off their table but the valuation is simply ridiculous.......unless there is something really big and bad that we don't know about.

[keith2006] 26/1/2016 12:37

Thanks for all your information speedsgh good to see you keeping all our spirits up, but at the moment can't help the feeling we are toast

[speedsgh] 26/1/2016 10:48

Should be at least a small fee for Cenkos out of this + potentially a fair bit more if anything substantial comes of the review at XLM Media...

Strategic Review -

The strategic review will be wide ranging and may include a corporate transaction such as the Company acquiring complementary businesses, a merger with, acquisition of or subscription for the Company's securities by a third party, or a sale of the business. The purpose of the Strategic Review is to assess opportunities that will maximise value for shareholders.

The Board has appointed Canaccord Genuity as lead financial adviser and Cenkos Securities plc ("Cenkos") as financial adviser for the purposes of the Strategic Review.

[loudenr] 22/1/2016 09:33

Can any other cnks shareholder explain to me why a share buyback took place in December 2014 only for there to be the issue of a broadly equivalent amount of shares in the course of 2015? Does anyone know who these shares were issued to? Seems like a false economy or something geared at looking after a select few - maybe I have this wrong

Many thanks
Ric

[quepassa] 21/1/2016 08:14

Could you think of a more adverse market for IPO's and equity placings? Especially for the small cap sector.

In my view and guess only, the overall market volumes of equity raisings will be way down for ( at least) the first half of 2016 based on the current highly volatile and negative set of market circumstances.

In my opinion only, the bad market weather in the overall sector will not produce a good 2016 vintage.


ALL IMO. DYOR.
QP

[billiam] 18/1/2016 12:19

Shocking start to the year. No strength at all.

[speedsgh] 14/1/2016 15:02

New Mandate. Cenkos have been appointed as Nomad (replacing Grant Thornton) + joint broker (alongside Simon Frost, Priscilla Ross, Keith, Bayley Rogers & Co Ltd) to Namibian Resources (NBR). Not an appointment to get too excited about, I would've thought.

Change of Adviser -

Advisers -

[salpara111] 07/1/2016 20:12

Yeah, if it wasn't for the massive well covered divi I would sell up as well but I will continue to hold for the divi and hope that at some point the share price will rise to reflect the business fundamentals.

[mickharkins1] 07/1/2016 11:47

Sold the last of my shares today. Still believe it is seriously undervalued but no longer believe the market will ever agree! Good luck to all holders.

[speedsgh] 03/1/2016 09:41

Suspended analyst Malik leaves Cenkos -

[speedsgh] 31/12/2015 11:21

Loss of mandate for Cenkos. They are being replaced as Nomad/broker to London Capital Group (LCG) by Allenby Capital...

Change of Nominated Adviser and Broker -

[pugugly] 29/12/2015 11:44

topvest: See Mail link above - Mainstream fund has been launched - "Within two weeks, his first fund, Woodford Equity Income, had raised £1.6billion, a British record"

Though I agree he has at the moment some of the listed investments that are being queried by Mr Market but AIM stocks are too illiquid to judge short term,

[leonasdad] 27/12/2015 17:42

prefer to be royal loyal
than a c&p specialist

[gary1966] 27/12/2015 16:22

Analysts piece on Nortwest Bio was written prior to him working for Cenkos and so unsure how Cenkos are going to get caught up in that one ONJohn and Cenkos have already issued a statement to say that they haven't been contacted regarding the Quindell investigation.

[salpara111] 24/12/2015 12:01

Well, I used to own PMR but sold for a thumping loss, the problem seems to be more company specific as Cenkos seem to have a solid deal flow going which is why I am continuing to hold.
I suspect that Cenkos will struggle to even match their first half performance in the second half but they can cover their 10% divi just out of the first half performance as they are a people business so do not need to retain as much of their profits.
My biggest concern is still that management may decide that the market is not valuing the business fairly and decide to take it private which would not be difficult given how little free float there is now with the two big tender offers.

[robsy2] 24/12/2015 11:45

hmmh , cnks is already at a dicount price, unless there is a complete collapse in new biz and some horrible developments from FCA ,it's surely hard to see this
one coming off 20-30%.

R2

[cwa1] 16/12/2015 13:54

Interesting indeed. And reassuring from my point of view, these are above pocket money sized buys(well, for me at least).