Centralnic Share Discussion Threads

[adamb1978] 03/7/2023 09:47

Else

Agree that this is probably utilising cash which would have otherwise gone to M&A.

I'm not sure I see any potential for a spike and retrace given the size of this (perhaps thats what you meant?). With the size of this buyback, they'll be buying shares til the authority expires next year.

The share price seems to have consolidated around the 110p-120p level . This should provide further support and hopefully a good TU in 3 weeks time can propel it higher

Adam

[elsa7878] 03/7/2023 09:44

Just a thought as a non shareholder (ex). Perhaps the company has stipulated to Zeus that they will buy any stock under a certain price and not just lead to the last spike and retrace when it was completed. Presumably this is utilising cash being generated that might otherwise have been used for acquisitions.

[adamb1978] 03/7/2023 07:40

Its hard to say that it hasnt worked so far. The price was heading south quickly and has stabilised over the last couple months

This should dispel any nonsense comments about the cash generation of the business. The business should be producing around $10m cash per quarter and therefore this buy back will broadly gobble that up.

You'd also assume that they wouldnt be doing this if they didnt have confidence over the outlook and growth of the business.

Good news IMO

[pyemckay] 03/7/2023 07:38

kestrel have over 23% holding. that should effectively make their holding nearer 26%. Is it 29% ownership that triggers a bid situation ?

[se81] 03/7/2023 07:21

Must have missed it working well so far?!!

I think I'll also see a c 10% increase in my proportional ownership :)

Decent discussion at the AGM re use of capital if you'd like further detail re management thought process

[spectoacc] 03/7/2023 06:29

No one else think "It's worked so well so far, why not try some more"?

Or that the big winner will be Kestrel, who'll see a c.10% increase in their proportional stake without spending another penny.

Dunno - buybacks leave me suspicious. If there's no better use for the money, then maybe.

[se81] 03/7/2023 06:28

Basically buying back nigh on 10% of the free float?

They continue to make a nonsense of the rhetoric (a loss making company) surrounding this share....

For me, the management here continue to push all the right buttons- the rating fails to give them the credit they deserve

[rivaldo] 03/7/2023 06:22

Great to see - that should put the cat amongst the pigeons.

This shows a great deal of confidence going forward, likely confirmed by the note in the RNS that CNIC "confirms that it currently has no unpublished price sensitive information", i.e trading must be proceeding well at present without anything adverse to report given we're now at the half year stage.

[rik shaw] 03/7/2023 06:12

Massive increase to buyback programme, now £34m cap/10% of company shares (increased from £4m as originally announced for this programme)

[adamb1978] 29/6/2023 09:04

So thats about 3.2m shares bought back in this slice of the programme, so perhaps £3.5m - £3.8m cost out of the £4m cap.

they've timed it well to take them up to the H1 trading statement, which last year was 3rd week of July

[azaman] 24/6/2023 10:58

I totally concur with AdamB1978.

[adamb1978] 24/6/2023 10:11

Not independent perhaps, but won't acquire the company themselves and won't let the company be taken over on the cheap

[diesel] 24/6/2023 09:39

Maybe, but Kestrel is hardly independent with this investment, neither is Inter services and Erin, between them directors who are partners in these firms own over 40% of the company! Just saying!

[adamb1978] 24/6/2023 09:03

Knowhow, Diesel,

I wouldnt over analyse it. Sentiment has been against smallcaps for almost a year now and many decent performers (operationally) have seen their share prices so nowhere. I dont think there's any underhand or hidden things at play with CNIC, other than sentiment both at a market level and company level. The company level sentiment will improve with each Q of decent results. Kestral won't take CNIC private but will help get decent value. Just need patience I'm afraid

Adam

[diesel] 24/6/2023 08:14

Must admit something is at play here, the CEO wanted to enhance shareholder value so announced a divvy policy and share buyback, this has had no effect, and the previous CEO said one of the biggest risks they faced was a cheap takeover. Maybe the divvy and buyback are an attempt to ward off a takeover.

[knowhow77] 23/6/2023 19:55

This looks like it’s being held down for a takeover the buybacks and Kestral have not had any impact

[adamb1978] 23/6/2023 19:25

Agree Lkstls. I thikn they need the Q2s out. Am expecting this to flatline in the 110-120 range til then but the numbers will drive it higher thereafter

[lkstls] 23/6/2023 11:25

The stock price will follow the results at some point, calm down. The longer it doesn't happen, the more tension builds up, the more it will shoot up when it does

[azaman] 23/6/2023 09:04

The question here is, what would it take to reignite this stock ?

[diesel] 23/6/2023 08:46

See the divvy has arrived in account!

[adamb1978] 23/6/2023 08:43

Undestand, and I was in KAPE too. I think its a very different situation though - Kestrel is quite different to Sagi in terms of investment style and also stake in the respective companies already

[slogsweep] 23/6/2023 06:55

A bit sore at the moment after Kape and others going private at a derisory price that this seemed to be going same way.

[adamb1978] 22/6/2023 15:43

I think there's limited chance of this being taken private at a derisory price. Kestrel wouldnt allow it and they could almost block it on their own. They're also not the sort of fund which will acquire CNIC outright.

Just need some patience and another quarter of two of figures demonstrating the cashflow of the business, and then use the cash to hoover up shares whilst its trading at these levels

[azaman] 22/6/2023 08:56

There are two types are buying going on here.
Director's buying and purchase program's buying.