Checkit Share Discussion Threads

[simon cawkwell] 28/11/2019 01:59

Anyone care to volunteer what tangible net asset value of new improved CKT is? Both gross and on a per share basis?

[fillipe] 27/11/2019 10:10

Lowest ask on show is 44p, as I type.

f

[graham86] 27/11/2019 09:14

Why would you not tender? Is there anyone using I web? Did not see the corporate action notice despite looking. These are in the wife’s account and she did not get the email notification. Looking in the history it was sent on 6 nov.can anyone here with I web confirm if this was the case.

[pejaten] 27/11/2019 07:33

I am surprised that they have not clarified the point as I normally the case.

[mister md] 26/11/2019 19:25

Any projections available for 2020/2021 ? Is this now good value at 40p ?

[sharw] 26/11/2019 18:50

Good point Pejaten - the 81% is across the board, that is the company is redeeming that % of tendered shares. If a registered shareholder tenders 2 out of every 3 of their shares then they will be redeemed in full (100%) but if 100% of shares are tendered they will receive more than 66.7% but less than 81% because that is an average. We cannot know what that % will be because we do not know the proportion of shares that were tendered as basic entitlement.

For most of us it is even more complicated by being lumped in a nominee a/c, which is treated as one shareholding by the company. Hence a different proportion of shares may be redeemed in HL Nominees compared to iWeb or Jarvis/xo nominees. Again, will the nominees apply the same rules when splitting their allocation between their individual holders? They are not obliged to.

[castleford tiger] 26/11/2019 18:34

The key thing holding this back is that nobody has their cash to invest yet
tiger

[pejaten] 26/11/2019 15:13

How do you work out 81%? Surely all shareholders who tendered will get 2/3 redeemed as the basic entitlement. If some shareholders did not tender, there entitlement will be split among those subscribing for excess?

[fillipe] 26/11/2019 14:53

sharw - spot on, sharw, although I thought the closing price was fixed in the initial RNS.

"The Tender Offer Price of 65.00 pence per Ordinary Share represents a premium of 16.1 per cent to the closing mid-market price of 56.00 pence on 31 October 2019, being the latest practicable date before the publication of the Circular. Qualifying....."

That would calculate out to leave the residual at very exactly 38p.

f

[sharw] 26/11/2019 14:36

If you didn't tender all of your shares then of course you can sell now. Clearly many did not - if everyone had tendered you would get 2/3rds but those who did tender will now get 81% accepted.

I cannot understand why people are surprised at the drop. Before the tender closed the price was around 55p. The maths are quite simple 3 x 55 - 130 says that the market valued the rump at 35p/share.

[jaf111] 26/11/2019 13:15

private shareholders MUST be selling.......lots of small sales going through eg 616 shares @35.45p!

[jombaston] 26/11/2019 13:04

At 38p, mkt cap is £62m *.38 = £23.5m

There is £14m cash, EET up for sale for maybe £2m and the recent acquistion of Next Control Systems at £8.8m.

That makes £24.8m and doesn't even include the original Checkit business!

Private shareholders probably can't sell now anyway as we won't have our post-tender holdings confirmed yet. But certainly not worth selling at 35p bid now which is £21.7m mkt cap

[mister md] 26/11/2019 12:42

You can buy small amounts at 38p now ...

[jaf111] 26/11/2019 12:41

Have been surprised by the fall today.....had expected some adjustment but nothing like this....

[castleford tiger] 26/11/2019 12:34

jaf

Not sure what you mean.

44p would be about right based on the last traded price of 56p.

So its about 10% below.

Of course many of us have been here from the 6p days

Tiger

[jaf111] 26/11/2019 12:10

"A fool and his money are soon parted"
Doesn't look like the tender idea was very clever!!!!

[mister md] 26/11/2019 10:21

buy quotes of 41.2p - is there any value to be had here at these levels ?

[jaf111] 09/11/2019 20:07

Still amazed at share price (54/6p) being so much below 65p the tender price......surely this discount will have to reduce substantially as the tender closing date nears (22 Nov)??

[castleford tiger] 01/11/2019 18:46

Why would you not tender?

[jaf111] 01/11/2019 13:33

Well lets see how this pans out......based on some experience its 99.9% certain that not everyone will tender so therefore those who over-tender will be successful to some extent over and above the 66.66% guarantee.....

[castleford tiger] 01/11/2019 13:01

10000 SHARES COST TODAY 5800
6666 sell at 65p = 4332.90
balance 3334 value 1468 so as sharw says the net cost is 44p.

Its cheap in my opinion

Tiger

[pejaten] 01/11/2019 11:59

Depends on what the price of the residual is. You could make a loss

[johndoe23] 01/11/2019 11:02

So, if I buy 9k shares @ 58p and tender two thirds at 65p...I would make around £600 profit and then have 3k left in to run? Is that right?!

[sharw] 01/11/2019 10:51

At 58p the market is saying that it values the residual shares at 44p so its only a "nice trade" if you think they are worth more than that.