v little vol. |
Or Shorters want the price down to close ! |
Old news out lol !You couldn't make it up !Loan scandal that could cost billions ! Tell us something we don't know ! |
Elsewhere, Close Brothers Group rallied 8.59% after KBW reiterated an 'outperform' rating and noted the company's stronger-than-expected capital position.Analysts said the group could immediately absorb a potential £400 million liability tied to motor finance redress without breaching capital buffers. |
way too cheap |
(Sharecast News) - Analysts at Keefe, Bruyette & Woods reiterated their 'outperform' rating and 430.0p target price on merchant banker Close Brothers on Thursday after chief executive Mike Morgan delivered "an excellent presentation" to its sales force.KBW said key takeaways from Morgan's presentation were that capital was "better than many appreciate", that profitability would likely improve from its "wholly inadequate" H1 return on tangible equity and "clearly has to be in double figures", and that it was confident that franchising offers "a range of growth opportunities"."CBG trades on 6.0x KBWe adjusted EPS26e and/or 0.35x FY25e tangible book," said KBW."There is clearly considerable uncertainty around the outlook, but in a sector where banks routinely trade on >1x tangible book, it is hard to argue that the shares are not pricing considerable downside (discount to tangible book equates to circa £850.0m even after the £165.0m H1 motor finance redress provision." |
strength into close |
Could be the reason for the jump last two days |
Form lse post Seams there was a ruling from Supreme Court on another case |
 ughToday 10:23Also summary of the other case below, since you posted.?In the case of Rukhadze and others v Recovery Partners GP Ltd and another ([2025] UKSC 10), the UK Supreme Court addressed the issue of whether the existing test for an account of profits in instances of fiduciary duty breaches should be modified. Specifically, the appellants proposed introducing a requirement that a fiduciary should only be liable to account for profits if it is demonstrated that the same profit could not have been achieved through lawful means, without breaching fiduciary duties.?Background: The appellants, including individuals and associated companies, were found to have diverted a business opportunity away from the respondents, to whom they owed fiduciary duties, and exploited it for their own benefit. Consequently, they were ordered to disgorge the profits obtained from this opportunity. They appealed this decision, challenging both the obligation to repay these profits and the method of their calculation.?Supreme Court Decision: The Supreme Court dismissed the appeal, upholding the existing principles governing the remedy of an account of profits for breaches of fiduciary duty. The Court declined to alter the established test by introducing the proposed 'but for' requirement, emphasizing the importance of maintaining the integrity of fiduciary relationships and the deterrent function of the current rules. The judgment highlighted that any reconsideration of these principles would be more appropriately addressed by the legislature rather than through judicial reinterpretation |
Sfor is another good recovery stock !Worth a look Gaining momentum |
Any one looking at a takeover would want to do it now ! |
Wow 267 on results day !This could do a Vanq They fell 25 percent on day and are now higher than results day! |
feels like we could have a decent UP day here today |
Summarises the issues which will be judged.
"In the Hopcraft case (CBG), the commission was kept secret from the claimants."
I didn't like that bit much, but WTFDIK.
Was it kept secret by the dealer, or was CBG a party to this? I had assumed that in the paperwork signed at the dealers or with Close Brothers the possibility of commission would at least have been in the small print, which has been adequate disclosure since 1934.
Perhaps it wasn't. |
same movement in afternoon again? |
Back over 3.00 |
As of March 25, 2025, Close Brothers Group's price-to-book ratio is approximately 0.25. £1 coins being sold for 25 pence.
"Making money on the stock exchange is easy. Buy something when it is cheap, wait for it to go up in price, then sell it. It's that simple."
Bob Moriarty, 321 Gold. |
defo cheap, v cheap |
All,
This is the recent IC article.
The market was highly critical of interim results for Close Brothers (CBG), which despite not being particularly dominated by its regulatory car commissions overhang, were greeted with a near-20 per cent share price fall on the day. What displeased investors is that the company’s high costs and implied flat revenues this year showed no signs of abating, leaving new management with a headache.
High central costs have been a criticism of Close Brothers for some time now. In these results, they showed signs of coming down, but not that quickly: adjusted operating expenses were slightly higher at £267mn.
It was the total amount of adjusting items that really caught the eye, which reflected the impact of the motor finance scandal. Close Brothers recognised £178mn of extraordinary costs, compared with zero at this time last year. These principally consisted of a £165mn provision relating to motor finance commissions, plus £8.4mn for complaints handling and legal costs incurred.
The outlook does not seem to be much rosier. Management forecasts central costs of £55mn-£60mn for the year, with legal and professional costs alone hitting £22mn. This comes alongside a forecast for no loan book growth for the year, hence the expectations that total revenues will also be flat.
Panmure Liberum analysts commented: “Close may be cheap but motor finance is not the only issue to be addressed by the group: costs are coming down but are still too high; Winterflood’s profitability is impaired and its continued position in the group looks anachronistic.”;
All that said, shares are dirt cheap at barely six times forward earnings, which could tempt speculative buyers who can stand the risk. Buy. |
The one I read was on 21st March on the FT app. I think it was an article by the IC but on the FT app? The brief Article was by Julian Hofmann |
Last FT article on CBG was on 18th march. |
interesting spike |
pls do stick up when you do find it |
Can't find it now but there was a short positive article in the FT this weekend about CBG |
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