Conygar Investment Share Discussion Threads

[skyship] 04/12/2012 18:41

Hi Sue

I do indeed; hence the start of my post on the CP+ thread:

"I've been watching and waiting for CIC to emerge from its long, self-induced pariah status. May not be there yet, but certainly feel the Company is now in remission and the yawning NAV gap may well be far higher than the 166p currently stated, due to the undoubted potential of the development projects."

CIC took a real hammering in the PR stakes following an absurdly high remuneration and bonus policy. They are putting it right, partly, and relying on the passage of time and underlying performance to regain trust. They are halfway there...

The key to what I believe to be a good buying opportunity now, is the support from the share buyback scheme which will kick in again post the AGM. So no or very little downside, but some quite substantial upside once the Haverfordwest scheme is given the go ahead.

Ergo, CIC is a great Risk/Reward play - perhaps 5% downside versus a quite clear 33% upside to 120p.....& possibly then some!

[smarm] 04/12/2012 17:53

Skyship - do you know why CIC is trading at such a wide discount vs peers? What is it that the market doesn't like?

S

[skyship] 04/12/2012 17:46

A good report following the Prelims:

[skyship] 29/11/2012 12:09

That 65% of NAV equates to an share price of 108p.

This looks set for a recovery to the 100p resistance; whilst planning consent at Haverfordwest would add certainly another 15p-20p to the NAV - possibly more. that would likely propel the share price back to the 120p level last seen in Q1'11.

Of course Labour councillors tend to reject planning gains for development companies; but at Haverfordwest, if they were to reject the CIC plans, who else is going to pump money into this mid-Wales town?

I expect buybacks to kick in again after the AGM; so have bought a few @ an average of 91p today - though only a small allocation.
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Review of Remuneration Policy:
At the last AGM, the Chairman committed to consult with a wide range of shareholders with respect to the Group's remuneration arrangements for Executive Directors......................The Group has been well run and has continued to grow through one of the worst downturns in living memory. However, we acknowledge that bonus payments, in whatever form, should only arise for true out-performance and to that end, we have increased the post-tax hurdle rate on the Profit Sharing Plan to 10% per annum on a cumulative basis. In addition, we have introduced a share price condition. The remuneration committee does not intend to pay out a bonus unless the market share price is at least 65% of audited net asset value per share. We have also made a number of lesser amendments to clarify and simplify the Plan, but in the main, our shareholder consultees were satisfied that the basic structure is appropriate for our business model.

Administrative Expenses:
The administrative expenses for the year ended 30 September 2012 were GBP2.5 million, a decrease of 53% from the previous year. The primary reasons for this are the profit share payment of GBP2.6 million paid in 2011 to the executive directors. The majority of other costs arise as a result of the Group being quoted on AIM with no significant changes in 2012.

[horndean eagle] 29/11/2012 11:12

No bonuses unless discount is narrowed to 35%. Strange condition as part of the incentive scheme. Would hope that any accrued amount is not rolled forward until that actually happens.

[topvest] 29/11/2012 07:52

Results are pretty good today. Still a lousy dividend, but at least admin expenses are much more sensible and NAV is up. On a circa. 50% discount which is a tad more than could be justified even with the lack of meaningful dividend, so good downside protection.

[ursus] 14/11/2012 09:30

when a company is in an offer situation, all holders of 1% plus must declare themselves whether they are dealing or not. in fact conygar also sold 350k shares on the day of LSR's announcement.

[jeffian] 13/11/2012 23:27

VC,

LSR has put itself 'in play'.



Once that happens, any deals have to be disclosed under rule 8 of the Takeover Code.

[void concept] 13/11/2012 16:02

Does anybody know what today's announcement means?

[void concept] 21/9/2012 12:29

ursus. Thanks for that.

[ursus] 21/9/2012 12:10

laxey holding has been same for ages. just became declarable because of the recent buy back.

[topvest] 20/9/2012 20:07

Good to see Laxey attacking one of their own..lol! Bet Robert Ware will be pleased!!

[void concept] 20/9/2012 12:05

Starting to look interesting: Baker Street,Ennismore,Laxey. Company purchases of own shares. Opportunity emerging. Wonder what the possible outcomes might be....

[sleepy] 19/9/2012 19:31

Laxey and Ennismore disclosed holdings over 3% today

[sleepy] 03/9/2012 13:52

Interims in May said rem policies were being reviewed. Repeat view in 770 that this is very cheap share.

[skyship] 03/9/2012 11:08

So the buyer of 6m shares from the Aviva sale is Baker Street Capital Management from Los Angeles. Being American perhaps they are unaware or untroubled by Robert Ware's remuneration record!

This piece from an employment ad last year tells us something about them:

=======================================================
Baker Street Capital Management - Full Time Opportunity

My name is Jeremy Avitan and I am the CFO at Baker Street Capital Management, a deep-value and special situations hedge fund based in Los Angeles. We are looking for a superstar full-time Analyst.

A successful candidate will be passionate about value investing (ideally having read the writings of Buffett, Greenblatt, Klarman), intellectually curious and driven. Also, the candidate should already have a track record of personal investing in the small-cap investment universe.

The position offers a unique opportunity to work directly with a Buffett-style fund's founder/portfolio manager as an analyst. Primary responsibilities include actionable investment idea generation, company and industry due diligence and evaluation of the risk/reward in potential investment opportunities. Idea sourcing involves extensive screening, independent reading of blogs, trade resources, and idea sites (value investors club and SumZero). Thorough due diligence will require developing a deep understanding of the economics and competitive dynamics in various industries.

Compensation will be a combination of competitive base salary and performance-based bonus that allows a successful analyst to share in the value created for the firm.
========================================================

[skyship] 31/8/2012 16:37

Interesting. Those large trades @ 84p yesterday were obviously something to do with today's announcement of the exit by Aviva - 8.8m (5%) sold - reducing their stake to ZERO.

More buybacks, or were they able to find someone to buy the stock...

[ursus] 14/7/2012 11:23

buying back shares is prob a better method of liquidating...

[druinsky] 13/7/2012 23:12

they should hand back the cash and liquidate

[ursus] 13/7/2012 14:23

Buying back shares by the look of it....

[topvest] 06/6/2012 21:28

Some more good news on the developments front.

[topvest] 22/5/2012 20:34

Yes, underlying performance is good for a part-time board. Looks like they are looking at directors remuneration at long last. It's an absolute no-brainer; increase the dividend and reduce the silly bonuses and the share price will increase SIGNIFICANTLY!

[kramch] 22/5/2012 11:42

Interim results to 31st Mar 12; ½ yr profit £5m, on contracted rent roll now £16m pa, debt £47m at 4.15%. (it is the year end figs that take the directors' bonuses hit.) Slight valuation update, mainly on the recently purchases £40m Edinmore portfolio. NAV 158p\share.
Good news that they have outline planning for their £100m Fishguard development and are expecting planning for Hollyhead in June. But they say they will not start on them until they have pre-lets and forward sales (which may be slow in the current climate).
They complain about the low share price, and have bought in 2m shares at 90p.
On pay the chairman and CEO state; "As part of our ongoing review of operations and in light of feedback received from, and dialogue with, various shareholders, our remuneration committee is currently reviewing our remuneration policies and will report back to shareholders at the time of the year end results".
The low share price and rather generous bonus scheme wouldn't have anything to do with each other would they?
Perhaps the newly invigorated institutional investors might have a word in the directors' ears before the new policy is presented to the long suffering shareholders. Then we can concentrate on the company's underlying performance which seems quite promising.
K.