F&c Asset Management Share Discussion Threads

[enami] 18/8/2010 07:28

Another 22+ million bought by Sherborne Investors - they have over 8% now. Looks like they paid full price yesterday.

The Group now holds 41,360,605 ordinary shares in F&C. In addition, following a
transfer of ordinary shares held by the Group, the Group has entered into a
cash-settled total return equity swap, giving it an economic exposure to a
further 8,000,000 ordinary shares in F&C.

[koolio] 17/8/2010 17:45

Still got a long way to go before I am out of the RED here.
What a nice surprise.

[the jackel] 17/8/2010 17:33

Well readers of this board will know I have always been a believer in this share but even I didn't expect what happened today! Biggest share price jump in FCAM since 2001!!!! What's even better is that the shorters will have to buy back!!!!! lol Another jump up for the SP!

Also Lab305 I think in the 70's is below value for FCAM. It has a net asset value of around 120p so I'm hoping for more.

[salpara111] 17/8/2010 16:56

Well, happy days!

Big buyer who says they intend to buy more
Shorter who will have to close out fairly large position
Market cap shoots back into FTSE 350 so institutions will have to buy back for trackers.
Dont see any reason why this cant get back to 75-80 in the not too distant future.

[trysharedealing] 17/8/2010 13:43

Just wondering what the hell the shorters were thinking about?

[lab305] 17/8/2010 13:35

So now at last sensibility has begun to assert itself. The hoards of sellers over the past two months or so must have been crazy and the shorters even more so.Well done to all holders and let's hope fair value will be reached soon in the mid 70's.Good Luck.

[salpara111] 17/8/2010 09:40

I have never understood the drop off in the share price over the last 9 months so personally I feel that any purchase up to about 75p is good value, it is not like the company is trading at a premium to its peers or on demanding multiples.
However now that they have signalled that they are looking to acquire more that should put a floor under the share price

[betman] 17/8/2010 09:29

hi mister, i think you are spot on, they had to announce the >3% holding. I guess they didnt have to say they were looking for more so that seems slightly curious as it tells the MMs exactly where they are going at least in short term. Does this put a solid floor in the price ? I wonder how long they they will wait to try an get more shares

[mister md] 17/8/2010 09:13

"The Group may continue to acquire shares in F&C, but if
it is unable to acquire a large enough shareholding at an acceptable price, the Group may elect to dispose of its shareholding in F&C and invest in another company. Further, pursuant to the Group's Investment Policy the Group intends that its shareholding in F&C will not reach such a level as to require the Group to make a bid for the entire company. "


I interpret this as meaning 'we've had to disclose our stakebuilding to the market, but lets word it in such a way such as to prevent a big shareprice rise so we don't overpay on our next purchase(s)...'

[enami] 17/8/2010 09:08

The yield is 9.6% at current share price 63p.

Although they paid over the odds they are still ahead 4p and i assume there will be a 2p interim dividend soon. I don't think that they would have bought unless they were pretty sure the company will not cut the dividend.

Calendar

26 Aug 2010 Results Interim Results for six months ending 30 June 2010 and Q2 2010 Assets Under Management and Business Flows.

Div September sometime

[salpara111] 17/8/2010 08:48

enami..you are right, I got the decimal point in the wrong place! It was in fact about 6%...just as well I am not an accountant!

Still find it interesting and cant wait until the morons who shorted the stock have to unwind as that will provide another bump up as they are forced to buy back the stock at a higher price than they shorted at...ouch!

still dont really understand but I guess if I had shed loads of cash I would have bought a big chunk of FCAM...I am not really rich but do in fact have 20% of my portfolio in FCAM which is clearly higher than ideal from a systemic risk persepective.

[enami] 17/8/2010 08:41

I make it 5% bought at about 59p.

[salpara111] 17/8/2010 08:37

OK....what the hell is going on here?

They have bought about 6% of the company and have said that they will continue to buy if they can get them at the right money but will dump the whole holding if they cant...but they wont acquire more than 30% of the company.
I dont think I have ever seen this sort of situation before and while the share price bump is most welcome as I have suddenly reached breakeven in the space of an hour, I am not sure how to react to this.
Oh I feel so sorry for the idiots who recently shorted the share.....they are going to take a big bath to unwind their short as they appear to have started building the position at 60p.

[enami] 17/8/2010 08:35

That's about 5% of the shares in issue purchased - i wonder who sold out?

[enami] 17/8/2010 08:32

Hello hello



Announcement of Substantial Transaction



TIDMSIAG TIDMFCAM

RNS Number : 1777R
Sherborne Investors (Guernsey) A
17 August 2010

?
17 August 2010

Sherborne Investors (Guernsey) A Limited

Announcement of Substantial Transaction

In accordance with Rule 12 of the AIM Rules, Sherborne Investors (Guernsey) A
Limited (the "Company") announces that SIGA, LP (together with the Company, the
"Group") has purchased 26,556,198 ordinary shares in F&C Asset Management plc
("F&C") (LSE: FCAM) at a total cost of GBP15,587,631, including commissions and
expenses (the "Acquisition"). The Acquisition was funded by the Group's
existing cash resources.

[the jackel] 02/8/2010 22:15

How I would love for them not to have closed their postion and then get burned out! This RNS will certainly have answered a lot of questions for people. I can see on the back of this information and when the shorter has to buy back their shares it having a extremely positive effect on the share price and it regaining almost all of its lost ground from the past few months. Will add to my holding 2moz! Good trading all!

[betman] 02/8/2010 11:00

26 Aug 2010 Results Interim Results for six months ending 30 June 2010 and Q2 2010 Assets Under Management and Business Flows

[salpara111] 02/8/2010 09:12

OK, now I am a little confused, why would a fund start shorting FCAM when they are near their all time low?
Results were on 5th last year so I assume they have taken the position on the expectation of pretty awful results this week/next week.
The question is....what level of shortfall vs broker expectations would require the company to issue an RNS saying that there was going to be a material shortfall vs expectations.
I find it difficult to belive that there can be much downside left so I will hold but if the results are decent I will add yet again.
The shorter has had to build up a position of almost 19 M shares which might explain the downward pressure over the last couple of months.
What this means is that if the shorter does find himself on the wrong side of the bet and has to buy back then there will be one almighty bounce as they try to mop up 19 M shares.
On an aside...lab I am interested as to your "fair value" of 74p. If the divi holds then a yield of 6% would still be pretty generous by the sector average which would mean an share price of circa 100p.

[lab305] 29/7/2010 12:34

Hang on Salpara111 let's not get too pessimistic here. The dividend was very nearly covered by profit last year ,and this year and next profit is predicted to rise ....
Earnings Est 2010 2011
Avg. Estimate 6.77 8.18
Low Estimate 6.25 7.6
High Estimate 7.4 9.5
No. of Analysts 9 8

So why cut the dividend? As I keep saying it is not the dividend that is too high but the share price that is miles too low. A fair price would be around 74p. There is always in situations like this the tendancy to think that because the share price is so low something must be wrong. Unfortunately this worry takes hold amongst weaker holders and they sell. Negativity feeds on negativity. The biggest mystery to me is why this company has not been snapped up but the ongoing weakness still in all the financial sector has all but killed M&A activity. It is refreshing that this company is still active as the Thames River deal proves. Perhaps they should increase the dividend [as long as it is covered], and that really would wake up the sceptics and doomsters!!

[salpara111] 29/7/2010 11:46

So was that the bottom?

I thought it was at 60p and was proved horribly wrong!

My own feeling is that there has been relentless selling over the last 6 months due to all the shares sloshing around after the demerger last year. It is possible that the selling pressure is now relenting but I have been caught out here before so not rushing to add yet more to an already swolen holding.

The question is....will there be a sustained rise from here?

I still maintain that the divi will be cut, my understanding is that forecast earnings this year will not cover 1x the current divi.
However even a cut of 50% will still leave it yielding more than most of its competitors.

[lab305] 28/7/2010 23:57

There was a big move down from 62p to 46p but I didn't see any news concerning that either!

[barkjon23] 28/7/2010 10:31

Big move up today, currently 51.75-52 on modest volume. Can't see any news

[barkjon23] 21/7/2010 13:12

Apologies, the statement was not as clear cut as I remember it;






Page 26

'Future dividend levels will
be set in light of financial results and the business and
economic outlook.'


but I do think they will cut, 5.8p EPS, 6.0p divi for 2009