Finncap Share Discussion Threads

[dangersimpson2] 18/10/2022 08:15

This was the story:

The rise so far only reverses the weakness of the last couple of weeks. As a fairly illiquid share, small sells from forced sellers have an outsized effect. Whereas when you look at the actual business, then they have been raising money for clients and executing M&A deals fairly regularly even in this more difficult market.

Going forward, any deal will have to meet the requirements of the larger holders, although presumably, they will be willing to take equity to retain influence over the long-term direction of the business.

With the company "in play" I would be surprised if other IBs aren't also interested here, given the low valuation. I wonder if someone like Numis could counterbid. They have plenty of cash and are a good fit for both the ECM and M&A part of the business.

In previous presentations, Sam Smith said that FCAP wouldn’t do takeovers themselves since it would dilute their unique culture. So she may not be that pleased about an offer. Still, you can’t leave a company with the share price at all-time lows and expect that your successor doesn’t consider all options. Psychologically, I think the 31p she last paid for shares in the market might prove the minimum price she'd accept. I'd be happy with that, even though I think they could be worth multiples of that in a few years anyway.

[riviera1069] 18/10/2022 07:11

Same here. Happy with the 30% rise. Just need it to double from here.

[lennonsalive] 18/10/2022 06:44

Didn't know there was any speculation. Share price has been low and no volume

[cmtbs155] 20/9/2022 10:41

Another round of layoffs suggested from that last sentence (as they do virtually every year)

[blackhorse23] 16/9/2022 07:17

https://www.google.com/amp/s/capital.com/amp/cury-currys-share-price-double

[lennonsalive] 15/9/2022 07:00

Burning through that cash from 24 to 13 million

[nakedmolerat] 05/8/2022 12:36

three days of rise, has the seller cleared off?

[jangaman] 05/8/2022 10:48

Nice dividend with a good earnings yield. Trading at cash levels too. Looks ridiculously cheap to me.

[lennonsalive] 01/8/2022 10:58

It is, but the market doesn't think it's a scream buy. The bears have control currently today

[farmers son] 29/7/2022 10:43

market value is now all cash with zero attributed to the enterprise value of the business. if it had any liquidity it would be worth a punt as capital markets won't remain subdued for long.

[lennonsalive] 29/7/2022 09:32

So will it bounce at 15 or fall further?

[riviera1069] 14/7/2022 06:41

Agree sadly.

[lennonsalive] 14/7/2022 06:33

They do have lots of cash, but they just seem to sit on their hands rather than invest it.

[lennonsalive] 14/7/2022 06:32

The writing was on the wall with the share price I reckon. Red opening today. Sounds like next year will be dreadful

[riviera1069] 14/7/2022 06:27

2023 results likely to be substantially below 2022. This gets hammered on good results so who knows what's going to happen on open this morning

[lennonsalive] 21/6/2022 15:37

Next stop 15p

[strollingmolby] 21/6/2022 12:22

Lennon - think she's talking about her future NED roles re work place, culture, ESG, diversity, etc...

[lennonsalive] 21/6/2022 08:07

What on earth are they talking about work place culture in the Rns, this should be in place anyway. I'm simply interested in the growth and stability.

[riviera1069] 26/5/2022 07:23

Held this stock for two years now and added here and there. Disappointing performance to say the least.

[lennonsalive] 16/5/2022 10:07

No trades today

[29palms] 16/5/2022 08:15

Could there be trouble in the Boardroom.

Very sudden departure today of Stuart Andrews, Managing Director who also holds around 5m shares circa 2.75%

[empoggio] 11/5/2022 19:40

Hope so... then I can really load up.

[lennonsalive] 11/5/2022 12:31

Next stop 20p

[lennonsalive] 29/4/2022 13:17

I felt it's a small pointless overpriced acquisition.

[eyesofblue] 29/4/2022 12:13

Small Cap Life just did a fairly balanced write up about the new joint venture:

finnCap announces that it has, today, acquired a 50% interest in Energise Limited ("Energise") a net zero and sustainability consultancy, based near Cambridge…

Mark doesn’t know quite how to feel about this one. It is clearly a big growth area where reporting etc. is now mandatory due to the influence of larger shareholders. Many companies will be struggling with this and welcome the help. I can see finnCap with their contacts driving lots of business in this area for the JV. On the other hand, the price they've paid isn't obviously cheap, and not all shareholders or managements value this sort of reporting.

We don't like JVs in principal, but today's deal is not the typical arrangement where the other company has a continuing business not part of the JV. The main concern is the price paid. £1.1m revenue / £0.1m EBITDA indicates it is subscale, presumably due to being early stage. An EBITDA valuation doesn't make much sense. Assuming 25% EBITDA margins at scale, EBITDA would be £0.3m, they are still effectively 15x EBITDA for 50%. So, a lot of the cost is option value on this growing strongly and has a sufficiently good outlook such that 6-8x EBITDA for the other half is good value.

Still, it aligns with the finnCap core mission of doing the right thing and helping clients to do the right thing. And it potentially looks very cheap having retained (in some form) the exceptional profits of recent years on their balance sheet and are now looking to use this to expand into complementary areas. Companies that do this well often get earnings growth and a multiple re-rating. We really need to see some 2023 forecasts to make any further judgement on this, though.