Freedom4 Comm. Share Discussion Threads

[growthhunter] 02/4/2008 13:29

ladyfarmer..................i don't even understand the basics let alone that

[ladyfarmer] 02/4/2008 13:19

If I sold 42% of my shares today for settlement Friday, would 100% of my (pre-sale) holding be on the register tomorrow - or would only 58% of 58% be eligible for tender? If you see what I mean?

[tonybaloni] 02/4/2008 13:02

By tendering 100% you have actually comitted to surrender 58% of your holdings retaining 42% in the new, soon to be revalued Freedom 4.

This has been very confusing and I'm sure there are many holders who have tendered then subsequently sold their remaining shares over the last couple of days expecting to get 10p for those surrendered. This is not the case. You will only get 10p for 58% of your total holdings as of the close date 3rd April

[spights] 02/4/2008 13:01

After all this time ..one would ....crooks.
We have been robbed.

[growthhunter] 02/4/2008 12:57

...Nils, more suciently put but still a "pile of xxxx"

[growthhunter] 02/4/2008 12:39

i will be so glad to see the back of this pile of xxxx
i will be so glad to see the back of this pile of xxxx
i will be so glad to see the back of this pile of xxxx
i will be so glad to see the back of this pile of xxxx
i will be so glad to see the back of this pile of xxxx

[troys] 02/4/2008 12:33

Back to normal again!

[bubface] 02/4/2008 08:44

April 1, 2008 Freedom4 Communications Plc (FFC.L)
Goldman Sachs Global Investment Research 1
April 1, 2008
ACTION
Removed from Pan-Europe Buy List
Freedom4 Communications Plc (FFC.L)
Viability of WiMax uncertain; downgrade to Neutral
What happened
We are removing Freedom4 from the Buy List and downgrading to Neutral
following the agreed sale of its hosting and network services businesses.
After distribution of £156.9 mn in proceeds from disposals, the company is
expected to retain cash and receivables of £38.6 mn and a 52% share in a
WiMax JV which has yet to prove its commercial viability. On this basis,
we downgrade to Neutral. The shares are down 14.3% since being added
to the List on January 16, 2008, vs. FTSE World Europe up 0.3% (over 12
months -56.9% vs. -7.2%). On a sector-relative basis, the shares are down
4.6% since being added to the Buy list.
Growth
Returns *
Multiple
Volatility Volatility
Multiple
Returns *
Growth
Investment Profile: Freedom4 Communications Plc
Low High
Percentile 20th 40th 60th 80th 100th
* Returns = Return on Capital For a complete description of the
investment profile measures please refer to
the disclosure section of this document.
FFC.L
Europe Telecom Services Peer Group Average
Current view
The company plans to return £156.9 mn to shareholders and retain net
cash resources of £38.6 mn (£18.6 mn cash plus £20 mn loan notes). The
remaining business is a 52% stake in a WiMax JV with Intel Capital. This
will require additional funding which, in our view, is likely to utilize the
remaining cash balance and potentially more. The company has
committed to return to shareholders the proceeds of the loan notes once
received.
For completeness, we are making 2H2007 forecast revisions to the web
hosting and network services businesses; however, these do not impact
our valuation of the continuing operations. Our sum-of-the-parts valuation
gives a 12-month price target of 7.5p. The stock is currently trading around
the value of the distribution and given we assume the remaining cash will
be utilized by the WiMax operation, the remaining upside to our price
target is derived from the loan notes receivable in 18 months.
Downside risks include competition from increasing DSL speeds and low
cost economics for local loop unbundling, together with more attractive
pricing and increasing speeds in mobile broadband. Upside risks include a
faster than expected roll-out of the network providing scalability ahead of
expectations.
INVESTMENT LIST MEMBERSHIP
Neutral
Coverage View: Attractive
United Kingdom:
Telecom Services
Key data Current
Price (p) 7.11
12 month price target (p) 7.50
Upside/(downside) (%) 5
Market cap (£ mn) 170.4
Enterprise value (£ mn) 200.2
12/06 12/07E 12/08E 12/09E
Revenue (£ mn) New 294.4 74.1 81.3 97.8
Revenue revision (%) 0.0 3.9 (1.5) (0.2)
EBIT (£ mn) New (7.9) (7.2) (4.1) 0.5
EBIT revision (%) 0.0 (13.1) (202.6) (86.9)
EPS (p) New 0.05 (0.50) (0.06) 0.18
EPS (p) Old 0.05 (0.41) 0.12 0.38
EV/EBITDA (X) 15.1 58.1 14.8 8.6
P/E (X) 230.8 NM NM 39.5
Dividend yield (%) NM NM NM NM
FCF yield (%) 2.2 (4.2) (1.9) 2.6
CROCI (%) 13.3 1.2 2.5

[chrissey] 02/4/2008 08:44

thanks for the advice guys. Seems that selling at as close to 7p as I can get does take some of the risk out. I need to find out from TDW why the offer is closed.

Apprciate this.

[bubface] 02/4/2008 08:39

your last idea is not extreme,if you are not able to tender i would be selling the stock,as all you will end up with is the same amount of shares with a post tender price of nearer 3p imo.however you can be in the tender if you are on the register as at 5.00pm 3 april,i would put pressure on the nominee to get you in. good luck

[zimbi] 02/4/2008 08:38

that's the 64 thousand dollar question -what will the share price be when the dust has settled -guesses range from half p to 3p it would seem.

[chrissey] 02/4/2008 08:30

thanks VOB, hopefully in something worth having a bigger share of?

If my reading is correct, with approx 58% takeup by people who were more on the ball than I was, my 200,000 shares become approx. 480,000 shares in the new venture.

At current selling price as I can trade what I have, I sell at 6.9p and this gives a value of the new holding at approx. 2.9p a share?

Anyone smarter than me with a view on this?

An extreme one is that what is left becomes worth nothing so getting out now is better than taking up the tender?

[veryoldbob] 02/4/2008 08:23

All that happens is that all of your shares remain in the sole business left after the sale: the Wimax Joint Venture. As the number of shares in issue is roughly halving, you'll effectively be increasing your stake.

[chrissey] 02/4/2008 08:13

guys, my shares are in a nominee account and I missed the tender offer as it was only posted on the broker website.

I haven't really been following this closely enough so can someone advise on what happens in this situation?

I assume I end up with the shares and an adjusted number in the Wimax Company?

I hold 200,000 shares, not insignificant huh?

[bubface] 02/4/2008 07:59

notice goldman has removed from buy list out today will try and get some details

[bubface] 01/4/2008 20:44

correct stan36,will only get 10p+ for 33.64% of original holding if has sold 42% in the market,that is if they don't throw tender out.

[stan36] 01/4/2008 20:05

he says is not selling shares he has tendered - he says he has sold the remaining shares.
how is this possible!?
surely he has to have the full 100% on the tender date.
If he sells shares now, it means his 58% is reduced to a lower number of shares??

[bubface] 01/4/2008 18:13

you cannot sell shares you have tendered! they are not trading in the new form yet.record date 5.00pm 3 april

[lunaazul] 01/4/2008 18:01

I was able to sell the remainder of my holding before the bell at 7.11p. It's showing up in my Selftrade account and I've just withdrawn the money into my bank account. I'll wait to see whether this actually did go through tomorrow but if so that would give me an average of 9p with the tender and I'll take that after all the shenanigans with this share...

[bubface] 01/4/2008 17:09

nobody seems to be looking at what actually is left once the tender is over.£20m cash £20m loan notes and the 52% interest in the wimax business backed by intel [where intel has just put more funds in] which i value at £25m makes at total value of £65m [conservatively wimax i think is potentially worth a lot more].then how many shares in issue...these are rough numbers currently 2,400,000,000 shares in issue,so 58% are tendered and cancelled leaves 1,008,000,000. so £65m divided by remaining shares is 6.4p.they will probably be at a discount to this initially but they shouldn't be down at a penny or two,as even if you value the enterprise value of wimax at nothing they have about 4p cash and loan notes...2p of which they intend to pay back once the loan notes are repaid in 18months.
so if you paid 7.11p for 10000 tonight ,cost £7110,get your £5800 back,net investment £1310 for 4200 shares in newco equivilent 3.12p per share,which i think is worth 6.4p.

[woody56] 01/4/2008 16:50

What if a huge glut of shares are bought by those who opted to sell the 58% at 10p.thus increasing their holding in F4 considerably -TED

[invest ted] 01/4/2008 16:40

This is my take on what the share price will do once the Offer has expired. I likened it to a share going ex-dividend and the Offer of 10p over the current share price is the dividend. (This was done when the share price touched 6p). IF the share price rises over 10p everyone who accepted the offer has taken a shafting on 58% of their shares.

Example-

You bought 100 shares @ 10p (£10)
The price slid to 6p (£6)
You got 58% @ 10p under the offer (£5.80) (a 4p per share premium)
You then have 42 shares remaining @ 6p ( £2.52)
Your £10 is now worth £8.32

After the offer has expired (like a share going Ex-Dividend) the price may fall by the value of the offer, so the 6p could drop by as much as 1.5p (4p premium is 60% premium to current share price). Making your remaining 42% worth £1.89

Add the offer proceeds (£5.80) to remaining shares (£1.89) makes your return on the original £10 invested = £7.69.

[growthhunter] 01/4/2008 15:14

SO IF THATS THE CAE WHATS THE MERIT IN GOING FOR THE CASH OFFER, WHY NOT JUST SELL