Galliford Try Share Discussion Threads

[marksp2011] 05/4/2018 06:44

I am with Typo. The value of the lapsed rights is uncertain and could be zero. I do think AJ Bell could be clearer with what they mean.

[typo56] 04/4/2018 21:26

DR_SMITH, perhaps what You Invest are saying is they don't know at this stage if they'll be any proceeds from the lapsed rights. After all, if GFRD were to slide below the 568p rights price, the rights wouldn't be worth anything and the underwriters would be stuck with them. They'd then be no proceeds from the lapsed rights. It can happen.

Any proceeds for the lasped rights will stem from the rump placing that will occur on or around 16 April. The proceeds from the placing, less costs, should then be distributed to the owners of the lapsed rights. If some holders don't receive their share of the proceeds, who's snaffled them?

Having said that, IG have yet to get back to me as to why I haven't received payment for my lapsed John Laing Group nil paids. I don't intend letting them snaffle 74p per lapsed right. Shows you've got remain alert to your entitlements.

[dr_smith] 04/4/2018 10:43

12358k post 4465.
I have just rec'd chaser from broker You Invest:
"Please be aware that not all Rights are tradeable and not all markets offer lapsed proceeds. If you take no action we are unable to confirm if lapsed proceeds are payable. If Rights are tradeable and you attempt to sell through our standard trading process close to the market deadline your order may not be accepted."
and option box has:
"Take No Action (Default)"
IMO:
Lapsed proceeds should, ethically, and perhaps for other co rights issues, be received for lapsed rights, but there is often a difference between what should happen and what does happen, and I am not aware of a gain for taking such a chance, so intend to pay for rights or sell before due date.
I am already over-commited on a porfolio basis, and spare cash not available in each of SIPP, ISA, Dealing to take up all even if wished to - without selling another, so intend to buy some rights, but not all.
Says:
"Please complete your allocations before 10/04/2018"

[garycook] 04/4/2018 02:23

He knows GFRD are cheap atm.

[deb81e] 03/4/2018 17:42

03/04/2018 4:21pm
Alliance News
Chief Executive of Construction & Investments Bill Hocking purchased 10,000 shares at a price of 837.86 pence

[harvester] 03/4/2018 14:48

thanks Boystown. Just found . Hence my last post.

[harvester] 03/4/2018 14:47

ticker GFRN !

[boystown] 03/4/2018 14:46

It's GFRN harvester

[harvester] 03/4/2018 14:42

I am currently not a holder but considering purchase. Last dealing date for rights on 13th April?What is the ticker for the rights?

[marksp2011] 02/4/2018 21:15

Scrwal

No the values used were easy for me to work out in my head :)

[scrwal] 02/4/2018 13:09

marksp2011

The rights are effectively "leveraged" but your statement "the rights are roughly 3:1 leveraged v the share price. If the share price rises 50p the Nil paid should rise by 150." is incorrect in the case of GFRD.
The price of the rights increases/decreases by the same in terms of pence per share but at a much higher % rate because of its much lower market price ie where the leverage aspect comes in.

Your post 4469 is theorectically correct and highlights the leveraged nature of rights but the values used don't reflect the real world GFRD situation.

I don't hold GFRD and don't know the current price of the rights but this should clarify things hopefully

GFRD price 835p Rights price is 835-568 = 267p

Assume a 50p increase then this applies
GFRD 885p a 5.99% rise
Rights are 317p a 18.73% rise which is the 3x leverage factor.

[garycook] 02/4/2018 12:44

Boystown,Totally agree.

[boystown] 02/4/2018 09:44

It seems logical to me to take the rights up in full if you think gfrd has a reasonable future. To my mind, it's substantially undervalued.

[marksp2011] 02/4/2018 07:08

nescio

Are we married? reads like something my wife would say.

[nescio quid] 01/4/2018 23:40

marksp2011

what you said in your second post is the same as I said in mine.

"The value of that "right" will move as the value of the underlying share moves"

In you earlier post you said it would move at 3x that rate

"the rights are roughly 3:1 leveraged v the share price. If the share price rises 50p the Nil paid should rise by 150."

no further discussion is needed as we are now in agreement

[kingston78] 01/4/2018 20:04

Nil Paid Rights are similar to a call option. They are highly geared and move penny for penny in tandem with the underlying fully paid shares.

[lord gnome] 01/4/2018 19:05

Marksp2011 - at last, I read a post from someone who knows how this thing works. If you are wrong then I have been wrong for over 30 years. But I am not and neither are you.

[marksp2011] 01/4/2018 18:39

nescio

Riddle me this

Ignoring time values and assuming a perfect pricing model. Assuming the base price is 100p and that the NP rights are then 33p with 67p due in 30 days.........

If the FP doubles to 200p
the NP = 200-67p = 133

33p===>133p looks like leverage to me but apparently my logic is "not correct"

looking at the other side......
If the FP drops to 67p. the value of the rights is nil - a 30% drop in the FP = 100% drop in the NPs

The GFRD NP does not represent a share. It represents the right to buy a share for 568 on a given date. The value of that "right" will move as the value of the underlying share moves. If the market price is below 568 why would anyone want to pay for the opportunity to buy at a higher price than they could in the market?

Please educate me I have been doing this for years and seem to have been wrong for all of them

Thanks

M

[nescio quid] 01/4/2018 17:03

In reply to marksp2011
This is not correct. Each nil paid represents 1 share so there is no such leverage. The value of the nil paid is roughly the difference between 568p and the share price.

[speedsgh] 31/3/2018 08:36

Open Doors for youngsters at Linden Homes developments - HTTPS://www.showhouse.co.uk/news/open-doors-for-youngsters-at-linden-homes-developments-2018/

[marksp2011] 31/3/2018 00:27

12358....... the rights are roughly 3:1 leveraged v the share price. If the share price rises 50p the Nil paid should rise by 150. As the close date approached they will be valued at the GFRD price - 568p.

I have let rights lapse in the past and I got cash for them automatically

IF most of the rights are taken up, there will be no stock overhang and the price should improve with a better balance sheet. If the underwriters are left with a third of the company things will be a bit rocky.

Most of the Aberdeen Bypass will finish in mid summer as in the staff will be gone. The contract wont close out until autumn so the major lession will be cured

[12358k] 30/3/2018 13:59

Sorry if this has been answered already but there's a line in the notice that iii have sent me: the default action is that the option lapses and "holders who allow their rights to lapse may receive a cash payment .. up to 4 weeks after the close"Would this be pure goodwill? Would iii sell my options? Would this be at the 270p sell price? Will this sell price fall off towards the close? A bird in the hand? Thanks for an answer

[speedsgh] 29/3/2018 07:23

Galliford Try Partnerships secures two South West developments -

Regeneration specialist Galliford Try Partnerships has secured two new developments in Devon and Somerset, with work expected to commence later this year.

The Kingfisher Green development will deliver 180 new homes to the community of Cranbrook, east Devon.

The scheme will comprise a range of one-, two-, three- and four-bedroom, high-quality homes, including 54 available for shared ownership and social rent, with the remaining 126 available for open market sale under the Linden Homes brand.

A planning application for reserved matters has already been submitted and, subject to approval, construction is set to commence during the summer with the first homes being delivered in 2019.

Galliford Try Partnerships has also secured a site to develop 171 new homes on the banks of the River Tone in Taunton, which will comprise a mix of townhouses and apartments.

The firm is set to submit a planning application in the coming months, with work expected to commence later in the year.

Stephen Teagle, chief executive at Galliford Try Partnerships, said it was delighted to have completed on these new sites.

“Galliford Try Partnerships has the capacity and ability to support the government’s ambition to deliver 300,000 new homes across all tenures, and through our partnership with [housebuilder] Liverty [formerly DCH], we can look forward to delivering much-needed new homes in the region.”

Russell Baldwinson, executive director of development at Liverty, added: “Liverty [is] delighted to have jointly acquired land at Cranbrook and to be working in partnership with Galliford Try to develop a further 180 homes in this growing new town.

“This not only furthers Liverty’s commitment to Cranbrook, but will contribute to our plans to develop 15,000 homes in the region over the next 10 years helping thousands of customers on the road to own or rent their own home and unlocking the unique power of a good home in enabling our communities to thrive.”

[speedsgh] 29/3/2018 07:20

Brexit remains the biggest threat to construction, says Galliford Try boss -

The managing director of one of the UK’s biggest construction firms has told Scottish politicians that Brexit remains one of the biggest threats to the industry moving forward.

Giving evidence to the economy, jobs and fair work committee, Galliford Try Investments chief Mark Baxter told MSPs that while a number of threats continued to threaten the progress of the industry, labour migration and the amount of people being able to be called upon is likely to suffer.

Speaking to Holyrood’s economy committee yesterday, Baxter said: “There’s a number of threats looming for our industry going forward, Brexit being the biggest one. One thing we can probably be sure of is there will be labour migration away from our industry. I think that’s a big threat for Scotland in that what will happen is the contractors will use the resource they’ve got and pull in, so the extremities will suffer. So I’m seeing a number of threats here and I think there’s a job on for Scotland to market itself as a place to do business.”...

... Baxter also painted a bleak picture to the committee on the state of play within industry and referenced major projects north of the border which he described as a “unmitigated disaster”.

“The industry is not in a very good place,” the Galliford Try boss added. “UK-wide, the construction and infrastructure industry did about £80bn of turnover last year and lost, collectively, about £1bn. That’s not sustainable. The last three large Scottish infrastructure contracts (the M8, the Aberdeen bypass and the Forth Crossing) have been an unmitigated disaster for the contractors involved and we need to move forward from that.”