Seneca Growth Capital Vct Share Discussion Threads

[edmondj] 21/9/2004 15:52

They have received approaches but I am not aware of any offer. Although we risk a circular debate on semantics.

[hybrasil] 21/9/2004 15:10

something very funny going on here. Its a long time since I remember a share being lower during an offer period than it was before the bid.

[ukhawk] 21/9/2004 14:58

Not convinced there's been much intrigue or manipulation. Also not sure why people buy into a takeover situation then sell out before the outcome is known. It's not as if this has been dragging on too long, yet !

[muddy waters] 21/9/2004 14:09

suspect no intrigue just a lot of manipulation

[edmondj] 18/9/2004 13:12

Could be, though in a tight market they would have to peddle out stock very carefully (and in agreement with the MM's?). So much intrigue over a tiny company!

[ukhawk] 18/9/2004 10:05

I still believe in the theory that RAB have been massaging the share price. It's just been too much of a coincidence that their sells have almost exactly matched the buys ( bearing in mind that a lot of the "sells" indicated on ADVFN have in fact been buys ).

[edmondj] 17/9/2004 20:17

The rub for RAB is presumably that with about 23% currently, if they exercise many warrants this would put them above the 29.9% equity threshold requiring RAB itself to bid. But doubtless there is scope for wheeling and dealing in between these levels, which is what we see.

I still find it strange to think that they could continue to peddle out much stock at this level. There is usually a speculative flurry after any bid approach is announced, then demand peters out like we see. So the price management rationale seems to have credence too.

[dunnie] 17/9/2004 20:05

Peter Sherlock's take makes sense of RAB's actions, RAB are selling in the market at just over 11p,if the warrants are excercised at 10p it would bring the average paid to 9.5p, so a bid of 13p would give RAB a profit of £2,100,000. This assumes they sold the whole 30m shares in the market, which of course would be impossible but even if they sold a large portion it would still give a great profit, of course they would make even more if they sold no shares and excercised the warrants and then sold 60m shares at 13p, but they are a prudent operator and they may just be covering the possibility that the speculation could lead to nothing more, in which case the shares could be back to 8/9p.

[edmondj] 17/9/2004 19:11

My recollection is that RAB's warrants are not exercisable in the event of a bid, but it's Friday night and I could be wrong. Anyone fresher?!

[edmondj] 17/9/2004 18:50

Peter Shearlock's view tonight (investment editor of Growth Company Investor and former City editor of The Sunday Times)

Honeygrove still talking to potential bidder

Shares in housebuilder Honeygrove Group (tipped here in February at 10p) have been holding firm at 11.5p ever since the company announced it had received a bid approach at the end of August. At this level the company is capitalised at £14 million.

On the face of it, that looks a considerable undervaluation. When I recommended the shares I said the company could probably sell its big Swaylands site in Kent for about £14 million – never mind the rest of the assets. Since then the company has announced that Swaylands should generate a gross £48 million over three years while the receipt of planning permission for other sites on the Isle of Wight and at Sevenoaks, Kent, has given a further boost to net worth.

Net assets were shown at £10 million in the last accounts, but that is before allowing for uplift on the IoW and Sevenoaks sites and a possible £15 million-to-£20 million profit flow to come through from Swaylands. But it is also before allowing for dilution from the large number of warrants outstanding.

Last year, Honeygrove placed a big chunk of shares with hedge fund manager RAB Capital at 10p a time, giving RAB 24.4 per cent of the company. The deal also gave RAB warrants to subscribe for a further 30 million shares (taking its stake to over 42 per cent) at 10p. If the warrants were exercised – as they surely would be if Honeygrove received an offer at anything over 10p a share – that would take the company's market capitalisation up to over £18 million at 11.5p.

In sum, there is still some upside on a bid, but probably not more than a few coppers. Hold.

[dunnie] 17/9/2004 05:44

Barryrog,
the other week you asked me to keep this thread for posts relating to only to HYG, now you are trying to ramp up another company that has no bearing upon HYG. When i have posted here it is with regard to RAB which is material to Honeygrove, please practise what you preach.
Regards
Although if anyone wants a flutter Transvision Resources(TVR) would be my favourite, a deal is only weeks away.

[barryrog] 16/9/2004 22:04

hawk/greengiant,
i've put progress on this potential takeover on the backburner for the moment.
it may be resolved quickly it may not, we'll just have to wait see.
if you have any spare cash,take a very close look at SEY, interims are 24/9 but they won't be giving formal notice of this because AIM don't require it.
i bought this share at 10p at the beginning of the year and i have recently received to Brokers updates,evolution beeson gregory and oriel securities both
advising clients to buy.

[edmondj] 16/9/2004 16:43

You'd better go and ask the laughing parrot in the Penshurst pub, what he's overheard!

[ukhawk] 16/9/2004 16:41

Ok, that's what I thought. There's usually a snippet or two carefully placed in the media though !

[edmondj] 16/9/2004 13:51

We could wait months with no obligation for them to update. It's not unusual.

[ukhawk] 16/9/2004 13:38

We're now 3 weeks since the initial takeover talks announcement. Do HYG have any obligation to say talks are continuing, or have reached an advanced stage ? Or is the next we hear it's either on or off, whenever that may be ?

[siri_edit] 16/9/2004 11:17

post removed by ADVFN

[edmundshaw] 16/9/2004 11:10

Money on a security man? But that's peanuts.

BTW, the tax argument is a compelling one; but AIM taper relief is a red herring as directors get business taper relief anyway...

ES.

[hybrasil] 16/9/2004 09:01

Certainly when I was making my enquiries they would have sold swaylands if they could one offeror simply did not materialise.
Swaylands looked to me to be the classic spec builders mistake a smashing trophy site that could make a fortune but I bet they are still spending money on a security man there and that little else has happened.
They had offers on some of the peripheral one off sites there and I hoe thay had the sense not to take them.
It meant however that they need to realise a lot of cash just to keep up their interest payments.

[barryrog] 16/9/2004 07:34

as i said before i don't get involved in slanging matters on BBs.
if you want to discuss HYG thats fine.
i have told you how T D Watwerhouse works thru Virtex,i suggest you check it out with them if you need to or even the LSE.i think you will find that what i said was perfectly true.

[dunnie] 15/9/2004 22:36

Barryrog,
all trades are reported no matter who you use, your a liar and the proof is there now come off your high horse and admit you jumped in on the back of a tip.

[edmondj] 15/9/2004 21:28

Sure, though HYG's last few years' track record might have encouraged the likes of RAB to press for a special divi thank u v much!

[barryrog] 15/9/2004 21:10

Edmund,
whilst i tend to agree on the potential tax liability there may have been on a large 'one off' dividend had they sold swaysland, they could easily have used the cash to acquire other assets or even made another acquisition.

[edmondj] 15/9/2004 19:56

I think one sense for why they kept rather than sold Swaylands (to book a £7m profit) was that it's believed to provide big dollops of earnings over the next few years which would help them as a plc. Also, a windfall profit could bring pressure for a special dividend - but the Johnson family holders would presumably get hit hard for tax relative to capital growth in an Aim company. That's my reading why they retained it, besides a belief in upside potential.

[barryrog] 15/9/2004 19:27

DunnIE,
i really don't know what you are jibbering about.
i do all my trades thru T D Waterhouse,who use Vir-tex.
if you know anything about share trading you will know that these do not appear on streaming screens.
why are you so paranoic?