Intermediate Capital Share Discussion Threads

[hieronymous1] 11/4/2012 09:56

Interesting comments on the market for mezzanine capital at the end of this article:

[barlick] 03/4/2012 17:49

Would have thought it helps that are more investors than lenders and, as such, have some influence.

Better that than just lending money without control?

[pvb] 03/4/2012 17:45

In the past they have more than once raised extra capital via rights issues. Not so likely at present I guess, but hence the recent bond issue.

[rcturner2] 03/4/2012 17:38

ICP do play an important role and are clearly good at what they do. But they have to raise money to invest and that is clearly something over which they have no control. Hence there is always an inherent risk with the business model.

[barlick] 03/4/2012 17:18

I work in a Chartered Accountancy firm & my boss keeps saying that he would invest in ICP but does not really understand the concept. I think that is holding the price down as they are 'guilty by association' with the financial sector with a lending strategy that is not fully understood.

For my part I think alternative sources of lending are the future & ICP will be in my portfolio for a long time.

[rcturner2] 03/4/2012 07:22

I'll never forget what happened to Paragon. Sensible business making decent profits with very low defaults and then bang virtually destroyed overnight when the credit markets shut in 2008.

[hieronymous1] 02/4/2012 22:58

RCTurner2

You might be right. The capital markets in this country are screwed by a mix of timidity and over-regulation.

[rcturner2] 02/4/2012 22:21

I think part of the fear may also be their access to capital.

[hieronymous1] 02/4/2012 18:44

Barlick

I am in this company because it pays a good and rising dividend well covered by earnings and is in a growth sector because the banks are still not lending to small and medium businesses. It is currently neglected because investors believe it to be too risky due to lending to less than investment grade companies. Events will prove these fears to be exaggerated and the value will out. All I can say about price is - higher.

[barlick] 02/4/2012 17:18

'Some of us try to restrict our comments to those occasions when there is something to say. That has not already been said by another.'

Something to say? How about the quality, or otherwise, of the company. The share price now, present & future? As you see it.

The interim statement?

The weather?

ps - What does 'looks deep value in this share' mean?

[santar] 30/3/2012 11:01

Hieronymous1

I was going to agree with you but am prevented by your second sentence!

[hieronymous1] 29/3/2012 21:55

Barlick

Some of us try to restrict our comments to those occasions when there is something to say. That has not already been said by another.

[18bt] 29/3/2012 19:33

I'm still following - looks deep value in this share.

[barlick] 29/3/2012 17:44

davebowler

Why bother? This thread has no followers - including you since February!

[davebowler] 29/3/2012 16:42

Intermediate Capital Group plc: Pre-Close Trading Statement for the twelve
months to 31 March 2012

Embargoed until 7.00am on Thursday 29 March 2012


ICG plc today provides an update on trading for the twelve months ending 31
March 2012. The Group will report its full year results on 22 May 2012.



Fund Management Company

Our funds continued to deliver a strong performance over the period. We have
also further expanded our distribution team with two senior hires during the
year, enhancing our geographic coverage. While institutional investors remain
cautious to make new investments in volatile markets, the more benign economic
outlook since the beginning of 2012 has resulted in a more favourable
environment for fundraising. Against this backdrop, we are seeing increased
interest in our range of products. We continue to make good progress toward our
EUR2 billion target for ICG Europe Fund V.


Investment Company

The performance of our portfolio remains solid and we therefore expect
provisions to be broadly in line with market expectations. The sale of CPA to
Cinven, announced in January 2012, completed on 22 March and resulted in cash
receipts of GBP113 million and capital gains of GBP43 million for the fourth quarter
for ICG plc. As a result our undrawn debt facility will be approximately GBP825
million at 31 March 2012, leaving ample room for new investments, even after the
repayment of circa GBP320 million in existing facilities in April 2012. Again, the
more benign economic outlook since the beginning of 2012 has also resulted in
greater market activity and our pipeline of new investments is building.


Remuneration Schemes

As approved by our shareholders in July 2010, 31 March 2012 will mark the end of
the transition period during which the legacy Medium Term Incentive Scheme co-
existed with the new remuneration schemes. As agreed, the Medium Term Incentive
Scheme (MTIS) will be terminated at the end of the current year, resulting in a
one-off release of previously accrued costs to the income statement for the year
to 31 March 2012. We estimate this release to be approximately GBP45 million.
Today we will be hosting a follow-on seminar for analysts and investors on the
accounting implications of the new remuneration schemes.



END
Analyst / Investor enquiries:
Christophe Evain, CEO, ICG [phone]
Philip Keller, CFO, ICG [phone]
Jean-Christophe Rey, Investor Relations, ICG [phone]

[barlick] 14/3/2012 17:57

Good sentiment on the share price at the mo. Suspect that the real move will be with results which will include the 'significant capital gain' & increased divi (?).

Good luck all.

[barlick] 08/3/2012 17:42

RCTurner2

'If we get bad news (Greece for example) the market will tank. This suggests to me it is a short term rally in a bear market.'

Sorry to 'lift' from your post but when have we not had bad news about Greece? Agree it is a liquidity rally just disagree where the liquidity is coming from.

Hope you don't get the chance to reinvest in ICP by the way if 220 is your entry point. This is a seriously undervalued share which, I suspect, will get a big lift in May when results are in.

Good/bad luck - if you know what I mean!

Barlick

[rcturner2] 08/3/2012 08:20

ICP is a great company no doubt about that. I would love to get in again nice and low, maybe 220p.

Barlick, interesting point about the difference between the 100 and 250. It feels like a liquidity rally to me. If we get bad news (Greece for example) the market will tank. This suggests to me it is a short term rally in a bear market.

[barlick] 07/3/2012 17:42

RCTurner2

'One thing this rally was not based on was fundamentals. The FTSE is totally dislocated from macroeconomics. It was based on cheap (funny) money being pumped in by central banks. Remember August last year when the last boost ended?'

Hear your point but if the 'funny' money helped it was the 100 but, as of last Friday, the 100 was 'only' up 6% for the year compared to the 250 up over 14%.

That to me is risk-on investing based on fundamentals. OK liquidity might be the inducement but valuations are the investment. What other criteria is new money using when buying?

Only time will tell.

Nice to talk about ICP again soon?

[rcturner2] 06/3/2012 21:59

One thing this rally was not based on was fundamentals. The FTSE is totally dislocated from macroeconomics. It was based on cheap (funny) money being pumped in by central banks. Remember August last year when the last boost ended?

[barlick] 06/3/2012 18:35

Still do not see 5000 as this rally was built on undervalued fundamentals & they only increase if the market declines. Sure there will be profit taking along the way but there has to be growth for there to be profit to take.

I believe that there has never been so much cash reserves on FTSE company's balance sheets & that will be spent or returned to shareholders.

Time will tell & I can take & give 'I told you so's'

Barlick

[pvb] 06/3/2012 17:36

Wasn't it the original J. P. Morgan who, when asked what the stock market was going to do, replied: "It will fluctuate."?

[rcturner2] 06/3/2012 17:31

From the DT:

Last month, Morgan Stanley noted January's unusual broad rise in assets, with riskier assets such as equities rising alongside safe havens like gold. Its conclusion? "This much cross asset optimism is usually a bad sign". A reminder from our blog on February 22:

Quote While we're all aware that we've just witnessed the best start to the year in equities since 1994, what was more interesting to us was the sheer breadth of positive performance across a wide array of assets. Effectively, the only major asset to fall in value in January was the dollar, and the only other laggards we could see were corn, coffee, coal and natural gas. ... and has often preceded equity market corrections.

As shown in Exhibit 1, January 2012 was only the fifth month in the past five years when all four of these major asset classes have risen in unison. More interesting, on three of these four prior occasions that month proved to be a significant peak in equities and was followed by a substantial double-digit decline.

[rcturner2] 06/3/2012 17:24

Only 15% away from 5000 so I don't imagine we need too much to go wrong to get back there. Reality will bite soon enough.

[barlick] 06/3/2012 17:20

RCTurner2

Noticed your lack of input but thought you might surface today. Still not seeing 5000 anytime soon though.