Invista Share Discussion Threads

[badtime] 31/3/2011 21:16

o go on tilts give it a go..lol

[tiltonboy] 31/3/2011 14:16

SKYSHIP,

I may have to reconsider my price given this news, but will watch for the moment.

[skyship] 31/3/2011 13:19

Good news indeed; and likely to account for the current absurd spread - certainly impossible for PIs. Of course Tilts may be able to buy - though not @ 27.5p!!

Looking at the trades on 29th March Weiss paid 30.5p for the stock that took them through the 3% level.

[praipus] 31/3/2011 11:29

Quite agree scburbs. I'm attempting to track the rest of Weiss's holdings on the WAM "Tracking the Arbitrageurs" thread feel free to post details of other Weiss holdings not already listed in post 3 on that thread. TIA.

[scburbs] 31/3/2011 10:26

Good to see Weiss on board. They will be focussed on ensuring the cash is distributed as quickly as possible as they will be IRR focussed.

[scburbs] 29/3/2011 12:13

Has anyone seen a date for the AGM? It was 28 April last year.

[tiltonboy] 29/3/2011 11:29

Alan,

No, I've been relying on your analysis. Too many variables for my liking, which is why I wouldn't touch them when they were in the 30's. Subsequent events have re-inforced my concerns, but I would take a punt at 27.5p.

[alanji] 29/3/2011 11:24

tilts - do you have a target liquidation value - and any views on whether the property man business is likely to be worth anything?

I'll sell you mine for 37.5 ;-)

[tiltonboy] 29/3/2011 11:07

enviro,

lol. I'm a buyer at 27.5p, but realise I might not get them!!!

[badtime] 29/3/2011 10:14

loooool..maybe half of it :)

[envirovision] 29/3/2011 10:09

That will be tilton boys buy order being filled then :-)

[badtime] 29/3/2011 09:36

Couple of lumpy trades..no idea what ther all about

[skyship] 25/3/2011 16:28

Hm, the replacement boss certainly doesn't present in a user friendly way - he is an accountant after all! But on the credit side he has been progressing matters much faster than most of us had thought likely.

Nothing to add to your excellent piece Alan - for which many thanks.

Horndean - if you are still here - could you keep an eye on JPM just in case they do an update on their recent Note....thnx

[alanji] 25/3/2011 12:47

What a strange and complicated set of accounts - looks like it is still pretending to be a property management co. The important bit of the announcement is this:

Invista's balance sheet comprises the following principal assets:


31 Dec 2010 31 Dec 2009
Asset GBPm GBPm

Cash balances 77.4 64.7
International Fund 18.5 17.1
Opportunity Fund 10.2 6.1
Invista Castle Limited 6.9 37.0
Shares in IFPT 1.2 2.9
Shares in IERET - 4.1
Global Property Securities Fund - 10.8
Other assets/(liabilities) net (1.9) (3.6)

Consolidated net assets GBP112.3m GBP139.1m


On the face of it nav is over 40pps and it looks like a no brainer. Especially when you add in whatever value you like to attribute to the property management co - at the very least the compensation from HBOS and the rest of the management contracts (IFD & IERE now on notice and likely to be compensated).
However the assets include £28.7m in IREIF and IREOF and the co is committed to increasing its investment to £25m in each, if required - a further £23.3m according to my calcs. If one takes a 15% discount off the Dec values of these assests it still gives a nav of 39p plus the pmc values, so well ove 40p. And most of this is cash. After deducting the contractual obligations mentioned, adding the Castle proceeds and a couple of pence for the pmc contracts gives a cash value of 24p - no reason afik we should not expect 20p in the summer. And, it is unlikely the company will have to fulfill its obligations to IREIF and IREOF - and when they are sold any cash reserve will be released.
And remember I have assumed no value for the pcm, other than 2pps for the management contrasts termination.
Very positive news after the last couple of disappointments but how poorly presented. I topped up this morning and am hoping I have not missed anything obvious!

[skyship] 25/3/2011 10:01

Alan - you take first shot....have you updated that spreadsheet of yours?

O/T - Tilts - have posted to you over on MCKS thread.- EDIT - ahhh - we are agreed!

[tiltonboy] 25/3/2011 09:56

SKYSHIP/Alan,

What is your best guess as to the components of the current NAV?

As a possible return nears, I might now consider this one, having not liked the smell previously!!!

Could that 5m trade be the catalyst for the move?

tia

tiltonboy

[badtime] 25/3/2011 09:55

price at middle..u reckon?

[skyship] 25/3/2011 09:52

Intriguing, 5.3m bt @ 28.25p - c.2% of the capital. Could the Company be buying back its own stock perhaps...

[envirovision] 25/3/2011 09:50

I took 12640 at 27p, dumped 5640 at 27.5 then 3626 at 28 the 3267 was my remaining stake 3626 sold at 29 just now.

Badtime, We will have to see over the next few weeks what the market thinks.

I'm impressed with this level 2 trading though. Think its something I would like to do more of.

[envirovision] 25/3/2011 09:45

Alan yes that's right. You will get cash returned to you but end up with less shares.

However, I have always found the shares you are left with don't adjust to a fair value to account for the return and are left languishing well below NAV. I suspect this will suit the company though as it will leave it with a book balance and plenty of leeway to continue as a going concern, which sounds the likely outcome.

Avoiding the special dividend route can be tax efficient for some yes. However the best way to return cash with shareholders interests in mind I find is tender offer at nav.

[badtime] 25/3/2011 09:40

well market has taken it positively

[skyship] 25/3/2011 08:29

Alan - I think we are agreed, almost...

[alanji] 25/3/2011 08:26

enviro - I thought a capital reduction was a return of cash to shareholders, by buying back some of their share capital, as a more tax efficient route than a dividend. Is this not correct?

[skyship] 25/3/2011 08:23

Hmm - not sure I follow you there Enviro!

Surely a share capital reduction is just an accounting procedure. It creates profits for distribution by cancelling the share premium account. Cash distributions can then follow...

Any accountants out there who can confirm?

I'll return later; and if no comments I'll research the position or email the Company.

[cerrito] 25/3/2011 08:23

Found it difficult to get my head round this but no desire to buy more shares.With an inprice of 43p know I will take a loss.
Note that they surrender their London Office at May 31 so do not plan to hang around.
As an IERE shareholder pretty spooked..I see INRE have a lease on a Paris Office.
Not sure if I understand status of their relationship with Invista Real Estate Opp Fund and the International Fund and the £23 funding commitment.
Decided to put this in the draw until such time as the directors come up with AGM proposals.