K3 Capital Share Discussion Threads

[zangdook] 03/8/2020 13:56

"and the issue of 4,492,667 Ordinary Shares (being £6.74 million at an issue price of 1.50 pence)"

1.50 pence

eejuts

[czar] 03/8/2020 12:49

Just what the doctor ordered, in this market with administrations rocketing the place to be is in Insolvency Practitioners. The initial price target from the broker is 300p but I fancy this will go much higher over time.

[its the oxman] 03/8/2020 09:07

Looks a decent acquisition, earnings enhancing with strong demand for its services and staff incentivised to get the shares above 350p.

[scubadiverr] 21/7/2020 11:45

People are selling because M&A activity is at record lows. While the current situation is likely to create forced sellers, they are not going to help K3C. Why do you think the only acquisition is good? Personally, I don't see much synergy or know anything of fit with the current business, nor its likely margins or growth prospects. It looked a desperate move to show it isn't a one trick pony in a circus that will be closed for sometime.If you want future exposure to M&A, RBGP seems a much better all-round business

[czar] 18/7/2020 14:57

K3 looks very undervalued, the funds happy to put up well over £30m for acquisitions. Only one done so far and that looks a cracker, more to come? Now is the time to buy up companies especially if they create cross benefits with your business. Low PE big Yield and adding a business that is earnings enhancing. Why people have sold out is a big mystery to me, it should be trading north of £2 imho so I'm buying.

[toffeeman] 14/7/2020 10:49

Why would you sell a company in the current climate? You would wait until the post-Covid recovery was well established, unless you were a forced seller and K3C would not want to be associated with that scenario.

Surely very significant drop in business and some retrenchment?

[melody9999] 14/7/2020 09:53

This was from the TU on 29/6:
"As announced on 25th March 2020, a cost reduction exercise ensured monthly overheads were reduced by c.70% from April 2020. This was achieved through the use of the furlough scheme and salary sacrifices.

Execution of existing pipeline deals has slowed during lockdown although buyer activity and deal completions are still taking place."

Whilst they are now well funded (no debt or gearing) so no problems there, I guess they will be balancing the need to make people redundant against activity increasing as we come out of lockdown.

[scubadiverr] 07/7/2020 13:31

Yes, volumes at lowest in 8 years. Diversified players in a better position than those relied solely upon M&A activity. K3C obviously know this and why the recent equity raise for acquisition. Even with diversification short-term looks bleak, especially with so much competition in the market

[scooper72] 07/7/2020 11:38

You mean a good article about a concerning, worrying issue for K3 holders?

[scubadiverr] 07/7/2020 11:08

Good article in the FT today about the tanking of M&A volumes

[robow] 06/7/2020 11:09

from Citywire this morning
Shares the pros arebuying

K3 Capital Group (K3C)
Who’s trading? Gervais Williams and Martin Turner

The trade: The Premier Miton small cap duo have upped their stake in business sale and brokerage company K3 Capital Group from 13.6% of the shares to 14.1%.

How the shares have performed: Shares have been volatile after hitting a three-year low of 123p in April, recovering to Friday’s 150p, but still well off an all-time high of 395p reached in April 2018.

What does the company say? The group completed a £30m fundraising round at the end of June, allowing it to complete the acquisition of tax firm Randd, as well as strengthening its balance sheet. It undertook a number of measures to mitigate against the financial impact of Covid-19, reducing its overheads by 70%, implementing executive salary sacrifices and furloughing a ‘portion of the workforce’.

What’s the outlook? The group says it is in a ‘strong position’ to make further acquisitions and that it has eyed up a number of ‘very attractive’ targets. Prior to the fundraising round the group said it had £7m in reserves and no debt or gearing on the balance sheet.

[spwh100] 04/7/2020 22:16

Yeah, you’re an idiot.

Not pumping and then dumping are you?

[saj3] 02/7/2020 16:10

It clearly states on the high risk part because of you all the rest have to suffer!

[gswredland] 02/7/2020 16:05

Robbie the trader..

I am so sorry I did not realise you would be offended by me putting high riskers mentions on the bulletin board. I am a great fan of yours and will stop that immediately
SINCERE APOLOGIES

[its the oxman] 30/6/2020 17:26

Anyone got details of their allocation yet?

[shanklin] 30/6/2020 12:02

Shares available in size online at the placing price

[christh] 29/6/2020 17:43

When will the shares be issued to new shareholders?

[czar] 29/6/2020 16:43

After the earnings enhancing acquisition this Company has to be worth more than it was prior to the fund raise, at least 180p but most likely a lot more if they pull off further earnings accretive deals

[toffeeman] 29/6/2020 16:37

Well there was no point in participating in the raise - except to avoid transaction cost!

[scubadiverr] 29/6/2020 16:36

That will depend upon what the future has in store. There is a reason why he delays updating his blog you know?!?

[gswredland] 29/6/2020 16:18

Yes maybe a fund raising is a different matter in this case
Personally not selling at these levels

[robow] 29/6/2020 12:11

Doubt it. He is more likely to have bought more

[starpukka] 29/6/2020 12:03

Robbie Burns says sell if you are around 10% down on your investment. I wonder if he sold this morning ?