New Star Asset Management Share Discussion Threads

[harmoye] 13/12/2008 09:47

Mr Hat,great minds...

The point i'm trying to make after doing my own research is that this is a not a Woolies ans a very safe punt. As stated by the company they can de-list and relist later and still have $30 million in the kitty.
Or if a takeover ofer comes they will consider it.

Also bear in mind only a tad over 200 milion shares are available and punters will be hard pushed to get their hands on them in any ammount.

[terropol] 12/12/2008 21:14

What are you all on about..8p 200m...dont forget the 240m the banks must draw before any body else....

[mr hat] 12/12/2008 20:26

Was also thinking the same Harmoye, that there could be a bit of a battle here, and the price may well surpass the mooted 8p in that earlier report, especially if markets continue to stabilise, and begin a sustained recovery.

Let's see. Happy to hold and watch the outcome. Even your worst case scenario would do me just fine!

[demark] 12/12/2008 18:58

Knowing,

2008 x'mas was implied in the statement.

dyor

[harmoye] 12/12/2008 17:32

If you DYOR (Google news is best) you will find the worse that can happen is the company has no debt (with the bank deal) and $30 million cash.

Another option,New Star can can de-list get it's house in order and come back to the market in 6-12 months time with an share price at maybe 50p or better.

IMO this is a no brainer with no risk and a fantastic upside.
In todays market this is a very rare bird. As the man said a chance like this comes just once in a decade!

[jamie62] 12/12/2008 17:15

Let's see what Monday brings

[harmoye] 12/12/2008 16:50

Well done Mr Hat just beat me to it.

Looks like the deal already done,but do believe they will be fighting over this and price per share could be nearer 12p

[harmoye] 12/12/2008 14:10

Two options.. News Star de-lists and relist at a later date with a vastly improved share price

OR they are taken over.If that scenario happens you will at least double your money.

Remember New Star have No debt and $33 million in cash.

Moreover if you view their list of managed funds most of them are in the blue today!

Dyor (try google news)...in my opinion this is a bloody good punt.

[knowing] 12/12/2008 13:56

Which year?

[demark] 12/12/2008 13:40

i picked up 80k plus. hope it pays off by x'mas.

dyor

[harmoye] 11/12/2008 17:04

I think this is a great opportunity and have purchased quite a few shares today.

Lets hope the gamble pays off...

[crosswire] 11/12/2008 14:19

Blue Planet backs New Star, taking 6.7% stake

By Drazen Jorgic | 00:01:00 | 11 December 2008

Blue Planet Financials Income & Growth investment trust has purchased 6.7% of New Star's shares to take advantage of what it describes as a 'once in a decade' opportunity.

On Friday, the trust bought 18 million New Star shares for approximately £2.8 million, at 1.6p per share. It will make the beleaguered asset manager the the trust's second largest weighting after BP Global Financials (15.5%).

Blue Planet's founder Kenneth Murray says New Star's shares have been disproportionately undervalued.

He said: 'We think it's a stunning opportunity. These sorts of things come once every 10 years. We are also talking about a company that's debt-free.

'Even on most conservative basis, the think the minimum current value of New Star is around 20p per share but more realistically between 40-50p – plus it has the ability to shed costs.'

In case New Star is sold to a rival, Murray says the overlap will create cost saving opportunities.

'If somebody like Jupiter or Gartmore acquire New Star, they won't need two head offices, two boards of directors or even two fund managers...The cost saving will be enormous which means that the possibility for profit from the operating costs of £102 million will have a pre-tax margin of around 70-80%.

Murray also reckons New Star may de-list. He argues the five banks which paid off the company's debt for preference shares at a rate far higher than New Star's current share price, are unlikely to sell at a loss.

'If they de-list and get their house in order, and then re-list again or sell themselves when the market has picked up in 12-24 months, they will come back with much higher levels than the current share price. We think it will come back to minimum of 50 pence within a year.'

Besides taking a punt on New Star's future recovery, Murray is also betting the markets have seen their trough point.

'We think we've just had the nadir of the market and we think the market will rise from here.'

If the market does rise, Murray is reasoning that New Star's assets under management will increase and so will their earnings. 'In that case, your profits rise sharper than your costs', he points out.

Murray also believes New Star's founder, John Duffield (pictured above), will leave his position at the company.

'It's been said enough times to make you believe there's an element in truth in it', he concluded.

Murray's decision will be met with astonishment in some quarters. While his claim that the company is free of debt is technically correct the firm looks set to be forced to issue its creditors with £100 million of highly costly preference shares under the debt for equity swap proposed shortly before Murray made this investment.

[jonno1] 11/12/2008 12:01

looks like Blue Planet will be next then!

"the business is substantially undervalued." Yeah right...

[mister md] 11/12/2008 11:49

Blue Planet buys New Star stake
Phil Craig
11 Dec 2008

Blue Planet Investment Management, an asset manager that specialises in financials stocks, has bought a stake in London-based New Star Asset Management despite its impending delisting and the dilution of its shares, arguing that the business is substantially undervalued.

[westcoastrich] 10/12/2008 07:52

And you may find yourself living in a shotgun shack
And you may find yourself in another part of the world
And you may find yourself behind the wheel of a large automobile
And you may find yourself in a beautiful house, with a beautiful
Wife
And you may ask yourself-well...how did I get here?

Letting the days go by/let the water hold me down
Letting the days go by/water flowing underground
Into the blue again/after the moneys gone
Once in a lifetime/water flowing underground.

And you may ask yourself
How do I work this?
And you may ask yourself
Where is that large automobile?
And you may tell yourself
This is not my beautiful house!
And you may tell yourself
This is not my beautiful wife!

[asmodeus] 05/12/2008 08:29

Unfortunately, Awe, although you're right about "the first loss being the best", as they say, it is not quite "as simple as that". This is because you have to overcome the psychological presuure firstly of admitting, and "crystallising" your mistake in making the purchase, and secondly the fear that the price will rise to a profit shortly after you have sold.

[awe430save132] 05/12/2008 00:10

if its worth anything i`m sorry for all you shareholders sometimes, well most of the time, the stock market is a cruel place.I`m in RBS and the same thing has happen to me in some extent but to not the same degree.It`s a learning curve and the only advice i can give is put stop loss in.It`s better to lose a thousand than lose two thousand and it`s as simple as that!

[bull_mega] 05/12/2008 00:06

another example of bunch of crooks.

[matt c] 04/12/2008 19:09

jgpgw (ADVFN) - 4 Dec'08 - 18:52 - 3 of 3


ADVFN is closing this thread. Please do not open any further threads for this company, as doing so will result in your banning from the BBs.
Regards,

John

[wiganer] 04/12/2008 18:50

Oops a Daisy!