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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| New Star | LSE:NSAM | London | Ordinary Share | GB00B1VJF742 | ORD 25P |
| Price Change | % Change | Share Price | Shares Traded | Last Trade
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|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.90 | 0.00 | 01:00:00 |
| Bid Price | Offer Price | High Price | Low Price | Open Price | |
|---|---|---|---|---|---|
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| - |
| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
|---|---|---|---|---|
| - | O | 0 | 1.90 | GBX |
New Star Asset Management (NSAM) Share Charts1 Year New Star Asset Management Chart |
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1 Month New Star Asset Management Chart |
Intraday New Star Asset Management Chart |
| Date | Time | Title | Posts |
|---|---|---|---|
| 08/4/2009 | 09:44 | New Star Asset Management | 1,244 |
| 04/12/2008 | 19:09 | New Star with Charts & News | 1 |
| Trade Time | Trade Price | Trade Size | Trade Value | Trade Type |
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| Top Posts |
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Posted at 15/1/2009 10:30 by treacle28 Found this out on Share Crazy this morning Knowing....good luck mate.Fallen Star Every now and then the market throws up what I usually boringly call a Debt for Equity shorting opportunity. (My esteemed mentor Evil would, in less temperate terms, no doubt term it as a screaming copper bottomed no-brainer.) It happened with Marconi, Telewest, Jarvis and several other former high flyers and in my opinion is now happening with New Star Asset Management. To profit on these situations the following ingredients are needed: 1. A willingness to short a share that has fallen at least 90% already. 2. A grasp of O level Maths. 3. A little common sense. New Star Asset Management is a fallen star: A. Mainly because it borrowed £300 million that it did not have right at the top of the market (06/07) to pay a special dividend it had not earned of £364mn (yes borrowed money to pay a dividend: these things were normal in June 2007.) When I asked at the time how this could happen I was told that it was for tax reasons It was " a scheme of arrangement to return £364 million to shareholders" Well silly me. If its esteemed bankers lent NSAM £300 million for to pay it straight out in unearned "returns" to shareholders for tax reasons it must be OK. Oh and I forgot to mention that company directors and staff sold £210 million worth of stock in March 07 at 455p per share. Good timing. B. Because it lost money on the funds it was managing. Even more than its competition. Here are some factors to consider about NSAMs present share price value (4.15p) Aberdeen Asset Management recently set a marker for the current value of funds under management by paying 0.625 % for £40 billion of funds of other peoples' money formerly "managed" by Credit Suisse. (That's 0.625 not 6.25: it paid £250mn and in paper not cash) NSAM had £23 billion and now has £12 billion and falling of funds under management owing to market losses and withdrawals. To avoid oblivion NSAM has offered 95% of its enlarged equity to its bankers to forgive its net debt of £230 million NSAM has recently announced that bidders have emerged for the equity of the company, conditional on the announced D4E being effective The suggested price that bidders may be interested in NSAM is £100 million "conditional on the restructuring taking place." That is £100 million for the whole company of which the current shares make up 5% (This would make sense as being roughly a generous 1% of FUM) Here is the O Level Maths When the Restructuring takes place NSAMs current Market cap (at 4.15p) of £11.5 million effectively represents 5% of the company's equity Therefore the company is now effectively valued at £230mn Conclusion It is at least two times overvalued for a tarnished franchise (see Aberdeen deal mentioned earlier) and will be shown to be as soon as the bids emerge. These opportunities don't come around that often and in my view should be grasped. Sell at 4.15p with a sub 2p target (at 2p its a generous £115mn market cap for the company) Lucian Miers an infamous short seller is the Bard of the Boleyn |
Posted at 12/1/2009 08:11 by dell314 Didn't you read this bit:.....Given the Company's current and proposed capital structure (following the completion of the Restructuring), it is not certain that any such transaction will lead to a significant return, if any, to current shareholders. There can be no assurance that any offer for the Company's ordinary shares, if forthcoming, would be at or above the level of the Company's current share price. They are talking about the possibility of zero return to current shareholders. May as well go down the casino, IMHO.. Rgds dell |
Posted at 12/1/2009 07:38 by treacle28 divinausa1...those are standard words i.e in recently in UEN when the share price then went to 20p from 7p....numerous other examples.Shareholders including Blue Planet who think its worth 20p in current state have to vote on any deal and if not satisfied then wait for them to get de-listed at the end of month and get 50p in around 12 months time on re-list. After debt cancelled there are an extra 755m shares, i.e. 75% more. so any offer would be divided by 1000m shares. The figure is 150m dollars or 100m pounds 100m/1000m is 10p per share minimum. |
Posted at 11/1/2009 21:24 by onasis My point of view is that if Schroders buy NSAM even for a pound, the share price will rocket. The share price went down to 0.05p because of uncertainty. Now in the arms of a Giant like Schroders the future will be rosy again. That's why i'm saying that the take over price is irrelevant. |
Posted at 11/1/2009 09:29 by onasis The bid price is not the point. The good news is that someone is buying the company and return it to "business as usual" . The share price will follow and will reach previous highs in years to come but for now, as Blue Planet has commented, the share price should be 20p minimum. |
Posted at 05/1/2009 07:35 by treacle28 '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.' |
Posted at 11/12/2008 14:19 by crosswire Blue Planet backs New Star, taking 6.7% stakeBy 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. |
Posted at 03/12/2008 17:28 by djpreston New Star Asset Management Group PLC ("New Star") Proposed Capital Restructuring * New Star announces a proposed Restructuring that will result in £240 million of its £260 million of gross debt being converted into equity * New Star currently has £30 million of cash so that, if the Restructuring were effective today, New Star would be left with net cash * New Star's bank syndicate will own 75% of New Star's enlarged fully diluted ordinary share capital and £94 million out of £100 million of new convertible redeemable preference shares to be issued by New Star * New Star intends to de-list as part of the Restructuring New Star announces that it has reached agreement in principle with its bank syndicate (the "Banks") on the terms of a proposed capital reorganisation of New Star (the "Restructuring") that will leave it able to concentrate on its investment performance and client service as an unlisted company. As the credit crisis has deepened since September, a number of New Star's clients have signalled their concerns about its level of debt in the face of a possibly prolonged economic downturn. These concerns have been exacerbated by the recent, but unrelated, temporary suspension of dealing in its International Property Fund. The Board believes that the reporting requirements and public scrutiny that are part of being a listed company have served to magnify these concerns. In addition, the steep fall in financial markets over recent months has resulted in a significant decline in New Star's assets under management and associated revenues. Assets under management were £13.9 billion at 30 November 2008. This will unavoidably reduce New Star's operating profits, and as a consequence, restrict its ability to service its debt in future. The Board has therefore concluded that New Star's current capital structure, and in particular its level of debt, is no longer appropriate. The proposed new capital structure is intended to eliminate any negative impact of New Star's debt on its business, whilst retaining potential value for equity holders. This will enable New Star to focus on restructuring the business, improving its investment performance and maintaining its client service. Under the terms of the Restructuring, New Star will put proposals to shareholders to de-list. On completion of the Restructuring the Banks will convert £240 million of the £260 million owed to them, together with certain other amounts owed to them, into £94 million of convertible redeemable preference shares (the "Preference Shares") and such number of new ordinary shares as together will give the Banks 75% of New Star's fully diluted enlarged ordinary share capital, calculated without taking into account the conversion of the Preference Shares. An additional £6 million of Preference Shares will be available for employee incentivisation. The Preference Shares will entitle the holders to an annual dividend of 10 per cent. above LIBOR which will start accruing 6 months following issue. This dividend will not be payable until 30 June 2013. The Preference Shares, together with the accrued dividend entitlement, must be redeemed on 30 June 2013 (or, if earlier, out of the net proceeds of any disposal) save that on 30 June 2013 New Star may elect to convert the outstanding Preference Shares into ordinary shares representing, together with the ordinary shares held by the Banks, 95% (or such lower percentage as may apply taking into account earlier redemptions of Preference Shares) of the fully diluted enlarged share capital of New Star following conversion (excluding any shares in issue pursuant to the exercise of the warrants described below). Whilst the Preference Shares are in issue, no dividends will be paid on the ordinary shares without all accrued dividends on the Preference Shares having first been paid and without the consent of the holders of the Preference Shares. The balance of £20 million of the current gross debt will remain in place and be repayable in June 2013. This compares with New Star's cash at 30 November of £30 million. In order to attract and retain key employees following the Restructuring, New Star has agreed with the Banks a senior management incentive scheme comprising warrants over a new class of ordinary shares representing 5% of the fully diluted ordinary share capital. These warrants will vest over the next 2 years subject to profit targets. In addition, minimal cost options over a total of £6 million of Preference Shares will be granted to certain employees. The Restructuring is conditional, inter alia, on signature of documentation satisfactory to New Star and the Banks, on the approval of New Star's shareholders (including to the effect that on completion of the Restructuring none of the Banks will be required to make a general offer for New Star under Rule 9 of the Takeover Code) and on regulatory approval. New Star expects to post the relevant documents to shareholders in the next few weeks and to complete the Restructuring early in the New Year. Further details of the Restructuring will be provided in due course. Commenting today, John Duffield, chairman of New Star, said: "The Board recognised the concerns of our clients regarding the level of our debt during these difficult times. We have therefore taken this radical step to address these concerns completely and with one stroke. We are now free to focus all our attention on improving our investment performance. Our existing share-based bonus scheme will be replaced by a new scheme to ensure that our key people are locked in. The cost of this restructuring is regrettably a substantial dilution for ordinary shareholders, including me. However in current market conditions, we have to recognise that there is no other option to ensure the stability of the business." Enquiries: Citigate Dewe Rogerson Anthony Carlisle (office) 020 7638 9571 (mobile) 07973 611888 Note for editors: The banks in New Star's syndicate are HBOS, Lloyds, RBS, HSBC and National Australia Bank. |
Posted at 09/11/2008 11:26 by slj Will Gilbert catch falling New Star?Jeff Prestridge, Mail on Sunday 8 November 2008, 7:32pm They are the heavyweights of the fund management market. But while New Star Asset Management boss John Duffield often chats with Martin Gilbert, head of Aberdeen Asset Management, over lunch in central London celebrity haunt Signor Sassi, the two may become even closer. Or so said gossips among their rivals at the industry's glittering get-together in Park Lane last week. Six years ago, Gilbert, who now talks of 'carnage' in the sector, was at the centre of what became known as the split capital investment trust scandal, with MPs lambasting his lieutenant Chris Fishwick as the 'unacceptable face of the City' for his part in wiping out the investment portfolios of thousands of savers. It was Gilbert's nadir. He was forced to bring Aberdeen to heel and pull the investment house out of retail fund management. Some said Aberdeen was doomed to fail and that Gilbert would go back to his beloved Scotland for good. Meanwhile, the overweeningly confident Duffield and his recently formed investment house New Star was growing rapidly on the cult of the 'star' fund manager and was ready to benefit from Aberdeen's near-demise. In early 2003, New Star doubledits assets under management to £3.8bn after buying six key Aberdeen funds. Later that year Duffield bought another £840m of assets under management from Gilbert. It was the trigger that would ultimately see New Star floated on the London stock market, making millionaires of many of its staff, from fund managers to secretaries and receptionist Zoe Shaw, then aged 31. Yet today, while Aberdeen's star is again in the ascendant - with yacht-loving Gilbert, 53, having spent the past week in Japan talking over a potentially lucrative tieup with Mitsubishi - New Star's is all but extinguished. The talk in fund management circles - and a theme of dinner table chatter at the Investment Management Association's lavish annual bash on Wednesday at the Grosvenor House Hotel in Park Lane - is whether Gilbert will have the last laugh by making an audacious bid for 69-year-old Duffield's battered and bruised New Star. Just how battered and bruised New Star is, and therefore how vulnerable to a bid approach, will be revealed this week when it issues its latest trading statement. On Friday, financial giant Citi predicted that assets under management will have fallen 14% in the last quarter to just over £17bn. It rates New Star 'high risk', though it says 'the share price is now up with events'. Its share price has dived from just over £1 to 30p in two months. Its market capitalisation of just over £80m compares with Aberdeen's £674m. Unlike other retail investment houses, such as Jupiter, New Star has been hit hard by fund redemptions on the back of dreadful performance by flagship funds. New Star UK Growth - managed by Stephen Whittaker, who has more than 25 years' experience - has more than halved in value over the space of a year, while its Higher Income fund has fared little better. New Star has also lost key business, most notably the £1.4bn mandate to manage the assets of friendly society Family Assurance. New Star was also one of the biggest proponents of commercial property as an investment for small savers, extravagantly promoting its UK property fund on the back of fabulous gains made by the sector from 2004 to 2006. When the commercial property market peaked in mid-2007, New Star's UK fund was worth more than £2bn. Now it is worth half. New Star is also saddled with £236m of debt. It is rumoured that stock market falls mean it has had to renegotiate the terms of its loan agreements with HBOS. For Duffield a solution might be a rights issue or a part sale of New Star's business - its institutional or hedge fund operations, for example. But a sale to a rival such as Aberdeen could prove more tempting. Last week Duffield was tightlipped, other than to say business was 'very difficult' as investors continued to flee equities, property and bonds (New Star's bread and butter) to go into cash. Gilbert refused to confirm his interest in New Star but said he believed Duffield was 'keen to sell'. If a deal is done, it would mark a remarkable return to retail fund management for Gilbert. As for Duffield, as one rival chief executive told Financial Mail, it would merely act as a catalyst for him to set up a New Star mark two. 'Fund management and Duffield are intrinsically linked,' he said. 'Until death do them part.' |
Posted at 29/8/2008 13:47 by callumross "Today's results were below expectations and analysts remain downbeat, expecting further price declines for the asset manager. By mid January New Star shares appeared to have bottomed-out. Although its share price has ranged between 144p and 79p, today's 103p price is still 75% below the 420p peak reached at the end of November 2007. Analysts at Citigroup remain negative, retaining a "Sell" recommendation and a 70p target price. Short-sellers appear to have the same view and have maintained a short position despite share price rallies." |
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