Palace Capital Share Discussion Threads

[balcony] 15/8/2023 12:53

Interesting -Two funds adding including our Swedish shareholder.

[baner] 15/8/2023 07:30

If you look at the shareholder structure i very much doubt these investors will not stay in for the grand final - 350p or so. Why give the upside away to someone else? I have no Idea who has been selling recently - probably someone needing the money.

[makinbuks] 14/8/2023 17:33

baner, the company has just managed to buy 3.5m in the open market at £2.50. Who do you think is selling? The 4.3m buy back may well be over this week and they won't have spent the whole amount set aside.

Lets say you're right about the potential being £3.50. My logic is someone might buy it out for £2.80 giving them the chance of a 25% uplift. That's a realistic prospect to me and not a bad deal for current holders. Assuming its a public company that makes the offer you can always stay with it if you prefer

[baner] 14/8/2023 13:52

I doubt major shareholders would be interested at 2.80 - when they see 350p around the former and get a good divi until then.

[makinbuks] 14/8/2023 11:19

I agree, a crash in the market is not in the control of the team. Dilema to me is whether they accept a bid at (say) £2.80 or hold on for the £3 + which does appear possible but involves more risk and time.

[baner] 14/8/2023 11:05

sullivan

you are absolutely right. however assuming property values stay where they are, this is a no brainer and very well managed by the new BOD. if the property market goes south, it will not be their fault - in fact we should then be grateful they have sold so much hitherto. but again - with a flat market there will be way north of 300p coming out of this. and the fact is, the market could also go north......

[pdosullivan] 14/8/2023 09:54

I can see merit in the arguments that both yourself and Alders15 are making. I am long PCA and hope the better than book value buybacks plus a stabilisation in UK commercial real estate prices mean a final distribution well above 300p. But if PCA is selling off its remaining Crown Jewels and other sales are sub book value and/or UK commercial real estate values crater then the current price makes sense. It is a binary call.

[nickrl] 14/8/2023 09:32

@baner it was a pretty hefty buy as well this time wonder if from a single seller.

[baner] 14/8/2023 08:28

Further buy back = further increase in the pro forma NAV - should now be 320p or better. These transactions are highly profitable and attractive for those shareholders who stay in. The great thing here is that shareholders know the NAV will eventually be paid out as cash to all shareholders remaining.

[baner] 09/8/2023 07:07

No not at all me.

[konradpuss] 08/8/2023 20:07

Banner, was it you buying today?

Share price up circa 20p.

[baner] 08/8/2023 15:17

Alders

You are a sad person. And you will be a very surprised but still as sad person in 18 months time.

[makinbuks] 08/8/2023 10:33

Looks like they're going to use buybacks to the maximum permitted. Makes sense

[alders15] 07/8/2023 17:45

Baner

Oh! I see. You think we will get 350p+. Well the market does not think so with the shares at 233p nor the 23% of shareholders who voted against the re-election of the Chairman. What was that line from John Cleese in the dead parrot sketch. " Wake up Polly"

[baner] 07/8/2023 08:41

Alders

Your comments are rather uninteresting. Let us look at the future. NAV is clearly higher than the 296p you refer to - since then they have sold above valuation and also bought back shares at a good discount to the true NAV. So we are probably at 310p+ now, possibly 320p. With a debt free balance sheet, lowered costs and strong cash flow, buy backs can be accelerated while a good divi is paid out. The buy backs will enhance NAV pro forma and there is every chance the patient shareholders will see 350p+ in their pockets within 18-24 months. The Chairman and his BOD colleagues are doing a most honorable job handing back the value of the company to those to which this belong - shareholders. If you prefer Sinclair running your money, i am sure he is interested to have you invest in his new venture. But do not expect to be able to exit from this at anything near NAV.

[alders15] 05/8/2023 23:47

Baner What are you smoking? Get your facts right.

Yes the shares dropped to 180p but that was when the lockdown started, Only a few weeks before Sinclair left, the shares went to 297p when the NAV was 356p a discount of 17% not 50% On the day he left the NAV declared was 390p

The shares are now 242p with NAV at 296p and buildings being sold off cheaply. So we are better off?

As Lincoln said " You can fool some of the people some of the time"

[spectoacc] 04/8/2023 20:20

@Alders15 - yes, Leslau (who's been involved with something of a fiasco at SIR/LXI) did say that about offices. He also said "not yet", implying further to fall.

[proof1] 04/8/2023 19:13

@konradpuss your comment sounds like clear and simple antisemitism. very sad to see that here.

[proof1] 04/8/2023 19:03

poor sale price after poor sale price of the portfolio of late by a useless new chairman. current board are useless.

[konradpuss] 04/8/2023 17:17

There is a great saying. "Offices are to be traded not held". It's the structural obsolescence that done it!

[poacher45] 04/8/2023 09:48

Maidenhead was a poor sale price:-

Market House in Maidenhead, by contrast, failed to sell – with some bids thought to have come in well under half the £39m that Tesco’s pension fund paid to buy the building in 2014. Even though the property is only 13 years old, investors were factoring in significant investment to bring the building up to modern standards.

[baner] 03/8/2023 14:44

Alders - when Sinclair was in charge the shares were 180p with claimed NAV double that number………..so ”Sinclair plus 360p NAV” was valued at 180p - in other words the stock market had a very very negative view on Sinclair. Once he was ousted things have improved considerably - significant cost cuts, debts eliminated, properties sold above valuation, - and the shares are performing really well. There is every chance shareholders who stay in will get 350p+ in cash, in less than 18 months. I strongly prefer two intelligent and prudent Accountants running the company for the best interest of all shareholders, before having ”Mr 50% discount Sinclair” running the show.

[konradpuss] 03/8/2023 14:25

Alders, I have a great respect for that fellow. I will. I always keep an open mind.

[alders15] 03/8/2023 14:05

konradpuss. Look at the interview with Nick Leslau in the Sunday Times about a month ago. One of the most successful property entrepreneurs makes the case for regional offices.