Quadrise Share Discussion Threads

[quepassa] 31/5/2012 09:30

Overall encouraged with performance of QED in results last week. The revaluations brought things down but the operating profit is certainly not to be ignored.

The potential of Greenwich is great. The LDO, Hilton at Wembley are soon at hand. The Asset Management business gains more credibility.

Long promised third party investors/partners in the major projects continue in the main to be noticeable by their absence.

Management changes are very welcome and good to see a new CEO in the form of Max James ( as predicted) and the appointment of Nigel Kempner to The Board.

However it is too incestuous at the top now for my personal liking:-

-Chairman Rucker of QED is also CEO of Lazard
-Quintain CEO Maxwell is ex-Lazard and former colleague of Rucker at Lazard
-Corporate Finance adviser to QED is Lazard

Surely more distance and breathing space between QED and its highly regarded adviser would be beneficial for all parties and would be better for corporate governance and for corporate strategy in my view.

The corporate strategy over the last three years since the RI has certainly not paid off as far as shareholder value is concerned. The collective architects (not just Wyatt ) of this strategy really need to reflect upon and be brought to account as to why their strategy has been such a spectacular failure to date in terms of restoring shareholder value which was one the cornerstones of the strategy.

This straightforward and stark question needs to be answered by QED management. Why has their strategy failed so comprehensively to produce any shareholder value?

Both outgoing CEO and current Chairman signed off on the Rights Issue since which time QED share price performance has generally been pitiful and the share now trades at a mere 30% of today's NAV and still way below Rights Issue price. The market valuing Quintain at a whopping 70% discount to NAV is astounding, sending a clear embarassing message and reflects poorly on the management in my view who seemed powerless so far to narrow that discount.

Investors who supported the November 2009 RI have lost almost 30% of their capital. That is bottom-drawer performance over two-and-a half years. Whichever way you wish to put it, the QED strategy just ain't working for shareholders as judged by share price performance and market valuation.

Personally, I don't think Board changes went far enough.

Executive Pay has much been in the news of late and is a topic relevant to all companies. In terms of Board/Director remuneration whether for on-going or departure packages, I hope that the hitherto failure to restore shareholder value is financially speaking not handsomely rewarded and is reflected in the pay/wages/bonuses of the management of QED.

One looks to Max James to examine and address such issues and to breathe new life, impetus, market recognition and vibrancy into the somewhat tired, tiring and tiresome corporate story which Quintain has, doubtless for many investors including myself, become. -Or indeed to split up Quintain or sell the whole caboodle.

Something needs to be done.



ALL IMO. DYOR.

QP

[quepassa] 31/5/2012 09:25

Agreed. Again.

QP

[redartbmud] 31/5/2012 09:23

Whatever next, directors doing the job that they are paid for!

Sadly there are great swathes of pages in annual reports that regurgitate politially correct statements to which executives pay lip service. They could cut the pages out and save many a Scandinavian rain forest.

Actions speak louder than words. One of my holdings, RSW has an aversion to PR, they just get on with the job of running the business - successfully.

[quepassa] 31/5/2012 09:04

Agreed.

Quintain have a serious credibility problem in the market in my view.

They have a stable base of institutions who account for some 50-60% of the stock but the free-float of some 40% wags the tail of the dog rather than vice-versa.

Personally, investor relations have in my view been exceptionally weak.

Read this extract from their web-site under Investor Relations/Governance/reputation:-



It says that Quintain recently commissioned a "perceptions audit and are creating an action plan to address any concerns that may arise".

Hopefully the new numero uno, Max James will prioritise this and improve the perception of QED in the market place.

ALL IMO.
DYOR.

QP

[redartbmud] 31/5/2012 08:43

Que

Would like to see some of this reflected in the share price

Market doesn't believe the story otherwise the "ridiculously" high discount to net assets would be closed.
Are there any other companies with even half the level of discount traded on any UK markets?

[quepassa] 30/5/2012 20:43

Marks and Spencer took space at the London Designer Outlet.

Stretching a point to call M&S a designer brand

Then again, if it pulls the punters in, that's good for Quintain but perhaps different from the aspirational brands which had been mentioned.

Irrespective of that, to attract one of the most famous retailers in the UK to take a dominant space at the LDO is impressive and clearly shows that this development has now gained real traction.

ALL IMO. DYOR.

QP

[corneliusvanderbilt1794] 30/5/2012 20:41

this sort of price action has happened before i remember the price tanking before laxey first bought, then it randomly appeared they had bought in.

[quepassa] 30/5/2012 20:38

Agreed. Seems very peculiar how Henderson Global have apparently come from nowhere to now owning a stonking 10.87% direct/indirect voting rights of the company. This is in the form of some 34 million shares as well as nearly 23 million shares via a CFD. Totalling 56.7 million shares

To have another major institutional investor heavily buying exposure to Quintain equity to the tune of 10.87% is phenomenal.

Clearly Henderson must believe that Quintain is a worthwhile investment, otherwise why would they have picked up another 4.3million shares yesterday on top of the 29.5million they already owned as well as their CFD position equivalent to 22.78million shares?

Reads like some very heavy institutional buying to me.

ALL IMO.

DYOR.

QP.

[scburbs] 30/5/2012 14:34

Not sure where Henderson Global Investors have picked up 10.87% from (clearly not from the market!). I don't recall what they were on before and they don't seem to be on the current major shareholder list.

[owenski] 30/5/2012 09:53

How do you make a web site disabled friendly ............... Have a ramp on every thread :-)

[corneliusvanderbilt1794] 29/5/2012 20:54

wonder what laxey think of this mess

[redartbmud] 25/5/2012 12:27

If the shareholders have lost confidence should not the Board consider putting the Company up for sale?

[corneliusvanderbilt1794] 24/5/2012 19:28

Wyatt departure was three years too late imo

[rmillaree] 24/5/2012 11:47

I suspect the downgrades are due to previous assumptions having being of the glass full to overflowing type rather than half full as they probably should have been.
This seems to be quite a common theme for QED although to a certain degree that has always been factored into the price (for the last few years anyway) so should not be unexpected - i for one though wish i had not been so greedy and cashed in my chips at 60p or thereabouts when i had the chance. Perhaps we will get lucky and get a takeover approach tomorrow at 60p - oops there i am daydreaming again.

[ronwilkes123] 24/5/2012 10:11

Hoped it was rucker, alas not to be

[eeza] 24/5/2012 08:44

Directors have lost the trust of s/hlders & will have their work cut out to restore it.
Far too much talk - and no walk.

[redartbmud] 24/5/2012 08:27

What am I missing?

Loads of comment about progress and development, but the share price remains in reverse.
Who is correct, the directors or the market?

[scburbs] 24/5/2012 07:52

CEO change - I wonder who has driven that?

Operating cash flow positive from April 2012 as promised.

LDO creeping up to 49% let but really need to convert the 12% in advanced negotiation to start to make serious progress. JV discussions underway (again!).

Student accomodation targetting an impressive 5.5% rental growth for next year which should be very positive for future valuations.

On the valuation side there were material valuation falls on Sequel and at Wembley, although Greenwich was up and iQ materially up with Quercus slightly down. Overall £40.5m down.

Gearing peaking with proceeds due from disposals and iQ refi set to bring it down significantly over the next 6 months. New iQ average debt cost is over 3% cheaper so should do wonders for recurring cashflow.

[scburbs] 23/5/2012 07:30

This is particularly good news.

"Quintain, the London regeneration specialist and fund manager is pleased to announce that it has successfully arranged a £70 million financing with M&G Investments for the new 673 bedroom iQ Shoreditch scheme which will open this summer, bringing the iQ portfolio to 5,183 rooms with a rent roll of £33 million."



I don't know why they can't just put it in the RNS, but this is not a like for like refinancing it is obtaining new debt against an ungeared asset and should mean £35m will flow from iQ to Quintain releasing a good proportion of the funding that Quintain has had to inject since the sale to iQ.

"The Group's investment in its joint ventures increased during the six months by £50.0m to £267.0m. This reflected an increase in valuation of £6.7m and an investment of £45.1m during the period. £36.1m of this was spent on funding the development of iQ Shoreditch through a loan to the iQ scheme. We expect this funding to be repaid when iQ refinances this property."

[davidosh] 22/5/2012 10:24

Slightly worrying that the last update on that LDO news blog was September last year though ?? Surely they have done something or signed a deal since then

[quepassa] 22/5/2012 10:10

LDO video link:-



ALL IMO. DYOR.

QP