Reach Share Discussion Threads

[ccraig69] 09/11/2018 21:22

no turning there old city center office space into offices shops etc for rental

[cjohn] 09/11/2018 19:00

You mean start trading in property…..?

I really can't see that.

[ccraig69] 08/11/2018 21:27

I always thought reach would morph into a property company

[cityconindex] 08/11/2018 18:40

Hopefully the shuk is waking up to the gross undervaluation.

hxxps://www.liverpoolecho.co.uk/news/business/former-liverpool-echo-building-old-15221269

[kazoom] 08/11/2018 15:09

The building was owned by the subsidiary "Trinity Mirror North West and North Wales Limited" and they had total freehold property on the books of £11.9m so that is the maximum value it could have been on the books (assuming that subsid had no other freeholds).

I'm no expert in commercial property but the odds seem good that we got reasonable gain on disposal.

[cjohn] 08/11/2018 10:37

The value of their quite extensive freehold property holdings has never been broken down for shareholders, as far as I'm aware.

We don't even know what percentage is surplus to requirements; though it's a fair bet that the continuing rationalisation of production will free up more such surplus property.

Thanks for posting the article, citycon index, Good reminder of the potential importance of the property holdings.

[cityconindex] 07/11/2018 22:17

Anyone see what the value is in any financial reports?

[kazoom] 07/11/2018 13:01

Interesting find citycon (here's a clickable link to it ( )

So that would be > £30m for the finished hotel (possibly more at the £150k / room is the out of London average, whereas this is arguably a premium site) plus the retail and office space that will also be located there.

I'm not sure though how much it helps to understand how much Reach have/will get for selling the development property?

[cityconindex] 06/11/2018 03:22

hxxps://www.hotelmanagement.net/transactions/global-investors-see-value-liverpool
150k a hotel room x 207 . Just the hotel. That's a big chunk of debt reduction.

[cjohn] 05/11/2018 09:12

Hi Harry, Vijay was there. But the rest of the management came since.


Sure, you're right; they've turned out the acounts on time. But they've also made a series of mis-steps. Some are inevitable given the difficulties posed by the sector; others have not been. And they still have no serious strategy for curbing revenue declines. It's central and existential, and all we have is bullish and utterly uneralistic expectations of digital.

[harry_david] 02/11/2018 16:32

I agree with Gfrae and have been a shareholder for years. I think management are doing a good job and really sorry Vijay has left, he handled the finances capably. The lack of activity when the shares were under 30p was before current team as were the super high salaries.

[cityconindex] 02/11/2018 16:05

Cool heads cheers. I read the announcement that Schorders had increased their stake so the drop was a surprise.
Share buybacks for cancellation would be excellent but the equivalent amount has to be paid to the pension defecit. Sometimes the management need a size 9 boot to wake them up and start thinking for our benefit. No directors buying because they are really well paid. Reduction of basic and the increase the rewards to all staff and pulling together will be the effect. On results. Good weekend to all.

[qs99] 02/11/2018 11:26

Why don't the management realise some of the PPE at £287m last balance sheet I can see? Against the pension deficit of £297m (with interest rates rising, this should in theory come down?).....likewise how much actual "value" is in the intangible £856m? Or the deferred tax asset £60m? not all can be realised in cash I get that, but how much actual "value" is there within these sorts of balances?

[gfrae] 02/11/2018 11:19

Hi Cjohn, I would argue that now, with next to no debt, a much more manageable pension deficit and the prospect of higher of higher bond yields that they are cheaper now relative to fundamentals than they were in their 20s, 30s and 40s.
Unfortunately the management got so much unfair criticism when they bought in their own shares higher up recently, they probably won't buy now when they really ought to be !
How could they possibly predict that the market would value them so lowly !
P/e of 2, low debt,falling pension deficit,high yield, plenty of tangible assets.
g.

[cjohn] 02/11/2018 09:27

Hi Cityconindex,

I've never believed boards should be held responsable for short or médium-term share price movements.


In the long run, share prices reflect the economic value of the underlying business; the duty of the board is to maximise economic value.

So it seems to me you're on much stronger ground there, criticising the board's inability to stem declining economic value.


The whole sector is in serious decline; any management would find it very difficult. Sometimes this management have hastened the process by ill-thought out decisions however, which partially reflects a lack of coherent strategy.


As one example, they and the previous management have been poor at capital allocation: eg failing to buy back shares when the share price languished for months in the 20s and 30s, (at that time well below intrinsic value) in spite of kind suggestions from myself and other then holders. Instead they went for it at a daft price of 100 a few years later: brilliant waste of shareholder funds.

Likewise the nunmerous false steps in digital with valuable capital wasted on mediocre and hapless businesses - the feeble Communicator, happli.co.uk and various other no-hopers. In general, they have been way too starry-eyed about digital. The impossible "We will grow digital to more than replace lost analogue revenues" standing in the way of a deep re-think of strategy.


Likewise, they've rightly acquired analogue assets, but have been poor negotiatiors. They over-paid for the second tranche of Local World and for Express and Star. (In contrast, the first tranche of Local World was a fine deal.)


So i'm largely in agreement with you. Have a great day.

[kazoom] 01/11/2018 20:41

Take a deep breath citycon :-)

I have no idea what today's price movement (on tiny volume) was all about, but I still have faith in what they are doing.

I still cannot understand the announcement status of the building disposal however.

[cityconindex] 01/11/2018 19:51

C John more like a dog with fing fleas with aids for good measure. The board are collecting their paycheques, and the share price going thru the floor. Maybe it's time to get a change of the board as clearly they are not able to stem the declining value.

[cjohn] 25/10/2018 17:37

"triple bottomed quadruped, pterodactyl"

A horse or a dromedary? Reindeer? Dog? Mouse?

[cityconindex] 17/10/2018 18:40

Budget generous spending plan's. Interest rates to tweak up a little.
Echo building sale price still not announced.
Phone tapping saga end in sight?

Anything new out there? Yes there is.

Can someone have a read of this and keep it silly simply as to what it means.

hxxps://lakenormanreview.com/reach-plc-lserch-versus-soco-international-plc-lsesia-technicals-update-a-look-under-the-hood/
Cheers

[cityconindex] 17/10/2018 18:40

Wanted to offload all my holding at 73p and and buy back cheaper but did not. What's the jump legal nonsense hopefully finished
and a big load of wonga from the echo building sale. 110k turnover so very light must be news or FB taking a 9.99% stake.😊

[kazoom] 17/10/2018 18:33

"triple bottomed quadruped, pterodactyl"

I'm thinking a prehistoric antecedent of Pegasus with two riders.

Certainly bodes well if they work for your circus.

[trident5] 17/10/2018 17:41

Podgyted - it's quite possible you are being serious. I never know with chartists.

[podgyted] 17/10/2018 17:01

I note a triple bottomed quadruped, pterodactyl formation.

Bodes well.

[kazoom] 12/10/2018 14:20

Out on my travels today, I popped into the library (well WHSmith).

I can report therefore that the IC sell recommendation doesn't really bring anything new to the table, it's just a short piece being a reiteration of their previous sell call.

> Revenues declining.
> Synergies may cause the 'titles' to lose identity.
> Failing to counter the existential decline in newspaper circulation.

That's about it.
No mention of the sale of the Liverpool Echo building, so that's at least one group of investors to whom it will come as a complete surprise.

[kazoom] 12/10/2018 10:46

Thanks citycon - it was the building I was most interested - useful to have confirmation on some of those other snippets though.

work in progress (ie I assume not all the Is dotted and Ts crossed in the contract) makes sense , but it still seems to me bizarre that they haven't even formally told the market it is in progress.

Hey ho.

I concur of course with you and CJohn - I always thought we might pick up something there in the end game, but having done the S&N deal I'm not so sure, we'll see - I suspect though that there might be competition from Ager-Hannsen