Restaurant Share Discussion Threads

[typo56] 14/11/2018 13:52

Porsche1945, do you still intend holding onto your core holding though?

I ask because often in these cases you can get a better net price than selling the nil paid shares by selling the core holding and then subscribing to the rights to buy back (which incurs zero commission). If you can get more than 108.5p more selling RTN than selling the nil paids (RTNN?), sell RTN.

That's how it would work normally anyway. In this case you'll have more rights shares than you can sell in RTN shares!

[porsche1945] 14/11/2018 13:18

I need to stop investing in Uk companies/indexes....one capital destructive horror story after another. Stick to s and p. Will cash in my rights on these swallow a big loss ang get clear, looks about as sensible taking up these rights as the poor idiots who did same for Countrywide. Why they dont redevelop their own brands I dont know, buying this overpriced cxxp from private equity sharks total madness, Uk in a poor state courtesy brexit, spending this sort of money on a food chain that is all leashold!! gulp.

[sharw] 13/11/2018 17:13

I think the best comments were Peel Hunt's list of questions -see post 2305 by philanderer.

I particularly liked:

"Does management believe it can simultaneously integrate Wagamama, integrate pub acquisitions, invest in new digital channels, expand Wagamama in the US and franchises internationally, and not be distracted in the attempt to turn around Frankie & Benny’s, Coast to Coast and Chiquito?"

[pugugly] 13/11/2018 16:23

topvest - I know e do not always agree but your 2308 fully endorsed in all respects - Usual company going down the drain and Board make an over valued (imo) acquision to lead a turnround - very often has the opposite result

[topvest] 12/11/2018 21:25

BUY something for a VERY EXPENSIVE VALUATION, giving away your own equity for a VERY LOW VALUATION and throwing in lots of DEBT. Absolute stupidity. The Board should be removed.

[topvest] 12/11/2018 21:23

I'm not a shareholder, but this looks like a really terrible deal. ITE did a similar thing, although theirs wasn't quite as bad as this. Shareholder value is being decimated.

[philanderer] 12/11/2018 14:07

Agree EI.

"Peel also highlights that the directors pushing the deal only own 0.07% of the company."

[typo56] 12/11/2018 12:38

It's a fashion industry though. Tastes will change.

[essentialinvestor] 12/11/2018 12:01

Phil, is that not part of the issue though, It's a London or trendy urban
area type brand. It's niche surely?.

Premium pubs is where they may have been better to focus.

I don't think this will end well, but may be very wrong on that, guesstimate only.

[holts] 12/11/2018 08:30

Begining of the end also for Waga , they at least serve some palatable food , by the time the corporate MBA idiots have been in and interfered you can guarantee any quality will be destroyed in favour of saving sixpence , it will be ruined .

[slogsweep] 12/11/2018 08:26

fully underwritten - by whom - large stake holders - seen it before, most extreme case was a 50:1 at 1p most small holders avoided it and one or two insiders ended up with 80% of company which then announced £20m hole in accounts had been miraculously found.

[typo56] 12/11/2018 08:11

Does it matter if you're 'diluted'? You'll receive cash for the rights you don't take up. Assuming the rights don't fail that is and the price doesn't fall below 108.5p. If that happens, you we wise not to take them up!

Is it still possible for this to be voted down?

[slogsweep] 12/11/2018 08:06

glad i got out at first mention of a rights issue these deeply discounted ones are designed to blackmail holders into taking them up if they dont they get diluted if they do its throwing good money after bad. Shame on the management destr0ying shareholder value for their own egos.

[typo56] 12/11/2018 07:52

The underwriters don't like it. 108.5p!

[janekane] 12/11/2018 07:40

What's the betting odds on a massive fall in today's SP

[adobbing] 07/11/2018 11:05

Further coverage;

[zho] 31/10/2018 18:05

"The silliest detail within the Restaurant Group’s announcement of its £559m purchase of Wagamama wasn’t the claim that the incoming business appeals to customers across different “day parts”. That’s just hideous management-speak for breakfast, lunch and dinner. The worse offence, championed in the opening paragraph, was the buyer’s boast that it is paying a multiple of only 8.7 times Wagamama’s top-line earnings in the past year."

[philanderer] 31/10/2018 09:07

Citi downgrades to 'neutral tp 270p cut from 410p

Liberum downgrades to 'hold'


Taken this fella off the watchlist for now.

[profitaker] 31/10/2018 08:29

My thoughts exactly Graham. With the cash call at £1.57 per share and the share price (currently) £2.29 I think they'd struggle to get it away.

[grahamg8] 31/10/2018 07:34

Equally worried by this move. Thought I'd lost a lot on the share price dip but then realised I'd sold out a few weeks ago tired of never ending disappointments. Mulling over whether to buy back in on the prospect that the shareholders put the Directors right and vote down the proposal, share price spikes back up again.

[bend1pa] 30/10/2018 21:30

So RTN still in further decline with LFL sales down by 2.2% over the past 9 months. So a 3rd year of double digit falling earnings, a likely slashed dividend and substantial dilution of equity looms. The Wagamama purchase will just be kicking RTN's can of woes further down the road.