Tandem Share Discussion Threads

[greengiant] 22/7/2010 08:26

Looks interesting, no doubt they could get it on the cheap



gg

[greengiant] 22/7/2010 08:20

Could it be of interest?

Martin Yaffe International, the Lancashire toy maker behind toy brands such as Thomas the Tank Engine and Bob the Builder, has entered administration. John Titley and Andrew Poxon of Leonard Curtis were appointed as the administrators to the business, which manufactures and distributes toys. Most of its toys are made under licence. Licensed brands include Winnie the Pooh, Power Rangers, Dora the Explorer, Thomas the Tank Engine and Bob the Builder. Products made include bedroom furniture such as desk and stool sets; wheeled toys such as scooters and roller skates; and pre-school toys including play sets, inflatables and outdoor sports toys. Established in 1986, the Rochdale-based firm distributes its toys throughout Europe, and to UK retailers Sainsbury's, John Lewis, Tesco and Asda. It has about 160 employees at its head office in Queensway, Rochdale. The search for a buyer began before Martin Yaffe entered administration and has not yet been successful, reportedly. Trading is thought likely to continue on a restricted basis, with anticipated redundancies. Its pre-tax profits have dived over three years showing a loss of £3.3m for the year to 31 December 2008, compared to a profit of £1.284m for the same period in 2006. 19/07/2010

[greengiant] 17/7/2010 15:30

SM - To be honest the company has only started to be in a true cash neutral position, because if you look historically you have to deduct the Invoice discounting line from the cash balance (and it was buried under the Creditors line).

2006/07 it was Negative cash of £1,905k
2007/08 it was Positive Cash of £89k
2008/09 it was Negative Cash of £468k
2009/10 it was Positive Cash of £1,190k

The last years results was particularly good considering that the company's Trade Creditors went the wrong way (new suppliers - worse initial credit terms).

The company's latest small shareholder buyback scheme should have closed on Friday (i think) so we should see a further reduction in total shares in issue.

gg

[supreme mo] 17/7/2010 14:36

GG, totally agree the right acquistions at the right price would be a good way to go forward. However, the company has had boat loads of cash for years and hasn't done anything with it... With interest rates as low as they are, I personally feel that they need to find a better home for that cash - whether that be through buy backs, acquisitions or even returning it to shareholders!! ;-)

[greengiant] 16/7/2010 14:13

SM,

To be honest, I don't think the company should buy its shares back at this level. I do agree with their strategy to buy back shares of holders under x shares where it is uneconomical for them to sell, but surely the company can think of better ways to use its cash than buy back shares when the total shares in issue are minute.

Personally, I would prefer acquisitions (price and sector dependent of course), the idea that share buy backs increase EPS and thereby increases value for remaining shareholders is deeply flawed. Historically, you just need to see whether any of the share buybacks in the past has lead to increased shareholder value.

gg

[supreme mo] 15/7/2010 22:41

GG, although I totally agree with you that these may well go lower, I couldn't pass up the opportunity to add a cheeky 5a at 95p today.... mms try to push price up as clearly they have loads of stock.

Do you think the company will buy back shares at this level?

[greengiant] 15/7/2010 22:11

$ weakening even more and coming up to 1.55. Nearly 7% up off recent lows. Considering that the majority of purchases are in $'s this is going to have a beautiful positive effect on profit.

Long may the $ weaken.

gg

[greengiant] 14/7/2010 12:13

Still don't see any real compelling reason to buy anymore - believe they will get cheaper yet and then I will buy.

gg

[davidosh] 14/7/2010 08:31

Interesting stuff....



The best way for bikes to gain popularity will be optimum conditions for use ie.

Good weather
High cost of alternative transport
Good cycle routes
Cycling initiatives (exercise for kids etc)

We are certainly going in the right direction.

[greengiant] 14/7/2010 07:46

Strengthening £ against $
Beautiful sunshine
Reducing director pay (movement of MK to Chairman)

What's not to be positive about?

gg

[greengiant] 13/7/2010 09:01

grahamty,

Not necessarily. Look at the trades since 6th July.

40k sold @ 97p
11.2k sold @ 92p

Lots os small sells in between

gg

[grahamty] 13/7/2010 08:38

I know that !!! But who is/are the sellers ? Small shareholders ? Not enough to generate that volume ? One quiet big seller ? Are 32,000 on offer at 9
8p this morning. That will take a long time to soak up. Implies also there has been one more big sale that has not yet been put through

[greengiant] 13/7/2010 08:11

grahamty,

Simple really, people selling, nobody buying = dropping SP

gg

[supreme mo] 13/7/2010 08:08

GG, totally agree, I think they will go lower and like you I am a buyer. I estimate at least 50k shares bought by mms over last week...

Will be interesting to see if company buy back shares at this level....

[grahamty] 13/7/2010 08:08

gg. Why you think they will go lower ? A fairly certain statement ? Is JAM a seller ?

[davidosh] 12/7/2010 16:02

They took a big haircut....If only they came here then they would know a few of us are buyers and agree a mid price deal.

[greengiant] 12/7/2010 15:51

SM - Bicycles save on petrol, therefore ecology.

Grahamty - no need to pick them up yet, they will go lower

gg

[grahamty] 12/7/2010 13:44

supreme mo: now is yr chance. 10,000 gone through at 92p. You gonna pick those up ?

[supreme mo] 09/7/2010 09:45

GG, as much as I want to buy more, I would personally be happy for a retracement so i can add more at a lower level.

Seems strange having these in an ecology fund - they are intensive users of plastic and have shipped production abroad!

[grahamty] 09/7/2010 09:32

Do we know if it is in just one fund ? JAM have lots and their declaration could cover an ecology fund, a few private clients etc etc all under one declaration ( they obviously have to announce a consolidated number). It is unlikely private clients would have tolerated a dead holding for so long, but it might well be more than one JAM fund. Second point, on their purchase: as a known holder they might have been offered a line of stock ( ie the June purchase) and been told that no other buyer and would be dumped at 90p if they did not buy them. Therefore, taking that line protects the price and the value of their other c9%. All speculation.

Back to original question: do we know if JAM are actively engaging with the Board ? Do we know if they were involved in pushing for new non-Execs ? Between you, JAM and Andrew, you hold 25% of the company: have you contacted them direct Andrew ? Just interested in their intentions as each time we get to 115p+ we hit sellers and come back down. Might be shaking out the sellers, but still bit disappointing.

One last point. Graham has retired after 17 years, with 58,000 shares. After 17 years he still had no meaningful stake in the company. Even Steven only has shares and options over c 170,000. You make a lot more money from an equity interest rising than inflated salaries, and it is aligned with shareholders interests.

[greengiant] 08/7/2010 10:40

JAM are not actively managing this company, it is just part of their ecology fund and has been trimmed back to balance the fund. If JAM are sellers, then I am a buyer, but would be happy to let the share price fall first.

gg

[supreme mo] 07/7/2010 22:36

Grahamty, first of all, Jupiter increased their stake only last month. They hadn't bought or sold over the last 10 years and their manager never (to my knowledge) attended the agm.

Second, why decide to sell now as TND are on less than 7 x earnings. Surely the manager has more 'expensive' stocks he/she could trim back on??

If I was an investor in that fund, I wouldn't be very pleased to take such a hit on price when bid price was the late 10 somethings.

As for being unsaleable, at the end of the day a company/asset is worth what it is worth. Would you sell a property valued at 150k for 100k?? (50% less than its worth) Personally I feel that TND is worth far more than the current price suggests. Furthermore, there are going to be investor presentations in the autumn/winter so if there was a surge in buying, that would give JAM an opportunity to sell then imo.

[grahamty] 07/7/2010 16:24

Any clue if Jupiter want out ? This last couple of months is the first time for ten years has been any liquidity. It is worth more to them sold at 97p than it is unsaleable at 150p A fund like that ( if a seller) has got to grab any chance it can and sod the price. If they do want out, may struggle for a long time to get head room above 100p. GG have they taken any interest in the goings on of the last few months ? Have you been aware of them meeting the management ? For a fund like that, the buyer may have long since moved on: the new FM might just want out while he can.

[supreme mo] 06/7/2010 22:44

I will try and pick up some more tomorrow, but will try and get them as low as possible as it appears they have a bit more stock...

Lets say for instance that JAM were the sellers at 97p today and it is a fund manager trimming back on one of his holdings to create cash in his fund, why would you pick this to sell?? This must be one of the more undervalued stocks in the fund!!!!!!

GG IMS? - Interim Management Statement?

Yes I agree, will be interested to see/read the broker note.

[greengiant] 06/7/2010 21:40

That's why you don't put your money into Fund Managers. They have no idea what they are doing, add some a month before and then sell some. This is after 10 years of doing SFA.

No idea with the 40k, if they drop it more I may be tempted, altho' 15% is a nice round number. The company should be buying back the small shareholdings so total shares in issue will drop.

Will be interested to see the company's IMS and Broker note which I would be disappointed not to see in the next couple of weeks.

gg