Tandem Share Discussion Threads

[graham1ty] 26/11/2012 12:48

Yes, agree entirely.

Two issues here:
1) is trading super-duper, can TND do anything about it ?; A, maybe not, maybe not
2) given that, given that should still produce 10-12p of earnings, is the valuation right ? No !

[supreme mo] 26/11/2012 09:36

Sorry my maths at fault but do you get where I am coming from?

[graham1ty] 26/11/2012 08:02

40% higher !!! 140p is 75% higher. it hit 170p at one stage if I recall, so over 100% above this level a while ago....

[supreme mo] 25/11/2012 16:22

Unbelievable - company has to issue an rns for purchase of just over 300 shares - the rns itself costs nearly that to list. You would think (and hope as an investor) that the company would try to purchase some in the market on the same day to get value for the rns notification.

Graham, I have said it all along, the company seems to be running this like a private company. I honestly see no value in this company being listed. There are very few market updates and no clear growth plan, the spread is horrendous which discourages new investors/liquidity.

Despite the above, there is no disputing that there is value in the company and every share TND buys, that's one less which can be sold.

Market Makers seem reluctant to see TND buying as a positive thing, so why don't the company call market makers bluff i.e. get the broker to call the market maker to make a price for say 50k - 100k shares - they may quote 5-10p out but if TND actually buys them (at higher price) it will be interesting to see how the market will get that amount of stock back in..... they will have no option to bid up the price as mm's ideally like to keep a balanced book (not be too short or too long).

The company were willing to buy Mr Burgess' shares off him at 40% higher than they are now so what would be the difference?

[graham1ty] 23/11/2012 16:00

I make that 95,346 bought at an average price of 86.05p ( pre expenses), costing £82,047 in this year's buybacks.

Share price on first purchase 83.5p

Bid price now: 80p

Impact: zero

The Company has just shrunk by c£100,000. On their reported shares in issue of 4,571,154, at the bid price of 80p, we are down to £3.7m market cap.......

Hey ho

[graham1ty] 23/11/2012 12:00

Presumably that is someone taking up the offer of the free dealing service for small shareholders.......does beg the question though of why so few have taken it up....( even adding all the previous purchases) and why they could not be aggregated.

No Halfords bounce......

Small dribbly sellers at 84p, so now 80p bid, which must be the lowest level for 6 months....

[cwa1] 23/11/2012 11:30

Wonder how much the RNS cost?

[gbcol] 23/11/2012 11:26

That's the petty cash tin empty then.

[cwa1] 23/11/2012 10:44

Major purchase of shares...

[woodcutter] 22/10/2012 12:37

if it was the test email then yep got it. sorry i was out for a while this morning helping my b-i-law take some old furniture to tip.

You can forward details of the share situ now for my bed time reading;-)

[graham1ty] 22/10/2012 11:40

woody.....get my email ?

[woodcutter] 22/10/2012 08:59

G1TY hope it was a good weekend.

[graham1ty] 22/10/2012 08:24

Sorry, was away at weekend. Am here now if u there, and will be at 9.30am

[woodcutter] 21/10/2012 09:33

i'll post details again monday morning

[woodcutter] 20/10/2012 10:40

G1TY i'll post a contact email address on sunday 21st october at 9.30am. I'll leave it on the thread for about 20 minutes. I'll check back later today to see if you've received this message.

Woody

[woodcutter] 19/10/2012 09:27

Thx G1TY and dd your response very much appreciated.

The history of the treasury shares would be nice to know but i guess from an investment perspective it's not that important so i'll leave that for now but thanks anyway.

I'm always a little wary of actuarial accounting on pension funds myself, one year there's a surplus the next there's a deficit and the swings from one to the other can be staggering. I think the old Casket Group scheme is not a problem but the Tandem scheme i have less confidence in, over £500K paid out last year against assets of £7m+ doesn't inspire me.

I have to confess i hadn't looked at directors salaries,(something i always consider) that was a bit remiss of me. I ought to generate a check list:-)

I think it's got the potential to be a fantastic business with the brands it holds still, i'll sit on the sidelines for now and see if the cycling craze is a fad or for the long term, but thanks again both of you for comments.

WC

[graham1ty] 19/10/2012 08:31

duplicate of above......hit the button twice.....removed

[graham1ty] 19/10/2012 08:31

Woody, David and i seem main followers/supporters/critics of tnd. I have been a holder for ten years.

Yes is cheap, however, until a positive statement is made, or corporate action/rumour, this is going nowhere. At the last AGM I said to the Chair "but all yr statements are so dull, all make excuses, when u going to have something positive to say ?". He replied "trust me, when we have a good tale to tell, we will". I replied " but melvyn, I have held for ten years and we are yet to have that positive statement". There was an awkward silence.

TND is cash positive, dividend paying now, consistently profitable, some assets to sell one day ( Ben sayers golf), pretty good cash balance and it shifts a lot of bikes. BUT they are to independent retailers, all of whom are feeling the squeeze. Buyers of toys/kids stuff are holding back. Where enormous orders come in ( Argos, a couple of years ag0) margins are awful. Director's salaries have been in some years a little racy. Jam tomorrow.......

re the pension, it is the actuaries, changing the rules every five minutes. look closely at the schemes, they are relatively small and legacy ( Casket, over ten years ago). The number of beneficiaries in one scheme is I believe less that ten. The actuarial changes mean valuations/deficits keep changing and the pension fund tail wags the TND dog. It IS taking management time, and the payments to protection funds/regulators are absurd, but I would not overly worry about the pension funds.

re the shares in Treasury, there is a story there, when the Company was forced to buy in a whole slug of shares at a premium. By direct email I could tell you the story.

So, yes it is cheap, yes it is a rare beast, profitable throughtout the last five years, yes it is a good little business. One day, someone in the bike world, whether it is another bike manufacturer ( Accell bought Raleigh), an entrepreneur ( one of the Wiggle founders ?) or maybe even a VC will look at this and shove a rocket up its backside.

Until then, on trading alone, I would not hold yr breath. However, it is a good little business. One day, the weather will be right, the dollar will have moved in the right direction, the actuaries will make a concession, a strategic investor will take a stake...............and it will be back up to the highs of a couple of years ago

[woodcutter] 18/10/2012 18:48

New to this board so if i cover anything already dealt with then my apologies. I have read back over a few pages.

Just started to analyse tnd on the back of the team gb cycling olympic success story and of course the tdfrance. I was very surprised at the share price movement i guess that's what attracted me at first, it looked a bargain. I know my local halfords has seen a rise in bike sales as i was chatting to a member of staff last week, again that was also a factor in choosing to review tnd.

I have to say i'm rather puzzled and don't know what to make of things. Only 5,5m shares roughly and 30% in treasury. I don't recall ever seeing such a strange share structure, seems to me it ought to be a private company, very illiquid (even more so with so many shares in treasury).

More importantly after reading the last H1 report i found it odd that bike revenue in the outlook trading statement to september was lower than for the same like for like period last year. (of course last year could have been exceptional but on the face of things doesn't appear so)

The other area of concern that stood out was the pension scheme deficit of £2.6m against equity of £6.2m this leaves an element of uncertainty imv as to the strength of the db scheme. From the last annual report the current deficit of £2.6m against a pension scheme fund value of £9m+ over the two db schemes is quite significant even allowing for the fact that much of the schemes are in equities rather than guilts.

I was rather hopeful when i first engaged in looking at tnd i thought it looked good value but the more i analyse it the more uncertain i am, particularly the pension position.

However with just under 4p eps in H1, and i would expect weighted to H2 a 14/15p eps looks readily achievable, even allowing for the outlook statement. So per of about 6, very undervalued? Perhaps not against historical per values!

I notice davidosh is a follower and would be interested to know if i'm missing something? btw i passed on loq...........bad move by the looks of it:-)

Woody

[amt] 09/10/2012 10:45

Buying their own shares is positive because it means they have no cash worries. Perhaps trading has continued to pick up.

[cwa1] 09/10/2012 10:12

The cos. grand thinking continues:-