Tavistock Investments Share Discussion Threads

[parsons4] 29/4/2017 15:05

Good post Glasshalfull I also increased my holding recently this is now looking good with quite a few holders buying additional shares.

[glasshalfull] 29/4/2017 11:11

TAVI

Chrisdgb, you're certainly not alone. Courtesy to declare I've also been a buyer here.

I like the sector and have a stake in LGT (Lighthouse) and only recently top sliced AFHP (AFH Financial), switching some of the funds into bombed out TAVI. A little too early I may add. I initially took a small stake late last year which I increased via the December 2016 placing, watching in concern as the share price fell from the 4p pre-placing placing announcement, straight down & through the the 3p placing price...not my finest moment.

I'm a long term investor, so remained unperturbed, although its nice to see first sign of life with the share price moving off lows this week.

My thanks to origami74 on this thread. Post 938 is a very good summary of the current situation.

As mentioned, if one compares the valuation of similar listed companies in terms of either an a sector average EV/EBITDA multiple or EV/AUI, they look significantly undervalued in relation to peers. Allenby in 2 notes released in Dec 2016 (see links below) indicated that this could imply a valuation of 6.1p to 11.5p which compares favourable to a share price of 3.4p at the moment.





I agree entirely with poster oragami74, the market does indeed require further evidence that the bolt-on acquisitive strategy is working and believe it offers decent risk/reward at the current price, especially with Chairman Oliver Cooke buying 800k in mid April, closely followed by CEO Brian Raven adding 900k shares just over a week ago.

The appointment of Peter Horbye on Monday was also telling. He subscribed for 3.6m shares at 2.8p on the appointment & importantly was granted options over a further 3m at exercise price of 2.8p IF he introduces, "£500 million of assets into the Group's investment management operations before 18 April 2019."

This recent director buying, Peter Horbye's appointment & £100k share subscription, aligned to the ambition of bringing a significant increase of funds into the company, prompted me to increase my holding this week.

TAVI announced £690m Funds Under Management (FUM) at 30.09.2016 & I'd like to see signs of this increasing both through attracting further business & evidence of the migration of FUM from other investment managers previously utilised by Price Bailey.

In conclusion, TAVI has a current market cap of £18.3m & EV of £16.7m & appears to have plenty opportunity for profitable grow.

Kind regards,
GHF

[luckymouse] 29/4/2017 00:00

free stock charts from uk.advfn.com

[chrisdgb] 28/4/2017 13:11

Indeed, nice to see people actually looking at this..!!

[12vic] 28/4/2017 12:47

Bit of movement again, would be nice to get some form of trading update.

[batham1] 26/4/2017 14:33

Looking good today...could be exciting times ahead

[chrisdgb] 24/4/2017 07:57

Nice to see the International development, £500m AUM is a siff task..!!

[chrisdgb] 21/4/2017 13:00

Directors keep Buying..........when will the market follow/wake up..???

[chrisdgb] 12/4/2017 09:48

Yep, saw the director share purchase announced, let us hope there is lots of good stuff going on in the background..

[batham1] 12/4/2017 09:25

Well if it's good enough for the chairman...

[chrisdgb] 11/4/2017 15:57

Big volume day....................

[origami74] 31/3/2017 14:33

Harwood Wealth have managed to raise 10M but the valuation placed on them is much higher than at TAVI. TAVI discounted at a low price to buy Price Bailey; an aquisition they had been negotiating with for two years.

With the current buy price at 2.75p this stock looks pretty bombed out. It appears that the market requires further evidence that the acquistions and strategy is actually working. This evidence will drive the share price up. Until then the company is not in a position to raise money due to the supressed share price.

Bull Points

The company looks ridiculasly cheap based on turnover and projected EBITDA of the whole business. We need to consider bear points to understand why this is the case. Looking at multiples of other similar businesses fair value is about 10p - This is covered in the analyst notes on the company website.

The structuring of the company is good - It allows acquired businesses to maintain thier brnad and realtionship with the thier clients. All the costly authorisations have now been accounted for.

The Acumen portfolios how grown significantly in size since last year - The business has created serious in flow from somewhere.

Bear Points

Rather than acquistion the company is looking to recruit representatives to the Abacus Brand. I am worried this might be costly - However if the costs yield long term grow then we shouldn't be worried about the short term.

The company is looking to market the Acumen Portfolios externally - I am concerned this is a bit of black hole. The funds have two years track record and are built on an active or passive investment strategy. If I was an external IFA not looking to join the group why would I not choose BlackRock or a more established brand.

With a small number of key acquistions rather than a large number of small acquistions there is risk of conflict within the company. At this price I worry if there is. All the acquistions need to work if they are sizable ones.

Overall

Towards the end of April we should have an update from the company. The current share price indicates a similar level of losses with no prospect of dividend for 2017/18. It appears to me results have to pretty disasterous for a price fall from here however uncomfortable it feels to invest at this point. Any indication of increased profitability and integration of the business and the price could fly up.

So TAVI this April/May it is time to start walking some walk and show the market that the aqcquistions add real value! Until you do acquistions could prove to expensive.

[parsons4] 30/3/2017 11:33

I hope not !!!

[chrisdgb] 30/3/2017 09:28

Noticed AFH Financial and Harwood Wealth raising money, this sector is hot, wonder whether Tavistock are working on something similar...??!!

[chrisdgb] 15/2/2017 08:40

Nice to see someone else here, we certainly need to raise the profile..undervalued gem..!

[parsons4] 15/2/2017 08:33

Quite right chrisdgb !! This one is not on the radar yet !

[chrisdgb] 15/2/2017 08:07

Nice to see more volume ticking through, mostly on the Buy side and with markets at these levels the business should be flying..!

[chrisdgb] 07/2/2017 11:59

Mattioli Woods figures today show the sector is booming........all good news!

[chrisdgb] 30/1/2017 09:06

AFH Financial results today show how good this sector is at the moment, we need to get some buying...

[chrisdgb] 25/1/2017 10:25

Well said, we have the makings of a really decent long term growth story and let us hope we can push towards the 4.5p level...having said that things like AFH still languish..

[origami74] 24/1/2017 10:21

Since the Price Bailey acquisition the share price has languished at around 3p. This has not been helped by the sale of £300,000 of shares by Mr Moseley to reduce exposure to company since his exit.

At face value the company has offered discounted shares to Price Bailey as part of a long term acquistion strategy of 3p. However the second part of that deal values the shares at 4.5p minimum, yet the shares have not moved towards this figure.

The Directors do not appear too concerned about the short term share price; which long term is reasonable but it does make acquisitions more expensive. Personally I think some of the Director's energy should be spent on attracting some smaller Co funds to take a stake at this level.

[origami74] 24/1/2017 10:10

It may be worth looking at the Harwood Wealth (HW.) results and valuation placed on this company.

Harwood Wealth floated on AIM having had more systems and controls in place - i.e. a more established business. Acquistions have come from the cash pile with less equity dilution so HW. are a more established business than TAVI.

That said if TAVI share price was trading on the basis on turnover to match HW. the share price would need to be nearer 12p - This of course is a generous valuation but with the share price languishing at 3p represents a significant discount.

[chrisdgb] 12/1/2017 08:54

Business should be very strong with global markets in buoyant mood.......!

[chrisdgb] 29/12/2016 08:52

Nice volume chugging through here, with delivery on targets, I am looking for a 3x bagger on a 24 month timeframe.....

[chrisdgb] 23/12/2016 08:06

Results today show a decent business emerging here, more conversion to discretionary assets and the market cap to assets under management will look like a steal........