Town Centre Securities Share Discussion Threads

[aringadingding] 18/3/2022 11:59

nickrl, Well there is the management cost base but also the value management add by development opportunities. I guess the idea is they balance each other out and so the NAV/shre is a valid data point. If they sold all their assets, paid the debt, and gave the cash to shareholders, the shareholders would get the NAV/shre. That's obvious but I find it an important point. With family owned companies you kind of never know when they might sell out to a fund or similar, which would be pretty much the same thing. You might have a point re. dividends resuming, I was just observing the prior interim div levels really. If they sell assets, take the cash and buy shares that are well below NAV/shre, then that is effectively a double whammy effect of a) theoretically moving share price towards NAV/shre simply by selling assets (as above) and b) increasing the intrinsic NAV/shre by reducing #shres more than NAV is reduced. I expect you realise all of that but anyway... Seems very cheap to me.

[nickrl] 17/3/2022 22:13

aringadingding i'd say we are way off getting back to an 11p divi here. They've been selling down income producing properties for last 18mths so NRI has been dropping but at least the rent is rolling in now. There costs have crept up a fair bit as well. The reversion feels optimistic in the current environment. Anyhow property revaluation has come to the rescue which was better than some of its peers have done. The development opportunities are maybe what keeps the price up but they've been on the radar for years and is the current environment conducive to moving any of them forward.

[aringadingding] 16/3/2022 10:23

Great results. Good growth in NAV per share. Interim dividend of 2.5p to be paid. This compares to an interim dividend of 3.25p in 2017, that is, during a period of 8yrs, in each of which years a total annual dividend of 10-12p/shre was declared. A resumption of a dividend of 11p would be a 7.3% forward dividend yield on 150p/shre. Further share buybacks will be EPS and NAV/shre accretive. This is my biggest shareholding. Family owned, massive discount to NAV, well run, good yield.

[nickrl] 04/3/2022 19:04

TOWN should have moved in and hoovered up any shares on offer

[aringadingding] 04/3/2022 16:06

Indeed. At least when the general share price movements of today are added, we can call the last couple of weeks a proper market crash! I shall be staying invested and hoping the Russian people get rid of Putin and the west adopts clean energy all the faster (neither really related to TOWN but nonetheless). Actually if there was any impact on TOWN of the war in Ukraine you could say the main impact would be inflation, which is a good thing for property and leveraged real assets generally.

[aringadingding] 17/2/2022 19:46

Ok thank you. Well over time with £5m to deploy I guess they might move to doing that. Agreed re. value.

[castleford tiger] 17/2/2022 17:44

There are always sellers for lots of reasons. Death/Divorce or someone needing cash. MM hold some stock as well If they had cleared the stock available it would be moving up to flush out sellers. Still £1 for 50p in my opinion

[aringadingding] 10/2/2022 16:31

Does anybody have any views on who exactly, out there somewhere, is prepared to sell so many shares to the company at recently prevailing prices? Must be about £200k in recent weeks (I am guessing there based off RNS emails I recall). I can't see TOWN on hxxps://shorttracker.co.uk/companies, which might potentially have explained it. Castleford Tiger, do you have any views on this?

[galles] 11/1/2022 19:10

Quite, plenty of ammunition

[galles] 11/1/2022 19:10

And how do you interpret it? 1p above the current price?

[irishmatt] 11/1/2022 19:09

Probably will be a notice tomorrow of more given some of the bigger trades today

[castleford tiger] 11/1/2022 18:25

only bought 20k so far

[inki] 11/1/2022 08:41

Galles - although one would like to consider your interpretation that buybacks will continue all the way to the NAV of 292p, however stating 'accretive' - this can be read as accretive to the extent of 1p or more than the current price.

[galles] 10/1/2022 21:41

Referencing their statement: No purchases will be made by the Company under the Programme unless they are accretive on a per-share net asset value basisOn that basis, they'll continue with their buybacks all the way to the NAV of 292p or spending £5m, whichever comes first.

[nicholasblake] 06/1/2022 17:40

Stock is so thinly traded, no chance of picking up GBP5m at anything like these levels.

[castleford tiger] 06/1/2022 16:37

149.9 to buy just 3500 today

[irishmatt] 06/1/2022 12:01

Although the last buyback was also up to £5m and they did very little of itHopefully this one they get on with it

[nickrl] 06/1/2022 10:04

and the shares respond by dropping... mind you can't get them anywhere near the mid price on an ii quote so who knows but i suppose it depends on what the brokers want to pay and in such a thinly traded share a bit of price discovery going to be needed for a few days.

[playful] 06/1/2022 07:06

We have a 5 million buy back kicking off now I'm happy enough with that.

[aringadingding] 11/12/2021 22:36

Castle, a belated thanks for the info and thoughts on the results delay. These things happen. Delays, covenant breaches, comments from banks being needed. Liberum obviously need to stay in the company's good books as house broker but they are still a broker who can crunch numbers, see there potentially great value there... so they say so. I think we just need to wait. Maybe like 2 years but a 50% share price rise in 2 years is worth having (very rough numbers there). As cashflow returns then I expect healthy dividends will be the catalyst for people to realise the NAV/shre is true. Or the company could just sell some assets at their balance sheet value (as they have a few times in recent years) and the multiple of NAV/shre to share price would widen further as a result. Not that they really need to.

[inki] 10/12/2021 13:33

nickrl - it is logical Liberum have a positive view on Town, as brokers to the company. The share buy back proposal enables the brokers to earn their 'salary'. Whether the share buy back will be effective, when this traded so rarely, with few shares not held by family or institutions. Either way, the company has valuable assets hardly reflected in the share price.

[nickrl] 06/12/2021 20:01

little write up in Master Investor hxxps://masterinvestor.co.uk/equities/small-cap-comment-featuring-mrl-town-mtc-and-crc/ Not sure i share the confidence of Liberum though.

[castleford tiger] 01/12/2021 15:24

I feel that whilst its a non event the Auditors may have been picky. Is there not a November date quoted in there? I might be wrong but its the sort of thing the company may have glossed over as they had informed the bank but Auditors wanted a note. The 5% + stuff needs paying off asap tiger