Trafficmaster Share Discussion Threads

[lfc4ever] 03/6/2010 10:35

gerd, you assume no downside.

if a shareholder rebellion gathers traction, but there is no other bidder stepping up to the table, so that the loss of the 47p offer, with no alternative immediately in play, becomes a material possibility, the share price will fall. and it may be volatile- there could be a nasty spike down.

don't think, from experience, that ig gtee stop losses on this one.

[gerdmuller] 03/6/2010 10:33

BTW, just received email from Barclays offering trades at £4.42 from when England enter the World Cup until they go out.

Now, have many trades will I be able to do in a week?

[gerdmuller] 03/6/2010 10:27

Yes, we TFC shareholders are revolting. Never thought I'd have to say that.

[tom306] 03/6/2010 10:20

According to the Telegraph it's a done deal!



Loved the comment from Vector "We believe Trafficmaster and Teletrac [its US fleet tracking subsidiary] will significantly benefit from the company being a private company." Now ain't that the truth! But what about the shareholders?

Let's give them a bloody nose!

[gerdmuller] 03/6/2010 09:38

Good to see people are actually seeing this as the pathetic bid it really is.

Whatever happens I think management should be sacked either by the present shareholders or by anyone else who happens to take on the company.

After going through all the MPs expenses and bankers bonuses scandals we still seem to have a group of people who think they can get away with this underhanded treatment of shareholders.

And if it wasn't for people like restassured and other they would do just that.

I am still waiting for confirmation of KWL takeover which at 130p also should be rejected.

If these two go through (hopefully at much better prices) then that would be 4 company takeovers in 2 years for me.

I still think SEPU and SYS are potential targets and if not are worth holding for the growth story.

[restassured] 03/6/2010 08:59

Not only do they have tax losses of £25 million,they have net assets of £32 million.

The words shaft and ted spring to mind.

[sfloyd] 03/6/2010 08:48

AO

IG show 47.1/46.43 for sep 2010 TFC

So on these figuresd £1000 on this equates to a £670 loss not £100

not havign a go.. Just wanted to put record straight b4 everyone rushes off to spreadbet

[a0148009] 03/6/2010 08:09

You can still buy a spread bet Sept at 47.10 still worth a punt with gathering
support against bid. Cost would only be 100 quid if take out at only at 47p.
Cheapest option in town.
IG is making the price
Edit - sorry chaps the £100 cost would be on 100k shares ie £1000 per point.
AO

[snowman10] 03/6/2010 07:53

LFC
SAYS
as i said before, let's hope this is a precursor to a bidding war.

BUT- if there is no other bid before a vote on this offer; and if the offer is rejected; then, in my opinion, the share price will be back below 20p in a flash.

WHAT A LOAD OF TWADDLE
The company will make 5.3p eps THIS year, so you suggest a p/e of 4 ?

They have tax losses worth 25 million.

Worth at least 70p a share based on 14x earnings.

snow

[restassured] 03/6/2010 07:27

Be pro active hound the directors.It only takes a minute to fire off an email of your discontent.

I think it is [e-mail]


I have sent an email and it has not been rejected, so should get to him.

[daveys] 03/6/2010 06:48

Re no other bidder(s) materialising then I'd still vote no rather than see directors walk off knowing they had screwed shareholders.

[lfc4ever] 03/6/2010 06:31

well, the door is clearly open to a trade bidder. IF no-one comes forward, that will tell its own story.

[restassured] 03/6/2010 05:46

The point is the timing looks terrible.

We survived the worst recession,since the great depression with increasing revenues.

Schroders and Aberforth,the only two institutions to so far agree to the offer,each bought huge amount of shares just days before the bid talks were announced.

Vector specialises in buying "undervalued companies."


We should at least get the pre recession 72p ,which was the highest price in the last 36 months.

TFC traded at that price in both 2006 and 2007.

As I mentioned previously,Cybits' directors justified their takeover price as the highest price in 5 years.

Management have either been dishonest with shareholders, or they are not up to the job and should resign.



There is alot of hostility towards this takeover on the iii and other boards.



Home and car sales lift US stocks

Wednesday, 2 June 2010 22:35 UK

The US housing market is continuing to recover US stocks have risen strongly after a big increase in pending home sales and demand for cars lifted investor confidence in the US economy.

Pending home sales - deals agreed but not yet completed - rose 6% in April, said the main estate agent group, the National Association of Realtors.

Meanwhile, overall new car sales in the US were 19% higher in May than the same month last year.

[tratante] 03/6/2010 00:40

I guess if there is no other offer on the table by the time of the meeting it will go through. I doubt investors want to go back to where we started.

[orange1] 02/6/2010 22:56

TFC shareholders spitting blood...

MARKET REPORT: Driving a revolt at Trafficmaster

By Geoff Foster

Small shareholders of Trafficmaster are spitting blood and ready to create havoc at the forthcoming annual meeting after the board and major shareholders, Aberforth and Schroders, recommended a £73.3m, or 47p a share, cash bid from private equity firm Vector Capital.

As shares of the satnav group jumped 4.25p or 10pc to 46.75p one angry holder told the Daily Mail: 'It's a stitch up. Directors are getting 30pc of the new company which is being taken private.

'Then, you watch, it will be requoted in a year's time at three times its current valuation. It's a classic private equity sting.'

Comments from Mike Savage, who holds shares in his Killik Capital Special Situations Fund, also suggests the company is being sold on the cheap.

He said: 'Whilst pleased to see conformation of a private equity bid, we are disappointed to see that management, who own a negligible interest in the company, appear to have folded like a cheap deck chair and accepted 47p or just 10 times earnings, given the recent trading update was pretty reassuring. We would have thought there to be trade interest too.'

When Traffiicmaster in April revealed it had received an approach, broker Panmure Gordon had a target price of 52p. And that was on the basis that no deal materialises. It said a sale to a trade buyer would make strategic sense in the 60p-80p a share range.

Having seen the stock trade as low as 25.5p this year, compared to the crazy dot.com peak of £11, 16pc shareholder Schroders was obviously happy to take the cash put on the table by Vector Capital, particularly as there were no other bidders in the ring. But sometimes patience is a virtue.

Read more:

Read more:

[topvest] 02/6/2010 21:06

Well a slightly disappointing price, but I was looking to exit so quite pleased anwyway and I will have made a good profit. Always the chance of another company putting in a bid, albeit unlikely.

[lfc4ever] 02/6/2010 21:05

as i said before, let's hope this is a precursor to a bidding war.

BUT- if there is no other bid before a vote on this offer; and if the offer is rejected; then, in my opinion, the share price will be back below 20p in a flash.

[restassured] 02/6/2010 21:00

You got it!

[tratante] 02/6/2010 20:59

Rest- re IC comment - what did I say above 7484!

[mensrea] 02/6/2010 20:40

I am also going to vote against - this offer is way too low

[daveys] 02/6/2010 20:39

Deals done but not RNS'd and now this!!!! This stinks to high heaven and as a PI I'll be voting NOOOOOOOOOOOOOOOOOOOOOO.

[restassured] 02/6/2010 20:24

They need 75% approval for this to succeed.So far they only have 28%....



The Scheme Document containing details of the Scheme and notices of the Court
Meeting and the General Meeting, together with the forms of proxy, will be
posted to Trafficmaster Shareholders, within 28 days of the date of this
announcement, unless otherwise agreed with the Panel.

[samsingh] 02/6/2010 20:04

Does anyone know where we can vote against the offer. I would be happy to do so.

[18bt] 02/6/2010 19:03

I'll add my name to those who are going to vote agains the offer. Only 50k shares, but they all help.