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TNI Trinity Mirror

85.70
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Trinity Mirror LSE:TNI London Ordinary Share GB0009039941 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 85.70 85.00 86.00 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Trinity Mirror Share Discussion Threads

Showing 7101 to 7125 of 7575 messages
Chat Pages: Latest  291  290  289  288  287  286  285  284  283  282  281  280  Older
DateSubjectAuthorDiscuss
20/9/2017
17:43
The is the main problem, when they sell the negative comments roll on
bc4
20/9/2017
16:38
There certainly are a lot of multi userided trolls about, but I think you are well wide of the mark if though think CJohn is one.

If you read back far enough I'm pretty sure you'll find that CJohn was invested here in the past (and probably would be again at a lower price).

I disagree with CJohn at least as often as I agree, but I find his point of view useful.

Even though I disagree with his view on the buybacks, I do have to confess that it would be unfortunate and ironic having bought back - probably £7m worth(?) of - shares at prices higher than today if they then had to issue new shares to support acquisition.

kazoom
20/9/2017
16:28
yes is his only one of many who don,t invest and tell everyone where they are going wrong, like BOB Hoskins said NO BOTTLE
bc4
20/9/2017
16:09
Over the years the buy backs will add up.
Remember this co generates cash and pays divis.
We all know print revenue is in decline it is the online stuff that is the game changer.
We also know the competitive advantage this co has shown re competitors.
And last but not least we expect consolidation in the industry with this company likely to benefit.

Some of us are also aware that CJohn is part of a large tribe of avatars usually with a deramping agenda.

freddie ferret
20/9/2017
15:46
The investment in the share buy backs is so small I'm not sure what difference it makes in the grand scheme of things; I don't think it's a game changer, either way.
twixy
20/9/2017
12:51
I don't agree. They should aim to buy stocks or businesses that are cheaper than their own in the absence of which they should continue buying their own stock.
This is the best way to increase earnings per share and benefit the company and it's owners.

gfrae
19/9/2017
10:31
Given their recent dire revenue figures, it would make sense for TNI to become the sector "roll-up". Pick up assets in this troubled sector - no new entrants - suck what cash and profit can be had during the limited life of the victim - sorry, lucky recipient of a bid - then repeat.

The key is in bargaining a dirt cheap price, as Kazoom has pointed out. And not wasting cash on buy backs. Keep the powder dry: there are going to be some troubled bargain assets out there in the next few years..

cjohn
19/9/2017
10:21
No, it doesn't. Until a formal pension review is held, TNI will remain obliged to make accompanying overpayments to the UK pension funds if they buy back shares or give a bigger divi.
cjohn
19/9/2017
08:17
Seems there are going to be increases in interest albeit small ones. a deficit reductions in the pensions, does that mean the company can have a more aggressive buyback or bigger dividend policy?
cityconindex
15/9/2017
23:46
karloss885 - thanks for posting that link; I went through it with the team earlier today and had a similar reaction to the author. Who knows, with Martin Sorrell's recent comments we might see greater investment in print advertising?!?!
twixy
14/9/2017
20:52
the great fraud of online advertising EXPOSED......
karlos885
13/9/2017
22:42
On reflection, maybe they could part fund the acquisition with the shares in treasury, provided they were valued at a price greater than the purchase price - No idea on the tax implications, so shoot me down like a Stuka over Kent!
twixy
13/9/2017
16:21
Thanks CJohn,

At face value I can see what you're getting at.

They acquired the fist 20% of LW for £14.2m valuing the whole business at £70m.
The last 80% cost them £155m valuing the whole business at £193m.

But, it's worth remembering that over that time operating profits had risen from £21m to £39m, plus TNI had identified additional synergies of £10-12m pa only achievable through full ownership. So I don't think the disparity was that big and if anything it's that the first 20% looked overly cheap rather than the converse.

Anyway I wouldn't disagree with you in the desire to see them drive a hard bargain on price, nor with the view that this deal makes a lot of business sense.

Also no disagreement with anyone that it wouldn't make sense for them to issue shares to complete this deal, unless there was no other choice and given TNI's strong track record on cash generation and delivery of synergies it shouldn't really be that hard to raise debt against this deal I would hope.

(Worth also noting that although they did issue some shares to acquire LW - that was when the share price was in the 170-180 range and the placing was at 158p!)

kazoom
13/9/2017
11:15
Hi Kazoom,




look at the price they paid for the first tranche of Local World and the price for the second.....


Regarding share buy backs: as a detail, they have to put in an accompanying extra payment to the blessed UK pension funds. This at a time when asset values - bonds obviously and shares, less obviously - are scarcely cheap. A bad moment to be putting in extra cash.

But more importantly, I really can't see why it's strategically beneficial at this juncture to reduce the company's capital base. I appreciate a bit of money is saved on dividends, but the future of the company will require further acquistiions to generate revenue and I, personally, would subordinate all decisions on capital allocation to those vital strategic ends.

The best thing about the declining newspaper industry is that the very decline puts off new entrants and means that TNI may be able to sustain margins for longer than might be expected.

I like the look of this deal. It's precisely what they have to do.

cjohn
13/9/2017
11:01
cityconindex,

My own view is that if a deal is correctly structured the share price should reflect the significant savings from restructuring the business.

I am hoping the pension sorts itself over time, which interest rate rises would largely take care of, according to the CFO.

twixy
13/9/2017
08:21
If the deal pops will the share price recover to the 107 p level or will it go up once the deal is done with no rights offer? Any ideas?

If rates are nudged up will that also be good as it starts to reduce the Pension Deficit...seems that if the picture comes together its a win win.....

cityconindex
13/9/2017
07:03
Agreed. Issuing equity at these prices is the same as selling shares in a newspaper company which you know inside out on a p/e of less than 3 to buy shares in another newspaper company being sold on a higher p/e by a fairly dodgy character. Ie best avoided if possible !
gfrae
12/9/2017
16:47
Freddie ferret - agreed; issuing new shares would be odd, especially since the BoD have a KPI to deliver 5% dividend growth per annum, which would make the task more challenging.

The acquisition is totally in line with the stated aims 'seek strategic opportunities that drive value' and 'To deliver sustainable growth in revenue, profit and cash flow' - just do it with debt,guys!

twixy
12/9/2017
16:21
They are currently buying shares at the current market price though the decision making has been delegated to a broker. It would be very peculiar imho for them to issue new shares at a heavily discounted price.

I think the takeover could be rational synergistically.

freddie ferret
12/9/2017
12:28
Was that a big purchase next to the 18k buy order...?
cityconindex
11/9/2017
16:59
Aha yes thanks Twixy - you're right.

Here's the detail :

The Group has access to a £110 million committed amortising
Revolving Credit Facility (‘RCF’) under which drawings can be
made with 24 hours’ notice and the facility was undrawn at the
reporting date. The RCF is committed to December 2021 and
reduces by £10 million in December 2017 and by £8.333 million
every six months until December 2020 and remains at
£50 million during 2021.

So in fact they've really only got £70m available by December (100 less the 30 already drawn)

The reductions in future years would (probably) be covered by ongoing cash flow, so maybe only £10m more than I speculated above (but again maybe more for a margin of safety).

I still hope that would be doable by debt rather than equity, but it can't be taken as a given.

kazoom
11/9/2017
15:42
kazoom - I don't have it to hand but I think the GBP 110MM revolving credit facility drops over the last 2 years of its life so would probably need a fresh debt facility in place.
Given the absence of other suitors, I hope TNI can negotiate a deal structure so that milestone payments are made from future cash flows...probably wishful thinking on my behalf ;-0

twixy
11/9/2017
14:59
Hi CJohn,

Always good to get your view.

I would have to disagree with you on the buybacks.
> They have the debt down to a minimal level (and some financiers would argue that companies not carry some degree of debt are not being efficient).
> Having paid of the apparently expensive US loan notes (not sure if there would have been a penalty for early repayment) the pound for pound interest is less that than the pound for pound dividend. So they are taking exactly the rational position of "paying" off their most expensive creditors first.

Anyway, I'm interested as to why you think they overpaid for Local World?

At face value it looks like a good deal (earnings positive in the first full year) which of course isn't to say it could not have been a better one.

Also thank you for reminding me about the LW transaction as I have to backtrack slightly on something I said a few posts ago.

The actually funded the LW acquisition (last 80%) with a mixture of cash, debt and shares.

> 67.3m Cash
> 80.0m new debt
> 40.1m new shares
Total £187.4m

So on that basis there might be some risk of more equity issued to fund any deal, although actually I would be hopeful that would not be the case.

The deal has been rumoured to be £130m and at the moment they have
> 80m undrawn on the revolving credit facility (of £110m) - I forgot they used £30m to pay of the loan notes.
> Cash of maybe £20m-£30m (cash at interims plus recent cash flow).

So that needs them needing maybe another £40m or so (probably more for a margin of safety).

I would have thought that's an achievable sum to raise in new borrowing especially if there are reasonable property assets coming with S&N. I'm not an expert in such things though, so I think one can't discount the possibility of needing to issue equity, but hopefully a relatively low risk of that.

kazoom
11/9/2017
10:09
The acqusition makes obvious strategic sense. It will allow them to continue the trick of stripping out costs for longer than otherwise would have been possible. It gives them more time.

Let's hope they don't over-pay grossly as they did for the second tranche of the takeover of Local World. And obviously, they should fund the acquisition with debt!! not shares



In any case, the share buy back campaign has been in my view a waste of money. They should have merely concentrated on paying down debt - and so draw down less new debt to pay off the private placement notes - rather than buybacks and the associated extra pension payments.


Good luck to holders.

cjohn
10/9/2017
17:05
Cheers for that, TNI has next to no debt so could make sense
bc4
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