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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Turbotec Unres | TRBO | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 12.00 | 00:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 12.00 | 12.00 |
| Top Posts |
|---|
Posted at 24/3/2013 11:25 by charlie Sharesoc advises members to vote against the delistingPosted by ShareSoc at 09:19, March 24 2013. Turbotec Products delisting Turbotec Products (TRBO) is an AIM listed manufacturer of heat exchangers, mainly for residential heating systems, air conditioning, and domestic swimming pools. The company has factories in Connecticut and North Carolina, and the majority of the directors are based in the US. Activity is dependent on US house-building, so business has been tough in recent years. Turbotec has nevertheless been profitable in every year since listing in 2006, although profits fell substantially last year. The latest accounts to 31 March 2012 show earnings of only 1c, but tangible assets of around 90c (60p per share). Prior to the announcement of the delisting proposal, the share price had been static at around 20p for the past six months. After the announcement on the 22nd March the share price halved within minutes. The announcement does not outline any strategy for future returns to shareholders by way of dividend or trade sale of the company. Nor does it offer any reassurance about future governance arrangements. The reasons given for delisting are that: - there is limited liquidity in the shares; - the company's market capitalisation has become disassociated from its inherent value; - a stagnant or falling share price has a demotivating effect on the business and its employees and a potentially adverse effect on customer and supplier perception. None of these reasons seems compelling to minority shareholders in a business which has been resilient through the recession, and is now expected to recover towards its former profit levels in line with the resurgence of US house-building. The company states in the delisting announcement that a key point "is the lack of demand for its shares and, in practical terms, a small free float, which further reduces demand. Given the lack of liquidity in the shares, in practice minority shareholders have not been able easily to trade their shares". It is certainly true that recently there has been poor liquidity with no trading on many days. However that is true of many AIM company shares. Turbotec's parent company prior to Admission to AIM in 2006 was the US-based Thermodynetics Inc, which retains a 13% shareholding. The two other largest shareholders are non-executive director Joseph DeSana (24%) and Execuzen Ltd a company controlled by Adrian Ezra (18%). Both these shareholders appear to have acquired the majority of their shareholdings from Thermodynetics in April 2010. According to the 2012 accounts, L'Espoire Trust has a 6% shareholding. No other current shareholdings above 3% have been disclosed. This leaves around 40% of the shares held by smaller shareholders. A particularly unattractive feature of the proposed delisting is the possible conversion at a very low price of a recent convertible loan of $200,000 from major shareholder Execuzen Ltd. The loan was made in January 2013, only two months before the delisting proposal. The terms of the loan provide for conversion into shares at 0.25p above the average share price on AIM in the 5 business days prior to conversion. Following the delisting announcement - which has predictably halved the share price as shareholders who cannot or will not hold unlisted shares rush for the exit - Execuzen now appears able to convert its loan at an artificially low price. The terms of the loan were agreed as fair and reasonable for shareholders by the independent directors in late January, after consultation with the Nominated Adviser Seymour Pierce (now Cantor Fitzgerald). Some Sharesoc members who hold shares in the company do not agree that it is fair and reasonable to set loan conversion terms referenced to the share price on AIM, shortly followed by a delisting proposal which predictably halves the share price on AIM. Shareholder Guy Thomas said: "There are two aspects of this delisting proposal which are particularly galling for shareholders. First, Turbotec is a consistently profitable company with no immediate financial distress which necessitates delisting. Second, the convertible loan issued at a time when delisting was probably already under consideration will dilute shareholders at a very low price." This case highlights that investors on AIM face not only the trading risks inherent in a company's business, but also governance risks arising from the ability of profitable companies to delist at the whim of directors and a handful of major shareholders. ShareSoc advises shareholders in Turbotec to vote against the delisting. |
Posted at 05/10/2010 16:18 by playful Turbotec is a highly profitable little business, with reasonable margins even during a tough 2010 (note that it had legal costs of 750 this year due to a dispute with its former owner, so FY profit would have been a healthier ~1100). And its growing - sales in 2003 were 11,200, growth of 8% per year. The best part of this is the valuation, 3.4x peak earnings or 6x adjusted 2010 earnings. Returns on capital employed have been lower over the last few years due to the cash held on the balance sheet, but the company has recently moved its manufacturing to a low cost region of the US, which should see all that spare cash spent. The company plans to resume its dividend at some point in the next year, which I think will provide investors with a 12% yield under quite conservative assumptions. I have been busy buying, anyone else see the value? |
Posted at 20/10/2009 14:12 by investinggarden Avoid recommendation from Growth Company Investor |
Posted at 01/6/2009 15:27 by ponderer spoke to some investors who simply struggled to sell anything at a loss and held onto losers in the hope that "They will go back up sometime.."One chap had bought RBOS at 400p, 300p, and 200p and now said it was a "Long-term investment". As we older traders know.. long-term investments are short-term investments gone wrong! If he's had say a 10% stop loss he'd have been out of the first trade at 360p. My personal view is that stop losses for investors in this market are very important - otherwise capital disappears. A lot of brokers are now offering "trailing stop losses". I think these are a good idea because they rise behind the share price and so also lock in profits. |
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