Walker Crips Share Discussion Threads

[arthur_lame_stocks] 10/5/2022 12:47

I wonder what the recent market fall has done to AUM at WCW? Could it be that the board have missed a golden opportunity to deliver substantial value to shareholders?

[chrisdgb] 21/4/2022 09:10

Yep bonkers........

[m_kerr] 11/4/2022 22:59

if brewin dolphin was coca cola, this is a lemonade stand. but it's just simple maths - small wealth managers are generally going for somewhere around 1% of AUM. that alone suggests about £40-50m of equity value, but even 0.5% gets you to £25m.

[chrisdgb] 05/4/2022 09:24

Don't forget the key benefit of a steepening yield curve either......

[gbenson1] 04/4/2022 23:12

They have a strong hand and can command top dollar, between the 3 of them they hold almost 45% of the company, the price would have to be north of 85p imho.

[paulboz] 04/4/2022 19:05

Is there any particular reason why the Lim family wouldn't sell if the price was right? I read that the take over price for Brewin Dolphin was 2.8% of AUM, which makes the current share price here look like a fraction of the true price.

[arthur_lame_stocks] 04/4/2022 17:06

I think it's nearer 29%, but I agree unless the Lim's want to sell out it could be a long wait. Nonetheless it yields around 3% at current prices so there is an income whilst we wait.

[gbenson1] 04/4/2022 16:52

This is a difficult takeover target as almost 45% of the company shares are owned by 3 members of the Lin family.

[gbenson1] 04/4/2022 15:41

Nice tick up here, is this the Brewin Dolphin effect?

[chrisdgb] 04/4/2022 10:42

Its how we as private investors can try to apply pressure, I agree anything below 70p per share would be crazy, so we are dealing with massive undervaluation.....

[arthur_lame_stocks] 03/4/2022 08:44

Interesting story on Sky News this morning.



Revitalised NatWest weighs £3bn for wealth management giant

[m_kerr] 02/4/2022 20:40

after tipping brewing dolphin for a takeover a few weeks back, i'm widening my net somewhat.

this has over £5bn AUM, typical takeovers are about 1% of AUM. even 0.5% AUM takes this to about £25m, not including the net cash of over £8m, meaning that at the moment the operating business is only valued at £5m!. remarkable really. remember that with £500k per annum on CEO, CFO and BOD pay, taking them over means over time you can get rid of those and drop those savings to the bottom line.

would a takeover be blocked by management more concerned about their jobs? seems not as the CEO Mr Lam only owns £200k worth, although the LIMs own about 30% so it would require their approval.

fair to say that i can't see any privately held wealth manager with £8m in the bank and £5bn+ AUM going for £5m in a private sale. risk seems heavily skewed to the upside here, although it's never a good idea to buy purely on the basis of a takeover. remember that brewin dolphin was yielding over 5% before the takeover, and had a long and unblemished track record of growth.

[value hound] 31/3/2022 19:50

There's a bit of a profile both on our majority shareholder and the company here;

hxxps://gb.wallmine.com/lse/wcw/officer/2026256/hua-min-lim - surely they'd settle for a knockout blow at, say, 70p? Obviously, based on today's Brewin Dolphin news, it's worth more, but still...that would be a similar % premium to AVS in November 2016

[arthur_lame_stocks] 31/3/2022 19:15

Come on Mr LIm, sell the damn company!

[chrisdgb] 31/3/2022 10:47

Agreed, it is an exceptional opportunity...

[chrisdgb] 31/3/2022 07:57

So do I......if you just put it on the same valuation as Brewin Dolphin offer today, it takes you north of 200p...........that is the level of under valuation we are dealing with here...!!

[arthur_lame_stocks] 26/3/2022 13:18

I also want more!

[value hound] 26/3/2022 13:12

If some bigger fund manager was to put investors out of their misery, here, at 50p, it would be an absolute steal. The problem is that Mr. Hua Min Lim would want more I imagine.

[chrisdgb] 16/3/2022 15:35

First bit of buying for a while......

[chrisdgb] 09/2/2022 15:48

Indeed a real beneficiary from the higher rates and I still think the management should take advantage of favourable conditions and sell the business.........

[gbenson1] 03/2/2022 13:51

Another 0.25 increase in interest rates, every little helps!

[chrisdgb] 20/1/2022 11:32

One of the beneficiaries of those rising interest rates........

[chrisdgb] 29/12/2021 10:28

Good luck to all holders in 2022, let us hope the Directors finally see the best value for shareholders will be created in a takeover............

[km18] 17/12/2021 11:30

Company name: Walker Crips– WCW
Industry – Financials– Capital Markets
Recommendation: Hold/Buy
The financial sector is segmented into lending and payments, insurance, investments, and foreign exchange services. These categories encompass lenders, borrowers, and financial institutions offering financial advisory services, comprising mergers and acquisitions, strategic valuations, capital raising, asset-based lending and restructuring debt solutions. As a result, capital markets are becoming essential to financing infrastructure, providing liquidity and boosting returns while mitigating unforeseeable risks. Consequently, it implies that sound and financial systems underpin concise economic growth and promote development across countries. This supporting evidence is illustrated by a robust market size of $22.5 trillion in 2021, signifying that corporations are simultaneously rearranging its operations to recover from the impact of the pandemic.
Industry Key facts:
The Global financial services market is expected to reach $28.5 trillion by 2025 at a CAGR of 6%.
Company overview:
Walker Crips is specialized in delivering investment services to individuals, businesses, and intermediaries. The firm is segmented into three categories: investment management, wealth management and software services. Consequently, it implies that the company offers portfolio model and bespoke discretionary services, and advisory services; investment management services; alternative investment solutions; and structured investments products. It also provides advice on a range of financial issues, such as life assurance, pre-retirement planning, at-retirement advice, savings plans, tax efficient management of investments, and estate planning. The plausible advisory implemented was effectively incorporated into their financial prospects since profit rallied to £44m from (£366) loss, and simultaneously net cash was forced up to £8,376m from £7807m. As a result, Walker Crips derived an attractive P/FCF ratio of 10.2, higher than the financial services P/FCF ratio of 5.3, which in turn signifies that Walker Crips allocated its funds more efficiently to finance its operating and investing activities.



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