Watchstone Share Discussion Threads

[rogthepodge] 28/4/2017 22:46

so not much downside, but quite a bit of upside IF any escrow monies are recovered

[henchard] 28/4/2017 22:19

Just for interest I've done some alternative net asset calculations for the last three balance sheet dates. Total liabilities are as per the balance sheets but total assets are: cash, cash in escrow, my valuation of what might be realised from a sale of ptHealth and Ingenie, and zero value for everything else.

SHARES IN ISSUE
Dec 2016: 46,038,333
Jun 2016: 46,038,333
Dec 2015: 45,822,708

CASH
Dec 2016: £81.2m (176p per share)
Jun 2016: £93.8m (204p per share)
Dec 2015: £103.2m (225p per share)

CASH IN ESCROW
Dec 2016: £0 [£50.1m, 109p per share if WTG gets escrow cash]
Jun 2016: £50.1m (109p per share)
Dec 2015: £55m (120p per share)

ptHEALTH
Dec 2016: £28.1m (61p per share) valued at 1 x ttm sales
Jun 2016: £27.2m (59p per share) valued at 1 x H1 2016 annualised sales
Dec 2015: £26.4m (58p per share) valued at 1 x Q1 2016 annualised sales

INGENIE
Dec 2016: £13.9m (30p per share) valued at 1 x ttm sales
Jun 2016: £14.0m (30p per share) valued at 1 x H1 2016 annualised sales
Dec 2015: £14.0m (31p per share) valued at 1 x Q1 2016 annualised sales

TOTAL ASSETS
Dec 2016: £123.2m (267p per share) [£173.3m, 376p per share if WTG gets escrow cash]
Jun 2016: £185.1m (402p per share)
Dec 2015: £198.6m (433p per share)

TOTAL LIABILITIES
Dec 2016: £61.3m (133p per share)
Jun 2016: £72.8m (158p per share)
Dec 2015: £88.1m (192p per share)

NET ASSETS
Dec 2016: £61.9m (134p per share) [£112.0m, 243p per share if WTG gets escrow cash]
Jun 2016: £112.3m (244p per share)
Dec 2015: £110.5m (241p per share)

Current market cap: £68.6m (149p per share)

I'll leave it at that for now and go away and ponder.

[rogthepodge] 28/4/2017 21:56

funky

on tiny volume

don't panic Mr Mainwaring

[lydnem] 28/4/2017 09:38

thats not a bad day for Slaters......numb nuts will be frothing at his gash

[funkmasterp12] 28/4/2017 07:21

Yes, such good news for SGH shareholders that the price... dropped 4% overnight.

[geoffreen] 27/4/2017 20:02

Whilst Watchstone's view as to the lack of merits of the purported claim has not changed, on the basis of the Opinion, we consider it appropriate that a provision for impairment be established in respect of the Warranty Escrow and have determined that the appropriate amount should be to fully impair the Warranty Escrow. This reflects the inherent uncertainty in valuation of the purported claim and is in no way a reflection of the Group's view on ultimate resolution, which is uncertain in both time and quantum (if any).

As yet no proceedings have been brought and the Group will defend such claim robustly if commenced.

[kendonagasaki] 27/4/2017 19:47

That money has long gone!

[rogthepodge] 27/4/2017 18:30

good news for SGH shareholders

no expectation of £50m escrow monies

[kendonagasaki] 27/4/2017 18:00

Its all downhill from here!

[geoffreen] 27/4/2017 15:38

An orderly disposal of remaining assets, WTG's stock market career will be coming to an end.

[bbmsionlypostafter] 27/4/2017 13:48

NIHL. Now there's a surprise.

Said nobody.

Ever.

We remain in active dialogue with S&G on a number of other matters including the performance of the noise induced hearing loss ("NIHL") cases to which deferred consideration is due when, and if, such cases are profitable. To date, no deferred consideration has been paid.

[funkmasterp12] 27/4/2017 13:45

Er, no. As of last Sept:"Operationally, we have some exciting opportunities to create value in our remaining businesses through a more focussed and realistic approach and particularly via organic growth and new product launches. We remain determined to deploy resources and energy to maximise such potential."Not exactly the case now, is it?

[rogthepodge] 27/4/2017 13:33

what is new?

the company made it clear maybe a year ago, or even more, that the value was in selling off the bits

the board was awarded options at the same time to benefit from this, weren't they?

interesting thing will be how much they get for the bits

[funkmasterp12] 27/4/2017 10:54

Well, the business is basically now valued at cash + assets so there's a floor under the share price They've written off the monies due from S&G, which is no surprise.

It now all comes down to whether they can monetize the rabble of businesses they have left. I will say it appears Indro has done a good job in reducing cash bleed, but that doesn't mean the resulting businesses are any good. In fact, you could happily argue he wouldn't be leaving if what was left had any promise.

I can't see the share price going up or down from here - there's obviously now no investment case, but there's only limited downside risk. The only possible Black Swan is the SFO investigation.

Basically the excitement is largely now over until they start selling off the businesses. Let's see who stumps up. Rob Terry himself perhaps?

[kendonagasaki] 27/4/2017 10:21

Results here are shocking.No recovery here....?Much further to fall here too.

[funkmasterp12] 27/4/2017 07:13

Indro's had enough already then! What a sorry state of affairs this is for holders. I don't think Cawkwell will be getting his target, ever.

[rogthepodge] 26/4/2017 17:41

here is some for you ElCap

find something better to do

[lydnem] 26/4/2017 08:02

your numb nuts dont hurt? I guess after the pounding they take after each investment, they get used it!

Here is some advice for you

[rogthepodge] 25/4/2017 23:59

numb nuts don't hurt

idiot!

[lydnem] 25/4/2017 07:30

truth hurts numb nuts!

[lydnem] 24/4/2017 18:35

better way of making money....see what nickynumbnuts aka rogthe podge is buying and short the liver out of it. Guaranteed a winner!

[rogthepodge] 24/4/2017 15:50

" Making money from shares is simple. Well it should be. Buy cheap. Hold. Hold. Hold. Hold and finally sell when the shares have delivered you big gains. Where so many folks go wrong is getting impatient and not being prepared to hold, hold, hold. " TW

note question mark at end of Cawky's post.