Watchstone Share Discussion Threads

[andy] 11/5/2017 08:01

Watchstone Group plc



("Watchstone" or the "Group")



Prospective claim by Slater and Gordon



Further to its announcement on 30 November 2016, Watchstone Group plc (LON:WTG) has now received further correspondence from a firm of solicitors acting for Slater and Gordon Limited (ASX: SGH) ("SGH") stating that it intends to issue proceedings by the end of this month. Its letter states that SGH intends to make a claim for a total amount of approximately £600m on the basis that but for fraudulent misrepresentation it would not have entered into the transaction at all.



A groundless claim for fraudulent misrepresentation was dismissed by the independent barrister in respect of the warranty escrow process relating to the sale of the Professional Services Division in November 2016 ("Opinion"). The Opinion, which was formed on the basis of evidence provided by both SGH and Watchstone, stated that a misrepresentation claim was not a bona fide claim with a better than 50 per cent prospect of success.



Watchstone denies any misrepresentation in the strongest terms and remains satisfied that neither the warranty claim nor a misrepresentation claim have merit and will defend such claims robustly if proceedings are brought.



Despite multiple requests, SGH has continuously declined to disclose key evidence in its possession which would be relevant to the merits and quantum of its purported claims. Watchstone believes this evidence will be available to it in the event that SGH issues proceedings and it intends to seek disclosure of such information at the earliest possible opportunity.

[lydnem] 11/5/2017 08:00

If they did an index on your IQ, I would short that

[rogthepodge] 11/5/2017 00:14

what are you going to short next Lydnem?

we are all ears

Rightmove by the sound of it

LOL

[lydnem] 10/5/2017 17:10

No, I told you I didnt on the law of averages.

Even a monkey throwing darts at the FT will pick a winner at some stage, and you were way overdue.

What are you going to throw darts at next?

[lydnem] 10/5/2017 08:55

numb nuts....you seem to have got one right....if you did buy purple bricks. Incredible!! Quick take your "profit" (you may need to google the definition of this word)

[rogthepodge] 05/5/2017 16:23

good afternoon troll(s)

[bbmsionlypostafter] 05/5/2017 15:52

Mugs will be mugs.

[lydnem] 05/5/2017 14:03

Maybe numb nuts

[rogthepodge] 05/5/2017 13:48

let us know when you go short PURP won't you, Lydnem/ElCap?

[technowiz] 05/5/2017 12:46

Indro Mukerjee lands £1 million-plus pay package



words fail me.

[lydnem] 05/5/2017 11:18

not short yet numb nuts. Im going on the basis that even a monkey could throw darts at the FT and get the odd one right. You, being as intelligent as a monkey with darts, are due one right on the law of averages, as you have got everything else wrong!

[rogthepodge] 02/5/2017 17:11

concentration spain LOL

[lydnem] 02/5/2017 16:29

It doesnt take long, numb nuts! seconds...like your concentration span

[rogthepodge] 02/5/2017 16:07

ElCap

I am guessing that you are really very bored in Spain, to troll and obsess about me like this

[lydnem] 02/5/2017 14:27

Given the recent high was 352....i am guessing that is when you bought PURP.

[lydnem] 01/5/2017 14:38

Im sure you are not going to admit it after buying SGH at AUD8 and QPP at 600

[rogthepodge] 01/5/2017 14:29

incorrect, ElCap

as per

[lydnem] 01/5/2017 06:41

I presume you bought before the recent falls?

[rogthepodge] 01/5/2017 00:08

PURP

hope you make lots shorting it, ElCap/Lydnem

[lydnem] 29/4/2017 10:55

numb nuts. Are you buying anything at the moment.....im looking for a good short, and you longs are nailed on short

[henchard] 29/4/2017 00:16

Worst case scenario starting from net assets of £126m (including escrow cash):
WTG doesn't get the escrow cash - NAV down to £75.9m.
Your Legal Friend indicative initial £9.4m compensation claim (rumoured to be a quarter of total claims) all successful - NAV down to £38.3m.
Serious Fraud Office takes the rest in fines - NAV down to £0 (0p per share)

Best case scenario starting from net assets of £75.9m (excluding escrow cash):
WTG gets the escrow cash - NAV up to £126m.
Your Legal Friend doesn't pursue claims or all claims fail - NAV £126m.
Rob Terry is jailed and has his assets confiscated as a result of the SFO investigation but there's no financial penalty for WTG - NAV £126m
Ingenie and Healthcare Services sold at 2 x sales - NAV £159.6m (347p per share).

Or somewhere in between :)

[henchard] 28/4/2017 23:33

Looking at the results, I think the valuations of Ingenie and ptHealth (which is actually now 'Healthcare Services' consisting of ptHealth and InnoCare) can be ugraded.

The results give Q1 revenue numbers, so I'll annualise those.

The results also state that "Ingenie is now profitable and generating cash" and that despite required investment in InnoCare's products and associated marketing, "we still expect [Healthcare Services] to be profitable and cash generative in 2017." As Q1 sales have shown decent growth and as Ingenie is now generating cash and Healthcare Services is on the brink, I think a valuation of 1.25 times sales is now merited.

Revisions to earlier valuations below (in bold)

ptHEALTH
Dec 2016: £36.5m (79p per share) valued at 1.25 Q1 2017 annualised sales
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: £19.5m (42p per share) valued at 1.25 Q1 2017 annualised sales
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

Leading to revised NET ASSETS of
Dec 2016: £75.9m (165p per share) [£126.0m, 274p per share if WTG gets escrow cash]
Dec 2016: £61.9m (134p per share) [£112.0m, 243p per share if WTG gets escrow cash]