Zegona Communications Share Discussion Threads

[cerrito] 28/6/2020 16:41

As per Zegona AR, on May 13th 2020 Canaccord had 9.7% When I saw the increase in the share price I thought it must reflect an increase in the EUS share price but that finished the week stable at E7.91. Interesting that a couple of days ago FT had a long interview with CEO of Telefonica discussing consolidation of European telco industry.

[oapknob1] 26/6/2020 23:00

CANACCORD GENUITY GROUP INC doubled their holding ?

[dekle] 24/6/2020 11:02

I wonder if there are some institutions lined up to sell their holdings. Marwyn have been buying back their shares and that's lifted the price.

[oapknob1] 24/6/2020 08:24

Share by back announced.

[cerrito] 18/6/2020 23:18

I note the useful increase in the Zeg price over the last week or so. I see that EUS has also firmed and while down a bit today still ended up at E7.9 I see that an offer reported on June 1 for masmovil- the fourth largest Telco in Spain and hence I guess bigger than EUS- at a premium of 20% over the final closing price may have got people excited; the press also speculates about the possibility of a tie up between masmovil and EUS. Remember that EUS have two local banks on their register each with 20% and according to press reports are looking to exit over the long term.

[mach100] 09/6/2020 21:45

Cerrito, am I right in thinking there will be divis of around 17p in July? 13 or 14p from Euskatel and its own 2.6p divi. Quiet a good yield and might explain why the share price is getting soem legs in the last few days.

[cerrito] 09/6/2020 19:23

Dekle, you are right about the pay of both O’Hare and Samuelson and that is even before their fees from Euskaltel. Indeed the NED’s look after themselves well given it is not the most complicated company. You are right at the amount of shares held by institutional investors who had 81% of the shares in May and which explains the wide bid off spread. I see the investor with the largest holding is Marwyn and I do not see them as leading the charge to reduce exec remuneration. I also see that they no longer have a seat on Zeg’s board. All this helps explain the discount that these sharers trade to NAV, I have not read these very well having bought in January at 109ish. I had these in 16/17 and did well selling at 200+and it would be nice to think that Zeg will get up there again but do not see a catalyst for them to do so. Those who bought in the mid 80’s a few weeks back will not regret it..

[mach100] 09/6/2020 16:42

Well Dekle they pass on 100% of the dividend they recieve from Euskatel so they can;t be called greedy. And if they deliver on their promises shareholders won't mind about the pay so much. Furthermore there are large institutional holders who must have some sway on remuneration. The share price is growing strongly in the last fews days. Is it sending a strong signal to the market?

[dekle] 09/6/2020 16:29

I hadn't realised the level of executive pay. Seems excessive to me

[skyship] 02/6/2020 08:10

Chart breakout - been quite a common pattern recently.

[hugepants] 01/6/2020 22:20

Euskaltel up 10% today for some reason https://www.hl.co.uk/shares/shares-search-results/e/euskaltel-sa-npv

[cerrito] 14/5/2020 15:00

I had a canter through there results. Good that they will be passing through all the Euskaltel dividends. I did not get the impression that any other deals are imminent and of course their current financial fire power is limited - which in some ways is as it should be given one would not want them to have a lot of cash hanging around. I was surprised to see that they had a borrowing facility with Virgin as that seemed rather desperate but relieved to see that it had expired unused. Incidentally as a Virgin user here in the UK my sense is it is getting expensive and service is detiorating and let's hope people in Spain do not think that. The key is that we have an Euskaltel investment valued at E341m and the corporate costs were E5.7m in 2019 of which personnel costs were E4.3m. The corporate cost figure was up from E3.9m in 2018 due to bonuses. Just as well that it trades at a discount to NAV On May 13 they calculate NAV at £1.14 down from £1.37 at year end- largely due to a fall in the value of the EUS shares from E341m to E272m. At current time and prices see no reason to buy or sell.

[cerrito] 23/4/2020 09:19

Eus share p[rice up 1.5% to E6.59 post results. May buy more ZEG shares..would help if there was more liquidity.

[cerrito] 22/4/2020 19:11

dividend. hxxps://www.euskaltel.com/webektest/GaleriaCorporativo/Documentos/hechos_relevantes/2020/resultados-1t2019-en.pdf Q1 results presentation released today I think after market close. They maintain 2020 guidance and 2019 dividend payment. My quick read is that nothing here to materially move the EUS share price either way. They have a conference call tomorrow 12 noon London time..not sure if I will make it.

[cerrito] 13/4/2020 22:41

In my view good for all concerned that Invesco are exiting as per their RNS of the 8th going down from 7.3% to 3.1%. On March 30 Euskaltel issued an update and said quote To date, the company has not experienced any significant impact on its main financial metrics. The company continues to monitor financial trends in order to ascertain any business impacts. unquote They are publishing their first quarter results next Wednesday with a conference call on Thursday. Be interesting to see how widespread in Spain the cutting of dividends is. Their net debt;ebitda of 4.3x suggests they may want to count their pennies.Their March 30 trading update indicated as one would expect the home market which is 5x the revenue of b2b going very well and b2b very badly but need to wait till next week how that is all reflected in the bottom line. Their share price remains at E7. I do not see myself doing anything till we get Q1 figures.

[the ghost who walks] 06/4/2020 21:46

Is this on a discount to the investment in eusaketil? 180mln mkt cap. Stake in the Spanish thing is about the same? No other assets?

[cerrito] 29/3/2020 22:01

There are several other similar links to a twitter handle but they never seem to have any relevance to the company in question.

[dekle] 29/3/2020 14:15

What are they saying? I don’t tweet

[cerrito] 28/3/2020 17:44

I had rather a delayed run through here. I see that the EUS share price has recovered from a low of E6 a couple of weeks back to E7 as of yesterday#s close. This gives EUS a marcap of E1248m and Zeg’s 21% share to be worth E262m or E235m. If you say that ZEG has £25m of other net assets that gives total assets if ZEG of £260m or £1.18 per share. EUS had a decent 2019 performance and paid in February the same interim dividend that it had done the year before. Makes sense to me that ZEG does share buy backs given the discount to NAV but do not see myself as buying more-and no desire to sell. Feel free to check my maths

[quiggers3112] 14/2/2020 22:40

Looks attractive due to the NAVPS but to invest in ZEG means looking in detail at EUS. The B/S looks decidedly uninteresting from a balance sheet valuation. Too risky for my liking without a detailed analysis. Is EUR 8.37 fair value? I have no idea!

[cerrito] 14/2/2020 22:05

The E303.5m would be the then market value of the EUS shares that ZEG held at the time. Given that Zeg was announcing purchases as recently as the day before yesterday and has plenty of headroom no idea why the price fell this afternoon.

[quiggers3112] 13/2/2020 22:16

ZEG B/S 30/6/19 88% of net assets are EUS investment valued at EUR 303.5m. EUS B/S q319 shows neg. equity of EUR -337.3m when intangibles are stripped out. Why would anyone invest in that? I`m clearly missing something... How has that 303m valuation been calculated? Anyone. Q

[cerrito] 31/1/2020 11:59

Thanks for that Tiltonboy. Incidentally I thought that the IR pages on the EUS website very good.