58 replies to this topic

[SoleTrader]

Okay results given market conditions. At a 4.5% DY most likely cheap. Will be a seller at a DY of 3.5%. Concerning that 60% of their funds exposed for a weakening ZAR. Big call, very wrong. Also heard that their massive bet in SUI hurting bigtime. Are the PMs and analysts purely punters? Also their Astoria stock selection underperforming the SP500 by 9% in 2016.

[SoleTrader]

Armitage and his poor Anchor team aint smiling!!! Bought my next 25% at 600c.  On a 5% DY at these levels, showing some value

[SoleTrader]

Ouch, eina, hurting! The market giveth and the market taketh away.  Looks like a decent point to start buying some.  Took 50% of what i want at 670c

[DividendTycoon]

thought it was an odd share for you.

 

If you looking for ideas - have you looked at Afrimat? And worth a peak - MMG.

You right Mr Div, but occassionally I take a punt if I sense there is some mispricing and I understand the share. Glad I got out in time with a small profit, but find the current share price a bit strange, I did see someone wrote that there is a large seller around, so that might explain. 

 

I have not really looked hard at either of those, I generally stay within my circle of competence and construction/mining and technology are two areas I do not have an edge. However, I have been buying some Balwin (which is sort of construction but is residential) and Trellidor recently as think they have potential and quality that not appreciated. Would perhaps wait till after SONA though, especially on Balwin. Trellidor already up a lot but could be more to come, in my opinion only..

[MrDividend]

Am out at R7.70, not worth the risk to me, thought trading statement would be a lot better. Still have a few from the early days so have an option if price rises, still think there some potential, but not a big fan of asset managers as I think business model under threat.

 

thought it was an odd share for you.

 

If you looking for ideas - have you looked at Afrimat? And worth a peak - MMG.

[Queen B]

Yeah I'm taking a beating with this one.

When Coronation started dropping like a hit potato, a friend of mine suggested selling which I did,

The best alternatives were Peregrine and Anchor - I stupidly opted for Anchor

Im 38% down as of this afternoon. I think its time I bite the bullet, sell and run for the hills

[DividendTycoon]

Just bought some around R7.50, might be a lift when they finally release results or trading statement. Or it tanks, but assets are fairly sticky with these asset managers. Not a recommendation - could drop a lot more.

Am out at R7.70, not worth the risk to me, thought trading statement would be a lot better. Still have a few from the early days so have an option if price rises, still think there some potential, but not a big fan of asset managers as I think business model under threat.

[DividendTycoon]

Down to 770c. TG I missed this bullet. Feel for the dudes that got stock in the private placement at 200c and forgot to sell at 1800c. Actually, I dont, 

Just bought some around R7.50, might be a lift when they finally release results or trading statement. Or it tanks, but assets are fairly sticky with these asset managers. Not a recommendation - could drop a lot more.

[SoleTrader]

Down to 770c. TG I missed this bullet. Feel for the dudes that got stock in the private placement at 200c and forgot to sell at 1800c. Actually, I dont, 

[SoleTrader]

From hero to absolute zero. But I suppose that's what happens when you ramp your own share using investors funds in a unit trust, and you become a forced seller as investors start withdrawing their funds. Poor fiduciary duty and custodian of other people's investments by the anchor fund management team. Now a quality brand like Coronation never owned 1 of their own shares in their unit trusts. That's the difference between pedigree and crap.

[Trader1]

Looking interesting at these levels, maybe a small nibble. Rumour has it that their funds are positioned for a weakening Rand, call went against them big time.

TOR results out today. We know that they are going to be low but the comments should show some insight as well as the conference call on Friday.

[SoleTrader]

Looking interesting at these levels, maybe a small nibble. Rumour has it that their funds are positioned for a weakening Rand, call went against them big time.

[Mr_SA]

Have a look at Directors Dealings. They have been offloading shares en masse since September.

 

And for them, if they got in on IPO, then whatever they sell for, they making great money.

[Shortboy]

Down just about 11% today... What is going on????

Have a look at Directors Dealings. They have been offloading shares en masse since September.

[The Stig]

Down just about 11% today... What is going on????

Think there is a big seller struggling to find buyers. Small cap with low volumes. If you have it you might want to bite your teeth because losses should be temporary.

Edited by The Stig, 21 January 2016 - 09:06 AM.

[Mr_SA]

Down just about 11% today... What is going on????

[Queen B]

ANNOUNCEMENT RELATING TO THE ACQUISITION OF 47.41% OF THE ISSUED SHARE
CAPITAL OF CAPRICORN FUND MANAGERS PROPRIETARY LIMITED (“CFM SOUTH
AFRICA”) AND CFM MALTA LIMITED (“CFM MALTA”) AND WITHDRAWAL OF
CAUTIONARY ANNOUNCEMENT

1.   INTRODUCTION AND RATIONALE
     1.1   Further to the renewal of the cautionary announcement published on
           30 September 2015, shareholders are advised that Anchor is at an
           advanced stage of negotiations, having agreed the commercial terms
           for the acquisition of 47.41% of the issued share capital of CFM South
           Africa and 47.41% of the issued share capital of CFM Malta (together
           “CFM Group”), with the representatives of the ultimate shareholders,
           namely CCFM Limited, The Capricorn Fund Managers Executive Trust,
           CV Cinque Limited, CV5 Limited, CFM Founders Limited and Capricorn
           Holdings International Limited (collectively “the Sellers”), further details
           of which are set out below (“the Acquisition”). The Sellers are not
           related parties to Anchor.
     1.2   The Acquisition is earnings enhancing for Anchor and is in line with its
           strategy of acquisitions of quality and successful businesses of similar
           culture in order to attract key talent to Anchor, whilst at the same time
           being able to offer clients new local and offshore product offerings
           with outstanding past performance records.

2.   DESCRIPTION OF THE CFM GROUP
     2.1    CFM is a leading global emerging markets hedge fund business, with
            over R6 billion (US$450 million) of assets under management (“AUM”).
            CFM was one of the pioneers of the South African hedge fund industry
            and has been active in managing hedge funds since 2003 with the
            launch of the Hollard Stable Strategy in South Africa. CFM established
            an office in London in 2008 which coincided with the launch of the
            global emerging market fund, Capricorn GEM Fund LP/Inc (recently
            launched on the Lyxor UCITS platform). This Fund now represents more
            than half the AUM of the CFM Group, has an excellent track record
            and recently won the HFM Award for the best five year track record in
            Europe for a fund under US$500 million. The compound return of the
            fund since inception is 11.9% per annum in US$.
     2.2    In addition to the Hollard Stable Strategy and the Capricorn Gem
            Fund, the CFM Group manages a South African Market Neutral
            Strategy with over R200 million AUM and a CAGR of 16.5% since
            launch, as well as the Capricorn Performer Fund (a South African long
            short equity hedge fund), which includes a Cayman USD class, with
            over R500 million AUM and a CAGR of 29% since launch.
     2.3    CFM focuses on identifying transformative companies which fit into its
            country themes, based on experiences in South Africa. CFM covers
            and invests in companies situated in, among others, South America,
            Malaysia, Russia, Turkey, Indonesia, India, Mexico and the Philippines.

3.   TERMS OF THE ACQUISITION
     3.1   The effective date of the acquisition is 1 February 2016 or alternatively
           the date on which the last condition precedent is fulfilled (“the
           effective Date”).
     3.2   The purchase consideration payable by Anchor to the sellers is an
           amount of R348.4 million (“the purchase consideration”).
     3.3   The purchase consideration will be reduced by Anchor’s pro-rata share
           of profit after tax for the period 1 July 2015 to 1 February 2016, or
           alternatively the effective date.
     3.4   The aggregate purchase consideration will be settled on the effective
           date as follows:
           3.4.1 R256 million in cash from existing Anchor resources; and
           3.4.2 the balance of R92.4 million through the issue of 7 698 782
                  Anchor shares at R12.00 per share to the Sellers (the “Anchor
                  shares”).
     3.5   There is provision for a price adjustment which will take into account
           various factors over a period of 24 months until 30 June 2017, which has
           been derived and agreed upon, subject to:
           3.5.1 a maximum additional payment in cash of R59.6 million may be
                  made to the sellers; alternatively
           3.5.2 a maximum amount of R34.2 million to be recovered by Anchor.
     3.6   The managers have committed to reinvest a significant portion of the
           cash proceeds back into CFM funds for a period of two years,
           receiving both the upside and downside of the funds’ performance.
     3.7   The Sellers will cede and pledge certain, or a portion of, the Anchor
           shares as security for their warranties and performance in terms of the
           agreement.
     3.8   The agreement will provide for warranties and indemnities that are
           normal for an acquisition of this nature.

4.   CONDITIONS PRECEDENT
     4.1  The agreement will be subject to the fulfilment or waiver, as the case
          may be, of the following conditions precedent, inter alia:
          4.1.1 the completion of a restructuring of the CFM Group;
          4.1.2 Anchor and the Sellers obtaining all JSE and other regulatory
                approval as may be required for the implementation of the
                acquisition; to the extent that such approvals are necessary,
                including, but not limited to, the unconditional approval of:-
                4.1.2.1    the South African Competition Authorities;
                4.1.2.2    Take-Over Regulation Panel;
                    4.1.2.3    the Exchange Control Department of the South
                               African Reserve Bank;
                    4.1.2.4    the Financial Services Board; and
                    4.1.2.5    the Financial Conduct Authority of the United
                               Kingdom.
            4.1.3   the Board of Directors, as the case may be, of Anchor and the
                    CFM Group passing all such resolutions as are required for the
                    implementation of the acquisition;
            4.1.4   the shareholders of each of the Sellers approving and passing
                    all such resolutions as are required for the implementation of the
                    acquisition;
            4.1.5   addendums to the employment agreements being concluded
                    with certain key executives of the CFM Group;
            4.1.6   Anchor acknowledging completion of the due diligence
                    investigation to its satisfaction;
            4.1.7   the parties concluding various transaction documents, which
                    shall include, inter alia:
                    4.1.7.1    Shareholder agreement; and
                    4.1.7.2    Memorandum of Incorporation.
            4.1.8   no material adverse change in relation to the restructuring of
                    the CFM Group having occurred between signature date and
                    the effective date.

5.    CATEGORISATION
      The acquisition is a category 2 acquisition in accordance with the JSE Listings
      Requirements and accordingly does not require approval by shareholders.

6.    FINANCIAL INFORMATION
      6.1   Had the acquisition been in effect for the 6 months ended 30 June
            2015, the pro forma effect on Anchor, assuming the payment of the
            purchase consideration on 1 January 2015, would have been:
            6.1.1 to increase Earnings Per Share and Headline Earnings Per Share
                   by 32%; and
            6.1.2 to increase Adjusted Headline Earnings Per Share by 32%.
      6.2   The profit after taxation for the CFM Group for the 12 months ended 30
            June 2015 amounted to R68.6 million.
7.    The tangible net asset value of the business will be determined by the take-on
      balance sheet at 1 February 2016, which will be the minimum regulatory
      capital of approximately R15 million, plus net profit after tax for the period
      commencing 1 July 2015 to the Effective Date, less any dividends declared.

8.    WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
      The cautionary announcement is hereby withdrawn.
      Further   detail   regarding    the    acquisition            is   included   on
      www.anchorgroup.co.za.

 

[SoleTrader]

Do I go short or long this stock? Maybe short ACG and long CML or KST

[SoleTrader]

The Anchor boys ducking and diving the get rid of the association with Clarus AM.  But interesting the FSB website lists one Peter Armitage as a representative for Clarus.