17 replies to this topic

[Bullhunter]

Insimbi is to embark on a programme to repurchase a maximum of 3 million shares over a period closing at the end of May.

 

It will be interesting to see how this buy back will impact on the share price since very few shares trade on a daily basis.

[Spree]

Should Steinhoff not be buying back their shares now below R20 (just a few weeks back they did a buyback at about R60!)??

Or, are they too busy fighting for survival to worry about this?

[Bullhunter]

                                                                 Closing

                                                                   Price          Months after announcement(growth since Day 1)

Share          Date of announcement           Day 1         6 months       12 months       18 months       24 months      

 

MUR¹                  03/11/2016                       9.38            13.11(40%)         

 

ART²                 30/08/2017                         4.65

 

SNH³                24/10/2017                        61.40        

 

CTA⁴                    15/11/2017                          0.75

 

AW⁵                   21/11/2017                       18.14

 

GPI⁶                14/09/2017                        3.52

 

1. R250 million. The shares repurchased as a result of the Share Repurchase will not be cancelled and will be retained as

treasury shares. Those shares repurchased and held in treasury will not have any voting rights.

 

2. 20% of the issued ordinary share capital of Argent. The ordinary shares repurchased will be de-listed and cancelled.

 

3. The company repurchased 78 383 178 (R4.8 billion) Steinhoff shares, representing 1.8% of its issued share capital. The Shares acquired by the Company (or held by subsidiaries of the Company) will be treated as treasury shares and accordingly reduced the number of voting interests.

Share prices not mentioned so closing price on 24/10/2017 is used. 

 

4. 25 million shares at an average cost of 75 cents per share .

 

5. 8 264 654 ordinary shares representing 4.96% of the Company's issued share capital (excluding treasury shares)were cancelled. Total value of shares repurchased: R161 068 541. Following the repurchase, the extent of the general authority to repurchase shares outstanding is 25 081 860 ordinary shares, representing 15.04% of the total issued share capital of Alviva.

 

6. 15.0 million shares. These shares were subsequently cancelled.

[Bullhunter]

                                                                  Closing

                                                                   Price          Months after announcement(growth since Day 1)

Share          Date of announcement           Day 1         6 months       12 months       18 months       24 months      

 

MUR¹                  03/11/2016                       9.38            13.11(40%)         

 

ART²                 30/08/2017                         4.65

 

SNH³                24/10/2017                        61.40        

 

CTA⁴                    15/11/2017                          0.75

 

AW⁵                   21/11/2017                       18.14

 

1. R250 million. The shares repurchased as a result of the Share Repurchase will not be cancelled and will be retained as

treasury shares. Those shares repurchased and held in treasury will not have any voting rights.

 

2. 20% of the issued ordinary share capital of Argent. The ordinary shares repurchased will be de-listed and cancelled.

 

3. The company repurchased 78 383 178 (R4.8 billion) Steinhoff shares, representing 1.8% of its issued share capital. The Shares acquired by the Company (or held by subsidiaries of the Company) will be treated as treasury shares and accordingly reduced the number of voting interests.

Share prices not mentioned so closing price on 24/10/2017 is used. 

 

4. 25 million shares at an average cost of 75 cents per share .

 

5. 8 264 654 ordinary shares representing 4.96% of the Company's issued share capital (excluding treasury shares)were cancelled. Total value of shares repurchased: R161 068 541. Following the repurchase, the extent of the general authority to repurchase shares outstanding is 25 081 860 ordinary shares, representing 15.04% of the total issued share capital of Alviva.

 

 

 

Edited by Bullhunter, 23 November 2017 - 12:40 PM.

[Bullhunter]

                                                                  Price (close), months after announcement, growth since month 0

Share          Date of announcement           month 0         6 months       12 months       18 months       24 months      

 

MUR¹                  03/11/2016                       9.38            13.11(40%)         

 

ART²                 30/08/2017                         4.65

 

SNH³                24/10/2017                        61.40        

 

CTA⁴                    15/11/2017                          0.75

 

1. R250 million. The shares repurchased as a result of the Share Repurchase will not be cancelled and will be retained as

treasury shares. Those shares repurchased and held in treasury will not have any voting rights.

 

2. 20% of the issued ordinary share capital of Argent. The ordinary shares repurchased will be de-listed and cancelled.

 

3. The company repurchased 78 383 178 (R4.8 billion) Steinhoff shares, representing 1.8% of its issued share capital. The Shares acquired by the Company (or held by subsidiaries of the Company) will be treated as treasury shares and accordingly reduced the number of voting interests.

Share prices not mentioned so closing price on 24/10/2017 is used. 

 

4. 25 million shares at an average cost of 75 cents per share        

 

Edited by Bullhunter, 15 November 2017 - 01:15 PM.

[Bullhunter]

Allan Gray still hold almost 15%, even after having reduced their stake recently. This from SENS on 30/10/2017;

"Allan Gray Proprietary Limited acting on behalf of its clients
(“Allan Gray”) have, in aggregate, disposed of an interest in
the securities of the Company, such that the total interest in
the securities of the Company held by the clients of Allan
Gray amounts to 14.955% of the total issued share capital of
the Company."


Allan Gray could very well push for some value unlock (they probably see value in some of the underlying businesses). It may be worth riding on their tailcoats!

In regard to Argent's NAV, do you think that it could be overstated? Post the March'17 results, they have impaired some businesses. Yet, even at half the NAV,it stll trading at a significant discount. Do you know what percentage of NAV is made up of Cash??

Also, I think that they do have a good dividend paying history, if memory serves.

Finally, let's not forget the share buybacks!

 Allan Gray's lower stake is in all likelihood due to a sale to Milkwood 

[Spree]

Just to add on ARGENT, whilst the trading statement was not good, and a significant drop in heps is expected, they seem to be restructuring and repositioning the company (as mentioned by Bullhunter!) to weather the current economic downturn, and to generate good earnings going forward (at least, I hope so!!)

Also, their expansion in the UK, should add some rand hedge quality. And with Allan Gray in their corner, this is certainly one to watch!

What do you guys think??

[Spree]

From what I know Milkwood is a value investor, who probably just see value due to NAV being higher than price. I know they were invested in Gooderson at same time as me, and that worked out well. Personally not sure on this one, so many other great shares trading below NAV that I have not researched extensively yet.

Allan Gray still hold almost 15%, even after having reduced their stake recently. This from SENS on 30/10/2017;

"Allan Gray Proprietary Limited acting on behalf of its clients
(“Allan Gray”) have, in aggregate, disposed of an interest in
the securities of the Company, such that the total interest in
the securities of the Company held by the clients of Allan
Gray amounts to 14.955% of the total issued share capital of
the Company."


Allan Gray could very well push for some value unlock (they probably see value in some of the underlying businesses). It may be worth riding on their tailcoats!

In regard to Argent's NAV, do you think that it could be overstated? Post the March'17 results, they have impaired some businesses. Yet, even at half the NAV,it stll trading at a significant discount. Do you know what percentage of NAV is made up of Cash??

Also, I think that they do have a good dividend paying history, if memory serves.

Finally, let's not forget the share buybacks!

[DividendTycoon]

From what I know Milkwood is a value investor, who probably just see value due to NAV being higher than price. I know they were invested in Gooderson at same time as me, and that worked out well. Personally not sure on this one, so many other great shares trading below NAV that I have not researched extensively yet.

Sens trading statement  today: 

 

Basically, after restructuring its businesses and selling properties, earnings have reduced significantly but the cash position of the company has improved dramatically in the last six months . The excess funds held in South Africa will be utilised by the group to continue repurchasing its shares. Argent's closing price today was R3.75 while NAV as at March 2017 was R13.49.

 

The company will be expanding its foot print in the United Kingdom.

 

Is the Milwood Fund's (based in London) significant investment in Argent (from 6.6% in late September to 20.4% one month later) an indication that they know something about the U.K expansion or are they merely buying the excess cash and remaining assets of Argent at a discount? 

[Bullhunter]

6.8 million Argent shares traded,mostly, at R3.80 on the 24/10/2017. Today 25/10/2017, sens announces that the Milkwood  Fund (a London based investor institution) owns 20.4% (19.3m shares) of Argent. Milkwood's initial investment of 6.6% in Argent was announced about a year ago, on 27/09/2016.

 

http://www.milkwoodcap.com/

 

Argent itself intends buying back 20% of its shares. However, Argent's liquidity (free float) is 25.19%. Argent has only acquired 0.34% of the possible 20% as at 09/10/2017.Directors have been consistent buyers over the last two years as well. 

 

An demand versus supply situation is building up here and it will be interesting to see what effect this has on the share price. 

 

Sens trading statement  today: 

 

Basically, after restructuring its businesses and selling properties, earnings have reduced significantly but the cash position of the company has improved dramatically in the last six months . The excess funds held in South Africa will be utilised by the group to continue repurchasing its shares. Argent's closing price today was R3.75 while NAV as at March 2017 was R13.49.

 

The company will be expanding its foot print in the United Kingdom.

 

Is the Milwood Fund's (based in London) significant investment in Argent (from 6.6% in late September to 20.4% one month later) an indication that they know something about the U.K expansion or are they merely buying the excess cash and remaining assets of Argent at a discount? 

[Bullhunter]

Great idea to keep track of share buybacks, Bullhunter. I think, generally, IF The Timing Is Right, buybacks enhance shareholder returns and, thus, are very positive for the share price long-term ( unlike the Anglos buyback at peak prices, as mentioned by you!).

Many companies have shown that they are poor allocators of capital and squander surplus cash by making ill-timed acquisitions, often permanently destroying shareholder capital. I would rather the company buyback shares, than make acquisitions that destroy value. However, they should evaluate whether a buyback would be more rewarding to their shareholders than a dividend / special dividend would be.

With regard to Murray&Roberts, the massive spike in the share price happened when a German company bought a big stake ( 25%, I think) at a huge premium to the trading price at the time. If memory serves, the share jumped from around R11 to over R15 on the announcement, and has traded around R15 to R17 since then.

Business is easy. It's the timing which is difficult.

[Spree]

Great idea to keep track of share buybacks, Bullhunter. I think, generally, IF The Timing Is Right, buybacks enhance shareholder returns and, thus, are very positive for the share price long-term ( unlike the Anglos buyback at peak prices, as mentioned by you!).

Many companies have shown that they are poor allocators of capital and squander surplus cash by making ill-timed acquisitions, often permanently destroying shareholder capital. I would rather the company buyback shares, than make acquisitions that destroy value. However, they should evaluate whether a buyback would be more rewarding to their shareholders than a dividend / special dividend would be.

With regard to Murray&Roberts, the massive spike in the share price happened when a German company bought a big stake ( 25%, I think) at a huge premium to the trading price at the time. If memory serves, the share jumped from around R11 to over R15 on the announcement, and has traded around R15 to R17 since then.

[Bullhunter]

6.8 million Argent shares traded,mostly, at R3.80 on the 24/10/2017. Today 25/10/2017, sens announces that the Milkwood  Fund (a London based investor institution) owns 20.4% (19.3m shares) of Argent. Milkwood's initial investment of 6.6% in Argent was announced about a year ago, on 27/09/2016.

 

http://www.milkwoodcap.com/

 

Argent itself intends buying back 20% of its shares. However, Argent's liquidity (free float) is 25.19%. Argent has only acquired 0.34% of the possible 20% as at 09/10/2017.Directors have been consistent buyers over the last two years as well. 

 

An demand versus supply situation is building up here and it will be interesting to see what effect this has on the share price. 

[Bullhunter]

Share                                                           Price (close), months after announcement, growth since month 0

Share          Date of announcement           month 0         6 months       12 months       18 months       24 months      

 

MUR¹                  03/11/2016                       9.38            13.11(40%)         

 

ART²                 30/08/2017                         4.65

 

SNH³                24/10/2017                        61.40        

 

1. R250 million. The shares repurchased as a result of the Share Repurchase will not be cancelled and will be retained as

treasury shares. Those shares repurchased and held in treasury will not have any voting rights.

 

2. 20% of the issued ordinary share capital of Argent. The ordinary shares repurchased will be de-listed and cancelled.

 

3. The company repurchased 78 383 178 (R4.8 billion) Steinhoff shares, representing 1.8% of its issued share capital. The Shares acquired by the Company (or held by subsidiaries of the Company) will be treated as treasury shares and accordingly reduced the number of voting interests.

Share prices not mentioned so closing price on 24/10/2017 is used. 

[Bullhunter]

I think Achor Capital too

Share buy backs on behalf of the company, not in the director's personal capacity as is the case of Anchor capital, who  have been buying back their company's shares at inflated prices, only to see them decline to current levels.They seem to be to be suffering from  the human condition of 'anchoring':

 

http://www.investope...-adjustment.asp

[Bullhunter]

From time to time dIrectors of companies, with the approval of their shareholders and auditors, propose buying back their company's shares  because they perceive them to be cheap.

 

For the likes of Anglo and Cynthia Carol,buying at the top of the resources boom, the buy back was an absolute disaster- the old dictum says you should be buying when there is blood in the streets.

 

Looking at current buy backs, it will be interesting to see the effect on the share price as measured over at least a 2 year period after the announcement of the of the buy back.Here are a few to start tracking:

 

                                                                Share Price (close), months after announcement, growth since month 0

Share          Date of announcement           month 0         6 months       12 months       18 months       24 months      

 

MUR*                  03/11/2016                       9.38            13.11(40%)         

 

ART**                 30/08/2017                       4.65

 

*R250 million. The shares repurchased as a result of the Share Repurchase will not be cancelled and will be retained as

treasury shares. Those shares repurchased and held in treasury will not have any voting rights.

 

** 20% of the issued ordinary share capital of Argent. The ordinary shares repurchased will be de-listed and cancelled.

 

Please advise of any other companies currently undertaking share buy backs so that we may follow them.

Edited by Bullhunter, 20 October 2017 - 06:53 PM.