Not mentioned Quarto QRT before mainly because it’s a bit more complicated than the others I’ve mentioned. Bought some a year ago without looking into it too much and it has doubled in value since then although dropped back a bit in the last week. Having recently looked into it some more which has been an education and invested more. I’m told it is one of cheapest shares out there based on cash generation as a metric and fair value should be in the region of £4/5 rather than current £1.50. I really should look into and understand this metric more as it’s going to be a more reliable value indicator than the more usual price earnings (PE) figure when the Earnings bit can be legally played about with by clever Finance Directors. Anyway - why is it so cheap? According to this article it’s because there is a danger of it being taken private. The story is that veteran investor CK Lau took a large stake as well as the Executive Director role at QRT (an underperforming book publisher) and successfully turned it around. He has been buying up more shares which along with their good results has driven up the price and he now has a 50% stake. Because QRT is domiciled in Delaware it is not directly subject to UK company law even though it operates as a UK company - so for example it is audited as if it was a UK company. However, it is not subject to the UK takeover code where exemptions have to be obtained if a person’s holding (and any associated parties) exceed 30%. Last year the FCA reduced its requirement for a listed company from 25% to 10% of shares being in public hands (the free float). There is another 20% owned by a vehicle associated with another Director so the free float currently is 30%. Therefore Lau can still potentially still buy up to another 20% stake before breaching listings rules. It is also possible that he could take just another 5% and come to an agreement with the investment vehicle to use their combined 75% vote to take the company private. The fear here is, as the linked article points out, that you are left with untradeable shares. However, normal practice is to make a reasonable offer to minority shareholders and Lau (I’m told) has a good track record in this respect.My take is he will keep buying the shares whilst he thinks they are a good price and that in turn will help keep pushing the price up 🤞
When you sign the application form, you also make some declarations. One of the declarations is an agreement to assign windfalls to charity. You agree that if we transfer our business to a company or another body corporate within five years of you becoming a shareholding member of Skipton Building Society, any conversion benefits to which you may become entitled as a result of that transfer will go to charity. If you have any questions about our charitable assignment scheme, please ask us.
From T&Cs:QuoteWhen you sign the application form, you also make some declarations. One of the declarations is an agreement to assign windfalls to charity. You agree that if we transfer our business to a company or another body corporate within five years of you becoming a shareholding member of Skipton Building Society, any conversion benefits to which you may become entitled as a result of that transfer will go to charity. If you have any questions about our charitable assignment scheme, please ask us.Assuming you weren't doing this for charity?
Big windfall coming for Old Oaks PLC, a charitable organisation dedicated to helping ageing Sheffield landlords enjoy the delights of continental bolt-clipping
Quote from: Will Hunt on April 25, 2024, 01:37:11 pmBig windfall coming for Old Oaks PLC, a charitable organisation dedicated to helping ageing Sheffield landlords enjoy the delights of continental bolt-clipping Not a bad thought.Does seem like there are money spinners to be had. Identify areas where the government want to direct money. Set up a charity focussed on that area. Pitch for grants. Pay yourself a decent salary as CEO.
Does seem like there are money spinners to be had. Identify areas where the government want to direct money. Set up a charity an 'official' sporting body focussed on that area. Pitch for grants. Pay yourself a decent salary as CEO.
