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Late RNS today:
Share Pledge by Directors
http://www.investegate.co.uk/mar-city-plc--mar-/rns/director-pdmr-shareholding/201502231731436530F/
About the Author
AnonymousUser37607
7 comments
AnonymousUser37607
For the £10 million HSBC loan the Directors have pledged a total of 50,892,704 shares (effective c.19.6p per share before HSBC would lose anything).
HSBC can start to sell shares if the price goes below 34p (at that level HSBC would still have quite a headroom on the loan collateral).
Closing share price today was 47p; HSBC's collateral today "worth" c. £24 million for a £10 million loan.
AnonymousUser37607
Mr Brown has seen enough (did not quite make 12 months)
http://www.investegate.co.uk/mar-city-plc--mar-/rns/directorate-change/201502241345077359F/
VegPatch
I would wholeheartedly agree with the statement " as a general point it seems it may be preferable to avoid investing in any quoted company which has a dominant founder / family shareholder and where there are extensive related party transactions"
But I would clarify the conditional "AND".
as in "as a general point it seems it may be preferable to avoid investing in any quoted company which has a dominant founder / family shareholder AND where there are extensive related party transactions
because if you are excluding dominant founders full stop (which I dont think you are) then I think you are making a massive error.
I have made some of my best returns from dominant founders: Tony Pidgeley at Berkeley Group, Steve Morgan at Redrow (LON:RDW) , Brian Souter at Stagecoach (LON:SGC) , Mark Coombs at Ashmore (LON:ASHM) , Bertie Hiscox at Hiscox (LON:HSX)
I find that owner / drivers who have significant personal capital at stake tend to make the most rational decisions, less about ego, more about getting (filthy) rich.
MAR doesnt sound pretty though....
AnonymousUser37607
Your reading is correct, I also like companies where the founders retain significant shareholdings. However when this is combined with extensive related party transactions it can potentially lead to the issues we are now seeing at Mar City.
