Good morning, it's Paul here with the SCVR for Friday.

Timing - I've got a conference call with management of a company at 14:00, so there might be a gap before I look at the next company here later, Fulham Shore (LON:FUL)

Please note that I did a detailed section on Revolution Bars (LON:RBG) (I hold) late last night, as it took hours to plough through a complicated & very detailed results statement. If you're interested, here is the link to yesterday's full report, including RBG. I might do a shorter summary here later. Or just skip to the "My opinion" part in yesterday's report if you don't want all the detail.


Furlough Scheme

It's been announced that this has been extended again, from end Mar 2021, to end Apr 2021. That's helpful for companies/sectors under pressure. Although we saw yesterday, highly critical comments from bosses of Wetherspoons & Rev Bars (I hold) about Govt policy.

Telit Communications (LON:TCM)

Swiss tech company u-blox announces that it's got an extension to the Takeover Panel's put up or shut up [rule 2.6(a)] deadline today. It now has until 18 Jan 2021. Talks are continuing. Sounds like u-blox wants to strike a deal with Telit.

United Carpets (LON:UCG)

(I hold, a very small position)

De-listing & tender offer.

There's no point in tiny companies maintaining a stock market listing, if there's no realistic chance of growing into something more substantial, and nobody is interested in supporting fundraisings. UCG agrees, and announces today that it's de-listing. Usually a disaster, as that can trigger a c.50% instant share price fall. Not in this case, I'm pleased to say. The controlling shareholders are offering to buy out minority shareholders at 6.25p, a c.19% premium.

I'm happy with that, and will take the money rather than holding shares in an unlisted company.

Although on second thoughts, I note that the tender offer is being funded from the company's own cash! Therefore it might make more sense to keep my shares, and hold a bigger proportion of the company, for free, holding out for a better future price, and/or receiving divis in future from when it's a private company. I think management seem ethical, and hopefully would not run the business in a way which is detrimental to minority shareholders.…

Unlock the rest of this article with a 14 day trial

or Unlock with your email

Already have an account?
Login here