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colneycanary

Shares only worth half Board valuation!!

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I have started a new post on this because i think its quite a big issue. The club valued the shares at £30 each. When actually they are only worth between £10 to £15 each. They have way, way, way overpriced them. I call this greed, trying to get double what they are worth or they know Peter Cullum won''t pay this over inflated price and not pursue his interest!

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I have started a new post on this because i think its quite a big issue. The club valued the shares at £30 each. When actually they are only worth between £10 to £15 each. They have way, way, way overpriced them. I call this greed, trying to get double what they are worth or they know Peter Cullum won''t pay this over inflated price and not pursue his interest!

Where has this valuation come from?

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industry sources suggesting the shares are actually worth between £10 and 15, the price to Mr Cullum could be between £5m to £8m.

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I read that in the edp this morning, it is now obvious that they have overpriced them to try and discourage Mr Cullum from pursueing his interest because they don''t want to sell up. Best interests of the club at heart my ass. They must think we were born yesterday.

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[quote user="colneycanary"]industry sources suggesting the shares are actually worth between £10 and 15, the price to Mr Cullum could be between £5m to £8m.[/quote] Have "industry sources actually looked at the Norwich assets?  This club owns their own ground, has other land for development, a thriving catering/resurant business and one of the best training facilities in the country. This is not a situation many championship clubs find themselves in.Also in yesterdays evening news some financial wiz kid said P.C''s offer was undervaluing the club!!

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What ''industry sources''? I know you got this from the EDP (hardly the Financial Times) and I''m really surprised they quote such a figure without substantiating it. You can''t make such a claim and not even say whose information it is, and be taken seriously. So far Cullum has offered 0 per share, undervauing the club substantially. The board have stated 35 per share, over valuing the club. If they reach agreement, the figure will end up between those figures depending on who negotiates best. You can see this sort of haggling in any third world market and every business takeover, its just basics.

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[quote user="sturgeon220"][quote user="colneycanary"]industry sources suggesting the shares are actually worth between £10 and 15, the price to Mr Cullum could be between £5m to £8m.[/quote] Have "industry sources actually looked at the Norwich assets?  This club owns their own ground, has other land for development, a thriving catering/resurant business and one of the best training facilities in the country. This is not a situation many championship clubs find themselves in.Also in yesterdays evening news some financial wiz kid said P.C''s offer was undervaluing the club!!
[/quote]

I read that too.  It was based on the mistaken assumption that he was offering £20 million to buy the club, not just for players. 

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The shares are worth what the shareholders are prepared to sell them for...  if the owners want no less than £30 then why sell for less?  There is hardly a mass market/turnover of these shares to establish a value as with say a FTSE 100 company;  and with such a large proportion in the hands of the board members any suggestive fees  based on the business value of the club becomes relatively pointless unless that ties in with the shareholders valuation,  no matter how artificially high that may be.

As far as any new share issue is concerned - which I think may be a way of creating some cash input - the club could put any figure on the sale value of those share that they feel a purchaser would stand.  

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[quote user="colneycanary"]industry sources suggesting the shares are actually worth between £10 and 15, the price to Mr Cullum could be between £5m to £8m.[/quote]

Any explanation as to how "industry sources" have calculated this range for a price per share ?

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[quote user="Big Down Under"]What ''industry sources''? I know you got this from the EDP (hardly the Financial Times) and I''m really surprised they quote such a figure without substantiating it. You can''t make such a claim and not even say whose information it is, and be taken seriously.
[/quote]

 

Well said.

 

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Even if you take net asset value (which would probably be a low valuation) the ordinary shares are worth at least £27. So to say that the shares are worth only £10-£15 implies that the fair value of the club''s assets is considerably lower than the net asset value - a position which would probably not be allowed under UK Generally Accepted Accounting Standards. I think someone is talking shite.

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skippy (barry skipper) says as no shares have ever been sold for more than£25 that should be the value, fair enough. still less than delia and michael want, but more than cullum would want to pay I guess.If the current board were that much of "fans", they''d come to compromise of £20 a share, if cullum didnt wanna pay that I''d guess he was taking the pee out of the clubs valuation.odd how we''re discussing this when the club and PC refuse to!!

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[quote user="sturgeon220"][quote user="colneycanary"]industry sources suggesting the shares are actually worth between £10 and 15, the price to Mr Cullum could be between £5m to £8m.[/quote] Have "industry sources actually looked at the Norwich assets?  This club owns their own ground, has other land for development, a thriving catering/resurant business and one of the best training facilities in the country. This is not a situation many championship clubs find themselves in.Also in yesterdays evening news some financial wiz kid said P.C''s offer was undervaluing the club!![/quote]yes but they also say that if these assetts were sold it wouldnt be enough to pay the debt the club has, would you invest in a business were its debt is larger then its assets when the share price has been sated to be valued at half what they value it at,

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[quote user="National express super guard"]skippy (barry skipper) says as no shares have ever been sold for more than£25 that should be the value, fair enough. still less than delia and michael want, but more than cullum would want to pay I guess.
If the current board were that much of "fans", they''d come to compromise of £20 a share, if cullum didnt wanna pay that I''d guess he was taking the pee out of the clubs valuation.
odd how we''re discussing this when the club and PC refuse to!!
[/quote]

This is the point, if they were true fans they would be prepared to sell at a reasonable rate - this just proves they are hard-nosed business people. We8wba, or whatever he calls himself these days, made the point that Sir Jack Hayward sold Wolves for next to nothing, proving what a true fan he is.

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Cullum wants control of the club (a PLC), therefore under legal regulations he has to offer for ALL shares.

The current issue price is £30 per share.  Therfore that''s how much those fans would get for a compulasy purchase of their shares (if PC got 90%+1 shares in the PLC).

If PC got to 90%+1 shares in the PLC - then he can legally purchase all the others at £30 per share whether they like it of not.

If the share issue price was lowered (which would take a shareholders meeting) then fans would also get less money for their shares (if PC got 90%+1 shares in the PLC).

Fans would soon be moaning if they lost their shares for less than they paid for them.

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