How Does NCFC Come To This Figure?

[Budgie 0]

I know plenty has been written about the Cullum/Delia serial but there is one thing I cannot remember seeing in all of the threads:How can the NCFC shares be valued at £30? This is a plc that has a £16 million debt and is struggling.Compare it to, say, Archant, a thriving ever-growing company that is now a nationwide organisation. Its shares trade at something like £12.So how is  it worked out, please?

[Wembley_Canary 0]

That''s what I want to know Budgie, I know Delia originally bought her shares for £25 each but given the current state of the club how are the shares worth £30 each? Hopefully someone with alot more knowledge than me on this will be able to answer.

 

 

[T 190]

The 30 pounds a share is equivalent to the 16m net assets per the last accounts (value of the land and buildings plus receivables less the debts and other payables) divided by the 535,000 shares gives you 29.9 pounds a share. The net assets is the minimum economic value of a business as it gives you what you would get for the business if you closed it down. 30 pounds a share would give the shareholders their money basic plus inflation and a minimal amount of interest. Therefore 30 pounds a share is an entirely reasonable valuation.

[The Lucky Nine 0]

Its all about supply and demand.  As there is very little demand for NCFC shares and there is pretty much no market for them (there are plenty of sellers, but no buyers at present, in NCFCs case) the price has been set at £30 to enable the very few trades to go through.  That is not to say that the price could not go up or down.  However if someone is interested in buying the shares, I doubt many shareholders would let them go at anything less that £30.  So for all the comments on here that Cullum is trying to buy the club on the cheap, I would say he has little or no chance as I for one would not let my shares go for anything less than I paid for them!

Now I am sure someone with a little more knowledge on NCFC''s accounts may be able to tell you how and why they chose that figure. 

[The Fish Seller 0]

[quote user="Paul Webster"]

Now I am sure someone with a little more knowledge on NCFC''s accounts may be able to tell you how and why they chose that figure. 

[/quote]Can I have a go?Is it because for the last three years we''ve cashed in every player with value and rather than reinvest the profit in the playing squad we''ve injected it into fixed assets? The net asset value of the Club must have soared in the last couple of years as the Ashton money, the Earnie money, the Francis money, the Etuhu money  etc. etc. was siphoned off. Never mind the football I''d be very interested to know what the Net value of the Club was two years ago before we took a large chunk of £10m from the squad sales and ploughed it into fixed assets.£15 a share anyone?

[The Lucky Nine 0]

I seem to remember this happening under a guy called Chase....

...whatever happened to him???

[nutty nigel 7,591]

[quote user="Worst Wizard"][quote user="Paul Webster"]

Now I am sure someone with a little more knowledge on NCFC''s accounts may be able to tell you how and why they chose that figure. 

[/quote]

Can I have a go?

Is it because for the last three years we''ve cashed in every player with value and rather than reinvest the profit in the playing squad we''ve injected it into fixed assets? The net asset value of the Club must have soared in the last couple of years as the Ashton money, the Earnie money, the Francis money, the Etuhu money  etc. etc. was siphoned off. Never mind the football I''d be very interested to know what the Net value of the Club was two years ago before we took a large chunk of £10m from the squad sales and ploughed it into fixed assets.
£15 a share anyone?
[/quote]

As far as I am aware the £30 valuation is for shares that the club hold which haven''t been issued. The value of issued shares is whatever the two parties involved in any transaction agree on. That''s what I have always been led to believe but would be happy to be corrected if you know different.

I have 25 shares. They cost £1 each when my father bought them decades ago. £25 was a lot of money then but who knows what they are worth now. I was offered £17.50 each for them back in the 80''s but was not interested in selling them. Barry Skipper was right to assume that many shareholders would not sell if Peter Cullum had to make an offer for them. Most minority shareholders are just happy to hold a stake in the club they love. If Peter Cullum offered £25 for all the shares and Delia & MWJ sold him their holding I would hold on to mine. However that wouldn''t stop me from being able to sell them to you for £1 or £50 or any other price we agreed. That''s the way I believe it works anyway.

However, as far as I am aware Peter Cullum has made no offer to buy any shares.

 

 

[Mr.Carrow 378]

[quote user="T"]

The 30 pounds a share is equivalent to the 16m net assets per the last accounts (value of the land and buildings plus receivables less the debts and other payables) divided by the 535,000 shares gives you 29.9 pounds a share. The net assets is the minimum economic value of a business as it gives you what you would get for the business if you closed it down. 30 pounds a share would give the shareholders their money basic plus inflation and a minimal amount of interest. Therefore 30 pounds a share is an entirely reasonable valuation.

[/quote]

Hmmm, i seem to remember you stating that Delias shares were essentially worthless based on future revenues when defending her against the "in it for the money" accusations........?  You seem to have moved the goalposts now.

Fwiw i think she should at least get most of her money back but for the good of the club, and to stay true to what she said at the AGM ("we`re not interested in money for ourselves, it`s about money for the team"), she has to compromise.