JohnyCash
24 Aug 2017
Re: Deltic to consider cash offer !! Questor likely to be spot on >>"He said Revolution was all but certain to be taken over, either by Stonegate, which owns the Slug & Lettuce chain, or by another bidder that could emerge now that the group is seen as up for grabs. A bidding war would send the share price higher.“My feeling is that this bid is a sighting shot,” he told Questor. “I don’t think 200p is going to be enough. With the field opened up to other bidders, I think a bid will need to be pitched at 225p to succeed.” This would allow even those readers who bought at the level of our highest tip to make all their money back.“I’m 90pc certain that Revolution is going to lose its independence,” he said. “It’s right in people’s crosshairs now, it is well and truly in play.”[link]
Self made hedge operator
24 Aug 2017
Re: Deltic to consider cash offer !! Just checked the wording, for 4% of the committed shares, they can switch horses if another bidder comes in over 5% of the bid price. For Artemis' holding, it is just a letter of intent and they can switch for any higher offer. So no major obstacle for another bid to be made.
Self made hedge operator
24 Aug 2017
Re: Deltic to consider cash offer !! That Deltic has been granted due diligence should mean they have financing in place to be taken seriously.Would think a 10% premium to the Stonegate offer would be needed to let the irrevocable undertakings switch votes. Worth the wait i
JohnyCash
24 Aug 2017
Deltic to consider cash offer !! Check out the RNSSP up over 10% this morning on the news. Stonegate v Deltic. Exactly what we wanted in terms of achieving full value of the companyJC
long term hold
15 Aug 2017
Re: Deltic Agreed. 2 pounds per share is the absolute minimum and this news gives the board extremely strong leverage to play for more from stonegste. And furthermore it has to be a reasonable possibility that deltic put together a cash offer which the board would have to consider. Risk/reward is looking extremely favourable f
Elysium Field
15 Aug 2017
Re: Deltic I'm surprised this hasn't risen a little further. Fair enough on the original news, lots of takeovers fail to materialise. I kept my shares because the financials looked pretty good to me, capable of supporting a collapse in the talks, over the medium term anyway. But this new development surely makes £2 a near certainty. The management would not survive another fall from here, I imagine.I'm tempted to buy more but 10% minus costs & spread doesn't seem worth the trouble. Mind you, if Deltic make any more waves, I might.
Self made hedge operator
15 Aug 2017
Re: Deltic Must say, I think 200p IS too low. If only for the new sites that the business has in the locker.Can't see why Deltic don't just put a cash offer on the table. Is a strange statement.
Elysium Field
15 Aug 2017
Deltic Well that's an interesting development. Deltic do appear a neat fit at first glance. Can't do the price much harm. A cat amongst the pigeons. Or pigeon & vultur
JohnyCash
04 Aug 2017
Questor - Daily Telegraph Questor: bid restores Revolution Bars’ fortunes, but investors should hold out for moreRichard Evans 2 August 2017 • 6:14amPhew. What had been Questor’s worst pick has recovered strongly this week following a takeover bid and, fingers crossed, no reader who invested as the result of our advice will lose money.Revolution Bars, which also owns the Revolución de Cuba brand, is the stock concerned. We tipped it first in November last year at 178p; the shares closed last night almost unchanged from that level at 176.5p.It has been a dramatic ride, however. After our tip the shares quickly soared to about 230p, and we reiterated our buy stance at 224.5p in March, but the price had fallen back to about 205p by May, just before a profits warning that caused the shares to plunge by 40pc to 122.25p.Despite this we stuck with the shares, rating them a “hold” at 112p on May 24.The shares then fell further to a record low of 105.5p in early July, although they recovered somewhat to 134.5p later in the month following a trading statement that steadied investors’ nerves.But a much more substantial rise took place on Monday, when the announcement of a 200p-a-share bid from a rival group, Stonegate Pub Company, sent the share price 44.8pc higher to 181p.The upshot is that readers who bought as a result of our first tip have regained almost all their losses, while those who bought at 224.5p in March have seen their paper loss narrow to 21pc, compared with 53pc when the shares hit their record low last month.The natural reaction, except perhaps for some investors who bought in March at the highest level, will be to heave a sigh of relief and sell. But this would be a mistake, according to Keith Ashworth-Lord of Sanford DeLand Asset Management, who owns the shares in his UK Buffettology fund.He said Revolution was all but certain to be taken over, either by Stonegate, which owns the Slug & Lettuce chain, or by another bidder that could emerge now that the group is seen as up for grabs. A bidding war would send the share price higher.“My feeling is that this bid is a sighting shot,” he told Questor. “I don’t think 200p is going to be enough. With the field opened up to other bidders, I think a bid will need to be pitched at 225p to succeed.” This would allow even those readers who bought at the level of our highest tip to make all their money back.“I’m 90pc certain that Revolution is going to lose its independence,” he said. “It’s right in people’s crosshairs now, it is well and truly in play.”Stonegate is currently conducting due diligence and Revolution has stressed that there is no certainty that a bid will result. But Mr Ashworth-Lord said the bidder’s investigations were “unlikely to turn up any slugs under the lettuce”.He said he would not sell, but would wait for his shares to be bought by a winning bidder. “With takeovers I always hold until the bitter end in case anything happens,” he said. Questor suggests that readers follow suit.Questor says: hold[link]
Elysium Field
01 Aug 2017
Comparison Stonegate operates 690 pubs, bars and clubs including Slug and Lettuce, Yates, Missoula, Popworld and Scream as well as many that are unbranded. In December last year, it added the Walkabout chain by taking over Intertain.Revolution Bars Group currently trades from 68 sites – 54 under the Revolution format and 14 under the Revolución de Cuba format.I don't know Stonegate figures or debt level but looks like Rev would be a manageable addition
long term hold
31 Jul 2017
Re: Stonegate offer I would suggest that 200p per share substantially undervalues the company. Management should sensibly gear up the balance sheet, return some capital to shareholders and continue to roll out the brands. There is a lot of value there - they shouldn't give it all to stonegste!
Professor Fang
31 Jul 2017
Stonegate offer Well that didn't take long!
JohnyCash
26 Jul 2017
Paul Scott - Stockopedia Revolution Bars (LON:RBG)Share price: 123.5p (up 6.9% tofday)No. shares: 50.0mMarket cap: £61.8m(at the time of writing, I hold a long position in this share)Pre-close trading update - for the 52 weeks to 1 July 2017.This is a UK chain of cocktail bars, trading from 68 sites across the UK. It is opening about 6 new sites per year, in a self-funded roll out. The shares have been out of favour, following a bizarre profit warning in May 2017, which roughly halved the share price. Issues arose with the finance department seemingly surprised by widely anticipated (except by them!) cost increases, such as living wage, and business rates.Many investors that I've spoken to seemed to have a hunch that another profit warning was in the pipeline, but thankfully not. Today's update is generally positive - hence the share price firming up. Although there are some nasties too, as I will detail below.The company has seen the departure of 2 CFOs lately. Despite their protestations to the contrary, it seems that the finance function was badly run. It just shows, we never really know what's going on under the surface. An apparently competent individual can sometimes be a convincing front man for a shambolic finance function, as appears to have been the case here.I met the new CFO a few months ago, and he struck me as a safe pair of hands. Although again, nobody really knows, unless you're an insider (which I'm not). Today's update seems to have the hallmark of a serious individual, applying more conservative accounting policies.On to the detail from today's announcement. Total sales for the Period increased by +9.2% to £130.4m (2016: £119.5m*). Like-for-like sales rose by 1.5%, down from the 1.7% reported after 44 weeks. The terrorist attacks in Manchester on 22 May and in London on 3 June impacted business during the days that followed, particularly in the north west where the Group has a significant number of venues - five in central Manchester and five in Liverpool. Like-for-like sales growth has since strengthened, up by 2.7% over the last six weeks.That's a respectable performance. I particularly like that recent sales have been stronger, at +2.7% LFL. That should be enough to mop up increased cost pressures. I seem to recall reading somewhere that retail/hospitality companies need to achieve about +3% LFL sales, at static margins, to cope with increased cost pressures.Roll-out - this is excellent news, in my view; As planned, the Group opened six new bars in the Period. Revolución de Cuba bars at Harrogate, Reading, Aberdeen and Glasgow, all of which were opened in the first half, were followed by new Revolution bars in Southend (late April) and Torquay (late May). Average weekly sales for the bars opened during the Period are ahead of the Board's expectationsThere was an issue, in the May 2017 profit warning, that costs were too high at new sites. I'm relaxed about that. Excess staffing is a good thing, at new site openings, as it should mean that customers get great service.I'm an investor in a private pub/restaurant chain in Cheshire, and I'm urging our CEO to over-staff our next new site, which opens in a few weeks. I don't care about short term losses - I want the team to deliver terrific customer service, so that people keep coming back. We can trim the staff rotas later, when the business is humming like a well-oiled machine.RBG takes the same view, and they are right to do so. Short term profits don't matter - good businesses are all about long term delivery. If you "surprise & delight" (my favourite catchphrase) the customer at every opportunity, then you'll probably build a terrific business, longer term. Each repeat customer is very valuable.This is the crux of why I think this is an excellent, and significantly under-valued, share; The business continues to deliver high returns on invested capital and the Group plans to open six new ba
JohnyCash
25 Jul 2017
Re: Worth a punt? RNS today........Peel Hunt today upgrades its investment rating on Revolution Bars Group Plc (LON:RBG) to buy (from add) and left its price target at 155p.
Blanketstacker
10 Jul 2017
Re: Worth a punt? Got them off Morningstar, as follows:Cannacord 19 May HoldNumis 23 May Hold (house broker)Peel Hunt 23 May AddFinnCap 25 May BuyAll were published in te wake of the poor/disappointing update.
