Panmure Gordon (PMR)

WickedLester
Posts: 6
Joined: November 8th, 2016, 6:56 pm

Panmure Gordon (PMR)

Postby WickedLester » November 17th, 2016, 5:23 pm

Hi all

I wonder if Panmure Gordon aren't worth an investment. I know brokers are not always popular as earnings tend to be lumpy but I believe the valuation here is quite compelling.

The market cap is about £8.5m.

In the first half this year they made a pre tax, pre redundancy profit of £1.7m. After £1.4m of redundancy costs they made a profit of £0.3m and a post tax profit of £0.2m so they were profitable for the half year and very profitable pre exceptionals.

The balance sheet is excellent and they trade at a discount to both net tangible asset value and net current assets.

Net tangible assets are nearly £15m and net current assets less all debt are nearly £12m.

They have a major shareholder who own over 40% of the stock who I think are Kuwaiti. They also have recently had takeover interest from another large shareholder but this has aparantly been rebuffed by the Kuwaitis. Maybe they're waiting for a better price or maybe they're planning on launching a bid of their own.

All in all I think they're good value and have bought some at around 50p.

Lester

AdamB
Posts: 12
Joined: November 5th, 2016, 12:54 pm

Re: Panmure Gordon (PMR)

Postby AdamB » November 18th, 2016, 10:50 pm

I used to own these guys, going back 12 months or so. However I would suggest that, whilst they have a great brand name, they are very poorly managed and there's no indiciation that they think about shareholder value, rather than lining their own pockets. The shareholder structure appears unstable however I don't think that's a reason to hold on it own.

Personally I think they should change the CEO, strip out some costs and flog the company before they brand becomes worthless. However the management draw fat salaries and will like the profile of their roles. My suggestion is to avoid

WickedLester
Posts: 6
Joined: November 8th, 2016, 6:56 pm

Re: Panmure Gordon (PMR)

Postby WickedLester » January 8th, 2017, 9:40 am

PMR rose by 50% on Friday and then dropped back but there doesn't seem to be any news. I tried to sell some of my holding at 88p but there was no market.

Hopefully there is more to this rise than just a blip.

Lester


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