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Compass Group (CPG)

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Bouleversee
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Re: Compass Group (CPG)

#309990

Postby Bouleversee » May 19th, 2020, 2:40 pm

I can't afford to waste any more time over this so have bought the equivalent of 10% of my holding at £10.4245 per share to, hopefully, avoid dilution. Now watch the s.p. go down! At such a low price compared with previous highs, I'd like to think I can't go wrong in the long term but I'm not counting on any income from them in the foreseeable future and I am missing so many dividends I didn't feel I wanted to add more at this moment.

Have you decided what you are going to do? If you find out the placing price, do post here.

Bathonian
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Re: Compass Group (CPG)

#309994

Postby Bathonian » May 19th, 2020, 2:50 pm

I suspect I will not mention the complexities of this to my Mother - it will stress her out unnecessarily!

Her CPG holding is already the largest by a very long way and really should be reduced over time to limit her company specific risk, so I think the best course of action is to do precisely nothing given that the value dilution seems likely to be small. She will own a bit less of the company, but the company will increase in value by approximately the same % (in theory), so net net you come out close to even on the day.

dealtn
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Re: Compass Group (CPG)

#309997

Postby dealtn » May 19th, 2020, 2:56 pm

Bouleversee wrote:I can't afford to waste any more time over this so have bought the equivalent of 10% of my holding at £10.4245 per share to, hopefully, avoid dilution. Now watch the s.p. go down! At such a low price compared with previous highs, I'd like to think I can't go wrong in the long term but I'm not counting on any income from them in the foreseeable future and I am missing so many dividends I didn't feel I wanted to add more at this moment.

Have you decided what you are going to do? If you find out the placing price, do post here.


Books closed at 13-15pm it seems. Guidance was that any orders below 1025p "risk missing"

Dod101
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Re: Compass Group (CPG)

#310009

Postby Dod101 » May 19th, 2020, 3:47 pm

I was one who raised concerns about the current situation of companies raising capital through share placings rather than via a normal rights issue because share placings dilute the retail shareholder who is usually frozen out. Usually the placing is limited to an additional 5% of the existing capital and that does not seem too bad but companies now have a waiver so that they can raise up to 20% additional capital. You will certainly notice that in the dividend distribution if nothing else. This waiver is supposed to apply only during the current emergency conditions.

Primary Bid is a platform which tries to give access to the retail investor and it seems that they are given an allocation for most of these fund raisings and will automatically offer these to their clients who can decide if they want to participate and they then pay by debit card. Shares are then allocated either to a Trading Platform at Primary Bid or you can opt for a certificate
There has also been talk of Primary Bid linking up with other platforms so that if the shares are held in an ISA or a SIPP holders could also participate but I do not know if this link is actually being used.

There is or was a petition on this forum to ask that retail investors not be frozen out of these placings.

Dod

Bouleversee
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Re: Compass Group (CPG)

#310022

Postby Bouleversee » May 19th, 2020, 4:42 pm

According to LSE the last price was 11.04p. Rather wishing I had bought more now; it was certainly not my largest holding. We'll see what tomorrow brings.

dealtn
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Re: Compass Group (CPG)

#310023

Postby dealtn » May 19th, 2020, 4:49 pm

Bouleversee wrote:According to LSE the last price was 11.04p. Rather wishing I had bought more now; it was certainly not my largest holding. We'll see what tomorrow brings.


Be cautious now. You will get attracted to the lure of seeking capital gains and total return if you're not careful!

AJC5001
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Re: Compass Group (CPG)

#310085

Postby AJC5001 » May 19th, 2020, 9:27 pm

Dod101 wrote:I was one who raised concerns about the current situation of companies raising capital through share placings rather than via a normal rights issue because share placings dilute the retail shareholder who is usually frozen out.
Dod


Hello Dod,

I know that City of London (CTY) have a holding of Compass (29th in their Top 40 holdings in their Annual Report 2018 - unless they've bought or sold some since). https://static.lse.co.uk/downloads/investment-trusts/factsheets/janus-henderson/trusts/the-city-of-london-investment-trust/annual-report.pdf

How would someone holding CTY be affected by this Compass share placing?

Is it likely that CTY would be taking any of this placing?

Adrian

Dod101
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Re: Compass Group (CPG)

#310089

Postby Dod101 » May 19th, 2020, 9:32 pm

Hi Adrian

I genuinely do not know but I would have thought that they would probably have been offered the opportunity to participate. Frankly if you want to know, what I would do is just write to the Chairman and ask. Often I find that IT chairmen will reply in person (they like to maintain close contact with retail investors) or they will pass it to the Company Secretary to respond. Do not be afraid to seek direct contact.

Dod

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Re: Compass Group (CPG)

#310129

Postby Bathonian » May 20th, 2020, 7:19 am

For what it's worth, the shares were placed at £10.25. That is only marginally below the intraday lows yesterday.

Bouleversee
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Re: Compass Group (CPG)

#310135

Postby Bouleversee » May 20th, 2020, 7:36 am

Certainly not worth the faff of going down the Primary Bid route.

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Re: Compass Group (CPG)

#310138

Postby Bathonian » May 20th, 2020, 7:52 am

Couldn't agree more!

Bouleversee
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Re: Compass Group (CPG)

#310162

Postby Bouleversee » May 20th, 2020, 9:04 am

Especially as the s.p. is down 4.13% at the moment at £10.68, and on a downward trend. Perhaps I should go back to my usual "when in doubt, do nowt". It will be interesting to see what happens now. Incidentally, according to The Times, the fundraising represented 12.3% of the share capital.

dealtn
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Re: Compass Group (CPG)

#310165

Postby dealtn » May 20th, 2020, 9:11 am

Bouleversee wrote:Especially as the s.p. is down 3.19% at the moment. Perhaps I should go back to my usual "when in doubt, do nowt". It will be interesting to see what happens now. Incidentally, according to The Times, the fundraising represented 12.3% of the share capital.


Genuinely confused now.

You bought shares yesterday that are trading at a higher price this morning than your purchase price. You appear to be claiming you would rather have "done nowt"?

Or are you saying for the marginal profit, and the "faff and angst" it wasn't worth it, you may as well have done nothing?

Bouleversee
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Re: Compass Group (CPG)

#310179

Postby Bouleversee » May 20th, 2020, 9:40 am

I was joking. I don't regret buying yesterday at a pretty low point but one could also have bought for around the same price this morning and there may be something to be said for waiting to see which way the wind is blowing. Certainly no need to be panicked into the Premium Bid deal. It's all a gamble in these uncertain times. I see they do do the catering in hospitals but I don't suppose that compensates much for all their other losses. It will take a long time to get back to normal but I don't think there is any danger of their going bust which is more than can said for some of my holdings.

Am I right in thinking that one only heard about the placing etc. from the RNS? I haven't yet signed up for those for all my holdings. I'd spend my life reading them but if placings are to become more frequent I suppose I should, especially since some companies are now raising up to 20%.

dealtn
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Re: Compass Group (CPG)

#310242

Postby dealtn » May 20th, 2020, 12:28 pm

Bouleversee wrote:I was joking.


No problem. I sometimes have "an issue" with reading and understanding inferences and non-literal interpretations of language. Don't get me started on using emojis!

Bouleversee
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Re: Compass Group (CPG)

#310338

Postby Bouleversee » May 20th, 2020, 5:19 pm

Compass closed at 1141.50p; so far, so good. I seem to remember there was a similar pattern with a recent placing by another of my holdings, where small investors were left out in the cold, and it all happened too quickly to buy while the s.p. was down.

I wonder what the vertical drop and immediately back up again at mid-day was all about.

dealtn
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Re: Compass Group (CPG)

#310348

Postby dealtn » May 20th, 2020, 5:39 pm

Bouleversee wrote:
I wonder what the vertical drop and immediately back up again at mid-day was all about.


Not visible on my daily chart. Possibly a late reporting trade from earlier creating noise in the data you are seeing?

idpickering
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Re: Compass Group (CPG)

#343829

Postby idpickering » September 30th, 2020, 7:10 am


absolutezero
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Re: Compass Group (CPG)

#343866

Postby absolutezero » September 30th, 2020, 10:07 am

I, after many months of Pickering, dumped this share yesterday and recycled the proceeds into BP.

CPG isn't paying a dividend, won't be doing for some time and I can't see the business recovering for a long time due to the virus. Works' canteens and events catering aren't going to be busy. Though their military/schools/care home contracts might see them through.

It was only a small (£1500) holding - I've had it for around 10 years and it had more or less doubled - so it had done its job as far as I was concerned.
Better to deploy the capital elsewhere.

Bouleversee
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Re: Compass Group (CPG)

#343878

Postby Bouleversee » September 30th, 2020, 10:46 am

absolutezero wrote:I, after many months of Pickering, dumped this share yesterday and recycled the proceeds into BP.

CPG isn't paying a dividend, won't be doing for some time and I can't see the business recovering for a long time due to the virus. Works' canteens and events catering aren't going to be busy. Though their military/schools/care home contracts might see them through.

It was only a small (£1500) holding - I've had it for around 10 years and it had more or less doubled - so it had done its job as far as I was concerned.
Better to deploy the capital elsewhere.


Frying pan and fire spring to mind but good luck with that. I'm still pickering.


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