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News Article Comments : Pub shares suffer further slump
Pub shares have suffered a further slump this week following the ban on investors short selling financial stock.
Short-sellers, who borrow shares and sell them before buying back at a lower level, now appear to be turning their attention to consumer companies such as pubcos.
It is the second consecutive day of decline for shares in the sector. Punch shares have now hit their lowest level since flotation in May 2002. Shares are down 14.2% from yesterday at 182p. The flotation price was 230p and they reached a peak of £13.23 in 2007.
Well-known short seller David Einhorn is already a prominent investor in Punch stock.
Enterprise shares have fallen 7.11% to 186p while Mitchells & Butlers is down 12% to 240p and JD Wetherspoon is down 7% at 292p.
28 Posts(s) found for this thread: Now displaying page 2 of 3
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Graham Allman 24/09/2008 16:34:22  |
RE: Pub shares suffer further slump George , selective reading me thinks."he says he wins every time as well" , where , just where , did i say that my mate wins everytime ? Graham This post replies to George Baker > RE: Pub shares suffer further slump |
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George Baker 24/09/2008 17:07:57 |
RE: Pub shares suffer further slump Good question Linda. They will last only as long as their bankers allow - and you can always rely on bankers!!! As to what the outcome will be, no-one could do anything but guess. How will the administrators value these 2 piles of debris? - the Ground Zero of the pub industry as a lasting monument to corporate greed. It will be like trying to value a snowball - by the time they've come up with a method it will have melted down to half its size. edited by: George Baker at: 24/09/2008 17:08:24 This post replies to Linda Jaques > RE: Pub shares suffer further slump |
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| George Baker 24/09/2008 16:43:19 |
RE: Pub shares suffer further slump Erh . . . . . . .that's the point. Gamblers don't!!!! But they love to tell you ONLY about their occasional win. This post replies to Graham Allman > RE: Pub shares suffer further slump |
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| Graham Allman 24/09/2008 16:53:17 |
RE: Pub shares suffer further slump No George, the point is that i did not say just what you said that i said.Please admit this so we can move on. This post replies to George Baker > RE: Pub shares suffer further slump |
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D Smith 24/09/2008 17:49:46 |
Pub shares suffer further slump Oh George - you bad boy! he he This post replies to this thread |
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| oz wunsche 24/09/2008 20:49:05 |
RE: Pub shares suffer further slump Seems like the markets at least will out the true state of pub co finances. May the short sellers pray on these vulnerable beasts and expose their true value, after years of mis-management, excessive bonuses and ridiculous debt staircasing. Hopefully the government will let these predominantly parasitic companies suffer as they should and apply the law fully to the mergers that are bound to be attempted in the coming months. Ever heard the one about strangling the goose that laid the golden egg! This post replies to Graham Allman > RE: Pub shares suffer further slump |
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| Graham Allman 24/09/2008 21:12:41 |
RE: Pub shares suffer further slump Oz agreed , as you say , the markets will out the true state of pubco finances, however , beware any preditor , could be they will be worse, sometimes you know , better the devil you know ! This post replies to oz wunsche > RE: Pub shares suffer further slump |
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| oz wunsche 24/09/2008 22:36:47 |
RE: Pub shares suffer further slump I dont think the thousands of tenants who have been driven out of business or are currently contemplating financial meltdown at the hands of the unbridled pub co model will agree with you graham. Surely any predator will examine exactly how and why the model failed and adjust it accordingly to attain long term stability and profits. The pub co finances and the property markets are such that no asset stripping is possible. The time for short termism is over. High tenant turnover and the consequent dilapidation of the estates will not be part of any successful operation. Personally i think its too late, the damage has been done This post replies to Graham Allman > RE: Pub shares suffer further slump |
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| Tony Preston 25/09/2008 01:01:04 |
Pub shares suffer further slump One of EnterPunches biggest problems is the debt to asset ratio, with a book asset of over £5billion and a debt in excess of £3billion. The asset value is based on the current price of the estate amongst other factors, and as soon as the true value of the estate is realised, the debt/asset balance will be corrected. If investors understood the true levels of the property values and also the real dilapidations state of the leased market in general, they would certainly consider their positions. In the current climate, an independent RICS valuation would undoubtedly show a considerable reduction in the value of the estate - which would have considerably negative connotations with the likes of the banks who lend in part against the asset value and the purported tenanted performance of the estate. My opinion is that they are certainly in times of perilous activity and their only hope is that the collective 'we' scrape through this economic catastrophe and the city don't show any more nerves regarding the PubCo business model in terms of sustainability of that model. Whatever comes out at the end of this, whatever EnterPunch become, it’s not possible for the front-line to be any worse off, because it’s a simple fact of reality that there is no more financial pressure that can be brought to bear, save ousting us all to allow asset disposal – but that would be a contractual issue as the contract works both ways and a lease term is a lease term - so I guess I won’t lose sleep tonight. This post replies to this thread |
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| Ken Nason 25/09/2008 07:53:54 |
Pub shares suffer further slump Tony I'm not so sure that that would be the case. What happens in the future to the pubcos will be of no interest to those in trouble now other than from a vengence seeking perspective. The free market economy is littered with the shells of companies that someone in the financial market devised a way of turning into money so I would avoid saying it won't happen. As I have said before there is a lot of dubious money floating around looking for a home within which to be legitamised not least from east of the iron curtain. Ken NAson This post replies to Tony Preston > Pub shares suffer further slump |
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