Market's view on Palace Capital
Published on April 2024
- Stock watchers speculate on the likely buyout price for shareholders, suggesting a range between £2.50 to £3, depending on market conditions.
- Discussion on the company’s tender offer, indicating it might enhance the Net Asset Value (NAV) for remaining shares towards 300p, while overall company actions aim for debt reduction and operational downsizing.
- There are uncertainties regarding the attractiveness of the remaining Vue cinema sites within the company’s portfolio, questioning the viability of these assets due to recent financial assistance.
- Stock watchers critique the choice of a tender offer over a full wind-up of the company, suggesting alternatives like issuing Redeemable B shares or additional buybacks.
- Comments highlight that while some high-yielding leisure assets remain, their disposal might be slow, yet they provide strong cash flow which is beneficial amid fluctuating interest rates.
- There is a mixed sentiment regarding the remaining value of the company’s assets post-cash return, with some watchers questioning the attractiveness of the leftover assets.
- A few watchers express disappointment and caution towards other companies, with mentions of poor performance and lack of trading activity in stocks like RGB and PCA.