Share Price

[Timbo Tottenham]

I don't understand this stuff , so can some one explain to me why the share price has fallen from 85p to 65p since this time last year?

thanks in advance...

 

[brett.spurs]

Recession?

 

[Timbo Tottenham]

Recession?

That would've been my guess...

 

[brasil_spur]

I would imagine that drop has been less than most companies have had in the same period.

 

[DC_Boy]

probably a good idea would be to see how far the FTSE has fallen in the same time span (i assume it has fallen - i have no shares so don't follow it that avidly)

my gues is that probably spurs have fallen further as a %, and part of that will be stadium 'hitches'

if we get the stadium 'ok'd' then i expect the shares will rise on that

a lot of people seem to be under the mistaken impression that qualifying for the play off stage of the CL is the equivalent of discovering gold under WHL

it isn't - for the CL to massively alter our revenues, we need to make the group stages at least

 

[Cicada]

i think that when the price was peaking there was a lot of speculation that Levy was going to sell..

that talk seems to have died down a lot now

 

[onthetwo]

its certainly odd that the share price hasnt gone up on the Champs League qualification...other things (aside from the point above that Levy might have been looking for a buyer in '07) could be large shareholder dumping (of which i dont see any over last 6 months from the filings that i have access to) or cost of new stadium costs/delay?

 

[$hoguN]

its certainly odd that the share price hasnt gone up on the Champs League qualification...other things (aside from the point above that Levy might have been looking for a buyer in '07) could be large shareholder dumping (of which i dont see any over last 6 months from the filings that i have access to) or cost of new stadium costs/delay?

We haven't qualified yet so will see no benefit until we hopefully have. Also with no new sponsor and no stadium permission our share price will not be rising

 

[camaj]

I don't understand this stuff

Not many, if any, people do. The whole thing is one big guessing game. The short answer is prices rise if demand is larger than supply and falls if supply is larger than demand. Why demand is rising or falling isn't always known.

 

[stevenqoz]

Just a guess but was the 15m raising equity or debt....if it was the former there would probably be some dilution of the price.......the same numbrof assets divided by more shareholders

 

[MattyP]

Recession?

i think that when the price was peaking there was a lot of speculation that Levy was going to sell..

that talk seems to have died down a lot now

We haven't qualified yet so will see no benefit until we hopefully have. Also with no new sponsor and no stadium permission our share price will not be rising

Just a guess but was the 15m raising equity or debt....if it was the former there would probably be some dilution of the price.......the same numbrof assets divided by more shareholders

All of the above.

Plus the financials released recently, whilst reported in the press as us making a profit, the true picture is that in order to make a profit before tax we have to make a profit on player sales.

The best way to measure the share performance is to compare it to other companies in the same industry.

 

[yozza]

There would be a minor spike in share prices if we were to sign a big player (over £10million) and the stadium will increase the value of shares as well.

 

[Kendall]

Markets have gone up since this time last year and until very recently the FTSE was up to around 5600. Over the last year there has been big money to be made in the right companies.

THFC is a 'safe' but ultimately small-profit making company that has been gradually taking on more debt to build a stadium, which won't reap any rewards for 10 years. They also produce lame dividends (if any at all).

The big gains were able to be found elsewhere, therefore the company is less attractive.

 

[TrueYid]

So now is a good time to buy, considering, we have a chance on qualifiying for the CL, and sponsorship deals, and stadium are coming up?!?

 

[$hoguN]

No its not, as you would be stupid to buy shares in a football club to make money.

 

[MR_BEN]

never a good time to buy.... as someone else has said, football clubs dont pay out big dividends.. they re-invest profits in player transfers etc, or to reduce debt (which we will have plenty of by the time the stadium is complete).

If you have money to waste / spare.... the banks have taken a huge hit in recent days, and are possibly going to continue to fall in short term, if you judge it well and get them at close to their lowest (no one knows what this is) - you could easily make a lot of money (if you have a decent amount to invest, and you are able to leave it in shares for a good number of years).

My advice.. is worth nothing.. basically its dealing in shares is gambling. Just remember.. you could lose the lot.

 

[spurs4europe]

I wouldn't invest now. I was looking at this issue recently. The share price has gone down because underlying business performance hasn't been too strong, although CL football will certainly help somewhat. Also the company has been diluting existing shareholders' holdings. These two factors push down the share price.

The club has 2 big investments going on and is going to have to finance them some how. It has already financed some of the new training facilities with a rights issues (issuing shares) and borrowing (which comprised a 3rd of the total amount raised). THFC probably won't be able to take on too much debt and so I think there will be more rights issues, which further dilute share ownership (reduced claim on the business).

In summary, I'm not looking to buy. May reconsider in a year or so but much will depend also on whether we can stay in the top 4!