Freddy Shepherd meets the fans (part II)

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Especially for Clarky:

Ian Laybourn from Benwell added: "I came here with an open mind tonight but I am leaving feeling that the club is in good hands."

Taken from today's Ronnie icNewcastle.

-- Anonymous, March 01, 2001

Answers

DOn't blame me - I'm only the messenger. (and I'm not called Melinda, either)

-- Anonymous, March 01, 2001

Nowt to worry about then, in that case. Sleep easy gang!

-- Anonymous, March 01, 2001

Anyone ask the Chairman what he's doing to get the share price up, seeing as how it has fallen yet again - to 33p?

After being originally listed with a market capitalisation of a little under £200 million, NUFC is now valued at £48 million - a 75% diminution under his Chairmanship.

Clearly nowt to worry about - the Club's in safe hands.

-- Anonymous, March 01, 2001


>>NUFC is now valued at £48 million>> The assets of our playing staff and stadium/land beneath it surely have to be worth more than that ? Sounds to me like a clear buy opportunity - at least for anyone prepared to bide their time ??

(Please note that nothing in the above text implies that Loony Toon is any more qualified than yer average village idiot to give financial advice)

-- Anonymous, March 01, 2001


Clary, the job of Shepherd is to maximise the value of the business. They have tried to do this but often come up against stiff opposition where fans object to the commercialisation of the club like the SOS campaign, can you have it all ways?

-- Anonymous, March 02, 2001


Dave LF,

The Club have encountered some fan opposition but only around the periphery, and have largely steam-rollered it anyway. The Club is free to manage precisely as they see fit, and any credit/blame can be apportioned accordingly.

LT,

We're talking of two different things here. The "market capitalisation or value" is the value the markets currently assign to a company, and is simply the share price multiplied by the total number of shares. That is presently ca.£48 million at 33 per share.
The "asset value" is the present value of the underlying assets of the company, as shown on the Balance Sheet - comprising fixed assets (such as the stadium), cash in hand, and the present value of the playing assets.
In assessing a company's assets position, or value, it is normal to consider its "net assets", which deducts its liabilities from the gross assets. In this case you would deduct the outstanding bank debt from the gross assets - which would have the effect of significantly discounting the true or net value of the stadium.

While 'market value' and 'nett asset value' are derived differently, there is a natural relationship between them. In a situation where the company's underlying net asset value (NAV) was higher than the market value, you would consider the market value as being understated, and it would perhaps present a buy opportunity. For this reason it rarely happens - the market value is usually based on the company's NAV plus a value placed on it's future earnings potential.

When I get a chance I'll take a look at the NUFC Balance Sheet, and see what it tells us. Hope this helps.

-- Anonymous, March 02, 2001


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