TSM - ThinkSmart Limited

[Klogg]

Re: TSM - Thinksmart

It wasn't just media speculation, that is what I was told by their shareholder communications PR company that were spruiking the share buy-back plan.

Thanks - I had no idea.
Do you know if this was written in any of TSM's publications? Given the Shareholder comms company was willing to tell you this, I would think it was written in an announcement somewhere.

 

[tinhat]

Re: TSM - Thinksmart

Thanks - I had no idea.
Do you know if this was written in any of TSM's publications? Given the Shareholder comms company was willing to tell you this, I would think it was written in an announcement somewhere.

Klogg, I can't remember any details of what was in announcements at the time.

Its no big deal to me as I was underwater on a very small holding I decided to sell at the highest offer price in the buy-back auction and then liquidate what was left on market afterwards because dealing with the paperwork if they did delist was going to be too much hassle and I'm always carrying too many stocks in the portfolio anyway. They managed to talk a lot of their shareholders into selling into the buy-back at a very low price. I understand they had a lot of small retail investors, possibly due in part to it being a stock that Roger Montgomery was spruiking around the time he had launched his book. They did a decent capital return via the special dividend from the proceeds from the sale of the aussie business so I'm not too pissed.

 

[McLovin]

Re: TSM - Thinksmart

I'm trying to understand what's going on with TSM. They sold the ANZ business to FXL in 2014, to focus on the UK. The UK business is pretty much their entire business now. They are going through a strategic review at the moment and are saying they want to spin-off and float the UK business, leaving TSM as not much more than a cash box. I can't make top or tail of how spinning off your only real business "unlocks value" (isn't being listed how you unlock value?) and the company has been pretty scant in giving any details.

 

[skc]

Re: TSM - Thinksmart

I'm trying to understand what's going on with TSM. They sold the ANZ business to FXL in 2014, to focus on the UK. The UK business is pretty much their entire business now. They are going through a strategic review at the moment and are saying they want to spin-off and float the UK business, leaving TSM as not much more than a cash box. I can't make top or tail of how spinning off your only real business "unlocks value" (isn't being listed how you unlock value?) and the company has been pretty scant in giving any details.

No idea... I am guessing value can be unlocked if the UK market is willing to put a higher multiple on the business than here in Australia. But it feels like a nice way to waste almost $2m in fees in strategic review (considering how small TSM's market cap is these days).

 

[McLovin]

Re: TSM - Thinksmart

No idea... I am guessing value can be unlocked if the UK market is willing to put a higher multiple on the business than here in Australia. But it feels like a nice way to waste almost $2m in fees in strategic review (considering how small TSM's market cap is these days).

Being listed in the country you do business is a legitimate reason, but I just don't trust that management have no ulterior motive. TSM seems to be run more like a private business. After they sold their ANZ business they did a buy-back by tender with a price range of $0.31-$0.42/share. At the time the company had 24.5c of cash sitting on the balance sheet. The lower bound of the buyback was a farce (6.5c for the UK business!). It just looked like Montarello trying to put one over shareholders. I guess that's why I am suspicious of these guys.

As you point out, they have spent $2m on a strategic review. That's a fair chunk of cash for a company that made $3.4m last year.

 

[System]

On December 6th, 2016, ThinkSmart Limited (TSM) was removed from the ASX's official list at the request of the Company, in accordance with Listing Rule 17.11.