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The dramatically rising Celtic share price

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At the time of writing the Celtic ordinary share price is sitting at 68p.  For more than a year before the Rangers International share price was announced last month the price of Celtic shares never left the thirties.  There has been considerably conjecture on why this is, which is probably worth some comment.

Rangers International’s (RI) opening share price of 70p valued the company at around £50m.  By contrast, Celtic, who are and always have been, a top flight club, and who are in the financially rewarding Champions League, were valued at around £34m.  On an initial pass, Celtic looked undervalued.

There are a few caveats to this story worth telling before you empty your holiday fund on the latest batch of Dutch tulips.  Since Fergus McCann took over in 1994 Celtic have only paid dividends on preference shares, which the FSA require the club to regard as debt, not equity.  No dividends have ever been paid on the ordinary shares and there appears to be no appetite among shareholders for this to change.

Celtic shares are also particularly illiquid – very few are available for sale at any point in time.  When even a small surge of new buyers enter an illiquid market, without a corresponding rise in the number of sellers, a share price can be bid up considerably.  Consider a stable average of 10 buyers and 10 sellers each day of a stock with 29,000 shareholders suddenly changing to 20 buyers and 10 sellers.  The price would rocket despite no change in the fundamentals.

The possibility of Celtic playing in a domestic league beyond Scotland has again been on the agenda.  Such an outcome would radically change the financial prospects of the club and is likely to have a considerable impact on the share price, but this remains no more than a talking point at the moment.  Investors should regard this potential outcome as speculative.

Rangers International attracted considerable investment from organisations seeking a level of financial return which supports that £50m valuation.  We can speculate what percentage return they will expect but the RI board have been explicit on their intention to produce a financial return.

I’ll not be investing in either company at the moment.  Celtic will not pay a dividend on equity shares (which in years to come will evidently be a really good thing) and although I am sure Rangers International’s board will deliver an on-target return for investors (which in years to come will evidently be a really good thing), they appear negatively surprised by recent news on structural change in the Scottish game.  Always take professional advice before investing more than you can afford to lose.

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  1. ………… and the final part of the song ……

     

    And now in 1995,

     

    It feels good just to be alive,

     

    And we’re about to celebrate again.

     

    The fans all cry out for Pierre,

     

    He rises up into the air,

     

    And brings the Scottish Cup to Paradise.

     

    And they gave us James McGrory and Paul McStay,

     

    They gave us Johnstone, Tully, Murdoch, Auld and Hay,

     

    And most of the football greats,

     

    Have passed through Parkhead’s gates,

     

    All to play football the Glasgow Celtic way.

     

    Now it’s a new millennium,

     

    We have a brand new stadium,

     

    And we’re among the honours once again.

     

    The Celtic fans do proudly sing,

     

    Larsson is the king of kings,

     

    And he joins the list of famous Celtic men.

     

    And they gave us James McGrory and Paul McStay,

     

    They gave us Johnstone, Tully, Murdoch, Auld and Hay,

     

    And most of the football greats,

     

    Have passed through Parkhead’s gates,

     

    All to play football the Glasgow Celtic way,

     

    All to play football the Glasgow Celtic way.

     

    Vinny

  2. Gooooooood afternoon, any lingering doubts that chuckles CAN I WALK AWAY green is a loon (IMHO) :)) were quickly dispelled when I heard him on talksport earlier.Long may he reign at the “hate factory”

     

    This deserves a repost every day for 125 days (may 5th)

     

    10p a day £12:50, 20p a day £25:00.

     

    A fantastic gesture I’M IN :)).

     

    Vmhan

     

    10:48 on

     

    6 January, 2013

     

    While its quiet I’ll repost Kitalba’s message from the KANO 125 CFC fundraiser:

     

     

    kitalba

     

     

    11:15 on

     

    28 December, 2012

     

    Kano got sick one night, very sick. If it was not for so many Celtic Supporters, from so many places, then Kano would be an ornament in a sterile hospital room. That is not nice because Kano still breathes and he still thinks and he is still a Celtic Supporter to his very core.

     

     

    A lot of money, by a lot of people, was raised to take Kano home. He can’t ever balance the books, but he’d love to.

     

     

    None of us gets more than one go on the roundabout of life.

     

     

    Celtic is celebrating their 125th Birthday and indelibly stamping it into their history by encouraging all to embrace the simple ethos of the clubs founding… let’s try and help those who just don’t have more than the air that they breathe.

     

     

    A lot of Celtic Supporters are doing a lot of different things to raise money for to help those less fortunate than ourselves. To a lot of people that is no big deal.

     

     

    I’m determined to help Kano pay back the kindness shown to him by the Celtic Support by supporting my club to help unfortunates. No big deal.

     

     

    There are some from here who have said they will help me to help Kano to help Celtic to help others.

     

     

    I give up the bevie for 125 days and I give up posting on here for 125 days as of the 1st Jan.. No big deal really, Kano has done both for the best part of four years.

     

     

    I ‘m going to put a wee bit aside for each day that I don’t drink or post and forward it to Celtic to hopefully fill a belly that needs a feed or to make an unfortunate hope where only darkness is their dawn.(but maybe I can have St. Pat’s day off so I can share a day with some good Tims)

     

     

    I’ve only one life and when I’m gone I soon be forgotten but if I’ve ever managed to feed one hungry person, if only for one day, then my life was worth something.

     

     

    No big deal to me or you but the person I fed, he/she will never know where the food came from and they won’t ever be visiting my grave to put some pretty flowers at the base of a head-stone, they’ll be too busy worrying about tomorrow.

     

     

    I can live with that and like Kano, once I’m gone, I’ll know that I never changed the world, hardly left a mark, but still I took to Celtic and I did something to try and ease the pain of others… sort of the Celtic way.

  3. My shares still in frames in my kitchen, signed by wee Fergus.

     

     

    Annoys Hun tradesmen from time to time.

     

     

    RobinBhoy

  4. Philvisreturns, these software scripts work brilliant when you plany them into the server eh what!

     

    I’ve written it so that it gives me an audible signal when Paul67 is about to post a new article, it goes like this…….

     

     

     

    Oh Willie Maley was his name,

     

    He brought some great names to the game,

     

    When he was the boss at Celtic Park.

     

    He taught them how to play football,

     

    He made the greatest of them all,

     

    Gallacher and Quinn have left their mark.

     

    And they gave us James McGrory and Paul McStay,

     

    They gave us Johnstone, Tully, Murdoch, Auld and Hay,

     

    And most of the football greats,

     

    Have passed through Parkhead’s gates,

     

    All to play football the Glasgow Celtic way.

     

    In ’38 there was a show,

     

    And Glasgow was the place to go,

     

    A model of the Tower was football’s prize.

     

    England sent four of the best,

     

    They didn’t meet with much success,

     

    Because the trophy ended up in Paradise.

     

    And they gave us James McGrory and Paul McStay,

     

    They gave us Johnstone, Tully, Murdoch, Auld and Hay,

     

    And most of the football greats,

     

    Have passed through Parkhead’s gates,

     

    All to play football the Glasgow Celtic way.

     

    Well Coronation time was here,

     

    Fifty three, that was the year,

     

    Another four from England met their doom.

     

    They said we’ll have to try again,

     

    But like before it was in vain,

     

    Because the Cup is in the Parkhead trophy room.

     

    And they gave us James McGrory and Paul McStay,

     

    They gave us Johnstone, Tully, Murdoch, Auld and Hay,

     

    And most of the football greats,

     

    Have passed through Parkhead’s gates,

     

    All to play football the Glasgow Celtic way.

     

    And then in 1957

     

    We faced a guy called Georgie Niven

     

    The game is etched on every Celtic fan,

     

    Wilson, Mochan and McPhail.

     

    And Willie Fernie scored as well,

     

    As Celtic beat the Rangers 7-1.

     

    And they gave us James McGrory and Paul McStay,

     

    They gave us Johnstone, Tully, Murdoch, Auld and Hay,

     

    And most of the football greats,

     

    Have passed through Parkhead’s gates,

     

    All to play football the Glasgow Celtic way.

     

    Well ten years, they had gone and so,

     

    To Portugal we had to go,

     

    To play the team that Italy adored.

     

    Celtic went out to attack,

     

    They won the Big Cup and they brought it back,

     

    The first time it had been on British shores.

     

    And they gave us James McGrory and Paul McStay,

     

    They gave us Johnstone, Tully, Murdoch, Auld and Hay,

     

    And most of the football greats,

     

    Have passed through Parkhead’s gates,

     

    All to play football the Glasgow Celtic way.

     

    Now 21 years to that day,

     

    With pride, it’s our Centenary,

     

    And we’re among the honours once again.

     

    Six million pounds the huns did spend,

     

    But Souness found it was in vain,

     

    Because the Celtic are the Champions again.

     

    And they gave us James McGrory and Paul McStay,

     

    They gave us Johnstone, Tully, Murdoch, Auld and Hay,

     

    And most of the football greats,

     

    Have passed through Parkhead’s gates,

     

    All to play football the Glasgow Celtic way.

     

    And now in 1995,

     

    It feels good just to be alive,

     

    And we’re about to celebrate again.

     

    The fans all cry out for Pierre,

     

    He rises up into the air,

     

    And brings the Scottish Cup to Paradise.

     

    And they gave us James McGrory and Paul McStay,

     

    They gave us Johnstone, Tully, Murdoch, Auld and Hay,

     

    And most of the football greats,

     

    Have passed through Parkhead’s gates,

     

    All to play football the Glasgow Celtic way.

     

    Now it’s a new millennium,

     

    We have a brand new stadium,

     

    And we’re among the honours once again.

     

    The Celtic fans do proudly sing,

     

    Larsson is the king of kings,

     

    And he joins the list of famous Celtic men.

     

    And they gave us James McGrory and Paul McStay,

     

    They gave us Johnstone, Tully, Murdoch, Auld and Hay,

     

    And most of the football greats,

     

    Have passed through Parkhead’s gates,

     

    All to play football the Glasgow Celtic way,

     

    All to play football the Glasgow Celtic way.

     

     

    HH

     

    Vinny

  5. Mind you the white kitchen with white tiles and a green striped border might be a clue anyway!

     

     

    Hail Hail!

     

     

    RobinBhoy

  6. Philbhoy - It's just the beginning! on

    Paul67

     

     

    I don’t believe that the majority of small shareholders, like me, bought Celtic shares for a return on their investment.

     

     

    We bought them out of love for the club and, I must admit, the Share Certificate does look a bit special.

  7. Have to laugh when the Huns can’t get trialists to come to them. What chance have they got to sign “better” players come September the 1st?

     

     

    HAil HAil!

     

     

    RobinBhoy

  8. leftclicktic – 12:34 on 11 January, 2013

     

     

    OK he couldn’t have been registered until next January, so why a trial now? And what assurances had he been given previously?

     

     

    It looks very much like he’s been told that if he signed next January he’d have half a season then be in the top division. Whereas now it looks like a minumum season and half before top flight games and he’s not up for it.

     

     

    Hmmm.

  9. ArranmoreBhoyLXV11 on

    HH

     

     

    But you would nt sell shares if you had them.. ??!! Celtic is a life long love- it’s not about making money for personal gain..

     

     

    However it’s nice to know we are being valued..

     

     

    Funny that Sevco reckon they have value …

     

     

    HH

  10. I was watching on the last thread Celtic’s 2-0 away win in Moscow.Lest we forget.Big Tony’s team played some brilliant football.I’ve said here before,Pepe Guardiola or Jose M would not have won the league that year.Rangers were in trouble and the refereees,MSM,SFA,SPL,SFL all rallied to the cause.I am all for keeping your powder dry,yet I was wondering what the hell the Celtic representation were doing at the SFA and SPL.Well,the answer came.1)–setting up a seperate sponsorship with Magners.2)–backing 12-12-18.30–the Celtic site putting Sevco in their place.40.PL not rising to Jabba or any of the MSM taunts/teases,therefore sending Chuckles into orbit once again.

     

    However,I would like a Spanish playmaker before Jan 31st please.

     

    It’s not much to ask.

  11. The biggest original shareholder Fergus cashed his shares in no sentimentality shown there, not a criticism of him either, im sure he still cares very much for the club.

  12. LiviBhoy (from previous thread)

     

     

    I agree that we need a playmaker at the moment (or at least someone with creativity, who can play centrally.) That said – there is no reason why that player should not also be a good athlete. C Ronaldo is one of the most creative players in the world, and an excellent passer of the ball. He is also however very strong physically, and has excellent core stability meaning he is tough to knock off the ball. he worked exceptionally hard on this stuff over the years at man utd… and that has helped him become the player he is today.

  13. IT has come to our attention that recently a number of smaller shareholders have received unsolicited telephone calls concerning their investments in Celtic plc. Shareholders should be wary of any unsolicited advice.

     

     

    Following a recent increase in the prevalence of so-called ´boiler room´ scams, the Financial Services Authority (FSA) and the Institute of Chartered Secretaries (ICSA) have produced a leaflet warning investors about unsolicited communications concerning investment matters, which is available in full by clicking HERE

     

     

    Please note the following recommendations in particular if you receive any unsolicited investment advice:

     

     

    – Make sure you get the correct name of the person and organisation.

     

     

    – Check that they are properly authorised by the FSA before getting involved by visiting http://www.fsa.gov.uk/pages/register

     

     

    – Report the matter to the FSA either by calling 0845 606 1234 or visiting http://www.fsa.gov.uk/pages/consumerinformation

     

     

    – If the calls persist, hang up.

     

     

    Further information and advice on scams, and how to protect yourself from them, can also be found on the Consumer Information section of the Financial Services Authority website at http://www.fsa.gov.uk/ and at http://www.adviceguide.org.uk/

     

     

    We continue to encourage Celtic shareholders to be vigilant.

  14. sixtaeseven - 4 fouls 4 cards & penalty, a day in the life on

    Interesting article, Paul.

     

    However, not being a finance type of person, I’m not sure I understand this bit:

     

     

    “I am sure Rangers International’s board will deliver an on-target return for investors (which in years to come will evidently be a really good thing)”

     

     

    Is that tongue in cheek?

  15. 16 roads - Neil Lennon walks on water. on

    LuxCelt

     

    12:06 on

     

    11 January, 2013

     

    16 roads – Neil Lennon walks on water.

     

    11:17 on

     

    11 January, 2013

     

    LuxCelt

     

    11:04 on

     

    11 January, 2013

     

     

    He is a good athlete,is he?

     

     

    Maybe he should start training for the next olympics then.

     

     

    – > You should tell that to Neil lennon then, who would tell you to GTF. Mulgrew, Wanyama and Ambrose … all recent signings where Neil (or a member of the staff) has vcommented “… good athlete”.

     

     

    In fact – judging by Lennon’s comments, it was one of the main reasons Mulgrew was signed. Like it or not, modern football requires athleticism far more than in the past. English clubs are aware of this, which is why teams like wolves, norwich, sunderland etc can normally beat Celtic without too much difficulty.

     

     

    Thankfully, neil Lennon and the current staff are changing this. Ryan Giggs commented recently that Man Utd players arrive for training, and get their insructions for the day from a team of 6 sports scientists. The days of a kick about on the training field – quick game of 5-a-sides or whatever, are long gone. Your attitude, is quite honestly, that of a dinosaur.

     

     

    I was not advocating signing anyone who is not a good footballer, but if the Club wants to compete with far richer clubs, and develop players to sell on for profit (in other words, exist as a viable business) – we need to be developing (and signing) good athletes.

     

     

    The huns won 9 in a row, and yes – it was chequebook football, and they had better players. But… the lack of athleticism of many of the Celtic squads in those days was staggering. The first team regularly contained guys who looked like they should be playing youth football… (joe miller, brian mclaughlin etc) or nowhere near a professional sport (mcnally, p byrne, biggins etc). MON sorted all that out, but it was eroded again under Strachan/mowbray. Sorry – but guys like paul caddis were decent footballers, but totally lacked the athleticism to make it at the top of the sport. He ended up at swindon i believe. Likewise O’dea… off to leeds.

     

     

    The fact that stoke’s players are ‘good at running’ as you put it, leaves them currenty 10th in the epl, against teams with far more money to spend.

     

     

    ______________________________________________________________

     

     

    Barcelona.

  16. sixtaeseven – 4 fouls 4 cards & penalty, a day in the life

     

    12:50 on

     

    11 January, 2013

     

     

    My understanding is that the investors ‘bought’ shares at a miniscule fraction of the 70p the hoardes were offered them at.

     

     

    Buying money.

  17. Give Chuck his due, he is fairly motivating the fans of other teams…

     

     

    DUNDEE UNITED fans have snapped up more than 3,000 tickets for their cup clash against Rangers, with the game still more than three weeks away.

     

     

     

    The public sale doesn’t start until today but season ticket holders have already been quick off the mark to make their purchases.

     

     

    The William Hill Scottish Cup fifth-round tie takes place at Tannadice on February 2 and it has been mired in controversy since the draw was made.

     

     

    Rangers fans called for a boycott of the game in protest at what they perceived to be the Tangerines’ leading role in not allowing the transfer of the old Rangers’ SPL share to the newco.

     

     

    Ibrox chief executive Charles Green gave official backing to the plan to stay away from the match.

     

     

    He confirmed the Light Blues would not be selling any tickets for the cup-tie but a limited number of away end briefs will be available from the United club shop from today.

     

     

    With the boycott threat in mind, United chairman Stephen Thompson this week called for “a sea of tangerine” to greet the teams when they walk out on to the park next month.

     

     

    The early signs are that he could get his wish.

  18. Paul67

     

     

    Trying to make sense of this. Are you saying investors in Rangers doing so to make money long term bought a pup?

     

     

    Will it be a Christmas pup?

     

     

    Looks like it to me.

  19. Am I getting confused or is the earliest sevco can reach the spl (through either the new 121218 or existing format – assuming consecutive promotion), the beginning of the 15/16 season?

     

     

    bbg

  20. Hargreave Hale Limited,Artemis Investment Management LLP,

     

    Blue Pitch Holding,Mike Ashley,Margarita Funds Holding Trust,Cazenove Capital Management Limited,Legal & General Investment Management Limited & Insight Investment Management (Global) Limited.

     

     

    They want a return on their money…

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