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. CRC

     

     

    (To clarify: For a sub appearance to count, they must have entered the field of play)

     

     

    ??

  2. 11 January, 2013

     

    Round 2 of 5: From the following list, select the 5 Hoops players that have scored more league goals for the Hoops

     

    (To clarify: For a sub appearance to count, they must have entered the field of play)

     

    (2pts if you are first to answer Q correctly, 1pt if correct but not first. One submission only per round )

     

     

    Andy Payton

     

    Billy Stark

     

    Johannes Edvaldsson

     

    Lou Macari 4

     

    Lubo Moravcik 5

     

    Maciej Zurawski 1

     

    Mark Burchill 2

     

    Paolo Di Canio

     

    Robbie Keane

     

    Tommy Johnson 3

  3. TheOriginalSadiesBhoy on

    Jumbo

     

     

    I agree with you 100per cent. Wenger in particular was being diplomatic. he seemed to stress that they (Celtic and Sevco) would be a loss to Scottish football and more or les suggested that they should stay where they are. I didn’t hear Redknapp clearly.

  4. prestonpans bhoys on

    The Spirit of Arthur Lee

     

    21:21 on

     

    11 January, 2013

     

    erse oot the pub ………….:)

  5. Magnificentseven

     

     

     

    21:15 on 11 January, 2013

     

     

     

    The Raven

     

    21:09 on

     

     

    cheap shot from a stirrer in my opinion………… were u get that from ?

     

     

    my opinion!!!——————- disagree ! ! !….but hail hail! ! !

  6. celticrollercoaster loves Wee Oscar, our Celtic Warrior on

    praecepta

     

     

    ignore…lastminute.dum re quiz

     

     

    HH

     

     

    CRC

  7. celticrollercoaster loves Wee Oscar, our Celtic Warrior on

    Seven Fishes Four Steaks

     

    21:24 on

     

    11 January, 2013

     

     

    Will check it out after quiz

     

     

    HH

     

     

    CRC

  8. 1)Which Lisbon Lion made the most substitute appearances at his time with Celtic?

     

    John Hughes

     

     

    2)In 1894, what architectural feature, the first of it’s kind in the UK, did Celtic add to Celtic Park?

     

    Crossbar

     

     

    3)Which 2 strikers scored their only Celtic hat-tricks against Montrose in 1992?

     

    Creaney,Nicholas

     

     

    4) What was unusual about the opening league game against Killie in the 1972/73 season?

     

    Played at Hampden.

     

     

    5) Name Kelvin Wilson 3 previous clubs?

     

    Notts Forest, Notts County, Derby

     

     

    6)Which player made the most substitute appearances with Celtic

     

    John O’Neill

     

     

     

    7) What 2 other Scottish teams has Anthony Stokes played for?

     

    Hibs, Falkirk

  9. weeman67

     

     

    21:11 on 11 January, 2013

     

     

     

    You don’t seem to understand that the argument of the gun lobby is that the constitution gives them the right to hold guns to protect themselves against the state, not against their fellow citizens. The state is the enemy.

     

     

    So far as I’m concerned if Americans want to slaughter each other that’s their business.

     

     

    There again I only ever watched Baywatch so I could watch them drown.

  10. 67Heaven ... I am Neil Lennon..!!.. Ibrox belongs to the creditors on

    ….pfayr

     

     

    19:34 on 11 January, 2013

     

    Was on the road for about seven hours today , caught all the regular sport bulletins

     

     

    This Sevco to another league is an embarrassing waste of time

     

     

    They are a Div 3 club with a crumbling stadium and a guff playing squad

     

     

    Not to mention their totally unacceptable unwanted support

     

     

    >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

     

     

    Well, you ‘hit the nail on the head’ there, Bhoyo………. HH

  11. prestonpans bhoys on

    I do remember Shuggie scoring the best OG in my life at Hunderwell. Overhead kick from almost the half way line in a cup game in the 70’s

  12. celticrollercoaster loves Wee Oscar, our Celtic Warrior on

    Answers to round 2

     

     

    Player Goals

     

    Lubo Moravcik 29

     

    Lou Macari 27

     

    Johannes Edvaldsson 26

     

    Maciej Zurawski 22

     

    Mark Burchill 20

     

    Tommy Johnson 18

     

    Billy Stark 17

     

    Andy Payton 15

     

    Paolo Di Canio 12

     

    Robbie Keane 12

  13. The Originalsadiesbhoy

     

     

    HR said both clubs were massive , two of the biggest in the world and that if they left Scotland it would at least give somebOdy else a chance of winning. He sounded as interested as I would if asked about Brussel Sprout production in Silesia. ( Admittedly a tad more knowledgeable)

     

     

    Jimbo

  14. celticrollercoaster loves Wee Oscar, our Celtic Warrior on

    Scores after round 2…..and it’s close at the top!

     

     

    The Spirit of Arthur Lee 13

     

    Setting Free the Bears 13

     

    praecepta 13

     

    tarrant 12.5

     

    joe_joe_john_bobby_teddy 11.5

     

    DJBEE 8

     

    Can I Have Raspberry On That Champions League Ice Cream 8

     

    channelislandcelt 7.5

     

    Lostinbonnybridge is Neil Lennon. Get well Stan Petrov 4

     

    Celtic Soul Brother- Supporting Kano 1000 4

     

    Prestonpans Bhoys 3

  15. celticrollercoaster loves Wee Oscar, our Celtic Warrior on

    Round 3 of 5: Celtic Picture Board

     

    Name the players that have played for the Hoops?

     

    (2pts if you are first to answer Q correctly, 1pt if correct but not first. One submission only per round )

     

     

    http://i45.tinypic.com/256efq8.jpg

  16. The Spirit of Arthur Lee on

    S Donnelly

     

    P wilson

     

    A Lynch

     

    M Hedman

     

    T Mcadam

     

    P Latchford

     

    R Aitken

  17. channelislandcelt

     

     

     

    21:16 on 11 January, 2013

     

     

     

    On the Cesar thing , I feel that the matter of Big Billy not being in the best of health should be taken in to consideration ,only sayin :0)

     

    —————————————————————————

     

    Is Billy McNeil suffering from ill health m8

  18. Celtic Soul Brother- Supporting Kano 1000 on

    1.Simon Donnelly

     

    2.McNeil,Glavin,Wilson

     

    3.Andy Lynch

     

    4.Hedman

     

    5T.McAdam

     

    6.Latchford Aitken

  19. Valentine’s Day

     

     

    21:20 on 11 January, 2013

     

     

    Good night Timland

     

     

    Off before the Moooon hoooowler’s appear.

     

    _______________________________________

     

     

    HH to the howlers. You should stay it would be a blast. :P

  20. ESPN TUESDAY 15 6:30 PM GMT

     

    LIVE: FRIENDLY MATCH

     

    Steaua Bucharest v Celtic

     

    SPL leaders Celtic meet Steaua Bucharest for a mid-season friendly game in Marbella.

  21. 67Heaven ... I am Neil Lennon..!!.. Ibrox belongs to the creditors on

    rubicon

     

     

    19:48 on 11 January, 2013

     

     

    The only “good point” chuclkles ever had was on the end of his nose, and only because it has been kept wet with his constant snivelling …….

  22. The Raven

     

     

    21:32 on 11 January, 2013

     

     

    channelislandcelt

     

     

    21:16 on 11 January, 2013

     

     

    On the Cesar thing , I feel that the matter of Big Billy not being in the best of health should be taken in to consideration ,only sayin :0)

     

    —————————————————————————

     

    Is Billy McNeil suffering from ill health m8

     

     

     

     

    ####

     

     

     

    If he is I’m sure he’d appreciate it being discussed on a message board.

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