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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i don’t blame the msm for their approach with cg i.e. dont challenge, let him talk and we’ll sell papers. the man and sevco are a match made in hell. no matter what he or his manager says it will not change the direction of the proposals. his is one club of 42 and one without voting rights, if other clubs agree to the restructuring of the league then so be it. cg was happy for the rules to be bent and changed to allow for sevco to gain entry into the scottish league so having a pop about rule changes in mid season is a joke.
to change and try something new is better than cotinuing moan about the status quo time and again, who knows the new proposals could be the best thing to happen to scottis football.
like the way celtic are refusing to have any link to him or sevco and refuse no matter what he says to be drawn into it (a clear stand alone for celtic and pl me think).
its good to see celtic continue their transfer policy of seeking out up and coming talent i.e. 18 to 22 year old.
celtic keep up the good work
Bishop B,
Thanks for the Clip. looks a tidy player for a big man, with a great first touch, and very strong on the ball
gsu
iki
11:05 on 12 January, 2013
Green on Talksport
“In the land of the blind, the one eyed man is king.”
In fact the one eyed man would be the oddity in such a land and would be ridiculed by the rest of society.
Bit like Chuckles really.
captainmoonlight 11:28 on 12 January, 2013
Reminds me of a folk festival I was at about 10 years ago when there was a band playing U2 songs in a folk style. They were called Folk U2. Best name ever, just a pity they we’re crap! ;)
HH
/Bishop B
So charlie is threatening to take the english leagues to the court of human rights…. Apart from winning friends darn sarth .. does he realise he might be at the end of a long line of creditors and people oldco and newco have violated
Len Brennan
Folk Me, what a good name lol
bono’snotworriedcsc
HH
away out have a good one bhoys and ghirls
hail hail
The Rogic guy looks like an interesting player. Unusual to see such a big guy have such quick feet!!
BMCUWP, happy birthday to yer auld da, I’ll buy him a pint next saturday.
He shares his day with young ACGR……………….He wont be getting a pint though.
Just about to head out on the golf course and its bluddy freezing up here. I’m wondering why I put myself through it:-) Fore………….
.
HH
googybhoy ♥ Celtic
11:32 on12 January, 2013
In fact the one eyed man would be the oddity in such a land and would be ridiculed by the rest of society.
======
How would they know?
A CEILER GONOF RUST
Small world-my best wishes to yer lad. Tell him the Irn-Bru is on me next week…
BLANTYRE TIM
Tis my Mum who is the saint-she has to put up with both me AND my Dad.
captainmoonlight..
he said it was a joke..noone believed him though…o))
Sevco haven’t really thought through this ‘moving to another league business’, have they?
For a start, they’d need their refs to go with them and they’d also have to play against 11 men (or women, if the EU rules in their favour) every week. I can’t see them liking that.
By the way, is it 10 man Annan or Elgin they play this weekend?
A Big Hoopy Birthday to Awe Naw
The only guy in Germany who makes David Hasselhoff sound good
Alles Gute zum Geburtstag
Have an enjoyable game ACGR, had a belter of a game yesterday. Played a 3 ball with a couple of mates, not in any Competition, had 44 points and still beat nobody. One of the lads had 45 and the other had 44 as well. Worked out in the bar after, if we had been playing as a team in a Rumble (i.e. 2 to count at every hole) w would have had a team score of 98.
Vmhan, 10:15
I don’t know what hospital it was at, it matters not. They are blinded by their bigotry.
https://www.youtube.com/watch?feature=player_embedded&v=vI_VhAEwB0k
Headtheball
They play berwick sevco at mordor
goldstar10
11:04 on
12 January, 2013
LOL!! Stolen.
The Rangers have an international home game today … looks like they get to play teams from another country after all
I haven’t had time to read back but does anyone know of a Celtic developement side playing at Crystal Palace today, kick off 1300??
Back from a nice walk along the beach, still mild for this time no the year, its gonnae get colder by tonight though.
V
Tourtenay
Yes .. Crystal palace v celtic at 1pm
TBJ,
Thank you sir.
HH
O.G.Rafferty, aye people around the world need to understand what these scum are like.
Re the hospital, I think this is the correct one that Monaghan is talking about……..
monaghan1900
10:45 on 12 January, 2013
Vmhan
10:15 on
12 January, 2013
BBC report similar:
“In Rathcoole in Newtownabbey, a distressed pensioner pleaded with protesters to let him pass through a road block so he could make his way to visit his seriously ill wife in hospital.
The protesters jeered at the elderly man and refused to let him through
@celticrumours: Attention media:
1. Currently 7 year waiting list to have case heard in Strasbourg
2. Competitive sports exempt from sex discrimination law
Chucky real is a muppet.
Just finished watching the RTE video which someone posted a link to awhile ago, about Jim McGuinness and Donegal football club (gelic football I believe) a good watch. Let’s hope he helps bring as much success to Celtic as he did Donegal.
Intersting game to watch too. A mate of mine used to play it in Cork before he came to Canada, never really watched until now.
gsu
Tourtenay
If you have a twitter account you can follow all matches on celtic fcs page
gelic=gaelic
Just as well I’m off the bevvy, as wee Derryyghirl done her back in yesterday and has been laid up in bed ever since, I need to learn to cook pretty damn quick, anybody got an app for that :-)
V
Glücklicher Geburtstag, Aw_Naw, Alle Beste, und hat ein gutes einer
Happy Birthday Aw_Naw_No_Annoni_Oan_Anaw_Noo
have a great one
Big heck on bbc saying the villa job is first time he was sacked as manager …. i thought murray sacked him at mordor
Let me also say Many happy Returns to AWE_NAW and BMCUWP’s Da too!
gsu
Vmhan
Hungryhouse.co.uk….. wont teach you to cook but why bother when you can order on line
Best wishes to my wee pal … Get well soon derryghirl
The Boy Jinky
He did indeed get sacked from the club that is now dead. The same with Advocaat.
Ten men
I remember the speculation from christmas that season but he lasted until the end of the season. Wasnt sure if his contract was up then
The Boy Jinky
He had 1 year left of his contract when he was sacked by them.
Of course, you will never read in the MSM in this country that either one was sacked.
They just ‘decided to leave’ or became ‘Director of Football’ instead
.
Vmhan
12:35 on
12 January, 2013
Just as well I’m off the bevvy, as wee Derryyghirl done her back in yesterday and has been laid up in bed ever since, I need to learn to cook pretty damn quick, anybody got an app for that :-)
V
..
I Find a Microwave pretty damm Quick..
Summa of OneMinuteNoodlesCSC
Ten men
Just checked the bbc .. Typical gash
Murray decided to change manager after villareal game but delayed the move until the end of the season
After speaking to sir david … Big heck decided to leave at end of the season