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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Soal
Now I know what you look like I can understand your reference to a horse.
X
Rev Dr Elizabeth Adam puts right an unforgivable wrong.
Still, having both obituaries on the Herald website, is testament to something unfortunate and poignant.
HT that’s what you get when generations of so-called leaders are too sympathetic or too afraid to stand up to the bullying.
They are the Tonton Mafloutes.
HT
Thoroughbred
Thanks
HT your a better man than me mate as I could not read the tweets without wanting to roll back the years and get ripped into these scum and you know I am the biggest pacifist in the whole widest world.
PSNI surprised it took them so long to have a go at Catholic areas as they have left the routes open for them. Really sickened with these pwicks something seriously needs to be done about them.
HH
Celtic First
Agreed the quality of leadership within both Loyalism and Unionism has resulted in this impasse.
Soal
Hung like.
Right off for a haircut.
HT
See you in 5
The reason I asked about Alan Brazil is, knowing he’s a good Celtic man,why is he not
asking questions about sevco?
Have Gray and Keys taken over?
Judging by what i’m reading on here,it seems like it.
Kayal33 @ 14.01…………………zey vill be added to ze lizt.
Re- Flag protest
Watching BBC news the correspondent Chris Page shocking.
fair and balanced my #rse.
Why are republicans being drawn into it ?
2 OG Walters
jonathan walters 2 og’s for stoke v chelski
Walters 2nd OG!
Sky news not mentioned nationalist involvement, bbc working an agenda
What odds on a 3rd! – let him take the pen!
Lampard spoils the day and takes it
Canamalar – while I don’t condone any kind of violence it seems like a pretty obvious reaction to letting the Loyalists change the route. I’m not convinced they couldn’t have been stopped. So it seems somebody somewhere wanted it.
I can’t think why anybody would want the Republicans provoked like that.
Hmmmmmm
Weeminger,
Balance Scottish style
why are people taking the p*** that jokesport are saying about Hooper!!!!
Ffs think about it
1 transfer fee £8-10m(norwich cant afford this)
2 wages £30-40k( norwich cant afford this)
we have people on here saying hoops never settled etc etc
to believe a sevco friendly radio station is pathetic
•-:¦:-•** -:¦:- sparkleghirl :¦:-.•**• -:¦:-•
A couple of posts from earlier :))
MTHForum 4
@celticrumours: Attention media:
1. Currently 7 year waiting list to have case heard in Strasbourg
2. Competitive sports exempt from sex discrimination law
Chucky really is a muppet.
@GrahamSpiers Did you know Competitive Sport was exempt
from the Sex Discrimination Laws? Or are you too busy still clapping like a seal?
!!Bada Bing!!
15:10 on 12 January, 2013
My Protestant girlfriend just bought a pair of Union Jack knickers…Every time I take them down there’s a protest
Bada, you shouldn’t be wearing them, apart from anything else they will cut the Baws off ye.
Stunning strike from Hazard
3-2 at Poundland,squeeky bum time
Stokes first home defeat in almost a year
Oops
PJBhoynyc
15:59 on
12 January, 2013
———————————————————
I see they have both obituaries but those ‘moderated’ comments seem very mild!
4-2 at asbestox dome.
They must dread going to watch the pap on display.
Green doing his usual ranting,sally has caught the ageing bug.
Magners couldn’t make it up.
Yorkstons mob down 3-1,shame that.
John Robertson tells an interesting family “anti-dote” live to the nation.
Ex footballers are stupid
leftclicktic 16:30 on 12 January, 2013
Thanks :) It was reading those tweets that made me wonder what was going on.
Also say Founded 1872 https://t.co/hZ62guMg
Can someone ask @AlisonRobbie why RFC claim to be OLDCO?
The RFC Plc is in liquidation?
The RFC plc is in liquidation. The current holding co of (Sevco)*Rangers FC is Rangers International FC PLC
@AlisonRobbie
Anyone who calls SSB or BBC sportsound can you ask ? Plz going to work.
Walters skies his pen and misses the hattrick!
Last post from THE_TBK and SparkybhoyHH via twitter.
Thanks.
2 OGs and a missed pen, ever happened before?
I can’t keep up….
Is it “The Rangers…”
or “Rangers International”
playing in the 3rd division?
Oh, and the poor guy who scored 2 OGs has just missed a pen…..
Alasdair
Easier just to call them by their original name.
Sevco.