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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TSOAL
Don’t get it mate…please expand :O)
Shortbread stating, in essence, that greengo is justified in all his rants
starry plough 18:02
Celtic are two games away from the last 8 of the Champions League, I`m sure Gary will be wanting to sample that challenge before heading off to wet Monday nights at the Brittania or Loftus Road or St Mary`s…
When talking about the last 8 I much prefer using quarter-final!
It’s just to get the word ‘final’ into the sentence.
SPF
Paul67 et al
The Royal British Legion website lists 18 days when the the union flag should be flown. 18 designated days, few of which anybody in Great Britain could actually list. Belfast City Council has designated a similar number, 17-18 I think offhand, leading to rioting, death threats, petrol bombs and the use of baton rounds by the police. The decision by the City Council was taken after months of consultation, by the directly elected members of Belfast Council. Democracy at work. For some Unionists, but not all, however, the votes only count when they result in decisions being made by a Unionist majority, a majority which no longer exists in Belfast at least. Problem for the loyalists, as the language used by the Secretary of State in the House of Commons showed, is that they are not seen as more British than the British, but less British, their actions both unacceptable and incomprehensible, to London, where it really counts.
Ravens and Broncos tonight in the NFL play offs
A few interesting side issues for Zombie followers…..
I was lucky enough to be there when Art Model’s Ravens franchise won SuperBowl in Tampa vs Giants in 01
Like Murray dear old Art sold his future in the franchise to rasie funds to realise the dream……. Unlike Murray he sold it on rather than milked it for personal agrandisment….He was at least transparent about that…..although far from a man of integrity…..
The other interesting aspect is the prospect of a white horse charging up the pitch whenever the blue and orange clad bronco’s score a touchdown…..dear old Charlie Barnum Green might look to copy thatone to entertain the dwindling hordes at Sevco stadium in weeks to come….
Happy buffday to all our buffday bhoys
Shortbread now saying his rants were rubbish this week……ah, Graham Spiers has admitted, in essence, that greengo’s rants are self-interest……not in the interest of sevco
Spiers reckons Paul Murray is an “impressive guy”. Surely not the same Paul Murray who was on the old board when they went bust? Or the one who, with the Blue Knights, planned to pay Rapid 7p in the pound for Jelavic and fund new signings with the money from Everton for the same player?
Or the one who reckoned oldco was in great shape as the “debt was coming down”?
Can anyone provide a copy of the original Hugh Adams obituary in the Herald?
I’m on twitter, but my son set it all up for me ….how do you add someone you want to follow, please..?
The Moon Bhoys
17:54 on 12 January, 2013
Our Champions League efforts have given us an windful we cant be assured of every season so it would be crazy to budget on that basis. Our Champions League income should be used to develop celtic triangle, stadium, infustructure etc… to improve match days, none match days increasing potential income.
it’s good business to sell when the player wants to leave just as it was good business to take 9 million for mcgeady, which allowed NFL to buy a host of good young players like hooper. i am sure NFL would get several million from any transfer fee brought in to reinvest in players that want to play for us.
if celtic go down the road of keeping players and failing to get a return we will be left with nothing and that is madness. once we have exhausted every avenue to increase revenue we will be better placed to know what we can afford (increased income). if we can establish Champions League participation over the next 3 or 4 years then it’s likely we will be in a position to hold on to our best players longer.
keep the faith
67
On ipad you click on their photo and it takes you into their profile and click on follow.
Weefra HH
Just read that the great journalist and historian Robert Kee died yesterday.
His obituary in The Times was very fitting, a man who resigned from the BBC because he was having none of the No 10 propaganda broadcasted under his name during the Falklands War.
His writings on Irish Nationalism and history have received much acclaim on both sides of the Irish Sea.
Why has the SFL not disciplined it’s newest member
for gross misconduct ?
Can’t imagine the chairpersons of the other SFL clubs
being allowed to bring their league into such disrepute..
Burnley 78
Can’t wait for the Denver v Baltimore game tonight.
I’ve taken Denver -9.5pts to beat them.
Doubled them up with Green Bay +3.
SPF
Click on blue rectangle on persons page that says ‘follow’. Don’t click twice, you will then be a ‘follow follow’ ;-)
Broonie, Joe Led, Hoops88 &others tweeting about golf today. Enjoy.
Mctall.
My daughter commented on that last week,i didn’t take much notice as she isn’t interested in football anymore.
So im thinking now after having a season ticket for a few years it wasn’t wasted on her afterall .hail hail.
weefrathetim
18:33 on 12 January, 2013
Should have said …..only got the name …..@jclayfield ……posted earlier on CQN
Wonder why supporters of The Rangers fc,want change to take place not next season but the next.They want fastracked,no other reason.
roll on next week so we can get back to talking about Celtic and our teams performances all this crap about shortbread and Green and sevco are giving me a headache. I know its all opinions but I hate even giving them a mention. Bring on the mini huns
HAIL HAIL
67 heaven
Put name in search @jclayfield ,it’ll show in results
A Sevcopath at work asked me in droll fashion why I, and many of my kind, was/were so obsessed with his team.
No, says I, it’s not your team I’m obsessed with, it’s your team’s misfortune.
He turned a funny shade of mental.
u
67
Give me a minute and I’ll check the mrs laptop when she comes back in.
Weefra HH
67
Did you get that to work?
Weefra Hh
The supporter who died at ibrox today, apparently suffered a heart attack. Condolences to his family.
Weefra HH
Hen1rik.
Think your wrong there,thems only want to play their way fairly & squarely through the leagues.pash.
My outlook is their budget was for a fastrack and now it’s looking likely they’re gubbed it’s panic stations.
They can’t increase season book prices.
The crowds will dwindle due to apathy.
There is a realisation setting that green is playing them to bleed their bank accounts and do a runner.
The day im looking forward to is when thems turn their anger on the man that ruined thems and gloated when we floundered.
Murray.hail hail.
gillian i scream
18:49 on
12 January, 2013
Great …..done…..many thanks……ALSO TO
….., and others…..consider me educated…..LOL
American commentator: “and Shaun Malloney, the Irish international up front for Wigan.”
Green spouting rankers are in the top 20 clubs in Europe WTF hahahahahahahahahahah
Weefra HH
stephbhoy @ 18.32
Hard to disagree with anything you have said, previous sales in the transfer market have been top notch, but Gary Hooper is our top goal scorer, which is why I don’t think he’ll be sold this side of end of season, and maybe not even then, hopefully. It must have been tempting for the board to sell Henrik when he was at his prime and the offers were coming in, agree GH is no HL, but it is a similar circumstance and I will be shocked if we sell him to Norwich.
@alextomo: #belfast #c4news pictures now show police blocked Queen’s Bridge forcing marchers along s side of S Strand
Looks like authorities are trying to stir up trouble
Good God …..i’m watching the Hull game and trying to post at the same time…..making an erse of it …….paused it now…..LOL. I meant to ALSO thank wefrathetim and others…..back to the game now ….LOL
hen1rik
delaying change by a year shouldnt move them up to the SPL any quicker – even if they won SFL2 next season it would still only make them the 23rd highest ranked team in Scotland and only eligible for the second tier.
I suspect that there are a few possible reasons for all the teeth gnashing…
1. If they make enough noise about injustice, someone might present them with the opportunity to jump a division via a spurious play off…however, I suspect that another threatened fans revolt by other clubs might well head that off at the pass.
2. A genuine realisation on their part that it might seriously impact their attendances if they can’t be seen to be moving up the structure and are revisiting Annan, Elgin etc…so the hun hordes will get bored.
3. I think that they wanted to be seen to be calling the shots as that would again appeal to the hun hordes. The fact that they end up dancing to someone else’s tune doesn’t go down well with the hun superiority complex.
In my opinion, I think that fans of all clubs can slap it into them again by forcing the 12-12-18 structure – for that reason alone, I hope that it happens.
” Make Mine a Magners!”…………………
67
Me too
Weefra HH
Is the blog broke?
Weefra HH
Just been watching Short Strand under attack and being blamed for getting attacked.
Utterly disgusting.
SwanseaBhoy