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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Jabba jumping ship is typical rat behaviour.
Hoefull he’ll take the plague to his new berth.
ulysses mcghee
17:14 on 11 January, 2013
Paul
In the hope I’m blissfully ignorant, can I just say I didn’t understand any of that article. Shares and stuff and dividends etc – whoooooosh….
Me too. Best not to meddle with that financial mumbo jumbo. Safer giving your investment to the bookies.
Effin’ iPad…….’hopefully’,
but ‘hoeful’ will do…..
miki67
18:05 on 11 January, 2013
Jabba jumping ship is typical rat behaviour.
Hoefull he’ll take the plague to his new berth.
You mean Jackson and Keevins?
I heard that Celtic’s share price has risen dramatically due to in cider trading.
IFANGEW!
can i have raspberry on that champions league ice cream
17:58 on 11 January, 2013
It will be up to us to keep pushing for truth and justice.
HH
A67,
they are drip feeding the real and relevant informtion about their status in Scottish football, information which would have made the difference to some of the shareholders, had the information been publicised in the share portfolio, does it specify associate member
jungle jim
god that was quick NAW but thanks for praise , thought at the time it sounded like shite and turned out it wiz albeit well dressed up
It’s Friday – that means it’s the turn of Fatty McCoist to entertain us with his wisdom:
True to form, Fatty likes a bit of slapstick…
Sleekit said: “You can’t move goal posts and effectively waste people’s seasons. If it goes ahead and starts next season, this season is meaningless for a lot of teams.
“There would be no point. What a slap in the face that would be to everybody in SFL3, including our fans and players.”
“Our supporters have been slapped right on the coupon at every opportunity. It’s unbelievable. But all it will do is make them stronger, I know it will. It will make us all stronger.
“This isn’t a strop or throwing the toys out of the pram. I just feel, again, if it goes through, it will be another slap in the face to our supporters.”
It’s another day, so another Zombie tries to convince the world Sevco is the pure total biggest bestest club and that…
Sleekit added: “Everybody will tell us the rules are the rules, that we gave that [vote] up for four years. It wouldn’t happen in any other country. You would ask the opinions of the top team in the country in any other country in the world.
“But we don’t have a right of complaint because seemingly we are not entitled to an opinion because we have given that up.
“It’s kind of small-minded if you ask me but it’s fine, I don’t have a problem with it because that’s the rules.”
Celtic 55- ta,can’t believe how many old duffers buy the Sunday Pest.
Forrest 16-14
Funny and very well written as usual.
I wonder what kind of reaction we’d get If someone dropped that link into FF or RM?
The sheer arrogance of that lot would not allow them to heed the warning and thats the rock they’ve been perishing on since day one of the scandal. As they say, hell slap it….
hh
Evening cqn
Are they away yet?
rick-tic welcome.
Even The Soviet Publication,Pravda,Advises American Civilians To Resist Any Attempt USSA Government To Disarm Them…
(Oh….And They Also Reckon That The Obamalini Is A COMMUNIST..!!)
What A Situation….Virginia..
http://www.theblaze.com/stories/2012/12/31/russian-news-outlet-pravda-prints-surprising-opinion-column-warning-usa-never-give-up-your-guns/
30,000 gun deaths in the USA last year. What a gawd awful society. And these people have the nerve to lecture and invade other countries.
YEUUCH!
rick-tic 18:11:
Welcome to the best Celtic blog bar none.
Keep the Faith!
Hail Hail!
How utterly thick is McCoist. If we follow his sporting integrity arguement and don’t change the league structure until next year they still will be in the third tier next season, with a chance to get into the second, no difference at all.
And it will be a very long time and a huge change in their culture before anyone from Sevco is in a position to lecture Scottish football about integrity.
Cheats then, cheats now, cheats always.
Re- Gun debate USA
If everybody in your street has a gun,
you get a gun.
valentines day ,lennybhoy
cheers
Sally “top team in the country” ffs,pumped in the Ramsdens Sovvy Ring Cup by Queen of The South.
More People Are Murdered In The Peoples
Bolivar Republic Of Venezuela Each Year….
Than Are Murdered In The USA And European Union Combined….
Despite Venezuela Having A Population Twenty Eight Times Fewer Than The Latter…
Good Afternoon…Kojo..!
I’m Tonto ….To Your ‘Lone R*nger’…
Hi-Ho….Silver…
Usual STV sevco spin – can’t say I’m surprised
The more things change the more they stay the same. These despicable Huns have bullied people for decades and they just can’t stop. Belfast is a ghost town at the moment as tonights protests are due to kick off, in an attempt to overturn a democratic decision of the Belfast Corporation. In Glasgow, Green is rabble rousing and inflaming a very dangerous element of Scottish Society, if he is not stopped this too will end in violence, mark my words.
america gun law
stupid debate
too little too late
gun law debate is a distraction
banks are still getting away with murder
fraudsters are still getting away with murder
murderers are still getting away with murder
His Dad played for Celtic……
http://youtu.be/Hcno-p0r5vg
Keevins taking every chance to have a cheap shot as usual,ticket arrangements are there in black and white for everyone.End of.
A can see the football board of the conference clubs in England rubbing their hands with the prospect of Rampaging Servconian hoardes formerly known as the rotten mob decending on the likes of forest green Woking and Grantham lol lol ! How long ago was it when the deid clubs Reptiles inflicted their own brand of making friends on the good people of Manchester ! Think it’s a dead duck Chuckles nae joy !!!!
How to make friends and influence people
http://www.walesonline.co.uk/footballnation/swanseacityfc/swansea-city-fc/2013/01/11/91466-32589490/#ixzz2Hg94zVg7
Good to hear Celtic shares are on the up but I switched off at comparisons with a daft wee divison 3 clubs shares.
Majority of CQN posts are about that daft wee division 3 club now, not much to read for folk who have no interest in them.
FGF,
I think the best is yet to come :oD))))
Who would have thought a scottish football riot with more arrests than in dundee, would have been reported on shortbread not involving the Fenian threat.
It’s only taken them 6 days
Jeezo, the sevco lifeline of a precedent of women’s cross-border footie is headline news on BBC Scotland. Hunbelievable.
My dear,dear,dear,friend.. The Singing Detective..
Hiya.. Palomine??
Great tae Greet ye,this fine day.
Talking aboot Guns..
Well…Ah kin tell ye.. when… Hiving a Gun.. or.. Actually.. It wiz Friend of Man who hid wan.. at the Time, of the Incident ,which Ah am Going tae Recount..
Really.. Made a Loat o sense…
Occurred wan day,righta here in Vegas.\
Ah wiz paying a Visit tae the City Assessors Office.. when Ah ran into an old Pal.
He is an Ex- U.S. Air Force Colonel.
A real.. Upstanding.and Stand-up Guy.
At one time.. Stan.. wiz a Body Guard tae a Former Nevada Governor…
Mr. Brian wiZ the Governor’s NAME..Ah believe it wiz..
Anyway..tae continue..
While Ah wiz chatting tae Ma Pal, Stan.. Standing the Main Door… the Entrance tae the Tax Office… a Pick -up Truck , drove up.. and Parked right outside the Entrance .
The first thing that baith of us Noticed.. wiz. that ..There were Two .very Fierce
Doberman’s.. occupying the Loading Bed of the Truck.
There wus an..Un-Armed Renta Cop.. who wiz oan duty.
who wiz standing near by.
As the Driver,of the Now Parked Truck.. Alighted fae the Vehicle…
The Security Guarded…
Admonished..
“Hey, Mister, You cannot Park ,There.. You Must .. Park. Round the Back of the Office.”
well.. The Driver,did not take too Kindly tae those Instructions..
At all.. At ALL.
“Make Me”.. he Growled.
Noo. the Guard and The Obsequious Driver.. goat intae a Slangin match.,. and .. to cut a LANG story ..short..
The Driver.. shouted at the Guard..
” If you give me any more hassle.. I will set My dogs on you.”
“Go Ahead” .. replied the Guard..
“Seize Him..”.. commanded the Driver tae is Two Big Dugs..
and.
The Two Big Immediately.. Jumped oota the Truck Bed..and raced toward the Now. Terrified
Un-Armed Renta Cop..
Noo , we come tae the Good bit.. o’ this Story..
Quick as A Flash. Stan.. Retrieved his.. Ankle Gun..which he kept strapped tae his Leg…
and..
“Boom.. Boom”.. two shots rang oot.. and
Two Big Dobermans.. fell..
Deid.
STV does not rule out flatness of Earth.
SEVCO FACTS:
Sevconians live in a parallel universe where it is winter all year long.
The main source of nutrition for Sevconians is yellow snow.
Andrew67 I agree with yourview on guns. However, in response to the online pettion to deport Piers Morgan from the USA, I’mkeen to launch a campaign to keep him there.
It is indeed Friday and I am in Love.
http://www.youtube.com/watch?v=mGgMZpGYiy8
Thank You Celtic.
A wee mix of songs I have been listening to over the last hour or so.
http://www.youtube.com/watch?v=xzCq3nivrzs
Listening to part 2 currently, if only the Sevco had this depth of feeling for others.
It won’t be that long before most of Glasgow supports Celtic. ;))
Catholic schools are the best place to send kids to get their education, people are wakening up and realising this. ;)
I think this scares the life out of the bigots more than anything else.
Patience is a virtue.
fplg is quite correct. A team that holds so many world records playing against amateurs, plumbers and bank clerks and therefore is the biggest team in the country has every right to be heard. While we’re scrambling about in the last 16 of the Champions League having to play against Barcalona, Juve and the like, sitting comfortably on top of the top division in the land, alive and well in all three domestic cup competitions we can only press our noses against the shop windae and wish it were us.
What a plank!!!
Call from Lorna on SSB tonight where she has 4 season books; 2 adults, 2 kids. For the Juve game they’re being split 2:2. Hate to hear this on Clyde but Celtic really need to get this fixed. Disgraceful that they kept the adult seats and are reallocating others. A family of four going to all home games should be treated as four for Euro ones as well. Get it sorted, ticket office. Also Shortbread tonight surpass themselves with a panel is Sandy Clark, Frazer Wishart and Billy Dodds to discuss the league reconstruction plans. Amazing that we get such a fair and balanced panel!