Sevco’s share price is tumbling despite the current board seeing off the rebel challenge at last month’s AGM.
A year after touching a high of 90p it emerged yesterday that on January 3 a total of 310,000 shares were sold for just 28p on January 3.
The late notification of that transaction has added to speculation that the share price is likely to fall further despite the overwhelming backing of the controlling Easdale axis at the AGM.
Small volumes of shares are regularly traded but the sale of 310,000 at a discount of more than 10% of the current price is bound to accelerate concerns among the investors who splashed out 70p per share in December 2012.
Those shares are now worth much less than half of the price paid for them with no sign of an upturn following the AGM which was supposed to end the in-fighting at the troubled club.
A PR charm offensive in the lead up to the vote killed off the prospects of the rebels with new CE Graham Wallace portrayed as the man to lead the club to the promised land since he had been involved with Manchester City as the club announced the biggest ever losses in football.
At the AGM Wallace was highly critical of the clubs’ cost base which he claimed was too high for the top division never mind the third tier of Scottish football.
That statement was expected to be the forerunner for extensive cuts in the playing budget but with one week gone in the January transfer window there has been no action to back up those comments.
Cutting footballing costs is notoriously difficult to achieve with players contracts virtually untouchable. None of the big earners at the club are out of contract at the end of the season with stars like Ian Black, Dean Shields, Nicky Law and Dick Foster still having more than two years left on their current deals.
The first team management team are believed to be costing the club upwards of £1.2m per year.
With no word of cost cutting plans being put in place it is likely that the share price will slip further making further investment highly unlikely.
Investing in a company that has seen the value of its balance sheet halved 12 months after going to the AIM will be near impossible.
With a growing number of supporters critical of the board it will take a major action plan to reassure investors that the slide in the share value isn’t about to accelerate further.
Oh dear ,and there’s a wee rumour goin about that Wallace has walked after he saw the finances but an injunction has been taken out against the press ! Hehe …..it used to be a handshake to sort that !!
That’s a rumour that won’t go away, tick tock HH
I think @celticrumours was at the wind up with that one.
It’s extremely alarming or it should be to all Sevconians. The club is only valued at around 20mil now and has dropped 8-10mil in the last couple of months.
Unless massive cost cutting is done now it’s impossible to see investors pumping in more cash which will only lead to administration for the new club.
hurry hurry.
As always, on the ball, Joe.
Could the shares that were sold be sleekit’s ?
Sevco are a toxic brand, with the low share price reflecting this.
Some speculaters might buy at this price,
for a short term profit.
But, on the whole, what the price reflects,
is administration is lurking in the background.
Invester’s will not invest, if ultimately the
share price becomes 0.Shares worthless,
with another insolvency event.
Which cannot be discounted.
All the while, the Zombies phone up Radio
Mental, ranting where’s Wally ?
The Wally being the SA crook.They see
Sugar Dave as the daddy to beat all daddy’s.
However, he has his own troubles to seek,
in his homeland, with record fines still to
be paid.
After that, is Sugar Dave waiting for the
LIQUIDATION of Sevco to then make his
move ?
Good call, the sale has Sleekit’s fingerprints all over it, in similar style to the gifting of his proxy vote.
Selling enough not to be named at 28 times his original investment is a wise move.
Joe,
It makes sense to sell now, as he is leaving at the end of the season.
I heard Billy Davies is being lined up.
If Forest make the play – offs, davies will
stay with them, until end of the season.
If they don’t make play-offs,and Sevco
get knocked out of the Cup,Sleekit will
be gone before the end of the season.
With davies taking over then.
I heard this rumour last week.Maybe
there is some truth in it.
Anybody heard likewise ?
In the unlikely event of Sevco avoiding an insolvency event their next manager will be on a realistic £100,000 a year salary plus bonus, it’ll be a long time before Billy Davies goes near a job on that sort of rate.
Well said,Joe.
Youv’e hit that rumour on the head.
As sleekit sets the benchmark at 800k.Finding a manager for 100k woud be their limit,indeed.
So sorry to read that Richard mackenna had passed away,and San Francisco C.S.C. are gonny miss him.I knew Richard well and God rest him and my thoughts are with his family and the rest of the guys the Abbey pub on geary boulevard where he was well known,and fiddlers green next to S.F.O. Y.N.W A.
Isn’t it grand Bhoys to be kept up to date with all the doom and gloom of the Ipox spivs thanks to the Internet Bampots’. Years ago all of this stuff would have been hidden from view because the Urine soaked rags some call ”newspapers” would have just not reported it. . .and still don’t. It would never have seen the light of day.
Teetering on the brink of collapse seems to be the normal way of things for the new Sevco f.c. club that play in that old forgotten fitba park called . . .Ibrox I think it was called; and, so long as the zombie supporters try and link it with the old DEAD Rangers it will always make for good entertaining reading. There has never been a more entertaining side show to Scottish football EVER!
Long may it continue.
Cheats then, cheats now cheats forever!
Buffythecat
Would you like a bowl of Monti’s Ice cream & Jelly?
🙂
Monti
Oh, yes please Monti. . .and can my friends Craig and Charles have a bowl of your special ice cream and jelly too. They are here celebrating some kind of deal together . . .something to do with making loads of dosh from some zombie tribute act somewhere.
Anyway the tears are rolling down their eyes as they try and tell me the story. . .I can’t make them out but they seem lovely lads indeed!
Those two fine gents get an extra scoop & extra lime sauce 🙂
Morning Joe,
Can’t be long now?….surely!
Interesting times ahead methinks.
It makes great reading . John Cleese could not write stuff like this!! Wee “sleekit” is keeping them on the back pages of the daily ranger and the other rag the sun complaining how his poor wee innocent blacky boy is being kicked off the park. NINETY SIX yellows 5 REDS in ten years. Yes he wins hands down The THUG of Scottish football!!Countdown is well down to the lower figures. The sooner the better.
Tick-tock tick-toc.
The clock is ticking to administration 2 yee haa
I can’t wait to see the back of them again. How much fun and enjoyment they do give however.
Will the glorious history survive?.Dermot Desmond should buy them out clear all debts and start off in the bottom division calling themselves Govan Emerald.Who can complain , no debts taken one’s punishment and started anew.
Yes, the tribute act are a shambles, long may it continue
im glad that sevco made it clear that they think they are old rangers because there will be no arguments that its there second time to go into admin..where the stricter penaltys will apply
will be some laugh if they start back tracking
I just hope my ”rumour” was true ! …….but if not ? Well , doesn’t make much difference . WE are THEEEE Most successfull club in Scotland !!!……and by Tim you catch up with us, this thread and the WORLD will be gone !!!!! OUR DAY IS HERE !!!!!……. Yours is gone !……….WEEEEEE ARRA PEEEEPUUULLL !!!!!!!!
Sorry Bhoys n Ghirls bit h n mssd ….celebratin the death of a ”reincarnation” !!!
They should make a movie about Rangers/Sevco.
Any ideas what the name of the movie would be?
HH
Timtim67,
Film….WHEN GREEN ‘n’ WHYTE
MADE THE HUNS WORTH SHITE.
Or ,
LIAR, LIAR, LIAR !!
STARRING, Murray,Green and Whyte.
Ally mccoist is gonnae be the new James bond.
Starring in
ONE SCOOP IS NOT ENOUGH
haw haw haw
And for his next bond film all will star in
THE PIE WHO LOVED ME
haw haw haw
Why did I miss out a Y above.
I don’t know I’m not wise enough
Haw haw haw
For your pies only..
Golden pie
Haw haw haw
Pie another day…….
Just what have Green and Whyte done with all of that GOLD?