Updates

Southern Cross

October 2008

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Southern Cross has made good progress towards securing its financial future by announcing two sale and leaseback deals of certain property freeholds. The first on 29 August was the sale of freehold interests in nine care homes to a subsidiary of Daejan Holdings for Â£31.1m, booking a loss of Â£6.1m. These homes generated an annual rent of Â£2.5m and so the exit yield was 8%. Then on 4 September Southern Cross disposed of freeholds in a further seven homes to three separate parties for Â£20.7m, making for an exit yield of 8.2%, while the book loss was Â£3m. The proceeds will be used to pay down its borrowings and will significantly improve its chances of refinancing its bank debt. That said there are still challenges, including fin ...

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New World Resources - Results disappoint investors

TMI Trader Portfolio - October '08

Southern Cross - Fee rises support margins (October 2009)

Southern Cross - Portfolio constituent hits six-month high (June 2009)

Southern Cross - With debt concerns almost eliminated the shares look cheap on PE of 4.3 (April 2009)

Southern Cross - Dramatic recovery in finances means care homes operator looks over-sold (March 2009)

Southern Cross - Shock profit warning (August 2008)

Southern Cross - 5.8% increase in fees (July 2008)

Southern Cross (April 2008)

Southern Cross - Underlying occupancy over 92% (November 2007)

Southern Cross - Divests freehold for Â£30m (October 2007)

Southern Cross (July 2007)

Southern Cross (June 2007)

Southern Cross (May 2007)

Southern Cross - Blackstone exit triggers re-rating (April 2007)

Southern Cross (February 2007)

Southern Cross - Largest provider of care homes exhibits strong demand profile (November 2006)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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