Goldbug100 CONNAUGHT (CNT.L) A victim of David Cameron´s save 40% policy?

Yesterday the shares fell 13.50p (46.55%) to finish at 15.50p. During the last couple of weeks knowing that the BP dividend would not be restored soon (and if so, despite promises that the oil spill could be paid for & dividends retained at a lower rate) the fund was looking at other opportunities - high yielding stocks. It´s attention was drawn to Connaught about ten days ago It closed at 31.46p (26 July) when Barcap implied that retail investors were diving into the stock. Yahoo gave a 1ull year Target Estimate: 137.33 p. The price was about 31.03p so we seriously considered a small purchase with a limit of 30p but after the Barcap news the shares continued to rise to 36p as the retail investor (we believe plunged in) for the shares had been 445.80p. On thursday there was news that RBS was selling it´s loan book at 37% of face value - we looked away from the stock unless it fell to 20/25p and by the close of business the shares closed at 29p (5 August) Our gut feeling was to stay away and yes the news Friday prooved that the feeling in our stomach had been correct. Earlier mention of a rights issue has been mentioned in yesterdays comments (see links below) and of course this would have brought down the dividend yield, but with yesterday´s news that (a dividend) has gone out of the window. We will continue to follow the compàny - a victim of the David Cameron "Save 40% policy" in part. - this is not one for widows and ophans, but we might consider a gamble at a lower price as deep down I would say that the fund is a contrarian investor

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Connaught Prices

Date Open High Low Close Volume Adj Close* 6-Aug-10 29.20 29.20 13.30 15.50 68,248,500 15.50 5-Aug-10 31.57 31.74 28.79 29.00 6,083,200 29.00 4-Aug-10 33.86 33.86 28.27 32.00 14,848,800 32.00 3-Aug-10 36.00 36.00 31.21 33.36 2,134,200 33.36 2-Aug-10 35.94 37.49 34.30 35.56 2,708,800 35.56 30-Jul-10 35.82 37.90 33.15 35.62 3,584,400 35.62 29-Jul-10 36.00 38.00 33.00 35.52 12,156,600 35.52 28-Jul-10 35.44 35.70 30.00 31.00 8,752,700 31.00 27-Jul-10 32.00 38.00 31.03 33.70 18,531,200 33.70 26-Jul-10 34.40 40.00 19.10 31.46 73,611,100 31.46 23-Jul-10 104.40 105.20 101.70 102.10 705,100 102.10 22-Jul-10 104.80 109.00 102.70 104.00 1,024,100 104.00 21-Jul-10 103.80 104.30 96.10 103.00 1,126,600 103.00 20-Jul-10 106.10 108.50 102.30 103.00 1,025,600 103.00 19-Jul-10 107.20 108.00 105.30 106.50 1,493,900 106.50 16-Jul-10 106.50 108.50 103.70 107.80 5,080,000 107.80 15-Jul-10 115.00 115.00 101.80 105.00 3,461,200 105.00 14-Jul-10 116.30 116.40 112.90 114.10 1,327,600 114.10 13-Jul-10 115.60 115.60 112.80 114.80 1,554,600 114.80 12-Jul-10 114.80 116.40 113.30 113.30 1,110,500 113.30 9-Jul-10 114.20 116.50 110.00 113.30 2,150,400 113.30 8-Jul-10 122.80 122.80 108.40 111.10 3,829,400 111.10 7-Jul-10 118.50 119.40 113.40 118.00 2,040,100 118.00

It is a known fact that unlike Spain there is a housing shortage in Britain and back Sir Roy Gardner´s feeling "may believe that there is a business worth fighting for" at Connaught (LSE: CNT.L)

References

Connaught faces further losses [at Financial Times] FT Times(Fri 8:50pm)

October is too late to find out what's really been going on at Connaught Other (Fri 8:26pm)