consider the tone of your postings - these are pretty aggressive in tone nevermind what the content holds. where-as sj and other so called rampers have a happy, hopeful, positive message. your tone cannot be doing your mental health any good, seriously, for your own well-being, try be a bit upbeat.
Infapound - thanks for your reply! I thought there might be a good reason why people were suggesting such large estimates on the future share price. I had forgotten about the share buy backs and the dividend (22.5p?), too.
Faz - the placing at 105p will be taken up by Tosca and other II's who will look to hold IMO. There investment strategy is for income and capital growth. The RNS states that the transformed SLE will pay large dividends and exercise share buy backs over the next 5 years. This strategy is being under taken to ensure the placing is over subscribed and that the market is not flooded with shares on re-admission. We are therefore looking at 61m shares in the market - only a %'age of which are held by pi's - which will change hands at a premium to the re-admission price. £2++++ IMO. I will be holding and hope there will be plenty of other LTHs too :) the more LTHs the stronger the SP will get. GLA
Hi all, great news about the Nigerian deal which sounds transformational -- but I'm confused as to what our future MCap's going to be.
Based on SP Angel's $350m evaluation of the deal, and using $30m as current evaluation of our existing assets, we should now be a $380m (~262m GBP) company.
OK, so take the $200m (~138m GBP) raised by the placing at 105p (1.05 GBP) subscription price, SLE's issued shares will increase to 191,428,571 shares. Divide the 262m GBP MCap from above by the ~191m shares now in issue, and we get an evaluation of 136p / share.
So, excuse me for being ignorant -- but where do folks get the 300p/share evaluation from? Is it something to do with future P/E or the profit we'd make on the 50K+ bopd the OML 18 field will now produce? Surely that's got to be worth more than 136p/share!
I'm finding it very hard to understand this deal. Too many ifs and buts. Don't even know what happens to our existing shareholdings. Looks like they're going to be trashed again with this proposed new rights issue. Do we get the option of buying more shares. Do we really want to buy more shares! Big figures being bandied around. . . There's also ( this weeks news) the prospect of Nigeria's southern delta becoming a war zone. . .
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