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Gulf Keystone Petroleum Share Chat (GKP)



Share Price: 4.78Bid: 4.66Ask: 4.78Change: -0.23 (-4.59%)Faller - Gulf Keystone
Spread: 0.12Spread as %: 2.58%Open: 5.00High: 5.10Low: 4.60Yesterday’s Close: 5.01


Share Discussion for Gulf Keystone Petroleum


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Subito
Posts: 359
Off Topic
Opinion:No Opinion
Price:4.82
RE: Del
Today 16:21
Hi Cityfan. I am a LTH of GKP shares. This does not make me anywhere near an expert on trading them - especially in potentially critical moments. I am very confused and have been for a while with regard to how the different 'what-ifs' play out hypothetically. My attention was drawn to your comment on dilution effects and I want to ask you the following question.
On the premise that dilution will, to some degree, take place, if that caused the SP to 'temporarily' drop in value, then the beneficial thing to do would be to sell now and buy back in at a lower price, would it not? Is the reason some people are not doing so because they believe there will be a risk (once the restructure is completed) of not being able to buy back in before the price has shot up due to thousands of buys? If not, if one believed the SP would drop due to dilution, why on earth would they not sell now?

I note that you say dilution does not work that way in any case, and I would be grateful if you would explain for me exactly why. And what do you feel might be the worst scenarion for we LTHs? Thanks in advance. Good luck to us all.
 
weathervane
Posts: 824
Off Topic
Opinion:No Opinion
Price:4.82
Zzzzzzzzzzzzz
Today 16:18
Zzzzzzzzzzz Zzzzzzzzzzz and Zzzzzzzzzzz
theshipscook1
Posts: 2,285
Off Topic
Opinion:No Opinion
Price:4.82
RE: Preference
Today 16:17
I think we'd need to check the lse admission prospectus? I think there's something about admission of entire shares.

Gulf didn't use all the seda either, but that definitely expired
Del44
Posts: 4,646
Off Topic
Opinion:No Opinion
Price:4.82
RE: Trades...
Today 16:15
Still not much movement in volumes......
So everybody staying put for the long weekend........
Cityfan
Posts: 78
Off Topic
Opinion:No Opinion
Price:4.82
Buys v sells
Today 16:15
4.1m v 2.8m

We're doomed Durby.... we're doomed
BroadfordBay
Posts: 262
Off Topic
Opinion:No Opinion
Price:4.82
Preference
Today 16:07
The company has, to the best of my knowledge and as detailed in the AIM Admittance Document of Sept 2004, the ability to issue up to 60,000 Preference Shares of nominal value $1,000 in addition to the $0.01 Ordinary Shares in issue.

To date none have been issued.
CHUNK
Posts: 2,118
Observation
Opinion:No Opinion
Price:4.82
Or....
Today 16:04
just maybe the KRG/MNR knew the IMF money was coming through and told JF as much, oil co's in Kurdistan get paid ALL monies due and JF is negotiating a haircut for bonds due 2017 leaving enough monies to take us to at least 55kbpd. Further dilution for shareholders would be a wipeout from these levels as would any offer for the company.
DRichi
Posts: 229
Off Topic
Opinion:No Opinion
Price:4.89
View Thread (2)
RE: DRich
Today 15:50
If the Company had no costs or debts to cover then I take your point that the extra £50 raised would go on the Cash line of the Company's Balance Sheet. Unfortunately, when a Company is running at a loss any raised funds will get eaten up by Running Costs, paying Debts etc.

In the £50 example then maybe some of the Cash will still be on the BS, and the Shares wouldn't fall all the way to 16p. Maybe they would only drop to 30p or 40p- what the price- but it will still be a drop from £1 a share.

The extent of the drop depends how much the Market believes that the Cash will be spent wisely and re-invested to turn a future profit. Based on this Boards review of the BoD of GKP I would suggest the market will think that any raised funds is just throwing money away and so the dilution will see a significant drop in SP.

All just IMHO of course. But that's my tuppence worth.
Rhambo
Posts: 1,615
Premium Chat Member
Off Topic
Opinion:No Opinion
Price:4.89
RE: Shipscook
Today 15:49
If it's a placing, GKP would receive £50million.

In the case of dilution, which is what will happen here, if for example a debt is £50million, the bondholders convert the debt into a % control of the company at a heavy discount to the share price. For example, they ask for 80% control of the company at an sp discount of 80+%. The existing shareholders see their voting power diminish by the same. So the £50million is no longer hanging over a company's head, but as a consequence existing shareholder value is decimated.
Cityfan
Posts: 78
Off Topic
Opinion:No Opinion
Price:4.89
Atleast
Today 15:47
we aren't down as much as Genl

Odd to that the alias Durby disappeared when I mentioned Hedge Funds

Boss must have told him to chill for the day.




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