Hi r1ck5-focus, forgive me but i am rather confused, 'Company sells shares at a higher value than what the 'NEW' company is worth. (Lets face it RM2 is basically a new company)'. Have i missed something or has this company changed in some way from ipo ?, if it has then humble apologies but could you put me right on this ? -Company releases very little information about what they are doing throughout the year. - as said previously as far as i know companies are not at liberty to tell us the investor what they are doing from one day to the next, if they have news surely it is a fiduciary duty on there behalf to let the market know. -Company lets the share price half in value- I can only assume that like us they would indeed like to see a higher price too. I really can not believe that they the company have as you say lets the share price half in value, this in my humble opinion is surely to do with market forces (buyers and sellers). The fact that the bod have bgt them at varying prices personally gives me comfort, i would expect it should do the same for you ? As for the fact that the stock price goes up 'potentially makes the bods and owners very very rich', am i jealous a little yes, i wished i had that kind of money to invest as i would like to think i would have at least doubled my original position if not more. Is that wrong in any way, no i do not think so, they are after all investing there money, not mine or yours. O.k so you bought some stock at issue, as i have asked twice and now for a third time, were you forced into buying them ? You could as the bod have done make incremental purchases. In summary, am i 'messed up'. well if doing your homework, understanding(well hopefully) risk, having a modicum of patience and not feel the need to make derogatory remarks about a company that i, and only i could decide to invest in, well sir, I do believe i am.
RE: Inheritance Fiddle?
I'm struggling to see the conspiracy theory that you are alluding to r1ck5... 1) IPO was priced based on demand and indication of interest from investors - bigger investor at IPO? Neil Woodford, who I'm sure based on his track record alone isn't a "mug" - the company did not alone determine the IPO price 2) Company "lets share price half" - not true - price decline due to contracts taking longer than expected to come (See 3) and also fairly large seller (Invesco) due to Woodford leaving 3) very very little information - company took decision to increase plant in Canada to be able to handle increased capacity - this in the long run will pay handsomely - also we have had at least 3 operational updates all of which have highlighted orders with major corporations (DYOR and you'll find them) 4) so you want it both ways?? BOD not to buy shares? then I'd guess you'd argue they didn't believe in the company ?? come on .. lets grow up a little... 5) who asked you to the buy at the IPO price? were you forced? or did you (as I hope was the case) do research and based on the research determine that the price you were paying was fair in your eyes (if you didn't I'd suggest giving your money to someone else to manage...) Am I okay with what has happened to date? I wish the share price was £2 but am realistic that when in investing in early stage companies things sometime take a little longer than expected and that shares can go up as well as down...
RE: Inheritance Fiddle?
Just my 2-cents worth, but pricing for a flotation is an inexact science. Facebook and Royal Mail to name two much larger flotations where the original price differed markedly from the share price a few weeks later. Everybody but the offer subscribers would like to see a higher launch price though; subscribers preferring a higher price immediately after launch. Indeed RM2s share price originally went up after flotation, only then to fall back and trade lower than the flotation price for much of 2014. That's basically supply and demand; the wider market generally steered clear of RM2 during last year, leaving the share price floundering. I think a general lack of communication from the BOD was partly responsible; I'd have rather seen more operational updates last year, but each company and each BOD is different. That said this year could be different, and recent BOD buying would suggest the same, though they were buying early 2014 too, so can't get too carried away; perhaps a reason the share price hasn't reacted too much to that news. IF more contracts are won on an increasingly frequent basis and notifications published I think that will help create some momentum in the share price moving northwards. What isn't clear from the last notification, and something I'd be interested in knowing, is what a contract for 250k pallets mean to RM2 financially. Perhaps we'll have some indication in the quarterly or half-yearly financials, assuming there are quarterly or half-yearly accounts. I'm long RM2 and have been sitting on a loss for most of 2014, so I'm not particularly happy I admit. However with recent positive news and Woodford's fund increasing it's stake I've got some hope that over the coming months the loss may be lessened and possibly even a small profit had, though I will likely be holding into next year either way.
RE: Inheritance Fiddle?
Maginty. are you telling me you are ok with what has happened over the last 12 months?? Company sells shares at a higher value than what the 'NEW' company is worth. (Lets face it RM2 is basically a new company) Company releases very very little information about what they are doing throughout the year. Company lets the share price half in value The Owner and BOD buy millions of shares at a huge discount to what the IPO was sold at. Company wins only 'one' big contract that we know of. The share price starts to jump up making potentially making the BODs and owners very very rich. We the shareholders who bought in at the start are still way below what we paid and having to wait a long time before we will ever see a return. If you are ok with that then you my friend are very messed up. I do agree with everyone that it will be a long time before we see a return. Im praying for a buyout TBH. If RM2 is going to be that good then why isnt CHEP or other sniffing around. im happy to wait but just annoyed. but hey these days the rich get richer and the little people who are trying our best to make an little extra income are getting screwed over. :)
RE: Inheritance Fiddle?
Excuse my ignorance again, but why are you annoyed with the bod. They didn't price the deal surely, I'm guessing here, but thats what there brokers do on the basis of supply and demand ? As for news flow, delays due to was it relocation of plant to a bigger site to better satisfy potential orders, contracts been signed and then this last humdinger with the U.S company. Any companies board wether it be big or small just doesn't tell you where it will be and what it will be doing on a day to day basis, they can only report the facts. If you are a shareholder and are concerned by what the bod may or may not be paid, call company relations, failing that it should be in the report and a/c or at companies house i assume. Again as for Stuart Rose, ask the company, they may or may not tell you but if its such an issue for you at least try. Mr Molsons trust, is that really an issue for you and i or anyone but himself and his trustees, I'm guessing again here but i would assume that many many successful business ladies and men have them, i guess to that further information could be obtained from companies house. Again, please don't take this the wrong way but if you are an unhappy shareholder you can always sell them and move on to something else. One last thing, where you forced into buying shares in this company ?
Fiddle/ lack of news ?
Sounds like sour grapes to me. *.9 million shares, i say good luck to Mr Molsons children... as for lack of news they cant report what doesn't exist ! A cracking rns on Monday past ,me thinks...As the contracts materialise they will release news... I am here for the long term and will probably invest some of the childrens money here. Hope that doesn't make me a bad person. Keep the faith. Rome wasn't built in a day ! Not from pallets anyway !
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