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Afren Share Chat (AFR)



Share Price: 1.81Bid: 1.73Ask: 1.81Change: -0.09 (-4.74%)Faller - Afren
Spread: 0.08Spread as %: 4.62%Open: 1.99High: 1.99Low: 1.75Yesterday’s Close: 1.90


Share Discussion for Afren (AFR)


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kb123
Posts: 112
Premium Chat Member
Off Topic
Opinion:No Opinion
Price:1.64
Yellowcraig
20 Jun '15
I understand exactly.
But the target sp to break even is much higher. 1-10p is 9p away. 10p to £1 is 90p away. Huge difference with 1 for 10 consolidation.
It's the huge dilution that than causes the consolidation.
 
Raja2
Posts: 91
Off Topic
Opinion:No Opinion
Price:1.64
RE:Consolidation
20 Jun '15
kb123

it is the same...

In both situations you have to raise 10 times more... dont you...
Isengard7
Posts: 1,647
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Opinion:No Opinion
Price:1.64
View Thread (3)
RE: RE: dilution
20 Jun '15
I will be taking full advantage of OO shares.

(if the yes restructuring takes place we still don't know which way this could pan out)

but If its possible to average down further after restructuring i will take advantage of that also.
Isengard7
Posts: 1,647
Off Topic
Opinion:No Opinion
Price:1.64
View Thread (3)
RE: RE: dilution
20 Jun '15
OO is capped at 4 new share for ever 9 held? though isn't it?

but apparently you can apply for more OO shares.

but the OO shares you buy will be cut by 10 times as well?
Yellowcraig
Posts: 590
Off Topic
Opinion:No Opinion
Price:1.64
KB123
20 Jun '15
I will make this very simple for you ok:

Company xyz has 10,000,000 shares at 10pence it's market cap is therefore 1million (hope you are still following). They decide to consolidate and do a 5 to 1 share consolidation so after this they now have 2,000,000 shares at 50 pence its market cap is still 1 million.
ynotdeal
Posts: 1,492
Off Topic
Opinion:No Opinion
Price:1.64
View Thread (5)
RE: RE: ASOG
20 Jun '15
Im not sure where this idea of Alsn Linn being a puppet of the bond holders comes from.
The bondholders said to the company, "we will provide rescue finance but we want 89% of the company. If you dont want yo pay that much find other finance. Take it or leave it". That deal is not under the control of Alan Linn, he cannot change the terms. He can talk, he can present a case but he cant implement any change if the BHs wont move.
Do far the BH have not moved in spite of many representations.

So Alan Linn, and previous board, are faced with refinancing or insolvency, a clear simple choice. There was only one offer so there was no choice of finance. Insolvency means no shareholder value as we have already explained before. Bondholder offer means max 85% dilution. Alan has to recommend the offer because the altetnative is zero. Remember however much we dislike it, Alans legal obligation is firstly to the creditors. They must be paid in full, however unfair that seems. Its the law.

THE no vote is a different issue. It attempts to block the offer to allow a window for other opportunities to arise. We have always said there was a slim but possible chance of that happening, and if it did, the upside could be better than the yes vote. By early next week we will be able to outline what, in our opinion, shareholders options are.
Raja2
Posts: 91
Off Topic
Opinion:No Opinion
Price:1.64
View Thread (3)
RE: dilution
20 Jun '15
but you can buy more shares after the restructuring is complete and treat it as a new investment. e.g. your original investment may only be worth 9p or 10p once fully recovered. But then your new investment can be from 16.4p if you times 1.64p up after consolidation all the way back up to 90p.

Why you dont buy shares at 1p in the OO.. that gives you more shares for 1 p price?
Or do you think that after the restructuring the shares will be less then 1p?
Isengard7
Posts: 1,647
Off Topic
Opinion:No Opinion
Price:1.64
View Thread (2)
RE: dilution
20 Jun '15
160p was the highest its been. with 1.1b shares in issue we had over 1.7b.

(1.7b/1.1b = £1.54 share price in the past)

we already have 1,107,560,524 in issue. so an additional 17,713,729,426.

so its, 18,821,289,950. so 18.8bn

the consolidation will bring it down 1.88bn.

If we get 1.7bn market cap again then 1.7bn/1.88bn which is 90p.

but as our holding is reduced and cut by 10 times. then 9p rather than 90p.

So my calcs look to be close to yours.. you say 10p I say 9p

but you can buy more shares after the restructuring is complete and treat it as a new investment. e.g. your original investment may only be worth 9p or 10p once fully recovered. But then your new investment can be from 16.4p if you times 1.64p up after consolidation all the way back up to 90p.

I plan to average down massively on this. and Alan Linn Q&A videos has persauded me into a yes vote.
kb123
Posts: 112
Premium Chat Member
Off Topic
Opinion:No Opinion
Price:1.64
View Thread (4)
Consolidation
20 Jun '15
Guys it is important.
I invested at 10p 100000 shares (£10000)
Sp is 1p I still own 100000 and need to to raise to 10p to break even.
1 for 10 Consolidation takes place and at 1p and gives me 10000 shares raising the sp to 10p (now worth £1000)
To break even I need the so to raise to £1.
See the difference?
Before I needed the sp to raise from 1p to 10p (9p more). Post consolidation I need the sp to raise from 10p to £1 (90p more).
How can this not be an important factor?
Raja2
Posts: 91
Off Topic
Opinion:No Opinion
Price:1.64
RE: ynotdeal
20 Jun '15
ynotdeal,

so when consolidation happens at 18 bill shares and if im holding 100000 shares at this time..

After consolidation 1 for 10 will it be 1.8 bill shares and i will have 10000 shares left after consolidation?
Is this right?





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