Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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Mike Ashley launched a fresh attack on Debenhams as his firm Sports Direct unveiled plans to buy £15million of shares back off investors.
Just days after failing to seize control of Debenhams, Sports Direct said it will purchase 5m of its own shares in a bid to boost its market value.
The company said the buyback was to thank shareholders after the tussle over Debenhams.
He's just buying them back because the share price has fallen so much.
Make no mistake, DEBs shareholders will not be compensated. Meta is spot on. There wouldn't be a debt market if it didn't work like this. And to people saying that they didn't expect it to be de-listed so quickly, Meta and I were telling people that April 8 was the deadline for so long. And yet, Applegarth was (and still is) on here harping on about the 22nd, waiting for a bid that was never coming. I'm sorry that this happened to you guys, but this is the risk in what you do here. Some of us could see what was coming and tried to communicate why that was. Again, hardly anybody listened.
I hope that some people did and got out before it was too late.
Eh?
LongerShorter you couldn't be more wrong. You're trying to make the argument that (i) the bid was a likely outcome and at 3p the risk/reward was good and therefore (ii) faced with a large number of these trades, you'd win on average.
This is plain nonsense. Every fact in this case pointed to this outcome as the most likely, with a bid being very unlikely. I most certainly did not give the wrong advice. I gave the right advice which was to sell. I gave the same advice with Interserve and what happened? Same result.
Don't try and dupe yourself into thinking this was just an unlucky trade. This was a clear 0 (or at the very least, a near-0 in the case of a dilutive rights issue). We outlined exactly why based on facts and logic, and that ended up being the result.
"The company said the buyback was to thank shareholders after the tussle over Debenhams."
This a joke, right ?
SPD will be writing off £150m and you say he is going to do a £15m buy back " to thank" shareholders
MA has spent this week deflecting the fact that £150m has gone down the plug hole
"Sports Direct said it will purchase 5m of its own shares in a bid to boost its market value"
This is some script from stand-up comedy...right?
No. Cos in effect it wad SPDs 150M that has been lost, not MAs,
So it is a bit more smoke and mirrors. IMO. DYOR
you lost 10K? :(
The mans a joke.. he is deluded... he has some kind of ego thing to make him look like Father Christmas .. talking about why he is NOT like Debs to shareholders. He has LOST £150 million of his and SD capital and the only reason for the buyback was to hoodwink the faithful and support SD share price to overlook the fact that the balance sheet now has a sizeable black hole where DEBS used to reside
It’s just an attempt to reassure SD shareholders, because wider market knows Mike Ashley has thugged his fellow investors, thug word will have new connotations, & will elaborate and associate to insider traders and will stretch to Mike Ashley
LongerShorter, that's a funny post, you almost had me for a second.
Somehow I seem to have entered a parallel universe where python can estimate the probability of outcomes with complete success! Fancy that?! I mean, that never even made the news!
If you really understand the stakeholders, the debt conditions, the cash flow generation, the leverage, the timing etc. you would understand that the probabilities are far more weighted towards a 0 (or close to 0), and the probability for the share rebounding to 30p on its own? 5%? Am I really supposed to take that seriously?
Don't waste anyone's time with that rubbish.
Dude, game theory is all well and good, but if your inputs are wrong, it's just a garbage-in-garbage-out exercise.
Go on then, enlighten me. How did you reach your probabilities?