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ThePunter, money is not cash, it is much larger than that. Selling at 2p and buying at 1p will not make money for everyone people have averages, expectations, and strategies. Simple arithmetic is not math either. Otherwise we could have seen all warrants already sold. What are they waiting for?
Yeah you're right, but we dont know which ones are being actioned its all assumptions. Right behind you buddy R.E. Buying option
As i said actually buy was 1.885 and i had at 1.85p......sneaky. Tomorrow will be an interesting day as we have seen a mass sell off...... Fingers crossed its the 1 & 1.25s (im almost certain - we will find out when its over)
My sell trigger is 50% of my holding at 8.4p.....then the rest can ride on for free. If i get my 1.85p buy in (50/50) then im averaging under 3p i will adjust to 6p.
Planes taking off, keep holding guys dont panic
Gino, If I remember correctly then 2 thirds of the total warrants were at a lower option than the current SP (CB interview las month).
Some have been exercised and we will not get any future notification of exercising due to the block listing RMS.
As you say the only way we will probably know is when we see a dip in the SP for no other known reason (i.e. today).
Personally will use these dips to top up further (up to my eyeballs in ECR now) , because the mid/long term is so strong and I will not be selling at least until we get the first set of drilling results from Creswick following a JV (and then only top slicing). Here for the full ride.
Yes its a very big assumption however:
If warrants still exist at 1p and 1.25p......if they sell at 2 and 2.5p the holding value is still double current sp, which seems to be the case based on the selling.
Imo they are selling half their holding to pay the warrant and have nothing to lose.
Look, the company has fantastic POTENTIAL, thats what we are all invested for..... Believe in your own commitment and ride the waves. This has ENORMOUS valve.... But alot of work to do.
"Geno, you may be wrong in assuming that sales at 2p would double their money. No all warrants holders have that low average, these are long term holders, although some of them may have averaged down before s p surge."
If you take warrants at 1p and sell them at 2p you double your money. Irrespective of any other holdings you have.
Its simple maths.
Geno, you may be wrong in assuming that sales at 2p would double their money. No all warrants holders have that low average, these are long term holders, although some of them may have averaged down before s p surge. This is the trick here the next few days if still there are no news and no sales then sp may gain the losses and probe how many low average holders are still there. Wait and see.
AD12
https://www.ecrminerals.com/investors-media/reports-accounts
Look at annual report 2019 page 38 note 13 and it lists the warrants as at year end. The July 2020 date was an error and has been amended to 2021.
There are also 4m Options at 1.75p for Craig Brown. P15.
Since then we have 100m at 1p to April 2022
And 46m at 2.1p to July 2022.
Unless you look through all of the rns for each warrant issue it would be difficult to collect that data and when they expire.
The reality is this share was ramped up to 2.6p, not because the potential is there, but probably to give the warrant holders the value for money at the 2p......if they exercise at 1p they literally double their money or Sell half there holding to double their position.... Whichever is possible.
I did suggest that a warrant rns would be before results, which we did to be fair with the block listing. So im look forward to drilling rns, i was hopong for this week, but more selling still to go.
Talking sense is trying to remind everyone the fundamentals, which is a long term view. It can come across as rampy, but its still valid reason and we should thank him for giving the information from his research.
Im just looking to show the reality of what we have in the immediate term, and so far it follows a trend i expect.
If you look at golds recent rally, it follows a similar pattern to ecrs SP.... Bare that in mind too.
Try to look for balance and if the positives outway the negatives invest.
Warrants are offered for investors or committed share holders and directors as an incentive to keep them committed to the business success. Usually warrants are the right to buy share at higher price when sp improves. In our case they are set to 1.25p, but because sp is much higher and warrants owners don't have cash to just add to their holdings, the market is negotiating a new price where sales of existing shares to finance warrants is no more attractive.
Given the expected news and jv it is a poker game at the moment. It is high risk to sell expecting 're buy cheaper.
Since posting on here I thought not to be lazy and did a bit of googling but your example reads better than anything I found. Thank you very much for explaining -
So can we find out when these warrants that are out there expire? I know there have been a couple of RNS’s related to them - has there been a deadline set which is why there is a big sell off? Or is it more that a 2p price is a great profit for those warrantees
If like you say these are large stake investors it will inevitably wobble the share price but with news inbound let’s hope some even bigger investors see the opportunity here! But I guess they wouldn’t want to get in just yet - I think you mentioned that in a previous post when you suggested news may not come until warrant issues are sorted (apologies if it wasn’t you that said this)
Thanks again
.........ECR only have 623 million shares in issue, so even with dilution they will have not many in issue if you compare them to GGP. So when the fun starts you are going to have to pay a premium for them
AD12:
its not naive at all. Most are new to trading in stock with aim. Warrants are generally issued to "large stake investors" as an incentove to parts with their money at a point wwhere funding is needed.
For example:
John smith is asked to invest £1m for 1M shares. But the company say, we will give you warrants (which is basically a promise note) up to the same 1M shares at the same price as john invested. So john invests 1m pounds with the right to buy 1 million more at any point up to a deadline date. Fundamentally john smith can demand these shares at any point, knowing as exercising (generally when the SP is higher than the warrants exersice price)
Upon exercising he must pay the company £1M and the company issue his shares to the total shares in circulation - thus diluting the stock and dropping the SP
It is bad here for 2 reasons:
firstly - we know the share is diluted circa 300M shares approx 45%
Secondly, they appear to be selling stock to pay for warrant financial payment to the company.
What is good is that they are gettong rid of the warrants quickly and money is in the bank of the company.
We will see a short term drop but we are building that platform
Investment is never a straight line up
Thanks for that Gino- could I ask a very naive question as to how warrants work- new to trading and have been in ECR since 0.78 but have scaled in more significantly recently and then the. Eww of the warrants came which I will hold my hands up and admit I don’t know anything about them!
If someone can explain how/why warrants are granted and then how/when they are exercised I am sure there will be more than myself who would gain!
Appreciate it all, enjoying the discussions on this board and waiting for some drilling news shortly :)
Talking total sense Gino
Why is this a shock to anyone. Its not a placing for crying out loud.
We realistically knew this was going to happen short term lets not get our panties in a bunch.
I missed my buy order by 0.03p.....sneaky buggers then went to negotiated trades :(
We have warrant holders selling to pay for the warrants. The whole point of the block listing was to stop warrant rns every day. Ask the question why warant holders are doing it...... Something is cooking
be bullish when the bears are running in the forrest