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@Maksym, so are you planning to hold as delisted? I assume that your shares are not in an ISA or SIPP, are they?
The company's net income in 2021 will reach 58p per share. It makes no sense to sell for 42p
I just did the sums with the small amount of cash I have in my account it will work out to 3.5%. Stamp duty is a bit*h! LOL. If I had more spare cash in my account I probably would still go for it.
Been buying gradually since the tender offer announcement as seemed like a decent place to park cash for a 12% return for 2 months holding. I didn't go all the way to 500k shares as thought there was a chance of scaleback but apparently it is now guaranteed that all holders under 500k will be tendered in full.
Still 5% pretty much risk free on offer in exchange for a month holding if anyone fancies it.
I suppose he would suggest that the 42p deal doesn't go through, for whatever reason, and the shares drop in value?
Company is still way undervalued. If anything changed with the deal, price would likely be stronger but heyho.
Supposing you outline for me a scenario where that happens?
Supposing you don't get the 42p?
Well, I bought a chunk at 37p+, enuff to cover my loss and make a small overall profit at 42p. Clearly shoulda bought more!
There are companies that will buys at 38p and know that in several weeks be offered 42p ; that's a 9% gain on investment minus cost.
Myself sold out this week , managed a 80% gain but feel robbed but on a P/E of less then 1 the market as always got this right due to risk.
The worst case was being de-listed and end up with paper shares without the offer.
May invade Ukraine according to the US WITH A BUILD UP OF TROOPS OBSERVED
jt321
"The issue here is if Kolomoisky the biggest shareholder formed a concert party to get around the takeover rules and the big shareholders either are his nominees or acting in collusion. If they did it's criminal. If not it's all a nice coincidence for him"
Quite, but....we all know coincidences like that don't happen. Is there collusion./ Looks certain to me. Can we prove it? No.
If there were substantial insti holdings here they would take it to court, but there isn't, and so they know they'll get away with it. Whilst I disgaree with Gambier on the finer definition of the risk here, that's almost a theological point. I pretty much agree with much of his commentary.
“Im not sure why you cannt discern the difference, but have it your way. But note that none of the issues you quote in your definition of country risk apply to the current proposals here.”
I never said they did nor implied that they did. My point is (and has consistently been) that none of this is a surprise and therefore should have been taken into account when the opportunity to sell at high 40s / low 50s presented itself.
Try actually reading my posts instead offering an answer to a question I never posed. The cash flows that were being extrapolated into the future by some posters on here, ignored the country / shareholder risk. Hence why they couldn't understand why the market wasn’t valuing the company higher. They thought they had discovered value that others could not see - they hadn’t.
I didn’t know this was going to happen with any great precision. But built into my profit taking decision was a delisting or an announcement of unusual accounting practices / major shareholder behaviour. I could never see the market valuing it much higher and always thought the major shareholder was always ready to take control of the assets.
I was merely trying to offer this as an alternative view to the blind rampers who were obtusely repeating ‘cash, cash, cash’. I happened to be right on this occasion.
The issue here is if Kolomoisky the biggest shareholder formed a concert party to get around the takeover rules and the big shareholders either are his nominees or acting in collusion. If they did it's criminal. If not it's all a nice coincidence for him. What we do know though is that for the big shareholders to go along with the delisting, they must be aware of some good stuff going on in the company or plans that we just are not .
Gambier14
'm not sure why you cannt discern the difference, but have it your way. But note that none of the issues you quote in your definition of country risk apply to the current proposals here.
magician
I am not here to advise, and you must read the RNS and decie for yourself. But fwiw my take is
1. Buying bcos it's below 42p
2. I think so, dyor
3.Only if the offer is withdrawn, imho
4. Read the RNS. You would essentially have no liquid market, no regulator, and be trapped, imv
5.read the co Report. Many worst case scenarios. I'll leave it to others to comment.
“concert party risk that has enabled this, not country risk”
It is country risk. Oil and gas assets, contracts , tax exemptions, drilling rights etc in Russia and Ukraine are obtained in let’s say, very unusual circumstances. Even true ownership of stakes in a company are very hard to determine.
This is regardless of where the company is listed. You buy these shares when they bottom out and take profits quickly - knowing the market does not have trust in the longterm - something unusual always happens with these companies.
Those people who tried to hype this share based on cash flows may have misdirected investors from these risks. That is unfortunate. Some of us tried to offer the alternative view.
Gambier
I'm not sure why you're having a pop at me for pointing out the nature of risk. I did my research, took ST chance and was caught out. Lesson learned, but I knew the risk. Lecturing me on investing is uncalled for, pompous, and wrong.
And while this behaviour is common among Russian/Ukraine assets, it is by no means confined to them. It is concert party risk that has enabled this, not country risk.
“Not really, This is not country risk, where, Ukrainian governance/legalities/corruption screw you.
It is London listed, and the outrage is being perpetrated in the UK. The risk s/holders have overlooked is having control in the hands of a concert party of major shareholders who can do as they just have”
Yes, really. The major shareholders made their position in the company because it was a Ukraine operation. Do a bit of research and find out why. The companies that have assets in Russia, Ukraine et al constantly end up with shareholders who take control in unusual ways. Again, do some research.
The listing rules are crystal clear. If you couldn’t be bothered reading them before investing, keep you money in the bank. No right to complain whatsoever.
It was a share to trade, any simpleton ought to have been able to see that.
“Gambier - You really are a pompous prick”
Ooooh Betty!
“ I have most likely made far more money than you over the last couple of years in JKX”
Of course you have.
“almost criminally”
Exactly - not criminally.
Gambier - You really are a pompous prick. Many of us knew the risks and have bought and sold at a nice profit. I have most likely made far more money than you over the last couple of years in JKX. That said JKX 's management have behaved disgracefully - almost criminally - and it should not be accepted as normal behaviour!
imo people are taking a big chance buying here the market is pointing in the wrong direction,gl anyway
Agree, 42p is the baseline price here. The only risk is that the deal isn't approved (very unlikely but I did vote against it) and the price will find new highs!
Everyone thinks that they can do better in other stocks and good luck to them! If there is more weakness in the price hereI might add a few shares just to get the little uplift to 42p.
I thought this had great prospects averaged at 46p and sold quickly on the news at 37.5p GREAT.I said I moved on the other day,well I bought into TXP at 1.14p and now recovered all my money back in a couple of days now trading at 1.43p with good chance of going a lot higher on fantastic news.This is a disgusting way to treat investors sold because I don't want the worry of sitting on a private co
Having re read the RNS, I cannot see how anyoneon the register on the offer date cannot get thir 42p in the Offer.
So why not buy all you can sub that level? Surely only imoatient PI selling is driving this down.
Gambier14
It isn’t fraud because it isn’t illegal." It is the risk of investing in these sorts of countries."
Not really, This is not country risk, where, Ukrainian governance/legalities/corruption screw you.
It is London listed, and the outrage is being perpetrated in the UK. The risk s/holders have overlooked is having control in the hands of a concert party of major shareholders who can do as they just have.
The lesson is not to be even more wary of Ukraine, it is to careful of exzamining the share redgister. If maj s/holders were intnl instis no Bod would contemplate this,.
“It might not be criminal but it's pretty close. It certainly isn't what you would expect from a company listed on the main market.”
It is either criminal or it isn’t. A market rule has been broken or it hasn’t. If this isn’t what you would expect then you don’t understand the rules and probably shouldn't be invested in a company like this.
A number of times it was pointed out that this is a share to trade. It was never investment quality. The alarm was flashing and ringing from the most cursory of research.
Some people kept blindly thinking they were the only ones who could see the cash flows. The market could see the cash flows - but it could also see the country of operation, the legal disputes and the major shareholders. Just looking at cash is a simpletons valuation.