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Plus to say;
the company sold ‘£1m a day‘ in May
Has NO debt
Manipulation at its best. Am believing too it the 812k shares being used in advance to short. Once sold through/closed will see a more sensible SP being restored.
I thought Vatel already held some, perhaps they have been selling some of them over the past week and will hold when the others arrive on 9th...
If I was them I would be selling from 400 then pick my fresh ones up at 300, ready for it to bounce back up again. Win Win
There are only 68m shares currently in issue with 58% held by Eiffel & 16% with other IIs leaving MMs a relatively small pool to deal with. This must increase SP volatility & market strength on MM mustn't it? & they are trading on 3 different stock exchanges.
How does French law work in terms of large shareholdings?
Isn't a shareholder whose holding goes over 30% required to make an offer to all shareholders in UK law? It might be City Code for listing. The idea being that many individual shareholders aren't held semi hostage to a controlling stake like 58% would be that could block distribution of dividends or tailor corporate business to their private benefit.
Is this a red herring? Views appreciated
GLA
CCK - I thought you were the self appointed expert on such things. I am astounded therefore that you are unaware of the phenomenen known as "forward selling". This happens fairly regularly with placings. You borrow shares you don't own - short sell them and settle them (repay) on the admission date with your 'placing' allocation. You must've heard of the New World Oil and Gas case??
Ponkey - yes def we know forward selling of shares from a placing is a fairly common practice in the market so it would be no surprise if that is what is happening here. And when the stock is 'repaid' next Monday there won't be any shares to flip at the 'placing' price because they were already sold!
I beg to differ. you know you are going to receive 811000 shares that you do not wish to hold onto so you short sell by borrowing stock and on the 9th you close out the trade by repaying the shares. This happens all the time with "mates" placings. The placee sell short knowing the market will almost def fall on announcement as otherwise if they wait for the announcement they will be left "holding the baby" as punters on the announcement of the placing sell the market down to the placing price and sometimes below.
@ Ponkey
There's only currently 68 million shares in issue. Vatel can't be selling shares which haven't been admitted yet. There will be over 70 million after the 9th. They'll have a 4.18% holding, of which 3.03% are locked down. We don't even know if Vatel will sell quickly anyway.
That said. There is clearly a strong market maker play here, so either there's another seller in the background, or shares are being bought up now which will be sold quickly to Vatel on admission at an agreed price.
Say a broker buys 800k shares at an average 270p, which they later resell to Vatel for 300p. They can pocket an easy £250k on that deal (and a lot more from any other cheap shares they buy up on the death spiral they've initiated).
Buy price 2.16 mill
Sell price 2.4 mill
Just some example figures, trying to work out the move in my head at the moment.
also was there not a trade yesterday of 300k, maybe two trades, but in total 300k? just smacks of Val or if not them someone else selling. shame we have to put up with being dual listed and the french little orders of 20/30/50 shares.
Yep people don’t realise that they can forward sell them to the MMs. Expecting large sell prints at the end of the next few days of trading. They are making a huge profit on those shares at these prices.
Convinced it is the 811000 shares being/have been, offloaded. just look at the Paris order book scale up chunks of 20k shares and book weighted ,atm, on the sell side.
Type in Iran daily corona virus cases into google. They’re on a second spike as we speak.
70.6m shares in issue (with loan pay off)
@£2.45 values us at just £173m
Sales / Contracted orders 1st June £120m
Running at > 50% profit - £60m cash in bank
Demand for many months / exposure to +130 countries
New products adding additional revenue- June
Mobile abilities widening our audience / adding further demand - July
P/E ratio ridiculous.
Someone gave me these numbers blind, would snap their hand off, with most of AIM yet to turn a single £1.
Massively oversold imo