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What’s the point in this thread? Just sit tight and see what happens or sell up if you don’t have the patience to hold. The effects on the share price isn’t going to effect you either way according to you so stop going on about what ifs.
No I don’t view the core business as worthless and did not imply that. My point is the potential spins-offs are obviously driving the share price up, if/when a spin-off occurs and that value is no longer part of orph that will surely have an impact on the sp. Weren’t you second guessing by saying the spin-offs would have no affect on the sp?
It’s interesting that EKF’s share price had a similar trajectory to orphs over a similar time frame. It’s also interesting to see what happened short term to its share price after it spun out RNLX.
Neon - in the vast majority of cases you are correct. When a share no longer has a dividend entitlement then the share price is normally marked down by the dividend amount (basic stuff really) Orph could recover quickly on the back of another dividend to come though
If we adopt your view the value of the potential Spin offs would mean currently OO is worth nothing. As we know OO is still undervalued on its core business, so as I’ve already said stop trying to second guess what the Spins Offs will do to the SP otherwise you’ll end up with egg on your face.
Moniman we have seen the sp rise around 28% since last week’s presentation with the news about the spin-offs. I don’t think it’s reasonable to say that the spin offs have no effect on the share price. We know the spin-offs have value despite what the balance sheet says, how many of us would be still be invested here at this price if it wasn’t for the spin offs?
I’m particularly excited about the DIM spin-off, when that happens surely the orph share price will reduce but we wouldn’t loose out as we will still have value in either the cash dividend or shares in the new entity.
UK SPC surging now too, wonder if there's a leak there relating to the first spin out and Cathal/Raglan's holding there
Is this the TR1 stacking up ?
Somebody is buying in... another chunky buy! :-)
12-Apr-21 13:22:13 46.3125 400,000 Buy* 46.00 46.50 185.25k O
Why do we keep seeing newbie posters giving us opinions on effect of spin offs on the OO shares price when they know nothing about the assets being spun off. Do some research into the company history re Hvivo and Venn /balance sheet and look up zero value assets.
It may be an obvious point but with potentially four spin offs this year, you have to hold OO shares to benefit.
So after each spin off the share price may drop briefly but when investors realise there are more to come, including a dual listing on the Nasdaq, the share price of OO will quickly bounce back.
It will be the spun out companies that some will sell once they are allowed to. Some of those may be volatile but CF has cleverly made sure that there will be demand for OO shares for at least the rest of the year.