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Call it what you will. It was obvious from the outset ordinary would be shareholders restricted while special deals offered elsewhere. Then in recognition of the favour lucrative positions later accepted.
Their tentacles spread far and wide as we well know and sometimes difficult to sort good from bad
"Ours is but to do or die" :-)))))
Yes - it isnāt technical āmanipulationā - powerful funds if they want to are allowed to be sellers in the morning and buyers in the afternoon, they can hit the bids first thing aggressively when other buyers havenāt yet got themselves ready and the stock stays down - market +1%, RMG down 1% buyers (not uncommon) nervous holders think there may be a problem and either donāt buy or sell thinking further to fall ā¦ it is like a game of poker where those with big pots have an advantage - but not manipulation - just !
Common. When various shareholders here have stated their opinion that manipulation of the SP is obviously occurring, we have been told categorically that it cannot happen.
I recall this being said often by an individual who apparently had a financial background.??
Following on from my post this morning - out of interest today all day 800k shares were traded until the final auction when 1m shares changed hands in one trade - IF someone was holding the stock down during the day in thin volume it paid off - it can never be proven - just sad so much was sold into the causing auction - hold onto your stock !!
Re surplus cash - first and foremost the board will be investing into the business to make it better - again I donāt know exactly what Warrington and Daventry are costing or also how many other similar sites might be needed longer term. Depreciation is about Ā£400m per year so any more capex than that you are eating into cash reserves. This is good as ultimately you get the benefit of higher earnings .
Ultimately if the business has real surplus cash then whether buy backs or dividends etc the business should be valued on the after tax profits which in theory could be ALL be paid out.
There is no ārightā answer - however the debt (2 bonds) costs 2.5% whilst the equity costs the dividend being near 5% so you would buy back equity arguably pre repaying the debt especially given gearing is low
If the company are sure the end market is firm then pay out more dividends annually in a dividend - currently 20p of 65p paid out roughly. Specials would be more advantageous perhaps if the company is not quite as certain as to its sustainable earnings - like a cyclical house builder .
Either way the company will hopefully guide us in a few days time as to what it is going to do with Ā£1.7bn ish of gross cash or Ā£800m ish of net cash - what they shouldnāt do is just sit on the cash and not guide us how they intend to return excess capital.
Very exciting
UPS Q3 statement tomorrow in the US - $175bn mkt cap, $15bn of debt and $10bn net profits current year - slightly higher value than RMG !!