The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Roydon1
Is it not pending shareholders aprroval yet?
when will NIL paid rights be available to sell with my stock broker?
Fahmad,
I dont think so
I think it is determined now to be 130- 54 = 76
Roydon
Nope.
Read a book or look up rights issues on Google. This is a complex subject for most to understand, cant expect people on here to spend ages on replies
Roydon1
It depends what will be the price at that time? It may or may not be 130p at that time.
Toff
You forgot (every one forgot it) the Nil paid value that you can sell
Am I right to say that the Nil paid would be 130 - 54 = 76 ?
so if you have 3 shares, then you get 10 at 32p each
also you can sell your nil paid shares (10 shares) for 76p each right ?
ToffAppleton1
That is why I have mentioned in calculation in my comment below that when the share price will hit 95p after rights issue, the question is when? 6 months 2 years or 3 years. It could be more than that.
But I am sure it will hit the average price someday ;)
Remember, "Stock market is a device for transferring money from the impatient to the patient." Warren Buffet
Get back to £7? I don't normally make predictions but with a struggling business with poor medium term prospects and over 4 times as many shares in issue there isn't an ice cubes hope of the SP getting back to £7 in my lifetime
Came here from aim... This is worse than any aim share I've been in. 15k down....the Bod are need to support the SP.. If they don't buy for the ri themselves then why would anyone else?
Fahmad
“Anyone please correct me if I am wrong in calculation.“
Looks correct to me.
But the original 1000 shares are now only worth £1116
So you’d be paying almost the same for the new shares.
Note - the cost/value ratio decreases/increases with shareprice movement.
Toff
fahmad - and here lies the dilemma.....
Who's going to want to pay over £1 a share for this when you could buy it now for 116p and get more than three times that for 32p. That's about 668p for 13 shares in total or 51p each.
So essentially this is currently trading at 51p very roughly in all but name.
This link has good explanation. My suggestions is that if you are not selling your shares now and they go down further then accept your share rights.
https://www.sharesmagazine.co.uk/article/how-rights-issues-work-and-the-decisions-investors-need-to-make
It won’t go back to 7 though or will it
I would have sold but too much in loss no funds to put in
consider that this was over £7 pre covid, thats 5 times yesterdays SP. Yes it will take 2,3,4 years for airtravel to return to 2019 levels (post any vaccine) but RR even at the worst case scenario expect H2 2021 to be at 70% of pre covid levels and in +FCF.
So its reasonable to assume that even when the SP is 54p post the RI it an climb back to over £2 within 12-18 months.
Pays your money take the risk
The future share price Is screwed with ri now isn’t it
If I don’t accept the offer will I get money back and can I buy back with that
Well take it as half glass fill.
Lets say you have 1000 shares bought at 315p costing £3150.
With rights issue you will be offered to buy 3333 (10 for 3 shares you hold) shares at a price of 32p. That will cost you £1006.56.
If you accept the offer you will have a total of 4333 shares costing £4156.5.
Now your average shareprice is 95p. As soon as the share price of RR will hit 95p in future you will not be in loss anymore. Question is when.
Anyone please correct me if I am wrong in calculation.
Im screwed already 3000 in loss and ri coming so what’s my option bought at 3.15 and what can the future share price be after rights issue