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I bought some more of these on Friday and I had to split a 6k order in half... strange got them all the same price... I really should just get a Level 2 add on...
I think when it comes to selling large holdings in illiquid stocks most brokers will struggle to sell and get a good price.
I'm with II and yes, while you can trade them i have found their brokering services to be absolute toilet. I have a small number of very large positions and on illiquid stocks, their brokers are too slow, even on the phone.
You can buy a Level 2 add on through [not threw] them, so that may be the way to go and to place my own orders directly on the book.
Some investors will sell as they can not trade TNZ in their accounts. If an investor decides to transfer their account to another provider to be able to trade on the TSX, then it will take a minimum of of 2 weeks and up to 6 months. Generally it takes 2-6 weeks.
This is why the sp is around 8p. Some investors have to sell and the market is taking advantage of that. I don't see the price rising to 10p before a deal is done (or not).
Personally I'm going to hold and transfer my holdings to another provider. I'm leaning towards Interactive Investor as it will work out cheaper for me at £12.99 a month fee and a £7.99 per trade fee.
*through not threw
By the way if it does go threw, I use Hargreaves as there exchange rate is 0.25 over 20000 which does help.
Forget the tenaz share price for the time being as it is insignificant for now. When the deal is done or getting near the true tenaz sp will appear. Trading is all about future pricing not for today but for tomorrow. I think it is 50/50 if this deal goes threw. Approx 50 percent of the company is owned by large holders the other 20 by waha and the rest in free float. Personally I don't think this deal should be done and the existing management ousted out at the agm but I don't think that will happen. For the time being tenaz investors think they are getting a great deal, and they are correct.
Why not ?
No, they don't believe the tnz share price will complete at that level. Not stupid.
Are you saying that the people who sold yesterday are just stupid ?
Markets aren't rational or perfectly efficient. No other explanation is needed.
Nothing anyone said has really explained the huge difference in value.If the merger occurred today at current prices and currency exchange rates my SDX shares would be worth 12.32p .
1000 SDX shares would be exchanged for 75 Tenaz worth £123 against the SDX value of £82.This can’t be right !!
I have dealt before with companies that have left the uk exchange and gone to exchanges like tsx or asx and so on, one thing I would say especially with a smaller companies is that it is harder to sell stock with small amount of buyers on exchanges that are one eight the size of ours. I am trying not to be negative but can only imagine that if this deal does go threw there is going to be mass selling on the tsx with profit taking and waha looking for the door. So for me I see this rise as temporary for now with news of maybe a cheap buy for tenaz, but sp comes down nearer the time. I hope I'm wrong and it continues up .
I can't tell if you're missing something because I don't know how much you know, but here are some possible reasons:
1. It's not a cash offer. It if were then we'd be around the offer price.
2. The deal may not go through.
3. The company whose stock we would get is listed in Canada. Institutions and retail holders may not want or may not even be able to hold those so they have to sell now. I'm going to have to transfer mine to a different broker. It's a hassle.
4. The company buying SDX is very small and produces only 1,250 boepd. It's a real company with cash and without debt. It doesn't seem overvalued but it's not like getting an all-stock offer from Shell.
5. SDX has a market cap of ~£17M. It's tiny. Hardly anyone cares about it. If one person with enough shares wants to get out for whatever reason then the price will stay low. Seemingly obvious mispricings are much more common in smaller companies.
If markets were rational and perfectly efficient then the gap between SDX and Tenaz wouldn't be nearly as large as it is. Buffett made his initial cash poking around in dingy companies like SDX. "Cigar butts" - just one puff left in them.
Tenaz shares have risen 21% since the offer which was at 24% premium,around 10p for SDX shares.SDX price hasn’t moved but should be around 12p about 45% increase from current price .Why .? Surely this is a no brainer.Am I missing something ?
Maybe this is a good thing. On the face of it the price seems fairly low, but 10p feels like a worst-case scenario from here. You'd hope the market likes the deal and TNZ rises. SDX share and the price are now completely irrelevant. I wonder if they'll go ahead with the buyback - they haven't said they are not... Would be a total waste of money now...
I think Tenaz are going to harvest the corpse: Take the cash pile, take the other working capital, sell the investment in Brentford Oil Tools LLC (Egyptian oil services), slash G&A, invest in West Gharib and run off South Disouq, sell the equipment and do the same/shut down Morocco.
We've got years of proof that trying to force those assets to work by massive investment leads to capital incineration. The Canadian tax pool is a big boost for them. It's like free money as long as they don't throw it away on capex.
Very true. But it has to be this price when the deal is done. Tenaz investors see this as a good cheap buy, probably like when Sdx bought circle oil in the good old days.
Rising price of Tenaz is good for all of us
The fact it has gone up so much shows how much better the deal is for the existing holders
At current price of Tenaz it seems SDX are valued at 12.2p.Why would anyone sell at current price ? Have I got this wrong ?
https://stockhouse.com/companies/bullboard/t.tnz/tenaz-energy-corp
They absolutely love the deal.
Has anyone found any Canadian chat forum for Tenza?