Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Needs sales, thats the long and short of it to move this into the relms of ITM/CWR's m/cap.
or was it a buyer finished????
Been out for the day and look in to see that CWR and ITM are now flying and up 10% whilst AFC is pretty much level. The joys of being an AFC investor!
Mind you, I wouldn't be surprised if the SP catches up pretty quickly after the new shares are released and people see that the SP is not about to fall back. Time will tell, as ever.
Sold out yonks ago.
Daz, but an extra lump of cash in the bank increases flexibility and reduces risk. Your arithmetic is too simplistic.
Spot on L2analyst, are you using trading software ?
If I'm not mistaken I think seller is finished we should see nice rise now
AFC has been a trader's toy for a decade and will continue to defy conventional logic until contracts/sales arrive. Kids grow up, but day traders generally don't!
Biden " clean energy boom comming " watch his speech
I guess we'll see. Sentiment, technical corrections/adjustments, arbitrage. When it comes to AIM, who knows, but I feel broadly optimistic?
Ah I see so by the time you go to buy at 91p that price would have been snapped up increasing the price to close to £1 anyway. I see what you mean. So the II’s get first dib’s on the dip not us
Sentiment will also play a part, i suspect there will be buyers waiting to buy in tomorrow after the shares hit the market, but as a PI you won't be able to buy in cheap as the II's get to trade half an hour before you do. Buying has virtually dried up for now.
If i sold my entire holding today i would be liable for capital gains tax and it's not guaranteed i would be able to buy in cheaper tomorrow, it's all an educated gamble.
Daz. My reasoning is that the quantum of new shares is numerically known, registered, provisionally allotted and paid up, so the market has built this exercise in pretty ully, ie. todays' price is effectively your £0.91, but it remained a little higher due to all the positivity. You are suggesting that the SP will drop at some known point in the future, but shareholders amounting to ca. £500m of value will largely ignore this adjustment, whereas I think such events would trigger huge arbitrage if they worked as you infer?
Daz surely it would make sense to then sell at say £1 and just buy back at 91p it’s unlikely the SP would change 10%+ during the period of selling and buying
Quizz, this is how i see it, as an example-
today, market cap = £1,000 - shares in issue =1000, SP = £1
tomorrow after new shares hit the market, market cap = £,1000, shares in issue =1100, SP =£0.91
Daz. I'm suggesting that the major impact of dilution is ordinarily built in on announcement, as per any market news. This would normally result in a dilution. However, in this instance, this negative impact was countered by all the positivity, from corporate investment to likely use of funds, so we saw little change. I'm not sure we'll see much change going forward. If there was a clear downward adjustment prospectively, why would any investors buy in the interim period, since this would be recognised as a graveyard period? The newly allotted shares and funds achieved by AFC are in the SP.
Quizz, you're confusing sentiment with the technical effects of dilution
Daz. Yes, but this dilution has been accompanied by inward investment from two major corporates and lots of potential order activity, all of which was priced in simultaneously. This is not a standard dilution in my view.
So now may well be a good time to switch them into an ISA as HL take 3 working days to settle before you can re buy them in the ISA
i've seen enough dilutions in the past having been invested with AFC for many years to know what happens...
to a certain extent yes, if investors know a dilution is coming it affects the share price when the news is released but when the additional shares hit the market the existing shares will be worth less because there will be more of them !
I am pretty sure they have to otherwise everyone would sell and buy back 10% cheaper
The impact of the extra shares is now in the share price, since the market factors everything in immediately!
because the extra shares haven't hit the market yet so your existing shares haven't been diluted by 10% yet.