The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust 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.
Consolidation generically on lifestyle and rainbow chasing AIM shares usually a blood bath
and kick in the nuts for holders as for no other purpose than to rinse repeat placings again
and look forward to another consolidation in a year or two these are usually conducted
at rates that result in say a company that was 1.5p dropping to 0.015 doing a 100-1 to get
back to back to 1.5p and placing with the wonga's to death spiral again with continued
CONFETTI raises
Consolidation for the right reasons can be the trigger for a serious rerate new direct INVESTOR/s
as shareHOLDER that will double up as financial partner to assist in company growth, at the
current price our mould is
Attractive to the upper Financial houses and Funds £50m market value assets held worth 4-5
times the MC and potential for serious growth and dividends from a share base of 32p (now)
Initial direct investment of £10m at a sweetheart deal of 32p share having risen on operational
new to say 40-45p
Future funding support by same sticky holder if required down the line , say we are now full
tilt in Wyoming , Essar progressing Nigeria our share price sitting at say £1.50 still only £225m
at current share base, or say £300m if already expanded to 200m share base
Raise £15m via 10 million shares to our supportive INVESTOR less than 10% dilution
That is the difference between a supportive direct equity investor and the rest of the
market stifling wonga lenders who prefer the confetti they can manage and manipulate
with pump and dumps to clear safe profits no matter what the company does
Fingers crossed Arty has pulled a long term financial partner that will also ease the path
for things like taking out CUDA/CNOOC new AQ's Fund Nigeria without massive dilutions
until a balance is achieved between our revenues and capital requirements
l8trs lol
:))
Hoping is Hoping it sticks where we are Shaa , they seem to have nailed it down recently
and our MC sits on the cusp of success at £50 where the Real Finacial muscle will be
observing and interested
Dragging it down unless briefly to feed themselves , will not be the message they want to
see still unstable , dropped back below that for many minimum investment £50m criteria
leaving us wide open to Caw-Caw's here we go again with Arty can't help himself routine
He keeps talking a good game and shareholder value , outside of the wonga's and his
mates non have seen any other that we remnants that have been in for many years
fought with it to ave down and gain freebie and ultra low averages on the recovery from
0.05p and some even lower
Now is the time for him to make good on those statements and announce to the whole
audience not just the few insiders that have made money on every move and placing
Got to be somewhere , back in a few hours chat later m8
:))
Is there any downside for a CEO repeatedly acting to deny value to investors? Even now when there actually is value, to snatch it away posthaste - what I'm asking is, would Art now do a placing to net high-worth comrades and as you say wonga-lenders for tens of millions diluting to a ridiculous degree for high-risk or ill-defined goals. Would there be anything that would give him pause?
On the Canadian forum a poster said:
'@VictoriousSecret Placees don't need value added -- they just need to buy discounted shares at 25 cents or whatever (post consolidation) and sell them for 30 cents. They could give a **** what oil wells were bought with their money. Because they will be gone.
It's only retails like us who are sitting here hoping that the SP will rise.
But the BOD has every incentive to leave the SP nailed to the floor, as they have done, and just keep milking debt and equity markets to fund their next acquisition adventure.
It's not a good look IMO'
The big problem with the whole system is that undervalued shares make it easy to raise funds. That's the paradox that leads to the pump and dump cycle and the denial of shareholder value.
I am with IG, HL and AJ Bell. Only AJ Bell have sent out the corporate notice regarding 100/1 consolidation. We will get more information on Monday.
So far no notification from RBC Canada.
With consolidation the share price always goes down never up.
No idea why, but it does.
10-1 was never on the cards, he had that on the books already available before the vote
recently to implement an available facility for UP TO 100-1 , If that AJB is correct and an
erroneous release that should have waited until Monday , its clear and concise it is
100-1 and effective 1st October
The why's and what for's will be the only answers that matter, be it 156m shares or confetti
the wonga types can still drag it backward with a rising market cap and falling SP from
further dilution, so why the change NOW ?
The restructure to make any sense at this time should be to attract better financial
support with raises into a rising not wonga falling share
As for the earlier comment all consolidations fall , utter tosh all come back at exactly
the same value, then go which ever way the wind blows
Just the same as here if come the day still nailed down at 0.32p we will return 32p
and the same low Market Cap of £50 million
Then IF there is a placing , when and what for will decide how it is viewed by PI's
and the wider market
My own ideal would be one I have seen before , current shareholders slapped in the face
BUT profits to all , that was consolidation completed after rising on news, the sweethaeart
deal to the new STICKY long term direct equity INVESTOR and off we went
For us being nailed down at that 32p mark has me thinking its possible Arty has cracked it
and got such an Investor on board and will to temper the anger of the consolidation also
release our operational and deep updates first
SP rises to say 40-50p consolidated and bang DEI comes in with a buy in for 33p the 5
day vwap during initial negotiations during mid and late September after conducting
due diligence we are delighted to report the DEI has agreed to take an X% stake in our
company resulting in Y Millions now paid to Copl , We look forwards to a long and
successful association with DEI as we execute our ambitious growth plans
cheers , thanks a lot Arty F.P
:))
Copied from ADVFN board, again why is it not that simple.
There's a lot of discussions going on about Consolidation and Placings/Dilution. Consolidation and Placings are entirely different Corporate Actions. So why link them together in the same debate unless it’s done for mischievous reasons. FWIW I think in this case Consolidation is quite likely given it’s already been muted. In so doing I believe the intention is to improve the company’s perception and possibly re-classify the shares to suit other markets along with encouraging Institutional Investment and such like. On the other hand I see no evidence that further equity will be released at or near the same time. Placings can’t always be classed as Dilution in any event. If releasing equity subsequently leads to an increase in value (the Market Cap) in a positive ratio to the increase in the number of shares released then the action must be regarded as Accretion. Not Dilution. Under the current market conditions and potential opportunities I very much doubt any future equity releases will be dilutive. By intention they will be value enhancing and accretive in my view. At least in the short to medium term with growth and increasing shareholder value featuring so highly on the company’s agenda. The reason why the share price is where it is there has been more sellers than buyers since relisting. Simple reasoning and math since the last placing justifies where the share price currently is and supports the fact that there is absolutely nothing untoward going on here. The share price won’t be staying down at this level very much longer in my opinion. Those that disagree should either sell or stay silent until they’ve done their own calculations and are prepared to share them to support their innuendo. The pathetic FUD created here by some with an obvious trolling agenda is less than discrete and hopefully genuine shareholders won’t be taken in by it .