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Enquest have a $15m buyback announced at YE2023 results
They have an authority from the last AGM for 10% of shares
They don’t need to buy all $15m before the AGM where they will get renewed authority.
Buying the shares into treasury for the EBT makes a lot more sense than cancelling shares and then subsequently reissuing.
A lot of emotive posts on this board re sleight of hand and duplicity etc. all a bit embarrassing.
The first phase of the Programme will be carried out through an agreement with Merrill Lynch International ("Merrill Lynch")
Does this suggest that ML may not use all the $15m to purchase shares in the allocated period?
I remember when BTFATH1 just used this share "in and out" for profits to buy golf clubs, weekends away , meals in restaurants etc.
Now like us over time He has been hypnotised and blinded by Enquest's beauty!
Good luck , BTFATH1 you have joined AB's merry men of LTH's.
Let the fireworks begin papegoga and there is just another 72.85 million to go. With a low volume share like we have, this will really move the sp intraday.
Remember the 15 million dollars of buybacks is just for starters.
So excited for the future here.
No chance of that Papegoja !
I've seen buy backs in action before (VTY just started) and they start small and ramp up. There was plenty of liquidity yesterday and they chose not to wade in. ML have a reputation to protect, and if they are instructed to buy $15m then $15m they will buy.
156,000 shares repurchased at a price of 16.23. Good luck with the remaining 73 million shares in two months. I hope all LTH can keep their cool and not sell too early
It was aimed at those who think we have to accept the pseudo-science, increased costs and the brain-washed cultists who struggle to decide between puberty blockers and throwing soup at paintings.
The latter group are thinning out as there is always a new crusade around the corner. They could join others stealing from supermarkets and putting the loot in food bank hoppers which is the latest 'protest'. They haven't asked me if I'm prepared to subsidise their 'robin-hood' thievery with higher bills. They never do. They think they have the right to think for me; they don't.
*I have a sister-in-law who works at Morrison's Loughton. They used to allow people to skip dive their out of date food. They stopped because of the traffic jams it caused. The worst offenders were the Mercedes and BMW drivers.
Mr. Angry
Mrc, if it is like that, that to meet the liabilities of the EBT the standard procedure is to issue new shares, thereby causing a dilution, then, agreed, there appears to be no issue.
The company could have announced buy back and all shares cancelled. Nobody would have batted an eyelid in 6 months time when more shares are issued for EBT.
The company is buying shares now that would have caused dilution if they had been issued as new shares in 1, 3, 6 months. I don’t see what the concern is.
"Stay angry!" is the better statement, Romaron. Found this on the SQZ-board and words the problem excellently :
https://www.thisismoney.co.uk/money/markets/article-13346543/Tory-windfall-tax-war-killing-North-Sea-oil-Serica-chief-blasts-Labour-plan.html
Reporting share buybacks is required by all companies within 24 hours under stock exchange rules.
I find this comment in the RNS very interesting
"The Company will announce any market repurchases of Ordinary Shares no later than 7.30 a.m. on the business day following the calendar day on which the repurchase occurred"
It will give us a pretty good picture on how the SP reacts on the repurchases. In addition I do agree with Dumbly. I think the message about repurchases in the amount of MUSD 15 was unclear now when it includes shares for the staff/management.
Is gone. He accepted 2030 was impossible. The Scottish Greens still believe in it. So does the Pope. He's a believer along with Chris Packham, Greta Thunberg and Jeremy Hunt.
Has Ed joined the Trappists?
I’m sure ML will manage this to obtain valve for money, not create temporary SP spikes that only fall once they depart.
That’s a serious wedge of average daily volume that now needs to be acquired
Company looks a bit too cheap on paper also
I actually don't fall into the camp that 'share buybacks' don't hold value. I'd prefer the shares not be relisted later. I also wonder whether, since we're on an upward rather than a downward trajectory as far as SP is conscerned (trend) that it'll be better for us (ENQ) now than it was for HBR (I don't want to guess about whether the HBR SP would have been lower without buybacks). Many it was undervalued at every step. I'm hoping because we're in an uptrend for the moment (depending upon your timeframes) that the buybacks will push up to 21 and above. I'm just aware the HBR SP fell even with buybacks and divis
Mrc, not arguing against you regarding the efficiency aspect and there may be something I am missing, but this comes across as using part of the buyback announcement to cover something, as you say, they would have had to do anyway in the future. It's like when politicians re-package something and announce it as new when they had already announced it previously. Therefore, it seems the true "new" value of the announced buybacks is the $15m minus the purchases for the EBT.
Stupmy. Harbour is a case in point. Since April 2022 after which it began its buy backs its shares have fallen from around 500p to just under 300p. In contrast Enquest has fallen from 35p to 16p. In addition Harbour has paid around 30p in dividends. So Harbour has hugely out performed. Both companies have of course suffered because of the EPL. But the impact on Enquest should have been more muted because of its tax losses. There are many factors at play. But I think Harbour has performed relatively well in part because of its bold buyback programme. It comes down to mathematics in the end. It would be possible to purchase every single share of Enquest using the FCF over the next two years IF the sp did not rise. Quite obviously that could not happen as most holders will refuse to sell at anything like the current price. But we will have to see.
Dumbly,
The shares for EBT would have been created at some point in the future (not bought back from existing share pool). For me what they are doing is efficient…why go through admin of cancelling shares when you know you will need to create them again in 6 months time.
Dumbly , I’m with you on this. Straight talking from Enquest is needed. Puts a question mark on the credibility of its communications.
Great news at long last, those who think this not move the sp are sadly mistaken.
Enq is a low volume share and hence the intraday volatility levels will fluctuate significantly more than they do now.
My opinion only but if these are purchased in one or two trades only the bid/ask will move dramatically upwards.
It’s all very positive indeed.
Https://www.energyvoice.com/oilandgas/547888/increasing-comparisons-be-drawn-1980s-miner-strikes-and-epl-job-losses/
This was an article dated 16/02/2024 "Unions liken EPL job loss impact to 1980s miners’ strikes"
They presciently used a picture of striking Unite members outside Petrofac's Aberdeen office last year. I'm sure the strike didn't help PFC but neither did EPL. Unusually the Union attacked Labour and its plans to fiscally attack the O&G industry.
Today PFC announced there Accounts will be late. It almost certainly means a wipe out of equity holders. Their 15/11/2026 9.75 Bond is priced at 22. The YTM is c.99%. They lose money too.
This together with the damage done to the Scottish economy by their ideological, financially illiterate politicians deserves to be plastered across all media. PFC were drowning so the politicians threw them an anvil.
*I had PFC on a watch list. If it wasn't for EPL I'd be holding them. I really do have sympathy for their shareholders. This country needs companies in the industrial sector.
Hi Dumbly - I'm probably more naive than you. Things I can't change I normally accept. I made (and I may be wrong) an assumption that somewhere in the several hundred pages of an ARA there is a commitment to grant shares to employees as part of their remuneration/incentives. I read this as a positive in that you can't NOT give shares to the employees and these were heading in that direction anyway - that is unless theses are over and above the usual entitlement which will also be buried somewhere in the ARA. I would rather chew my right arm off than search the ARA. It may even be that they thought we would welcome this efficient use of a buyback? I'll stop now as I'm completely out of my depth.
Summer is coming.