Firering Strategic Minerals: From explorer to producer. Watch the video here.
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I subscribed to L2 and past few days whenever I've looked there have been buying opportunities at around 5 and selling opportunities at 4.5. I would have expected some people to be cutting their losses and selling and others to be buying/selling to move out of SIPPs and into dealing accounts. I cannot imagine much is going to happen to move the SP much between now and D Day, unless people expect a flurry of buying by the BOD to snap up cheap shares at the last minute?
Thanks for the L2 info Bismarck. I’ve been surprised that not only is there little selling but also some decent buying. I guess the view is that at current levels the risk reward is still attractive to some investors even with the delisting.
Regarding management buying I would how that there are rules in place to prevent company directors creating a false market by announcing a delisting and then buying up the distressed stock at knock down prices. There are definitely ways they can shaft minority holders once the company is private but I don’t think they can buy shares now before delisting. I might be wrong though.
If I was on boards of Essar or ONGC, as operators of neighbouring licences on the raniganj block, I think I would be buying GEEC shares here before delisting. Taking away public market finance means that geec has to be looking at the farm in option to fund expansion and Essar and ONGC are prime candidates for this given synergies . Why not try and hoover up some cheap stock now to get the average down. They could even collect enough of a holding to be an influential investor. Even if they don’t I suspect one of them stills buys GEEC once the shale reserves are proved up and pipeline to Kolkata is operational. I too have some shares in a SIPP so receiving take over cash for geec shares in the SIPP would solve some issues.
I think if it were a UK based company I might snap up a few more to average down, but given that they are half way around the globe and will be subject to less regulation once delisted I think I'll just keep my present holding, moved to a dealing account.
The shares are currently at about 8% of book value. Moving forward I don't think it would be unreasonable to expect an annual divi of 4% of today's book value in the not too distant future, which is currently half the Mcap!
I just wish I was starting from a clean sheet.