Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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Their sp was 2p. Its been discussed many times already. They wrote off shares for 20% less than the money was raised at. A good move.
They only spent 10s of thousands to do so.
They can now deploy the rest of their cash to snaffle up shares in WRKS. Because they've spent a little on their own shares doesn't mean they can't buy anything elsewhere
Kelso only paid 31p for Works shares, so the fall from 41p today is not as much as some are imagining, and the Works could easily buy back 6% of their shares with the £1 million divi cash not distributed as per AGM.
I wondered why Kelso were buying back their own shares and cancelling when they could have used the funds to buy The Works at todays price.
Seems a counter Intuitive move to ne, considering their NAV will have taken a right whack today...
OSG...what's it like to know everything? If I need to know something I'll make sure I ask someone else.
Likely people will be topping up and there will be some TR.1'S dropping over there. KLSO and the other fund that opened a position over there this week.
Also it's up 20% from the low this morning. Fingers crossed KLSO got in early.
Moniman with that last remark re @WRKS you come across as completely clueless. Probably started today or Kelso buying more imvho
@KLSO. Volume and prices paid thus far today says we have a buyer.
dyor.
The curse of kelso strikes again. what a silly little investment fund
I wonder how quickly Kelso can get the Works BOD to pass the buyback resolution?
If the works use the £1 million allocated for the now cancelled dividend to buy back shares, they will be able to buy back nearly 6% of the shares at today's price.
Maybe it's my skeptical ways but if a downgrade was announced, then share buybacks were made with circa 30% eslctra shares bought, and then a miraculous recovery over Christmas for the guidance that would be a convenient thing to happen. Right?
After all it is all very unpredictable as the RNS states.
With the SP hammered today the share buyback will be significantly better for shareholders one assumes?
Poor kelso, what a terrible buy the works has turned out to be hey!
Yes back to 4's and 5's would be welcome Brewman91 and then more if big news drops on any one of their now 3 investments.
THG looks like it will be relisting its THG Nutrition business seperately in the US. KLSO have made good money to start with over there but the big money comes if THG Nutrition relists and the Nutrition business alone must be worth about 3 times the present share price for what is the full group. Wasn't long after they invested in THG that Apollo popped up with a bid (rebuked by THG) but its the 2nd for the whole group in 18 months and there have also been 2 recent approaches for Nutrition (Not RNS'd). Must be just a matter of time until next event.
@ WRKS is in good profit and the share buyback instead of a dividend should move that on further by lessening the free float, you would think. Good time also to be in a value retailer what with the Festive season just starting.
@NCC. In profit also there and again an eye on a bargain and the much bigger prize.
Hopefully we see an RNS for something. That's a lot of trades today. Fingers crossed the seller has indeed been cleared out or there's an agreement with KLSO for them to mop up any shares on the market. 🤞 then the sp can move up.
Looks likely.
Either that or Kelso bought back any remaining, and for cancellation
Imvho
@WRKS provides a trading update on Thursday.
Hopefully some news also on their share buyback program over there.
Moniman - over 11.9 % up at time of writing this…..
Keep the faith
I might just do that, very happy with Kelso's approach so far. Good to have 3 investments and some cash as well.
You can of course always buy more moniman and help them out the door...
It all changes in a flash moniman if either a Bid pops up for any of their 3 investments (or KLSO itself) or in the interim, if through the Share buybacks they clear any seller. In my opinion they have twigged that there was a seller probably deliberately trying to suppress the share price. (I think Spreadex).
But all the recent buyback RNS's say Kelso are intent on buying back any they sell. They could just approach them and offer them out as it looks like they have ran their race and in the mean time yes all three investments are doing well and that only serves to highlights the value. Kelso have more monies than they have shares so the seller will run out an in the meantime they bank a 25% instant gain on all they buy off the placing proceeds.
I also suspect that on top of having solid holdings they also have a trading pot with a trading algorythm to make money on the bigger macro swings.
Patience...
So the Works, THG, and NCC all up but Kelso going down?
It's small beer they are spending compared to their main investments
Moniman, whilst that would be true if they hold the shares in treasury, they are cancelling them as per the RNS. To my knowledge that will increase the NAV per Share/ Increase EPS, for remaining holders, but it does make me wonder how they plan to fund future investments. Just thinking out loud of course.
If they believe the shares are at least 20% indervalued, then any rebound in the SP is a potential 20% gain not the 5% you'd get in the bank. They have also cancelled the shares which is better for shareholders. JMO.
How are they getting them at 2p is the question? A mere mortal has to pay 2.19p for a few k worth... I may be wrong here, but surely that cash would be better in a bank earning circa 5% whilst waiting for potential falls in the market, in order to take further stakes in more businesses? A buyback, to me, implies a company is out of options for deploying the capital and therefore returning this to shareholders is a last resort. Just my thought of course.