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i am new here and just wanted to know what the chances are of a rights issue being raised as i am starting to get a little nervous on whether i should sell my shares or just hold on and hope there isnt a rights issue.
thank you!
YoYoMa
Many thanks for posting both the rns' today, it is now nearly close of market and we still only have the one showing on this website.
The missing one is also that with most detail, as well. Given the hiccups on LSE it has not been terribly impressive this week, I must start getting mine from Trustnet as they seem better organised.
Meredith sorry to hear of the problem/dilemma you and your daughter are dealing with. I tend to agree with Pitterpatter, your husband may well not be happy. It is a tricky one and hopefully you are able to get some better information from your husband.
Your husband may have bought these shares on income grounds...MARS were paying an excellent dividend until the beginning of this year, so there could be any number of issues to consider.
I agree and disagree with turnpan, just be careful what information you choose to consider or disregard.
Best of luck
My husband has good days and bad days when it comes to remembering. He hadnt logged on since July so we're only now just starting a journey as we found out purely from chance. My husband has early stages of dementia and has been advised not to carry out any transactions or telephone purchases without the presence of myself or Linda my daughter. He made the large tranaction in March from an account we rarely use so at least now we have visbility of the amounts involved. I would like to thank everyone for their quick support and I appreciate that though I am a stranger to you all I am very grateful. We took the action of getting an advisor to speak us tomorrow on the computer video and the legalities as I wasnt aware we're not supposed to log into his account albeit in ill health. I wish you all safe times and once again from us both thank you
Meredith, please do not act on any advice given here (yes I know that is advice), people are guessing. If your husband cannot make decisions consider when you need the money from the sale of these shares. In the long term (5 years) shares will outperform cash in the bank even with a rights issue.
It’s probably worth asking your husband what kind of price he was looking for before making a decision. I’d be hella annoyed personally if I fell into ill health and then found out family members had taken it upon themselves to start selling off my shares without consent/authorisation. Generally the market will react quickly on news either way however as he’s holding theres a very good chance he has taken certain factors into consideration already so it defiantly wouldn’t hurt to ask him if thats a possibility.
Thank you for your reply and I am learning alot already. The shares are already invested by husband who is going though some periods of difficulities with health so my daughter and I are picking up this and have also requested some support from HL who have yet to reply. There is a large number of shares and after reading the posts that is where our uncertainty came from. As long as the Rights Issue has to be approaved then at least we have a chance to withdraw before the dilution starts, am I right in saying this or overnight will the just becoem diluted when we next log on? We are going through many you tube tutorials, awaiting HL to pull their finger out, and reading a lot of forum boards. Thank you for your guidance.
A further scenario which could assist a Buy-back could be further Asset disposals. I would not be surprised to see MARS share in CMBC being reduced in 2-3 years time.
Trent, correct, although Buy backs are dependant on a strong Balance sheet. Can you see this for Marstons in the foreseeable future?
There is always the possibilty of a Placing, which in my opinion is not favourable for Ordinary Shareholders
There is some dilution yes, as there are more shares in issue. That said, as per a previous post of mine on this, this should over time level out. That said, listed companies do have the option at a later stage to conduct buy backs, where, as the term suggests, they can buy the additional shares back and take them out of circulation, often they are held in treasury, which means they lie dormant and carry no dividends etc, etc.
Should a RI materialise, it's structure has to be approved by shareholders. It would be rare to see a Rights issue which may or not be Underwritten fail to achieve the funding required. If Underwritten, and this is probably the reason a 2nd Broker was brought in earlier this Summer, it would definately succeed.
The Company and it's Brokers will be establishing whether or not a Rights could succeed without the Shareholders taking up their Individual Rights. In other words Brokers agreeing to Underwrite provides certainty. Not forgetting PI's not taking their Rights will dilute . Rights can be sold as Nil-paid, which in essence means a Right will have value for the existing Shareholder.
Rolls have just completed a huge Rights which was structured in such a way that existing holders would see an enormous reduction in their capital asset should the Rights not be taken. Rolls issued 10 new shares for every 3 held and priced at 32p. This made a massive reduction initially to the share price...it has now recovered significantly, due more too current events but never the less a healthy increase for trapped PI's.
Meredith, respectfully suggest you do more fundamental research into whatever Company you are investing...it can be a minefield.
Golden Rule....never invest more than you are prepared to lose.
GLA
I'm sorry to ask but I am learning as just recently been throwin in the deep end as they say with stock markets and trying to fathom out whats what. From reading your posts you seem a straight talking gentleman so may i pose a question? Reading the last 5-6 pages there is talk of a Rights Issue this again is new to me but i grasp what it means in terms of dilution to indivdual holders but what I would like to know is this please as I am not knowledged.
Todays RNS from the post someone posted highlights a request for waivers and someone replied with "testing the waters" does that mean if an Rights Issue is requested does it happen overnight and everyones stock is diluted or do they get the chance to pull out. I appreciate your honesty and also education lesson it wil give me. Thank you kindly
Sold yesterday for this very reason. Good advice
A rights issue is enough to make anyone nervous and as Barchild pointed out its a very personal decision. It’s hard to get a sense of where we should be as we still also don’t know the full extent of the Covid situation at present - is it over ? Possibly but I’m inclined to think we not through the last of it yet. All you can do is weight your investment appropriately to where you are comfortable with the reward vs the risk whilst allowing a tolerance for the market to do the opposite of what you expect so that you can still potentially play to advantage on it.
Great advice Barchild, thank you. Apologies to you and the board for asking the question - realised after i sent it it was a bit crass of me.
Don't normally buy in this sector so a bit nervous.
Rest assured If i do sell the share price will go up lol.
Good luck all and apologies again.
Sparster
Most of us here never give advice as it is such a personal decision, but one rule I usually keep to is if I am becoming preoccupied or nervous about a stock I would normally halve a position, if not sell the lot. If you have a profit, no one ever went broke by taking a profit, but as I said, it is a very personal decision that you can only make for yourself.
So Ladies and Gent's, clearly a well educated board with way more experience than me.
top up or sell? I'm in at 50p - thinking of selling...... RI makes me nervous.
YoYoMa
Very much appreciated and LSE are still only showing 1 rns, yet the one they have omitted has a mass of detail on it. Funny enough I saw the alert from Mars but they also only sent the one & not the long one with all details in it
BTW the "Hyde" operation clearly had nothing to do with the park and the ground preparation FD mentions !
FD
I think your thoughts on "ground preparation" are salient, it would certainly help an RI, that is for sure.
YoYoMa, thanks for the additional link.
Will read the more complex release later and post my views.
Others hopefully will put forward their opinions
Barchid, an interesting RNS which we could analyse and coe to different conclusions. My initial thoughts are "can-kicking" . The earlier waivers, agreed after the first lockdown when ramifications of it's impact were unknown, now only days after the 2nd lockdown and receipt of Carlsberg's funds, a further request to bond-holders.
Bond-holders may be prepared to agree further waivers, remember the earlier waivers did not get unanimous agreement, when they meet on 3rd December. It is also possible the ground is being prepared and leverage applied to raise funds from Shareholders.
AIMO
There are 2 RNS I shallput ther e here as LSE are slow on the relaese.
https://www2.trustnet.com/Investments/Article.aspx?id=202011110800048939E
https://www2.trustnet.com/Investments/Article.aspx?id=202011110810459658E
both a good read.
Hi, just to alert you all to the RNS just out re debt waiver requests again by Mars, a worth while read
Barchid, the probabilty of an RI is high. Just look at the strength of others within the sector who were wise to raise funds earlier this year. MARS weakness is still high debt any the plan to advance/enhance the retained estate requires funding which at present is unlikely to be generated through existing or short term income. Cannot see the Company going for further loans which will only make the company vulnerable. Even the board's snake, accepts Marstons would have sunk without funding infusion from Carlsberg.
We are now in the period, especially with the welcomed improvement in the SP, when a Rights Issue can be expected. Remember the Joint Broker was engaged for a reason!!!
Hello stranger, hope the medical procedure to remove the "Hyde" element went accordingly. My post was not negative and I have remained here and have not "sold out" or felt any inclination to "weak sell" but ensure my vision was still aligned to the business strategy, I for one haven't bagged and tagged and fled the scene with my loot. I feel this week is a good week and much-needed morale for many investors. Morale is more welcomed than negativity IMO. Apart from that its nice to see you back and hope you can add much input.
@ Sheena.
Not a problem. Glad to help.