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After a very bad conversation with my brother, I was trying to defend the fact that whilst the motion is in good speed why issue a RI however it made the subject niggle at me all evening. The time would be perfect now to stick in the RI and raise much-needed funds to reduce debt. I know the Dec prelims will go more into detail however I cannot think that this figure should more or less be known by them. I guess sitting tight and see what pans out this week will give some relief for the LT its a roller coaster ride still till we can rule out the intentions of fPeel Hunt. I read Fairdealer's comments and agree that it's not an easy task reducing that amount of debt something is going to happen and dont want to lose this off the radar.
YoYoMa
I was typing a response this morning just as the forum went down.
I am sure you are right to be cautious but at least the last couple of days shows us what the upside can be, FD is spot on re the debt mountain, especially as the largest lump is at the highest rate and lasting for a long time without easily being renegotiated due to its being securitised, as per my email from RF when I first raised the issue with him. An RI must be tempting, and PeelHunt are here for fees, not Xmas decorations, but if they were going to start book building surely this week would have been the time, so just perhaps they could have another plan.
Well done all who kept their nerve, & perhaps averaged in the darkest days, things are looking more chirpy now eh ?
But caution is surely needed still, as you implied this morning.
Hi
Sorry, but new to the share dealing!, what exactly would an RI do to the share price.? Should I get out now lol
Thanks
sold out yesterday, full breakeven - considered myself to be lucky to have been able to avg down from 110-80-27 to finish at a 60p avg. I think that prices will drop as it wont be likely that pubs will get any meaningful trade before spring, and that debt pile wont pay itself...
@ Sheena
An DO is a Rights Issue. All this means is that they would offer additional shares to a holder at a set price to raise additional funds for the company. This can be for any umber of reasons, such as reducing debt, to purchase vital new expensive equipment, or to expand the business. This does in the short term often depreciate the share price, but med to long term this levels itself out. Normally they offer these additional shares based on your current holding, for example you could be offered to buy 3 shares per 10 holding. You do not however have an obligation to take up the offer.
Hope this helps.
*RI = Rights Issue
Hi Barchid. Hope you are well mate. I've not been on here much of late. Been slightly distracted with my loathing of Piers Morgan ??????
@trent700 it does, thank you for taking the time to explain it to me.
Trent
All good my end, we've missed you on here recently, good to see youback again !
Hi Barchid.
Yes, it's good to be back.
I never thought I was capable of despising anyone as much as Ive demonstated to myself that I despise him. I'm afraid that has taken up more of my time than is probably healthy to be fair. Still. Ive burned most of it out of my system now. Back to things that matter.
Glad you are well.
@ Sheena.
Not a problem. Glad to help.
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!!!
Hi, just to alert you all to the RNS just out re debt waiver requests again by Mars, a worth while read
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.
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
YoYoMa, thanks for the additional link.
Will read the more complex release later and post my views.
Others hopefully will put forward their opinions
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.
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.
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.
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.
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.
Sold yesterday for this very reason. Good advice
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
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
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.