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Seen lots of negative posts here this will settle much higher than 25p It will prob rise from.where it is now and settle about 44p
When you take into account we have had a sustained period of stockmarket growth and are due a massive correction, if not a crash. In the USA money is being printed, this is not wealth, but this is then invested in shares. When this " wealth" fails to create" wealth" the markets crash.
They are not crashing at the moment because the FED is buying junk status corporate Bonds, in other words the bonds of " theoretically bankrupt" companies.
For the reasons outlined in the post below. Moreover, there are more shares in circulation and the RI has theoretically, been carried out for matters relating to solvency by way of debt reduction.
Mitie is " guilty until proven innocent"
Some speculate a price of 25p. Why??
This equates to a pre- rights price of 48p.
Why would the price drop from 84p approx. to 48p?? This represents a p.e of less than 1.
Ludicrous !! Many here do not seem to understand the numbers.
Ty for the reply
Because they are paying twice as much as expected for the Interserve union and from there it is widely expected that there will be very little margin of error left in how the new company operates, the margin the combined company works to is wafer thin. Some of this RI cash is going to pay down debt, never a good thing. Finally, we are coming to a time where stocks are running out of steam.
Whats making you think its going to 25p? I dont own just interested in why you think it will hit the RI price?
Agree 20p to 30p worth while play. Understand drop to 20p on confidence. But is there any reason improve to 30p. What would be the drivers for that?
The 15p price would only occur in the event of the Dow Jones crashing like it did in March. If there is a correction only, we may see 20p. The important part is the recovery price, difficult to predict, 12 months from now it maybe over 50p. No reason why it won't go from 20p to 30p within a few weeks.
I held these and sold immediately on hearing of the rights issue. Agree these will go to 25p as a minimum. Perhaps lower on confidence. Perhaps 15p - 25p.
Bully1985 has been bombarding the BPC and CERP forums with FAKE news and allegedly misleading posts in an attempt to derail a planned merger and is shorting our shares. He freely admitted recently to having no shares in these companies until the SP substantially decreases. Click on my name for the evidence since 12/7 to back these allegations.
Always DYOR. Never trust apparent experts (including me), especially if they are shorting a stock by bombarding forums with page upon page of negative opinions. Who in their right mind would constantly talk a share price down in a company they invested in? Why would they spend many hours doing so? Is it out of public service as unpaid volunteers to help others or for their own manipulative objectives? Always click on the name of a poster and check the links and research s/he has provided. Better still get independent professional advice. I am starting a campaign by lobbying my many political contacts to get these forums regulated to avoid unsophisticated private investors who occasionally read BBs, getting fleeced.
Feedback about Bully1985 welcome. If you agree share forums should be regulated from de-rampers or rampers that post absurd claims , please post on BPC forum.
Starchild
Don't get me wrong, this will come gack to life again strongly. I can see 50p before the Autumn, but not before the MM's have finished shafting it, when they have they will move on to their next target.
Personally I have no view, but see broker target :-
LIBERUM RESUMES MITIE GROUP WITH 'HOLD' - TARGET 43 PENCE
This will rise slightly like today, to give it a false sense of legitemacy, before the downward spiral. I personally still maintain down to 25p and below.
https://uk.news.yahoo.com/mitie-share-price-plunges-43-125553587.html
My Halifax dealing account not showing MTON rights as of yet, anybody else having same issue. Thanks in advance.
Think the upside here outweighs the risks. Bought another £3k.
Often I fear acquisitions are driven by empire building directors, who see it as a career progression and have little 'skin in the game' themselves. They're egged on by corporate advisors who pocket fat fees for little risk. That's why the rights are pitched at 25p, to minimise risk for the underwriters.
https://www.fool.co.uk/investing/2020/07/14/the-mitie-share-price-plunges-43-on-rights-issue-why-i-think-this-is-a-bargain-stock/
But I feel the company has to prove itself, it is going to be assumed " guilty until proven innocent" and therfore I see the SP falling below 25p. It must be appreciated, the margins the new company will operate on have very little room for error.
Yes, a dip in the closing auction. They're now a more sensible value -about the same as they were yesterday.
Big fall as expected. Time will tell, but I would be fery surprised if these did not trade at 25p and below within a couple of weeks.
but with SIG if you did'nt take up your allocation, it will be the right thing if they fall below 30p at some point. Agree it is not completely the right comparism. If you did not take ip, you get your nil paid payment and chance yo buy below 25p if they get there.Whether it holds depends on the markets, which are due a correction.
SIG was a bit different. For a start, it was an open offer, not rights, so there was no value for people who didn't take it up. Then, whilst the open offer was at 30p there was also a firm placing at 25p, which is probably holding it back.
A better comparison might be the WTB rights issue conducted at 1,500p There the price initally bounced, before people came to their senses (perhaps after they'd done the sums). However, it's still trading comforably above the 1,500p rights price. I think we could see something similar here.
Think the SP of the shares once the dust settles, will be velow 25p. This is mostly down to overpaying for Interserve. In plain English it means the shares you held prior to today are wildly devalued. At best it may do what SIG did. drop marginally below the RI price.
What many PIs don't seem to get is the total cost of taking up your rights isn't 25p. It's 25p put the value you could have got had you sold the nil paid shares (currently about 24.2p).
It's all a smoke & mirrors con trick, which too many PIs still fall for.