Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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The bottom... but why the huge buys then just after the drop? They knew something and with that much cash it’s not PI’s surely?
And you can guarantee that the share price will go lower then the placing price. Looks like I am going to have to free up some money from other shares to average down. Or just short this on Monday morning.
We ain't seen the bottom yet...
Yes I tend to agree he has been listening to his analysts and is contemplating taking appropriate measures as he sees it. Mr East did say IF and WHEN so always possible he may just pencil a plan at the ready and see if it's needed later. We will see. And I agree very clumsy RNS scenario
Check out meggitt for a well run business that doesn’t need placing.
It could be something to do with second wave of covid 19 , a bit of preventive measure as they have imposed a lock down on Leicester this week and yesterday some of my family members in West Mindlands were told to brace themselves for lockdown as covid-19 cases are surging again in the area. I dont think second wave would hit as hard as first but market is melting.
When you look at the £7+bn they have access to and the fact of flying hours are increasing and the cost savings and and furlough savings it does seem to be way too early to be talking of a rights issue when you do your sums the cash burn isn't this fast. I get the feeling Mr East is getting carried away here and doing more than is needed too early. But then God knows what he's upto he could cut R&D investment first but I think he wants to protect all that and take liberties with the shareholder instead maybe... Nice.
MT, thanks for your constructive comments.
I think a raise of £2B would take away the risk of coming back later for funds. It would also be so large that shareholders could not be pre-emoted.
There is no point having an asset sale to raise funds as that would just be a fire sale at the moment.
We are here we are. I think it will be worth taking up the rights if/when they are issued but where the price goes in the meantime, I don’t have a firm idea on. I DO think there will be a rights issue IMHO
What's your average Quinny? I must admit last couple of days thought we were building a base and would move up but today was a shock....
* I add to my analysis. High level thoughts are 4bn is needed to weather this storm (i.e. into next year). To do that? : 1 billion current assets headroom PLUS 800 mn cut in annual costs from layoffs PLUS 200 mn from government support PLUS maybe 1 billion revenues from regional engines etc. MINUS loss in engine sales (airlines not buying) of 1 billion. That leaves 2 billion needed to weather the storm. To do that via a sale of asset or equity raise. Can't see any other way around it. This of course is very high level and interested if this is way off the mark. All best!
If they issue more shares to raise capital this will be at a discount to the current SP. If this happens this will drop like a stone just look a ted baker obviously won't be as drastic as that but still I'm hoping they don't will never see my avg again if the do
Hi all, am new here. I felt I needed to pipe in as tedmak has looked into the balance sheet and this point is absolutely KEY. I can only agree here. With 1bn in net current assets, with lost revenue from the engine servicing business of at at least 25% of an annual ca. 4bn, i.e. 1bn lost revenues minimum, with little reduction in costs. Looks close to the wire without raising more cash? Please if anyone can disagree with this analysis, that would be great. (I am in at avg 320).
Are you being serious? Honestly. You need to do a bit more research about a company before you post numbers. If you are hoping to get in at a lower price, fair play. The regulations allow such rumour and innuendo. Price drops further, I will buy more too, not an issue for me. I can wait 5 years or more to reap rewards. Think however of the people who have invested hard earned savings and consider how they must be feeling. ATB
I keep reading about all this cash that RR has. Just looked at the end of 19 balance sheet and the current assets exceed current liabilities (payable within one year) by just over one billion. They will have been making bugger all from commercial engine servicing in the last for months and some airlines may even be dragging their feet on paying them (Virgin Atlantic are a customer I think).
Any RNS issued within the day is to be treated with the utmost severity.and if you think they are doing this to get their mates in at cheap prices you are deluding yourself. Is a shame as I like the company but their are troubling clouds out there.
scrap that no shorts open that we can see.... unless funds holding a low amount
I sell Monday at opening with 3k lose ,,
Could be a way to get shorts to close, which is holding this back abit
I think it will embolden the hedge fund shorters to take a position and hammer the SP short term all imho.
Dry powder ready if it does happen thunder. GLA
Doyzee - if they were not going to do it they would have said so in that RNS. I advise just keep some cash in reserve so you can participate and all will be fine..its just the short term dilution of the placing that prevents me diving in, I would buy at any placing price they announce.
Saying that, AML doesn’t have the cash RR does but any placing price will always be discounted to SP at announcement so as to compensate existing shareholders in the reduced price
On what basis do you think that Thunder? AML did a cash raise recently which dropped the share price to 20 percent of the closing price the previous day. Now the danger here is that if they are going to do such a thing, the shares have already dropped 10% today so if they drop further and then announce a cash raise via a placing, should we expect the SP to drop a further 20% thereafter? I’m holding tight until the next RNS but will buy on any news of a placing once the drop levels out. GLA
Should also add that I think long term holders will be fine here, its just frustrating for new entrants and the like.
Doyezee. I would say this, I think they will do a placing and the RNS was to try and arrest the share price decline after news leaked so they can raise at a higher price. Cynical view but that is what I believe.
Back in 2014 ish I gave part of my portfolio to a discretionary fund manager and he did (you guessed it) a rubbish job. He bought several tranches of RR shares averaging at about 1010p. After I sacked him I managed to sell at just below break even and move on but it took a couple of years.. I just bought some at 268p cus I think they are probably oversold and a good swing trade -- but RR -- not a good investment.