Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Sticky/star, you sound like a pair of coppers in 'allo, 'allo. Lol.
I winder if SAR are questioning Reel Punt to justify their activities at the moment? In the meantime, I am buying more as I really believe that this share is a winner in time...
The SP will keep drifting while ever a consolidation is hanging over us as most investors know that a raise usually follows a consolidation. Not being negative, they literally said it was to attract investment. Investment means a further dilution of shares. The magic trick is to get an investment that will raise the market cap not lower it. I see no reason why we shouldn't be trading back in the 7 or 8p range (or equivalent) by the time the CTA is lodged and nearer 15p with 737 progress and 1801 starting P1. An on-licence might push us to 20p. But to get there, we need to jump through some hoops.
Potnak - agree with most of what you say - unfortunately much of the slip is down to the poor management experience of our CEO mentioning consolidation prior to an EGM call ... They may want consolidation but at 3p or 2p or lower it just would not cut mustard with me ... i am hopeful there will be other news to push it back up (Brokers Note, MTD Report, AGILE or other funding, more HNWI's ..etc) before consolidation as we all know after consolidation there is always a further pull back ... hence we all make our own minds up and i am making a stand at NO if the SP is not 5p+ by the time of the vote ...
Not happy to lose more money whilst PH will make from their consolidation work
How do we get to 6p though? IMO there will be no news until consolidation and II investment.
Agree but not below 6p
Aber - I am not a fan of them but our expert advisors and corporate finance experienced board all say this is the way to go. I have to believe that they know what they are doing and trust they have the shareholders best interests in hand. The level of the consolidation whether it is 10-1 or 100-1 is irrelevant if the market cap stays the same. There are definite positives to having fewer shares in issue, the main one being stability. The MM's will no longer be able to manipulate the shares if £100k is only 10000 shares. No institution is going to give us £20 million if they think they will lose money straight off the bat as the HNWI have. A consolidation will introduce some stability and the company will be more attractive to institutions. We are in the rock\hard place and the SP will drift down until we have some certainty. The board need to make some tough decisions and the shareholders need to back them. The quicker we do it, the less time there is for SP drift.
Morning Potnak - You say that you are waiting for consolidation but at what price ? Without news this is dropping day on day and will soon be in the 3p range ... and one of the major reasons for the negativity was our CEO's naivety to mention a consolidation before the EGM was called; I would much prefer consolidation from a 6p range than a 3p range so I will be voting for consolidation partly on the SP at the time and if its down here and they have not tried to push it back up prior to consolidation then I and the family will all be voting NO;
It will also be interesting to hear why we need to consolidate ... they say a higher SP is more attractive ... PUre BS
We will have the same MC and if this Glogally acclaimed Broker is so good they should be able to address their 1000's of investor contacts via email or brokers note to say 'hey guys - invest in SAREUM as they have the new wonder drug .... blah blah blah'
NAT Grid have 3.6 bln shares in issue, BAE 3.1 bln and GLK 5 Billion
My suspicion is that PH have lost a large chunk of their MC in the past 6 months and what better way to claw back significant fees than to charge SAR for working on a share consolidation action
Lets see what the consolidation is for but if its just for an increased SP without a significant MC increase (via deals etc) then that is just a false claim; ... unless we need to be 3$ to join the nasdaq
I haven't jumped to conclusions. I'm waiting for a consolidation and institutional investment then a CTA in the summer. Just like they told us. I'm happy with all that
Before jumping to conclusions, why not wait until the EGM?
Yes, geejay. And SCH, not ignoring the gsk link just saying a consolidation beforehand isn't needed. It just seems like another rabbit hole to go down while we wait for the actual news and progression.
Consolidation in the above example makes ZERO difference.
Let’s say I own 1000 shares in SAR at 20p. £200
£17 per share GSK = 11.76 GSK shares in a swop. 85 SAR for 1 GSK.
Consolidate 100:1. I now have 10 SAR shares at £20. Total value £200.
Oh look. 11.76 GSK shares. Just at 0.85:1. Which is 85/100 aka consolidation.
well
theres always a first time for everything:)
Yes, I've seen these types of share swaps. Can't recall even seeing a company that consolidated before an acquisition. Surely it isn't needed in this scenario?
Yes, I've seen these types of share swaps. Can't recall even seeing a company that consolidated before an acq
Potnak
I recall mergers where 2 shares in one co may be exchanged for 5 shares in co two , where there are 2 cos to a merger.
In sareums situation , if for exampleif there was no consolidation and the merger was with gsk for example (current share price)
£17-00 ) and gsk for example currently valued Sareum at 20p a share the merger would be 85 shares exchanged for 1 share in gsk.
I can not recall a merger on such multiples.
Would a gsk shareholder be concerned with a share swap of 85 sareum shares for one gsk share. On the other hand if the consolidation of 100 sareum shares to 1 by the BOD, a20p share offer consolidates to £20-00 a share. Therefore in the example above 20 shares in gsk would be exchanged for 17 shares in sareum. Please note this is just an illustration of fgures what could in theory happen upon a share consolidation and merger
GLA
D.
Links. Not rinks.
You knew that. Sorry!
Potnak - it’s pure speculation on my part (and horse1) based on logical reasoning and circumstantial evidence.
Read the “dull but relevant” thread which Thoth2 started and do all the rinks in that thread.
Hope that helps!
H
SCH, I'm intrigued by the share swap idea? Do you have experience where this happened with other companies? Does anyone else. What I mean is has anyone been in a company that consolidated and then went on to sell with a share swap.
Haha! Whilst I do enjoy a bit of car banter, the comment was flippant - I’m actually more interested in property (real estate) than depreciating tin. That said, an astute buy can appreciate :)
Anyway, without disrespect to the OP I’m baffled why you would compare SAR SP performance with another? There are so many variables - and I don’t believe that the proposed SAR consolidation is for reasons that compare - I believe the reason is strategic and probably for an acquisition by share-swap.
Koolkat
You do know by his own admission Trimme didn't sell either and then forever moaned about his investment being down. He is still moaning about it as C31161 or something like it on Advfn. That's if he was ever invested at all.
SCH - or wait for 25p and set your sights a bit higher!
https://singervehicledesign.com/
SCHeckler, suspect you may not be the only one. Porsche dealer saying, “Sareum, that will do nicely sir!”
Xylo - they can say whatever they want @20p because I won’t hear it, I’ll be down the Porsche dealership!
It doesn't matter if the sp goes to 20p tomorrow
You will still get some posting they have been here for 10 years and still sitting on a loss:)