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I have now sold my shares to Phoenix at the bargain price of 1.5p and sitting back and reflecting on the whole thing, what most perplexes me is why Phoenix chose to do this at all. I accept - as per Devon's comments - that it was a smoking gun in the background always able to go off at any time, but a number of years have gone past since Phoenix got involved, and they must now know a lot more about SG than they did originally. In particular, the deal is priced at so low a price that shareholders must generally be taking substantial losses on their holdings.
This is unnecessary. Phoenix had the financial firepower to make a more generous offer, rather than deliberately moving to short change current investors.
The after effects of this deal are likely to be a completely disillusioned staff, and many many disgruntled ex-shareholders who feel badly short changed - many of these will also be collectors who will now shun the company.
The deal was priced too low, there was no need for it now, none of the reasons given by the RNS stand up to heavy scrutiny, and in reality we are being forced to accept a bottom rung deal. I for one, will no longer be supporting SG or Showpiece after this and I suspect that will be a general view.
This has been a completely unnecessary unfair cheap deal that cuts out current shareholders before the real recovery in the share price was allowed to happen.
Closer scrutiny for example of the current financials would have revealed that the reason for the debt increase was the inclusion of the 1c on SG's balance sheet, but actually this is creative accounting only - the stamp is owned by Phoenix.
Does anyone else agree how poor a deal this is?
I didn't see any point to comment before because nothing that would change. Nor I see now... I simply agree with you, Pearls. I'd say that your reasonings about SG over time were correct... but - like I suggested in one of my posts sometimes it just isn't good enough. Now we know why this share never appreciated on any good news... It wasn't supposed to. Also explains the last tree shake. IMO. Huge disappointment and a very sad case.
I only wonder if it'll not end up with simply Phoenix having nicely increased their holding in SG at this price and it'll remain on the Exchange... They paid 2.5p to get involved why not take another lot of shares at this price...
"I only wonder if it'll not end up with simply Phoenix having nicely increased their holding in SG at this price and it'll remain on the Exchange... They paid 2.5p to get involved why not take another lot of shares at this price..."
Very, very unlikely. They'll stop just under the point where they are required to make a formal bid, but guaranteed to get the stock delisted. As they can pull the trigger on the debt at any time why would they show offer anything more. My bet is they take it private at 1,5 revalue it upwards sometime down the road and show that as increased NAV in the portfolio of one of their other vehicles. It's pretty much worked out as I said. Overall I think they are being generous in offering 1,5p....they could have quickly turned it in 0p.Peals correct....it was only months ago there was that 20p prediction!
It looks like SGI have lost another customer. Pearls, it was always there in the tea leaves....don't take it out on them now. You were always so excited about the auctions and fractional junk. Just enjoy the largesse they are offering at 1,5p...it could have been so much worse.
Well Pearls with your new found liquidity you might want to look at ARB!
Thank God when I got out of ARB at just under £3 I didn’t take any notice of your incessant ramping of SGI on that board.
Karma is blessed indeed.
Andy, your comments duly noted but I will be giving ARB a miss. I disagree on the investibility of bitcoin nowadays, and now the regulators are all over it, the attraction of anonymously buying it are disappearing down the drain. ARB is the best in its sector, but again, with the record fuel prices, how can one invest in such an energy devouring company?
I've spoken enough about SGI to last a lifetime and vented my spleen over how unfair the deal is to shareholders, but it is Phoenix who will have to deal with the ensuing PR disaster from this unnecessary take over they decided to do.
Stamp collectors are a close knit community and this will have gone down really poorly with them - indeed I have received phone calls already from a number of very disgruntled investors who have also had to sell and are now never going to buy from SG again. It was a completely unnecessary deal that screws the main supporters of the company! That's a great idea, isn't it?
Anyway, as you say, onto better things with my new liquidity and you will find me on DARK, HBR, or SFOR. They are all great companies with very narrow spreads and there are often volatile movements.
Conflict of interest, loaning money and also investing in a company.
(1)A director of a company must avoid a situation in which he has, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the company.
DARK, HBR, or SFOR. They are all great companies LOL
- isn't HBR nearly 30% down since may and it's major shareholder is selling out?
DARK, HBR, or SFOR. They are all great companies ...........all best avoided if you ask me.
Hi devonplay, I'm also invested in HBR and DARK. HBR is now near £4 with GS forecasting sp of over £6 with higher oil and gas prices en route, their major shareholder will wait to sell if it has any sense !! DARK are currently over 540p having announced takeover interest from a US private equity firm during the week. I can see a £6 bid before the Sep 12th (?) deadline !! These two are good defensive stocks for a Ukraine Russia 'military exercise' !!
What a sad end to what was once such a star in its field. Frankly, the whole thing has put both me and fellow shareholders [and stamp collectors] off Stanley Gibbons for life.
Presumably that was the idea.......????
I suspect the company is now going to undergo a degree of financial engineering on its accounts following which [in a few years by which time Phoenix judge that everyone has forgotten this debacle] no doubt it will come back onto the market as a re-born company with no debt etc to entice a new load of investors in!! How these things are allowed to happen.......just remarkable