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Leave 50m in the plc, raise another 25m and a 100 for 1 consolidation. The option beneficiaries will then really have to earn their keep to create value over the coming years. Of course, there's the 'minor' issue of the royalty debt, which I guess will go with Cascabel, thus reducing the amount a buyer will pay.
The truth is I don't have a scoobie which will way this will go - none of us do. Each possible route has advantages and disadvantages and perhaps the cleanest and best option is simply to sell the whole thing, although we'll get the square root of fa for the regionals.
In the meantime my attention has been focussed on THG. For the first time in ages, last Monday I decided to have a punt and took advantage of the strange delay in the market reaction to the weekend press commentary. I think there was about an hour delay between the market opening and the significant price rise, which created a nice opportunity for private punters. As far as corporate shenanigans go, THG takes some beating.
Morning dm. Trust your having a good weekend.
Ive just caught up with your Friday post.
." It is incorrect to state all operations shut down. As far as I'm aware, there is still exploration/prioritisation taking place, just not drilling anywhere other than ENSA. Although a regional drilling programme is 'planned' for H1."
I must of missed something mate, not being the brightest. Is it possible to post a link on here, appertaining to this.
Thanks in advance
Will they really do that with a prospective regional portfolio to fund? Unlikely IMO.
It also doesn't give optionholders much scope to exercise given where the SOLG SP would be ex-div.
So, I'm not sure it would satisfy everyone. It would give everyone a little kicker but everyone would be well underwater on their stock.
Divi out the proceeds, or most of them. This should satisfy everyone.
So with a sale of ENSA you're relying on the market valuing SolGold at the consideration amount.
I'm not sure this option gives us the exit point you think it might. The stock would spike and stale bulls would fight each other for the exit.
It also does nothing to help our Cornerstone investors now holding SOLG in size.
Bozi, they'd sell the subsidiary and leave the regionals in the plc. A standard transaction. The value of Cascabel will be negotiated and as Mather has said, it'll be valued on the asset not the sp...Hopefully.
Fort - there are many reasons to think that a take out price might be 35-40p and the pricing of the Stackhouse options is further evidence to support it.
Ask yourself why those options weren't priced at a fair price based on the SP during the last 12 months? Say 30p? Because it significantly eats into his earning potential on those options.
Conversely, do you think these options mean a quick 4/5/6 bag for Stackhouse were the company taken out at 100-140p? Doesn't feel likely does it.
There's nothing stopping SOLG price the Stackhouse options at 30p by the way. It might encourage him to buy some down here on the open market, but that's not the ideal way is it... best to have no risk.
Add - correct me by all means but the usual modus operandi is for the target company to be acquired rather than the licences.
Your suggestion also relies on the market sufficiently re-rating SOLG plc stock to reflect a purchase of the asset. I'm not convinced that would happen. There have been numerous examples in the past where companies have traded below cash for example and I would speculate the same would happen with SOLG if Cascabel was sold.
By granting options in the plc, everyone gets their win if we get the news we hope for. Everyone can sell their stock to an acquirer of the plc and exercise those options before moving onto a completely new she'll company where, you guessed it, everything starts again.
Your point around the accumulated losses is a fair one mind.
DM your right
Ffs that was well buried!
Dm. I think your 3rd paragraph answers your second
How can anyone assume that the takeout price is 35p to 40p based on SOLG issuing the CFO options at 22p average?
That's nonsense.
If you look at the average placing price over the last few years to pi's and ii's), it ranges from 21p through to 26p. Forget BHP's 45p and Valuestone's 32p issues. So on average basis, I think the CFO options are fair, inline with what has been given to II's and PI's in the past and as such all treated fairly. Scott's 30m at 17p is the laughable one. But issuing an RNS at 6pm+ on a Friday eve is far worse than both. It's an admission of embarrassment... an admission that they would like to sneak that kind f news through and an admission that they know PI's and II's are about to jump down their necks big time if they do not deliver some decent news or progress update pronto.
We had the RNS on Scott some weeks ago and that intimated performance criteria updates coming at some point. Where are they? It was signalled then that more options to 'staff' would be issued. So all in all, news not surprising, 6m at 22p reasonable and takeover price remains exactly as it was before options issues... based on the Asset and in ground industry prices.
Management rarely price options at significant premium to the sp when in the stages of potentially flogging the business. Of course they will seize the opportunity to capitalise on the self induced low sp. By design... it suits them. But I guess the question is this.... is that it? Is that the last of the feather nesting? Can we now get on with it and reveal all now everyone on inside is nicely positioned??
Bluudy hope so!
Bozi, I'm not sure I can see the point of spinning out the regionals and selling SOLG as an entity. Why not simply sell Cascabel and keep the regionals under the SOLG entity? If this is what they're thinking it would offer another explanation of why options are being granted in the plc. It would also avoid the hassle of establishing another plc and would keep the accumulated losses on the balance sheet, which will helpful for the future.
Bozi/DM. That was my take too. I've thought for a while now that the strategy is to come to an agreed price with the Chinese, who were let in relatively cheap not too long ago, hopefully with the understanding that they would tender some sort of offer. Once that offer is made public - around the numbers you suggest - we have to wait and see whether anyone comes out of the woodwork and counters.
DM - personally I think you're right to be concerned. I share it. It's the basis for my unease around the position CGP officials and Maxit have worked for themselves.
Bob's "fast and smart" comment was clever. Fast has one meaning but smart has many.
It also points potentially to the solution I floated a few weeks ago, being the spin out of the regionals and sale of SOLG. Agree that a flat firesale of the job lot would be disappointing because even for those worried about a market crash, management could work a situation where Cascabel(SOLG) is sold for a return many will be happy with and the regionals can sit in an unlisted corp until such a time that the market picks up and people want to reinvest some SOLG profits.
Do people think that 'fast and smart' could mean reaching an exit price to get out at, and not a sale? Also, the "we are not mine builders" comment is also not necessarily alluding to a sale! "We are not mine builders" so we're out at this price, we're jumping off the bus, you lad's continue on the journey! CGP shareholders have done well with the deal that was executed. The SR news and share price hike will give them two choices......
1...sell up and make a handsome profit (fast and smart).
2.....stay on the bus for a better deal further down the line.
Decisions decisions.
Bozi, precisely - although I'm a bit more optimistic about the exit price than you!
Agree Add re 20:28 last night.
These options are to bring Mr Stackhouse into line with what others at his level can expect if Bob and Dan do their jobs.
A strike price of 30/35/40 doesn't work because that's the likely sort of level that the exit will be at. This pricing gives him a 100% kicker on top of his basic.
Sorry, I forgot to post jiffys reply.
"Many readers are sick to death of your sparring with MR, I'm sure you can agree to that?
Or are you 2 one and the same?
Anyway sick of it."
Followed by several posters saying much the same. General view is he's not their favorite person. Distuptive and argumentative.
Good afternoon novice. Not sure if your aware, but I also hold gst shares, and don't post, but often read the board. Always interested in your posts. But it appears you have fallen out with most of the posters over there. Bit of a pattern.
As someone daily encouraging posters on here to report, and ban posters on here with different views to you, I had to smile at this post over there at 0002 hrs this morning.
"Well done tiny it took you 3 minutes and piggybacking on someone else’s post … classy for someone who thinks they have the right to be the board policeman "
Bit of pot and kettle.
Also very Interested in your support for putin, and his invasion of Ukraine. Some on here might want to pop onto the gst board. I'm sure they will find your posts enlightening
Blimey. We've all turned into kalbari. Maybe he was right. It seems to be coming to fruition what he forecast. This board in those days were telling us £4 by Xmas, and In mather we trust. Let's start a come back kalbari petition
Talking of Mather.
Has anyone heard from the chancer recently?
He would mumble the same ramblings over and over again.
Multiple exit points, majors on board, major in the making, blind Freddie etc etc, now not a peep in ages.
Shameful nicky boy, shameful
Bloke takes job at CFO in late March. Realises what he's been asked to do will see him out of a job. Ensures he gets a decent payout for when that happens. As long as there is an offer on the table north of 35p by the end of H1 I couldn't care less.
Red must be a woman going through the menopause , it all seems very hormonal.
Steady Red, your starting to sound like me… People will begin to claim you are an infestor..