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Hi Dave and Lolm
I think you are both right but looking at it from different starts.
Dave I think you are saying that if your current average in TILS was 150 now and after the split the TILS price was 150 and the Stem price 100 you would have a combined value of 250 per share which is correct. so if you had 1000 shares in each company your total value would be 1000 x£1 plus 1000x£1.50 ie £2500. Also it means that if your current average in TILS was now 250p you would get out all square.
I am no expert but it would seem that there are a good lot of possibilities in TILS for the future and I expect to retain a holding over the next three years or so. In one of my accounts I have a large holding for me at an average not far below 200 so feel very exposed at present. I don't expect the Stem split to be as lucrative as some people here do. I think that a lot of cash will be required to progress the breast cancer trials and most of the money from the summer raise will be retained in TILS. Therefore perhaps a link up with big Pharma, II investor placing or sale of Accustem will be needed.
I haven't decided yet whether to keep or sell Accustem after the split. It probably depends on what I think of the share price once it starts trading compared to my view of the company value.
Best wishes
Spinnaker
Hi Dave,
If I'm reading your post correctly I think you've got it the wrong way round - if your average in TILS is currently 150, and assuming there's no dilution after the STEM shares are floated, then your break even on TILS would still be 150 if STEM had a price of 0. If STEM was at 100 as per your example then you would only need a TILS price of 50 to "break even". If TILS is at 150 and STEM at 100 then you're rolling in the money as your original purchase still has the same value and you've gained the STEM shares for nothing.
Hi 0752Neil,
I’m not one of the established holders, I have only recently become an investor in any stock/share myself (time on my hands, covid and its consequences) I have been watching Tils (and all the comments) for about 3 months now. In my opinion it’s a no brainer if you can get the shares at 140 or less, that’s an often-repeated mantra here, whether you believe that is up to you.
I see you have been looking at the other people’s posts here and they seem to know a hell of a lot about the products and possibilities for Tils and accustom.
2 other things if you didn’t already know. The CEO has 40% of shares, and there is an institution invested at 2 pound a share. That is what I have understood.
Good luck
I sold mine on 212. They aren't very good at handling this type of event and I know it will go badly! Actually worked okay in this instance as price had dropped a bit when I repurchased elsewhere.
Spinnaker
@Davenotthecat
As somebody that sits on the sidelines with the BB's, I do have concerns around the demerger, I don't have any real proof, just a gut feeling, I welcome the thoughts of the more established holders.
Hi again Spiniker
As always, just a hypothetical.
Do you think if someone’s average in tils is 150 and an assumption for Accustem say 100
Then in reality their break even (in tils) would be 250 before the end of October.
Again, not including the fact that some here think/would like that a big company takes over
the whole kit and caboodle, from now up until Christmas.
Thanks again Dave
PS. Do you have an opinion on the future of Tils and Accustem in the future?
Thanks very much for all your help
Dave
Basically Dave, what I am saying is that is is unlikely that the first SP of the new Accustem company would be as high as 130p.
People on this board have argued that there would be a gain in the total sum of the two stocks Market Capitalisation (MC) after the split compared to the prior MC of TILS alone since the IP in Stem is not being progressed at present by TILS and the split would free the new company to fund raise as necessary with a targeted vision. This may be so but the closer the cut off date comes then the greater the chances of the split happening and the more any perceived value in Stem would be reflected in the TILS price. So you have to think about what the initial MC of Stem would be in the market and the graph of increase in the reflection of this value in the price of TILS shares as we close on the cut off date.
I understand that you may receive cash instead of shares on the date of first trading so in theory you would not be significantly disadvantaged if you were to put in an order to purchase the new shares with an alternative platform at the precise time that that the market valuation occurs. You would have to check with 212 precisely when this spot figure would be taken or whether it would be an average over say the first week's closing prices. I have no idea how they will deal with this having never come across a similar situation. Obviously if it was an average, not only would it delay the money coming into your account but it would also possibly advantage or disadvantage you depending on price movement during the period of averaging and when during that period you actually purchased the shares. There may also be the buy/sell spread to consider.
I hope that is of some help.
Best wishes
Spinnaker
Thanks again.
Scratching my head, but I'll re-read.
DNTC
I wouldn't worry too much about the situation with 212. No-one can value the Stem shares at the moment., The price will be set by the market so I can't see that the platform can determine a price for the shares until trading commences which seems as though it will be a month or more after the split, (assuming no buyout).
However bear in mind that if Stem shares are worth £1.30 at the moment that puts the rest of TILS at 7p which is an under-valuation IMO. Even if the built in price is less that now but £1.30 when trading commences the PV of the STEM element of the TILS SP shouldn't be much less now (maybe 30-50% discount). It is discounted of course not only due to the fact that investors will not have access to part of their money for a month or two after the split and the contemporaneous reduction in TILS SP but also the concerns that it may never happen. However given the current SP and its limited movement since the announcement of the demerger it doesn't appear to me that investors are putting a whole lot of value on Stem at present.
That sounds a bit confused I am afraid but it is bedtime.
Best wishes
Spinnaker
thanks for your reply Troy.
The platform I work for hasn't come to a decision on providing the shares for the demerger either. This is due to customers being the secondary beneficiary of the shares.
I believe these type of platforms will come to a decision after the vote has been declared and the market makers are updated.
We may well find out that 212 will support the demerger, we just need to wait until Monday for clarification.
Unfortunately, I don’t have the option as I live abroad.
What’s the problem with giving 212s shares, surely 212 tells them how many, it must be recorded?
I’ve seen some figures mentioned here and a guesstimate for stem would be 1.30
If they can’t give shares, then base it on the first day’s trading in stem.
I’d wait, just want a fair shake.
Sorry if it sounds naïve. All guess work. But would be happy for any comments. Good or Bad
Y'all have known about this for some time now and still have time to sell and rebuy in a proper account like ii, hl, aj bell etc so don't get upset with a very low cash alternative from 212.
If we get the share price based on market valuation, this will be less than 2p/Accustem share, which is ridiculous.
I would agree not great with that as who's to say a what the cash is based on and would it be the market valuation or the 3mill as is
I asked the question (as did many people) on the community help page but I got no response. I believe the last official response we got was back in June when they stated that we would just get cash. Not great.
I asked recently and they didn’t know
apologies if mentioned - has anyone received feedback from trading 212 on how the COAC will be processed