Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Can someone wiser than me explain the drop in share price this week ? If i understand correctly TEsco will have the proceeds from the Asia disposal in the bag circa Friday....they will then make plans Jan and Feb about where the proceeds go.....that's one huge chunk of change they will have in their account. The suspicious part of my mind is wondering if the market is up to shennanigans to keep the price down so they and their mates can get onboard prior to this share EXPLODING upwards ! regardless of share consolidation/dividend mechanics just the contribution to the pension deficit is one big fuel tank of propellant that most companies woud sell their grandmother for.....IS this share about to take off I ask myself ? Learned views greatly appreciated ?
Spindler
Fwiw, I think fund managers are holding this back as they slowly drop money in. They know the timeframe so can take thie so in any direction to suit their agenda.
The recent trend certainly supports that.
I have calculated the money due to me in February and will use that capital before payout to buy more shares. Just a matter of timing. Although it has not been reported, after any share consolidation I can see the yearly dividend to be adjusted accordingly.
The running cost of the Pension fund should be reduced significantly too.
May have my rose coloured glasses on but lots of positives here despite the unraveling from the EU.
Spindler,
Surely the value of the Thai business is already built into the SP ...so..when the value is distributed that value disappears and the SP will deflate accordingly.....just like any other ex div situation
You cannot have the cash dividend in one hand and the continued value of the business (in the SP) in the other
So..it "appears" that they intend to consolidate the shares in order to reduce the number of shares and therefore increase the share price again after the ex div drop ...which would artificially deal with the fact that 5 billion has left the business
Sounds right to me, you get cash, you give it away and your back to square one .. surely the optimum period for this share is when they receive the proceeds of the sale and before they fritter it away?
mags
My understanding is that the proceeds have already been spent on the Pension fund and special dividend.
I wouldn't have thought they have received the proceeds yet and also I believe there is to be a meeting and vote on the proposal to pay the special dividend, so it might not actually happen .. just my view ..
mags
apologies, poorly phrased. Funds have already been allocated pending approval in February...
Mags
There was an initial GM which was put to the vote and carried by a very large majority. The numbers and the allocation of funds have not changed so it is very very unlikely not to be passed.
Poker
Yes in part. However, 5billion has not left the busines. It is the value of the businesses as they appear in the balance sheet. The profit on the sale was never in the business to start with.
Yeah, I understand they have the money allocated, but once they receive the proceeds surely they have a bank balance that is 8 billion to the good (untill they spend it) surely this pushes up the share price .. (again, till they spend it)
Yes, the money will be in the bank account for a very short period. During that time the NAV and cash at bank will be higher but, unless that coincides with an end of quarter update we will never know, essentially it is a wash transaction. I doubt whether any one or any institution is unaware of this transaction. The amount and allocation of funds have been known for months and there has been no deviation from the published circular
The only variable is that of the currency exchange rate. A nice low dollar to sterling exchange rate would be even better
The currency is hedged. No drama there.
News tab reporting broker upgrade for Tesco. Positive analysis from Morgan Stanley. Cost cuts going forward for Bookers too.
Lots of positives despite the sp stuck in the doldrums.
Anyone know the EXD date for the special divi of 51p, IF it is voted through at January GM. Pal of mine wants to invest however the SP of Tesco overall is pretty static mostly and with an 11p forecast dividend there are better options. Buying Tesco would only be interesting if he could still secure the 51p specdivi. He's a cautious lad and only want to put approx £7k in. Have advised him I don't know if buying now secures the specdiv. Any views / help? Cheers
I would have to say that he should read the RNS and make his own interpretation. His interpretation is every bit as good as any others
prussel
On or around 11 th Feb and dividend payable on or around the 26th Feb. Note the wording in the RNS ‘on or about’