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De-listing and Suspension woes

Sunday, 26th April 2009 10:14 - by Boredmum

When I originally started investing in shares, I figured some prices would rise and some would fall. I also realised that there may be the odd company that just wouldn’t make it and go bust. I felt that, overall, the risks were low. What I didn’t consider was the possibility of de-listing or suspension. These are like ‘No Man’s Land’, totally cut-off from any news and you not knowing what is happening with them. At least when your shares are active you can see the price movements and read news releases (RNS), so you know what is happening with the company. You even have your fellow investors to communicate and discuss with on bulletin boards. When your company de-lists, unfortunately the lines of communication are dead. You will also find it difficult to trade shares. There are services available through your company where they will provide a match service if they have a buyer and you want to sell. Technically, you still own a share in the company but unfortunately you can’t follow its worth. Suspension is another feature that throws you into ‘No Man’s Land’. You have no idea what will happen with the company. Will they delist? Resume trading again? Go bankrupt? Will I lose all of my investment? Personally, I have Newport Networks (TIDM code: NNG) and Cambridge Mineral Resources (TIDM code: CMR) as de-listed shares. NNG have not found it financially viable to stay listed at an approximate cost of £100,000 a year, when their last revenues were barely more than that. CMR had a loan payment called in after they defaulted, then they lost their nomad and were not able to remain listed (they could possibly resume their listing at some point). Irvine Energy (TIDM code: IVE) are suspended. Again, a loan payment has been called in after a default. Shall I ever see a return from these companies? Well, I am afraid that I am in that ‘No Man’s Land’. I have no official news and I truly don’t know. I will have to wait and see. Do any of you have similar experiences?

Comments

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Madchick - I actually voted for delisting with NNG, I was afraid if they lost the vote then they would just go into administration then I really would have nothing. I'm sure IVE will return, it's just what news will it come with.

boredmum - Tue, 28th Apr 2009 08:04

Hi Wilgray, Well I'm back in TMC. I played it twice taking profits but this time I'm staying for the duration to see if a bid comes. I went back into ENK yesterday although I'm not entirely sure I'll stay there for any length of time. I don't see how ENK can do a cash offer so if it is ENK in the running for a bid I expect it to come as shares. Although nobody really knows if they are involved. I'm in TMC at 30.88p this time.

boredmum - Tue, 28th Apr 2009 07:59

Still waiting for IVE to announce EGM and other news very soon...it seems a long wait in these circumstances. A little off your topic but remember reading that you sold ENK at 5p on the same day as I did (enough said :-( ). Do you have a view on where things are going with TMC/ENK given you are still in there?

wilgray - Tue, 28th Apr 2009 00:26

I'm in IVE too and was in CAPT, which delisted. Like you, I was in the dark with CAPT since I didn't really know what to do - when searching on the internet there wasn't much information and the company did not answer my emails. AIM shares had to have something like 75% votes from shareholders to delist, and I wasn't sure what would happen if enough people voted not to delist (though that didn't happen). And, if I kept the shares, I wasn't sure if I would be entitled to a share in the profit (the thing seemed a bit of a con because they had just started to make a profit and decided to delist so that they could make more money and have more freedom!). I sold in the end before they delisted, but if I had sold more quickly, I'd have made not so much of a loss! At least it is a learning experience!

madchick - Mon, 27th Apr 2009 22:54

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