Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
On the 12th November there will be 8.37B shares in circulation as opposed to 1.93B today.
So at today's price, 8.37Bx84p=£7.03B MCAP
On yesterday's close 1.93Bx£2.19=£4.23B MCAP
SP needs to adjust downwards subject to how raised capital will be used.
What are the four choices facing existing Rolls investors?
Subscribe for the new shares, which means you have to invest more money in the company. If you have 300 existing shares, for example, you have the right to buy 1,000 new shares at 32p. By buying all your rights for a total price of £320, you now have 1,300 shares and own the same percentage of the company as you did before the rights issue.
You can choose to sell some of the shares so you can the buy rest with the proceeds. The number of shares you are able to buy will depend on what price people are willing to pay for the rights you are selling. But you will end up owning a smaller percentage of the total shares than you did before the rights issue.
The third option is to sell all the rights. Again, the price achieved will depend on the price that people are willing to pay for those rights. Using the same example as above, you will still have 300 shares, but this will be a much smaller percentage of the company than before.
Do nothing and let your rights lapse. By doing so you will be diluting your stake in the company, including your entitlement to future dividend payments. If you do this, your rights will be offered for sale to other investors and you will be sent any proceeds by the company’s share registrar (minus expenses), if it’s £5 or more.
What happens next?
Nothing can happen until there's been a general meeting of shareholders to approve the fundraising plan. This will be held on Tuesday, 27 October at 11am. To vote, participants must be on the Rolls-Royce share register by the previous Friday.
Approval at the meeting will trigger the dispatch of allotment letters to shareholders. The record date for entitlements under the rights issue will be the close of business on 23 October.
The existing ordinary shares will be marked “ex-rights” by the London Stock Exchange on 28 October, the same day as dealings in the nil-paid rights get underway. This nil-paid price is the difference between the issue price and ex-rights price.
The deadline if you are selling rights is 5 November, with the closing date for those taking up the rights or not selling being 11 November. The result of the rights issue will be known by 8am on 12 November, when dealings in the new ordinary shares will also get underway.
Share certificates will be issued and accounts credited no later than 25 November.
Looking at CCI (20), ATR (14), RSI (14) and Momentum (14), all compare to the levels of July 7/8th. A technical bounce from here is very much on the cards. Bought in yesterday and sitting on a loss but not worried atm.
In addition, chairman, Mahmud Kamani, bought 300k shares today.
Therefore, I think how you see this issue depends entirely on whether you're a trader, or an investor. I see this as buying opportunity no.3. It may be disconcerting to endure such wild price movements, but in my experience, the fundamentals always overcome shorter term market sentiment after a while.
If earnings were under pressure, and customers boycotting BOO, then I'd be a seller. The opposite is actually the case. The last update was fantastic, interim results. Revenues up 45%, adj PBT up 53%, and EPS for this year probably now heading for 9p+, brokers upgrading forecasts (but BOO usually beats forecasts often by a lot). Therefore at 270p, the forward PER is probably now under 30. That's such good value for a unique growth company. Look at Asos - much slower growth, very low gross margin, yet on a higher rating than BOO. That's a clear valuation anomaly, in my view.
The key point is that none of the recent attacks on the company make the slightest difference to financial performance. Therefore long term, the share price is highly likely to recover. To me that's an opportunity, whilst of course it's tough to see red on my screen, but that's part of this world. We have to be able to tolerate short term losses, and ride them out sometimes. Or, if you're a skilled trader, then selling at the top, and buying back at the bottom is a great strategy, if you can consistently pull it off. Each to their own.
I think, when sentiment turns, and the sellers are gone, then the rebound could be explosive. We've seen that before quite recently. It also helps that shorters then become forced buyers, which speeds up the recovery. It's a fascinating situation, but it seems very obvious to me that, in say 2-3 years time, BOO is almost certainly going to be a much bigger, much more profitable group. That inevitably means a higher share price. Are people going to be agonising over who the auditor is, in 2-3 years time? Of course not, because it doesn't matter in the long run. It'll be earnings & growth that drive the share price, once all this kerfuffle is forgotten.
Copied and pasted from Stockopedia (Paul Scott). DYOR.
"Boohoo (LON:BOO)
(I hold)
The FT, and now other papers, are reporting that PWC is quitting as auditor of BooHoo, over reputation concerns. Obviously, if true, that's bound to have a negative impact on market sentiment, in the short term. Long term, of course, such issues are forgotten when forecast-beating results come out.
BOO has this morning issued a statement as follows;
boohoo, a leading online fashion retailer, notes recent press commentary with regards to its auditor PricewaterhouseCoopers ("PwC"). The Group would like to place on record that PwC is still the Group's auditor at this time. The Group's Audit Committee has recently launched a competitive tender process for the Group's audit, and will update shareholders at its conclusion. PwC signed an unqualified opinion on the Group's 2020 Financial Statements and having served as the Group's auditor since 2014, is not participating in this process.
I'm reluctant to speculate on this, and I'm sure everyone has their own interpretation of it, depending on your underlying view of the company/share. It's possible that some of the press reports, and the BOO statement, could both be true. Some press reports are saying that PWC has resigned (clearly false, because BOO has stated today that PWC remains its auditor at this time). Other press reports are saying that PWC intends to step down (in the future), which of course is entirely compatible with still being the auditor currently.
So it sounds like an orderly process to change auditors. But would BOO really have chosen this particular time, when it's under relentless fire in the press, to voluntarily change auditor? I don't know, but it seems implausible to me. Maybe the auditor said they don't want to carry on, but are happy to hand over in an orderly fashion? Who knows?
Does it matter? Short term, yes, clearly this further impacts already dented sentiment. In the long term it doesn't matter at all. The Telegraph points out that Sports Direct had problems retaining auditors, and had to move down to a second tier audit firm, because of concerns over corporate governance, and an overly dominant Chairman, plus of course scandals over its warehouse & working conditions (which turned out to be largely hot air). Despite this, Sports Direct has been a rare survivor in retailing, as most of its rivals have fallen by the wayside (apart from the phenomenal Jd Sports Fashion (LON:JD.) of course). Who would have thought that Sports Direct could revitalise House of Fraser (or House of Failure as apparently some of its staff used to call it), yet before covid struck that seemed to be underway. The point being that an entrepreneurial business that runs into trouble on governance & press attacks, can be a very successful business...
hi Mick, agreed, Bollinger Band showing a clear W. But RSI around 80 on a 5 day analysis. Thinking of a near term entry of 440-450. What do you think?
No but thinking of an order around 280 to catch the fall and then fill slowly if it over shoots. But we are an in an ascending channel with higher highs. My suspicion is (imho, AAL always proves me wrong LOL) the gap has to clear before any further rises are established. Otherwise, every rise will be shorted down. Well this is my theory anyway, only time will tell. Otherwise cash only now.
Just received my nil paid shares and already in profit :). Will continue to hold the primary long which is showing a paper loss. My short positions are also in profit so I will close those when I reach a net zero to hold the longs.
Hoping to re-invest some of the divi from tomorrow into VED. Just need to pick the right buy point.