Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Thanks Beach. Certainly agree that things don’t feel right. Why would the SP be this low taking into account all we know about prospects etc. Where is the consortium who thought this was a good takeover target for them at 33P?
Hi Banbury
Does this mean that the PBT for a whole year will be say £60m from cruise plus insurance (£70m half year x2 for full year) = £140m giving total PBT of £200m? If so, this is fantastic so why do you think the SP so low and falling?
Hi Unhooked.
Rox is correct.
I have pasted a section from one of Rox previous posts which explains the situation based on the change in the number of shares in issue causing a dilution at the time of consolidation.
Stage1
1,122,003,328 (1.1 BILLION) shares BEFORE dilution.
Stage2
2,093,921,536 (2.1 BILLION) shares AFTER dilution.
Stage3
139,594,769 (140 MILLION) shares AFTER 15:1 Consolidation.
If we simply divide the new share price by 15 (which most people here do) this will convert it to the mid stage2 completely ignoring the extra billion shares. It needs converting AGAIN (effectively doubling) to get back to the ‘OLD’ share price Stage1.
The easy answer is to miss out Stage2 and either divide or multiply the share price by 8.04 to get the ‘OLD’ or ‘NEW’ share price depending of course which one you start with or are after.
1,122,003,328/139,594,769 = 8.04
Thanks Beach. I totally agree with you. It is the only plausible reason that I can see for this fall in the SP in advance of an expected good set of interim results and very positive trading update. These shares were trading at over £30 (£2 x 15) each in 2017 and apart from The Covid risk seem to be in a better position now according to all the news we hear. Some people on this BB believe that the SP might recover to £12 and I too think this could happen. However, I am a complete amateur in respect of the stock market and valuations so DYOR.
Yes. I agree it is boring. However I am suspicious that there must be a reason for the falling SP and it isn’t caused by any news that we have heard. Is it possible that the SP is being deliberately reduced in advance of the expected very positive interim results and trading update?
Hi Fordy
The Italian Charms cruise due to depart 15/08 did not proceed due to the virus causing uncertainty about the resumption of international cruises at that date. An announcement was made on 14 July and the cruise was replaced with 3 smaller cruises around the British Isles which are ongoing.
Hi TheFarEnd.
100M shares floating is a large proportion of those issued (140M) and so I would expect less volatility than we are seeing and consequently a lower Beta value. I would welcome your view on this.
https://uk.finance.yahoo.com/news/why-m-planning-buy-saga-095937285.html?guccounter=1