JMS/Dodger, i agree that usually on the date a share goes ex dividend its price will fall by roughly the amount of the distribution. However the SP should reflect the earning prospects of the underlying business and therefore over time its level will align with those rather than mirror some relationship to Net Asset Value. I invested in Melrose because of its potential and thus am interested in how management will repeat their past successes with the funds that remain in the Group.
Papucel, as I understand it, the consolidation is worked on a SP of 156p. Therefore if currently you have 10 shares you get 150p dividend but then hold only 9 of the new shares post consolidation. Therefore, all being equal, you will own 9 shares that are expected to be quoted at a projected share price of 156p and cash of 150p. So in effect you are basically no better off financially. I appreciate that the actual SP post consolidation may be higher than 156p but that is some time away
I'm encouraged by the pre Trading Statement but midly disappointed by what is effectively a neutral special dividend and related share consolidation. However the RNS does highlight the fantastic returns that this management has made on past investments. I look forward to hearing about their next move.
Great to see Canaccord lift its shareholding by 3% so that it now owns 20%. That's quite a percentage, even if the market Cap of Hardide is small. Happy to hold onto my own position and watch this business grow. Good luck to all LTHs.
Just seen the RNS from Wednesday (19th) which reports that Evershed (the "highly rated fund manager") has bought another 1% of the Company to take his total holding to 5.29%. That's a vote of confidence.
Casudi –The NAV for 31 December states that “the valuation was based on the last financing round and has not been adjusted for over 12 months”. The valuation of ON was £68.7mln as at 30 Sept 2020 according to the RNS dated 3 December so presumably that is the same value at year end.
Prophit, I was hoping that someone here could give us an idea of the potential uplift of the stake in ON. Personally I don't have the ability to track the movements through the multiple funding rounds that ON has completed. Being cynical, it looks like our managers want us to play a guessing game in order to limit the fall in our SP that was triggered by the published NAV revaluation.
it is very reassuring to see these insiders swapping debt for equity. Shows their confidence in further gains. Our "new" management is really creating value here and I hope to see further rises in the share price. But still got some way to go to regain earlier highs!