Member Info for BIGBangs

Most of us holding are showing a loss - this has been a very difficult share to call. We do not know that the loan book will be sold at a loss but we do know that it is likely to generate something like £500 million and importantly removes the risk of another fund raise - that is more significant for securing the SP than the possible loss the sale may show against book value. Adding new Directors is also a positive step removing others will take more time and on balance that is probably not a bad thing. I don’t expect the figures to be great but neither do I think that they will be terrible and if the loan book sale is confirmed at anything even close to book then the SP should rise - raising £375m at £5 so quickly underpins the price and Odey will exit it is just a matter of when, this company is not going bust and represents a good investment opportunity for those that are willing to take it.

You may be right Franky but that would be a very dangerous route for Barrick - I can’t decide if it would be classed as fraud or misrepresentation but either way a dangerous move if it ever came out and everything does eventually.

Or of course something entirely different could happen. Hopefully just a tree shake.

Obviously your call Pat but full offer and dividend against max 1.5% (much less for higher amount of trade) still works out as a good deal.

Good call SJ almost to the minute £5 hit.

I believe the risk to be very low at this price and the upside substantial. My average is £5.15 so I think I will be buying tomorrow to bring my average down still further while this opportunity remains. £9 in twelve months, make up you own mind and act accordingly.

Good article g7, selling a non core loan book back to the company they bought it from makes great sense. The suggested £500 million would remove any fears about a further fund raise and the SP should benefit considerably when the news is confirmed later this week.

Thanks h the way I read the ii bumf I am able to hold and trade several currencies within the one account but I will add checking that to my list.

While I think about it has anyone spotted any comments from Odey on the offer? He had said he would fight an offer below £2.70 - not quite sure what he can now actually do as with the ACA board now recommending the offer Barrick only need 75% approval of which they hold 64%.

I love Cornwall just such a pain to get there - relax enjoy the day. We all have decisions to make but there was already upward pressure on gold before the Iran situation escalated. Boris is committed to leaving EU by 31:10 or there could be a general election that Labour could win. In my view all of this and the uncertainty that surrounds us puts downward pressure on the £ - but of course only you can decide what is best for you and a profit is a profit. Drink plenty of water.

I agree h, although I don’t think it will cost us anything to receive the Barrick shares in $ in our account when we sell and should we decide to convert the resulting $ into £, the currency conversion fee becomes significant. I tried to establish exactly how this worked with ii and if I could actually draw down the $ into a foreign currency account without charge - this was one time that I did become a little frustrated as it seemed impossible to get a straight answer. I will try again soon but from memory I think ii charge 1.5% conversion as well although I could not establish exactly how this was determined and if it was in addition to the normal exchange rate Buy/Sell margin.

Hi Pat, didn’t expect to hear much from you this weekend but I suppose it is still early! Whenever possible I try and trade in market size chunks as you are then guaranteed the market price,(ACA 10000). I hope you were only considering dummy trades as the difference between the offer price plus special dividend is potentially 25p per share in addition to whatever the lift to gold/Barrick which we may get following the incidents in IRAN? Personally I think selling at the moment, unless you have pressing issues or have spotted a tremendous opportunity (in whole case spill) is a little premature.

Hi dimi - I use interactive investors - ii. I like them. I have several accounts including Trading, SIPP, ISA. I pay £3.99 a trade and £19 monthly fee for Trading account but receive credits against trading. I think the SIPP costs about £120 a year and ISA something similar - I have quite large balances and the fact that I do not specifically remember the platform fees speak volumes. I never have a problem trading and do my trades from my mobile wherever I am happy to be, in seconds. Until now I have stuck to UK trading as I find it difficult enough to keep track of one market and have felt that trading internationally would put me at a disadvantage. I find ii a little frustrating if I use their secure message service as the answers I receive are obviously from a script which in my view questions the need for the ‘real’ people who respond, they may as well save money and use bots. 99% of the time I am totally happy with the Sevice and accessibility. I have, as yet unused, access to all international markets and have completed all necessary paperwork re tax etc in anticipation of holding Barrick shares - can’t remember the relevant trading fees but as you say for large transactions and providing I do not feel I am being ripped off, which is certainly not the case now I will stick with them.

dimi - very good point, despite the price I also felt quite relieved that it is sorted. The price is not what it should be but it could have been worse. I have a lot of shares, many that I bought at close to £1 so I am making a decent profit and that ultimately is what is important with investing. I will continue to hold for now and probably see the transition through to Barrick with most of my holdings - the $ hedge is a big appeal for me.

I have enjoyed posting here and your comments have always been considered, useful and entertaining. I hope to see you on other boards as finding a poster who’s comments you can trust is very useful. I wish you all the very best in life and in your investments.

Of course the other thing to bear in mind is that in theory Barrick shares should get a boost today especially if we believe they have had a massive result here but in any event as the offer should lead to a settlement with GOT and a boost in gold production - we could be looking at £2.45 to £2.50 by the end of the day.

Holding gives us the benefit of the dividend plus the full value of the offer (no buy sell spread) significantly as the Barrick shares will either be in CAD or US $ (guys who exchanged Rangold shares didn’t get a choice but take Barrick in Cad$) which could be significant with Brexit or Corbyn Government. We will benefit (or suffer) from changes in gold and Barrick SP. looking for the positives I think holding $ will be a good hedge against British politics for a while and of course there is always the possibility of a counter bid as you suggest.

P123 most accounts can take foreign stock especially US/Canada - whatever you ultimately decide I would suggest you speak to your broker to set it up which is very easy indeed. What broker are you with? Do you hold electronic or paper shares?

Yes I can work with that.

Hi F - surely if the £ strengthens against the dollar the offer becomes worth less? With everything that is going on I can’t see £ strengthening anyway.

Pat if you want full ‘value’ from the offer you would have to keep the shares for quite a lot longer than the next few day.

Stock - pretty unnecessary comment that doesn’t cover you in glory.

Well guys there you have it £2.31 plus potentially another 14p ish in special dividend when the other assets are sold providing you still hold the shares. We have to assume that the main shareholders including ODEY are onside. The offer is recommended unanimously by ACA board so we have to assume that this is now a done deal. It’s a profit for me but I know many of you will be hurting. My best advice is to just watch what happens today, perhaps contact your broker to ensure your account can accept/trade US/Canadian stock and determine the opportunity cost to you of holding Barrick shares for a while (they are doing well) and receiving the additional dividend in the future as opposed to selling and using the funds as you choose in the market or elsewhere. I am certainly not thrilled by the offer but will take my own advice and give it a little time. ATB.