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My thoughts are what level will new amigo get to in terms of trade. It was floating between 150- 300p in its first period of trading before all this missselling business. So assuming they get back to equivalent value of business having learned from mistakes of the past we can assume a similar Value but with 20 times the dilution.
Eg between (100-300p) now becomes between 5-15p
I think chances are it will hit the lower end of that mark given they we about to hit a recession and people will need cash in hard times outside mainstream lending….
Also I think rewardrate (sucky company name) is just a device to show FCA they are practicing ethically to get them through the process……. Once they are allowed to relend properly they will rebrand and push the accelerator but that might be 6/12 months from now after the pilot and share capital raise
Cheers forest….. yes I realised that after posting but couldn’t delete annoyingly
So in theory as you say 10 billion shares at 0.5/6p makes the new market cap £5 million.
The old share value is being destroyed completely but owning a share gives you a ticket to the new 19:1 share price.
I guess my next question is if 0.5/6p per share is a worthy investment in the new amigo……
anyone got any reasonable predictions that are based on prior amigo performance on what the new companies net income will be per year??
Market cap/net income = p/e from a quick google
Just trying to estimate if the new company is well valued at that price
Okay so…… just to guess what’s going to happen now….
Current share price 4p….. dilution at 8.4p
Does that mean the share price will most likely be at 8.4p after the raise?? as literally 95% (19:1) of the shares in existent will have been bought at 8.4p.
That makes this a solid buy at 4p
Hope that sounds logical!
It does feel exciting….. 6 weeks since submission of scheme 2.
Early finish could be a team meeting. After hours rns and tomorrow could be fireworks. GLA
£226k total volume is peanuts. Zzzzzzz
I’ve always believed news leaks before the rns arrives and tiny volume means not even a whisper of news yet
The way I understand it …… it is only a sell if the price was below the current share price….. it counts as a buy if the price was higher….
There are always literally the same bought as sold as someone is buying it at the same time as it is sold. The volumes just indicate direction…… overall volume is more of an indicator of stuff happening….. 3 million is low
Share volume is small….. not sure this is building sentiment or just in a trading range 11-12.5p like it has been for the last month. Nothing exciting yet…..
Seems to me like 16p/16.5p is a natural resistance point for this share since March and has hit it again....
Red finish? Blue finish?
I guess so! I made decision to sell at 16p as the graphs show it bouncing between 16p -14p and back a few times.... seemed sensible to sell at top and try to rebuy on a retrace..... I’m fairly new to trading but happy to take a little profit at the peaks and buy in the lows now I’m getting the hang of it ......
Although I say that and most likely will rocket to 20p by Friday ;) GLA
Amazing franky.... thanks for explaining that simply
Example currently showing 4.8 million sold vs 3.1 buys
Hmmm maybe someone can actually explain that..... it’s not always 50:50 when you look at the share price volume bought vs sold on the data ..... sometimes it can be 5 million more buys than sold as an example
I think it has something to do with share liquidity.... I.e more people are trying to sell than buy. (Or vice versa)
That leads to share price pressure in different directions.... that’s my understanding
Isa you probably know how to explain it better than me
It’s only 4 million trade volume.... it’s hardly a busy day so far with 50:50 split buys/sells ...... let’s see what the day brings. Maybe it will end the week on 16p tomorrow but can see it going either way 15/17p
True LTH... otherwise it would be insider trading I guess! I.e - how did you get this information mr newspaper?!
Think it’s something at start of may for vote (10th?)
Followed by court case a week later.
Just think this has rocketed 15% for not enough solid news..... what news could be coming? Unless FCA have finished their extended investigation or the vote gets called early (highly unlikely)
Think this has risen on hope.... I will try to rebuy on a drop in the 14/15p range
It hit 19p for about 2 minutes. It bounced back to 16.5p very quickly
Hmmm it’s now breaking through the 6 month high......
Maybe there is something coming
also don’t agree. Trading at the top seems logical with this share for me. I sat in while we had that evil retrace back to 10p which was painful and then missed the sell at 20p/17p/16.5p.
Feel like the trading range could fluctuate a lot between now on then.... going to try selling on good news (yesterday) and buying when it drifts back I hope
If there is still a desire to buy shares will the MMs push this down for the close? I sold at for 15.9p because I felt a retrace might happen in the afternoon. Not sure the news was significant enough for a 15% rise so I sold. Could easily pull back to 14.5p over next few days or shoot to 17p ..... long way until the vote
Hahhahaha funny frank!!