RE: Who is the seller?22 Nov 2019 08:37
Wow, its hard to know where to start. Firstly, the 'major shareholders' - I assume you're both referring to Tosca and Midwestern - didn't 'decide' to buy back shares, the company did, and management were under no obligation to do so. Though everyone who doesn't sell sees their holding rise, this small buyback won't change anything materially. What was, will still be. Tosca will still be have a super-majority, going from 71.9% to 72.6% approx, while Midwestern will move from roughly 13% to 13.17%. What WILL change however, is that future cash returns and earnings will be spread over fewer shares of course - benefitting all remaining shareholders equally - and make it a tiny bit easier (ie., 6m shares fewer to have to deal with) for Midwestern/Jite to initiate some kind of corporate action which, as they still owe us some 140m or so quatloos, they are clearly incentivised to do (I wrote about that extensively after they first bought Suntrust's stake). In that scenario - the only one that credibly matters right now - our interests and Tosca's are completely and utterly aligned. 2. I agree that operational improvements - which several of us have explained will be driven off already-announced initiatives on the fso and pipeline for Q1/Q2 2020 , plus further drilling- will ultimately drive the share price, but considering cash + discounted future cash alone, the shares are already worth 40p+ in my estimation, and THAT target can be reached simply with greater clarity on capital returns. 3. The daily share purchase limit of roughly £25k purchase is an obvious one. I cannot remember if I confirmed that with the broker or the company, but regardless, its not worth debating. The near-identical amount 22 days in a row tells everyone it ain't gonna change. 4. The 'market maker' discussion is potentially a long one and therefore for another time. Suffice to say that no one is not 'fulfilling their obligations'. Registered market makers will make a 2-way price in san leon in a nominal size - 20k usually - at any time on any day, though these days no one particularly likes the bid-offer as the 'spread' between where they are willing to buy and sell shares is quite wide. However, various information sources, both on exchange and off, are available to them that allow them to both increase their dealing size and tighten the spread when approached on a name like san leon. Intermediaries such financial advisors through which small shareholders might use to leave their orders,should be aware of these additional liquidity sources, and thus should never rely on just the screen price when taking orders. All this said however, life in 2019 in AIM small-cap resource shares, across the board, is unfortunately a far less liquid environment than even a few years ago, but that is down to a multitude of factors - from new fin regulations, to the financial crisis, to the massive overhaul still ongoing in the fund management biz - and not to market makers
Sign In
Follow the stocks
