Member Info for bluetigeruk

No they will trade at the offer price, minus a few points. Usually you can sell before the offer closed as you would any share. If it's cash then after the offer closes the shares get bought and settled for the offer. If it's shares you will get them appear in your account. It's the brokers job to manage this. If it's cash shares mix then hybrid of above. The offer period sometimes attracts a counter offer from a rival. Can't see that here as New have processing nearbyish which gives them capex advantage.

in basic terms they have found a decent gold prospect that is being explored by a wealthy Gold producing neighbour for them - but they don't know how big it is yet and the longer the wealthy neighbour takes to work out how big it is the premise is that it is big because the drilling tests have not yet confirmed the size / boundaries - because they have not yet hit them. The risk in the price is wealthy neighbour says next drilling announcement - thats it - we have the gold defined and its not as big as we thought - the other side that people are exited about is they say wow its really big and we have not yet worked out how much iceberg is left to find under the bit we have found. Something like that.

Whats your strategy if it doesnt reach 20-25p is the thoughts i would give you.

How do you then exit the trad without damage.

Plan that as well as the 2-0-25 range idea.

Stay Safe.

Its nice to get in at the basement level - but a more professional approach is to buy in steps as the story emerges. Sure you dont get in at the very low - very high risk prices - but you derisk as you invest. If the stock is potentially worth say 50p a share - why not buy in at 2p - 5p - 10p - 20p then stop for the ride.

I have spent too long on this but ... SSE DIVI POLICY ...

SSE is aiming to increase its dividend by the rate of inflation (as measured by RPI) between 2020 and 2023. This would increase its cost to over £900m by then, based on an assumption of 2.5 per cent inflation.23 Jan 2019

Longer term then DIVI cover can be given some direction by normalised business operations - so that is adjusted EPS.
But its only an indicator.
Divi is paid out of retained earnings - so profits after tax is paid.
So you could look into next year and say OK divi over is 0.8x - thats just about OK.
But then there could be an incident in 2 x power stations next November - and that restricts revenues and also requires a 3 year building program to bring them back on line - then the Adjusted EPS will change - even if the rebuilding can claim to be an exceptional event - the fall in revenues will almost certainly reduce profits. Say 5% of manufacturing in the UK goes under over the next 12 months then less electricity is required and so revenues fall etc ...
Its just an indicator.
Also learn to look at the balance sheet - what are net and current liabilities - read the least 2 x reports - any big cash hungry engineering projects planned - what is the debt load . It all adds up to dividend being hit. Also most big PLCs have a stated dividend policy - they will explain in the annual report what it is and deviating from (down) this brings many angry calls from pension funds etc because they plan their pension / actuarial commitments based on these statements. SSE - mist funds will buy it for the yield and then the divi is pretty sacrosanct. In short use adjusted for longer term divi cover.

Adjusted nets out profits made outside of the normal operations of the business, say profit on property sales for example, its supposed to show you the profits of the business 'steady as she goes' without the profits made from non core activities, say irregular currency gains and soon.

This is wrong.

You don't calculate PE from sales, you calculate it from profit before tax. So you need to estimate gross margin and operating expenses, plus any financial costs.

So your valuation model is say 70 to 80% too high.

Thanks

Please read.

Market Makers dont care which way the share moves - its irrelevant - all they want is order flow through the book and at the huge spread being quoted on this AIM stock its a great profit maker for them. Also in an AIM book with current market volatility they wont be allowed to run a large position in either direction by their risk managers - the reason the share jumps around so much is because all jobbers have very low liquidity / freedom to take the book either way and so the market swings around. Also i know it happens but acting in concert to move the share price in any direction like you suggest is also illegal and nobody in the city wants a p45 at the moment.

So in short its order flow through the book they like and actually if the share price did not move 1p but the volume was say £2 million at the end of the day they are very happy believe me.

Got to hand it to them - thats one effing large Bear Raid.

I wouldn't worry - they usually are over and done within a day or so.

Years ago when i was 21-15 i worked in the City - i was a dealing desk assistant - basically coffee and biscuits. We used to run a book fir about 15 small stocks - AIM sized stuff - this is during the start up of Winterflood Securities etc - if you want a reference point.

Anyway the book was simple - you would take calls and receive bids or offers - most of them pretty small - say sub £20k stuff. As the book got LONG - say £50k or whatever the head dealer set - you would reduce the prices - and if it got SHORT - you would raise them slowly.

We would take a few calls from nervous PIs who would see the price down say 10p and ask whats going on - we would just say more buyers than sellers - most of the time that was the case. Sometimes we would have a few scraps of info too. Once a year maybe we would have a research report from the analysts and the brokers would shop it around for Institutional buyers - but mainly those were big trades off book and off market done as placings.

So I am just saying - the MMs do share knowledge and bits of information here and there - sometimes they get ahead of pricing information and cant help themselves and become very unidirectional on the book, but 99% of the time they simply reflect the flow on and off of the book and are happy to take 1p or so on each trade. The spread on NVCYT is 5p - thats massive - probably the real TOUCH is 127/28 but thats ot the advertised price. When you trade dont do it at best - just throw up a price for say 1 minute inside the spread - then cancel it and reload - you will almost certainly get your price filled. This doesn't work in fast markets of course - but there is price stabilisation these days.
Just saying - the MM know a bit but dont really want to take positions, they just want flow through the book as thats their job and where their profits come from, taking a position gets them outside of their risk envelope and can in fact get them demoted or even fired. Break a leg.

James - grow up please.

The Chinese Authorities distributed the genetic details of the virus to all Global Pharma companies a few weeks back, so any lab can make a Coronoviris Test Kit after a few weeks of work to detect the virus signature. I am not saying that NCYT is not a good investment or anything - but there will be a flood of test kits entering the market over the next few weeks i would guess as Pharma R&D gets test kit products out. The market could be huge of course in the billions number of kits requested and at what price per test say £5 ??? So its a huge opportunity - but beware of the market getting a lot of supply. It could be a prerequisite to fly or cross borders in certain regions - but watch out for the competition coming . I dont own any of these shares - or make posts like these normally. I own GSK.