The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Just because the pandemic is starting to be controlled in this country, and we have Boris's grand plan for a return to a more normal life does not (IMHO) mean that there will no longer be a need for PPE. There might be a need for less of the cheep useless PPE that we see many people wearing at the moment, BUT there will ALWAYS be a need for PPE in hospitals and I'm sure they would prefer to use a product that had an antiviral layer - rather than one that did not.
So, I think there is a future for the business but management have got stop ******* everything up and start running the business, some good news would also help.
4C - agree - lets club together and buy the rest of the company - lol.
Actually I've just doubled my stake, I've been with GMS for a looooong time and I'm still here. I think (and firmly hope) that there will still be some residual value for existing share holders once the bank issues are resolved and I would not be at all surprised if the next RNS was just a statement that talks are continuing.
GLA
4C & Cam - another possibility could be that the BOD are prohibited from selling or buying except at specific pre-arranged times, this is the case with some companies - anyone know if it is the case here?
Personally I always like companies where the BOD/CEO have a decent share holding, especially if they have bought it with their own cash rather than it being given to them. This is not (sadly) a guarantee of success but it does at least encourage company and share holder interests to be aligned. In the case of GMS it would be great to see the BOD put some of their money on the table but I'm not going to hold my breath.
Thanks 4C,
I assume we are going to end up with section 2 of Appendix A, as I do not see GMS coming up with a $75m repayment in the next few days .
ยท If the US$75 million prepayment referred to above is not made and the shareholder resolutions necessary to authorise the issuance of the warrants are not passed, in each case by 31 December 2020, the Banks would be entitled to call a default under the Agreements.
So the banks are entitled to call in the loan, but they do not have to, my guess is they will keep talking as SF would take a major hit if the banks took everything.
Not even that many trades, very quiet today.
I have to assume that SF has been having some discussions with the banks regarding the loans, otherwise why go to all the trouble of taking over the BoD. Who knows, they might even have a plan.....
Is it just me, or does anyone else think that the current trading patter is a little odd?
There were lots of very small sells all day, one was for 2 shares at 14p total..... which has the effect of driving the price down in the lack of any strong buying and then late in the afternoon someone buys a million shares - or two different people had the same idea 23 seconds apart.
Could it be that a '3rd party' is picking up as many shares as they can, as cheaply as possible, so that come Nov 29th SF can make a formal offer at 22p for the small number of shares that they don't already own?
Thanks for the link 4Corners - interesting reading.
I have been thinking about the timing..... Could it be possible that the $75m required could be coming from a single 3rd party, rather than a general rights issue to existing share holders?? That would dilute SF 29.9% stake and give the current team at GMS another ally - something SF would be dead set against.
Just for the record, I have no problem selling to SF IF they come up with a decent offer, what I do have a problem with is piracy.....
This latest tactic from SF is very hostile to those share holders, my self included, who feel that GMS is worth considerably more than it's current SP.
It's a very brazen attempt to stuff the Board with people who would rubber stamp SF next paltry 'offer' for GMS which would be far below it's true valve and definitely NOT in best interests of the majority of shareholders.
Any one have any input on what SF's next move might be?
We know they are currently holding 29.99% of shares and could trigger a mandatory offer at 22p share - double the current share price - at any time. But will they?
On paper GMS is worth about 93p a share, does anyone see a rival bidder to SF???
I hope someone can help me out here as I am a little (very) confused.
The loooooong awaited deal with the banks has finally been made public and GSM needs to raise $75 via a rights issue or strategic investor - before the end of the year - not a big surprise and not the end of the world, yet the share price went south.
Sea Fox initially bought in to GSM at 17p, then made a real low ball offer at 10p, then did a couple of off book deals at 22p which has taken then to 29.15% of issued shares. It's clear that Sea Fox is very interested to gain control of GSM and with the current share price I am surprised that they are the only ones.
The asset valve of GSM is somewhere north of $300m , or around 90p a share, but the shares change hands for a fraction of that price. I assume that Sea Fox has been quietly picking up a few shares in the last couple of days as they inch ever closer to the 30% stake which would potentially trigger the requirement of a formal offer at 22p - but they made a 10p no increase offer. Or are they going to sit there at 29.99% and wait? Wait until a rights issue dilutes there holding that they paid above market rates for????
And then the thing that really, really confuses me is that today people where will to sell their holdings in GSM for less than 12p - 13p - am I missing something?
I have owned GSM for a couple of years, averaged down on a few occasions and hope that soon I will be able to recoup my initial investment and leave some on the table to run. I believe that the true valve of GSM should be much higher than the current SP or the potential offer of 22p. They have activities in O&G and wind - both of which are going to be active areas in the future.
Nemo
Another 11bn NEW shares - we are being DILUTED to DEATH here. It's no wonder that SS does not want shareholders at the AGM - C19 is just a convenient excuse to keep us away.
And, where the f*** is the CPR regarding the P1, P2 and P3 OIP for HH - no news is clearly bad news, or very bad news or maybe just dust.....
And, why the f*** did they screw up the perforating job, having water enter a well can and does happen and that was dealt with, but to need to re-perforate after only a few months - incompetence, utter incompetence.
I am so sick and tired of SS and his incompetent and indifferent attitude to share holders.
Hi Folks, looks like we now know who purchased the 22m shares in the off book deal on Tuesday.
The TR-1 notice this morning states that Sea Fox has increased its percentage holding to 26.41 from 20.37 with 350 million shares in issue, 22 million shares is just over 6% - roughly the increase in Sea Fox's holding.
Assuming the 22p per share was correct, then how does that square with their 10p no increase previous offer which has some 2 months left to run??
Nemo