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42. The conversion price is about 15p. Still a premium but there are other benefits as well that would justify paying a premium. 5% a year accruing and 50% takeover uplift. But still makes them look mighty cheap at these levels.
Incredible that we have got to the situation that the Chair investing $3.2m seems like an everyday event. Once he has pocketed all the Argento Prefs then the fun will start with the OBT ords. Glad to be in before that starts. I understand Jimzi’s view that something feels strange but all this buying is becoming an irresistible force upwards.
What’s the big interest in the Argento Prefs? Why is the Chair scooping up all that he can at huge cost. He’s spent many millions of $ over recent weeks. Why doesn’t he buy OBT ords instead? The Argento are attractive because they accrue 5% a year but that’s not much, you can get that in many investments that are far less risky. They also have a 50% uplift on takeover which does make them a very interesting option. But the big catch is that the Argento Prefs for all there attractions are still based on the value of Argento as a company so there is risk attached. If he thinks (with all his inside info) that the Argento Company valuation justifies the price of the Pref shares then that suggests that the 57% of Argento that OBT owns must be worth north of $50m. One big advantage of accumulating the Argento Prefs is that they don’t count towards the percentage of OBT that he has to declare. If he can get his hands on all the Argento Prefs then he can hold them in addition to his holding in OBT without declaring it and when it suits him convert them into OBT ords which would represent about 25% of the enlarged shares in issue. That could be critical in a takeover whatever direction it came from. That would also value IBT as a whole at about $100m. Either way it suggests that the Chair is very confident that OBT is way undervalued at these levels. 20p minimum is what he is seeing. Sorry for ramble.
Ian, don’t tempt me....
No sign of the brakes being applied yet. Let it go, you know you want to.
Back above 8. Be interesting to see if they hold it there for a while or are just going to let it go now. Very controlled at the moment.
OBT definitely worth a punt on various fronts. But I would never buy based on an Align recommendation. Not worth the paper it’s written on. They are in the paid for puff industry.
Looks like trading at this level is finished. A quick move up to the next level this morning I think
Would normally see a TR1 with the notification. Presumably means he is still buying.
I think the potential buybacks are a bit of a distraction. With negative tangible assets and their eye on another acquisition I think any buyback could be regarded as reckless. They may have the authority to do them but I don’t think they have the justification. There certainly seems to be a large seller holding the sp down at the moment. I think most potential buyers (and I am one of these) will be waiting for the interims in a couple of weeks to see what the cash balance is looking like and how trading is going with the recent acquisitions and contract awards/renewals before diving in. If it means having to pay a bit more but with greater confidence then so be it. I do see potential here but I need a bit more evidence first.
The Argento Pref shares convert to OBT ords at an effective price of 15p. The 5m warrants he bought a few weeks back are exercisable at 20p. Clearly whatever Miles thinks is going to happen will be well north of where we are now. Hence he is filling his boots and I’m happy to follow his lead.
Because he knows they are a bargain. It could be a buy out, who knows? (They do, we don’t....). I’m in for the ride and will continue buying in to the rise.
Miles is snapping up everything he can get his hands on. Hopefully will make him very wealthy.
Another 300k gone already today. He must be almost done.
Craig, I would expect a few traders who have come in at recent lows (though there won’t be many of them) to be looking to take some profits around 12p. But most long termers will sit tight until we get closer to the previous highs around 20p. That’s where we are likely to see some volume selling. But as you say, news could change all that.
In addition to the two purchases this week let’s not forget that the Chair recently bought 5m warrants exercisable at 20p that expire within 18 months. You don’t need a much clearer indication of where the sp is heading for.
Testing the spread already.