The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Maybe it is just Interactive Investor maximising it's revenue streams then ha ha
Look at the size of the spread - over 2p! That is insane and the highest I've seen it for a long time, if not ever.
GLA, something is brewing and I hope it's good.
Overall much more positive than I thought. My favourite part was this quote
"Amigo's return to lending will be on a prudent basis and funded from existing resources in the short term."
So no fundraise by the sounds of it. Obviously many hurdles to get to that point, but sounds like they / the FCA have ruled that out.
I'm encouraged by this.
It is all hypothetical of if / how we would be impacted equally to creditors as the FCA has intimated.
So if something were to happen I see two principle avenues
1) Do a pre scheme equity raise / share dilution that immediately impacts current shareholders. No guarantees here on how much could be raised from shareholders to support Soa2 (we may all run for the hills for instance).
2) Look at longer term / more drawn out options to suppress share price growth and benefits from holding. Potentially up the % profits or length of time those profits are added to the soa. Cap dividends with anything above a threshold going to soa. Annual low level share dilutions to raise £xm each year.
I am no expert in financial models, but we are very focussed on #1 and think that there are other ways to reduce shareholder value in #2 (and many more I'm sure). I would definitely prefer #2 as it wouldn't require additional funds from me, which I dont really have, and hope someone from Amigo reads this and takes it into consideration!
shortCINE. What good news? All I see is a 'leaked' and uncontrolled action from a bunch of amateurs. PR is an art form, which although I will never understand I will appreciate. This is a rogue element and another factor for the Board to consider. At best the FCA will ignore, at worst they will push back on.
As ever, always open to alternative views and opinions.
Would be nice after the action groups recruitment drive if they had had the courtesy to tell the other investors (judged as insignificant) of their intent.
What rankles the most is that it says they are representing all of us. Not me.
Apologies, with link https://www.thisismoney.co.uk/money/news/article-9690103/Amigo-investors-vent-fury-City-watchdog.html
I'm invested up to the neck but didnt qualify for the 500k gang. Seeing this leaked letter on the daily mail gives me more anxiety than I thought possible 12hrs ago.
I will sleep on it, but now is probably the time to take the 'haircut' and check out of the party.
Leave it to the professionals. Or if you're an amateur hire a professional.
Nonsense
GLA holders for the week ahead
https://www.thisismoney.co.uk/money/markets/article-9641403/Lender-Amigo-ramps-warnings-bust.html
Are we able to just start relending so that we can start getting revenue in again?
I've read so much about vreq, FCA approval on 2.0, SOA's and so on that I am just a bit dizzy with what can and can't be done.
JPM have offices all over the world so they don't have to wait for the US to open ;)
No the claimant will only get the interest on the principle back + 8% statutory. They had the benefit of the principle so they do not get that back.
There are a lot of people muttering their last words like this has gone to the wall. It hasn't yet so save it until you know for sure. All you are doing is stoking panic in others.
https://www.bournemouthecho.co.uk/news/19315120.amigo-high-court-compensation-payout-scheme/
Has some specific quotes in here that we can all over analyse.
From the Judge: ““The concern I have is that there’s a sort of Sword of Damocles element about this – that a company seeking the sanction of the scheme comes to the court and says ‘We don’t really have choice, if you don’t approve it we’ll go into insolvency’,” he said.
“It seems to me that the court is entitled to explore that by reference to objective fact and come to a conclusion about whether that’s likely to happen.”
I think if he can see that insolvency WILL happen (and should have that information in his pack or will request it), then I hope that this will give him what he needs to make the decision. If that argument is not tight from Amigo....oh boy.
Rajesh- switch to thread view and you can see the original posts (and responses). Once you figure thread vs message view your life becomes much easier!
On the 'I think the judge has done his bad cop routine now' comment. I hope he is not done! I hope he tears into the FCA now.
If he doesn't then it shows bias and he has pre-conceptions.
Whilst I am scared as hell (and have invested more than I should have here), if the current line of question is alternatives then I think that is ok. If there is an alternative to administration, albeit a less profitable one, then Amigo stays trading and can build back up in the long term. It just goes from a quick buck for some, or recovery of losses for others, to a long term hold.
The judge isn't saying imho that you should go into admin. He is saying what more can you give. If more has to be given (increased divis, extra equity) but still allows Amigo to trade then that is ok with me.
So why have JPM committed to certain volumes for cash with AMGO directly? For me it dispels the JPM are holding for Bybrook theory.
I've been reading up on cash equity swaps, as I am a relative novice.
It looks like this is a mutually beneficial transaction. That JPM anticipate to benefit from cashing in on future SP rises and AMGO benefit now by having share price buoyed by the JPM purchases and this effectively gives investors and creditors a perceived value to the company.
I'll be an optimist, do we think the cash for equity swaps will in effect act as a share buy back and drive up the Share Price? Also JPM doing it in this way gives a structure rather than just dumping shares.
I am viewing this as positive and a clear partnership.
Thoughts?
very tight spread showing on ii