The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I went through the IAG fund raise last year. Basically offered shareholders 3 new shares for every 2 existing they held. The 3 new shares were at a ~30% discount to the current trading price, so basically shareholders had to buy the additional share or be diluted.
I did not have enough liquidity to take on the full amount, so was partially diluted. So if you think that is a risk here, I would encourage you to look at the IAG fund raise last year and make sure you have some cash to throw at AMGO should it happen.
I held my IAG shares (plus the additional through the fund raise) and ended making up a tidy sum as the share price rebounded. So if you think AMGO will grow after they get through this, and I think we all do, then buy in as it will right itself in the long term. Just don't get caught short and not have enough funds to cover the raise.
Hope my experience helps
GLA
Whilst I agree with the sentiment that the FCA will look foolish, the fact I am holding this share with a longer term view means I am evaluating the risks and why they have done this. Sharing a few thoughts as to why they have only acted now.
1) They feel turnout was too low and not representative of the full customer base.
2) They feel communications to solicit votes were not fairly targeted (doubling down on higher value)
3) They feel the campaign messaging was misleading
4) New evidence has come to light that calls into question the facts presented at the original hearing
5) And of course it is political pressure and gesturing which has been well documented here
I am not deramping, just sharing to help others form their own view.
GLA
Wow how is the sp going to react. Overwhelming majority of votes but now the fca will oppose.
Any perspectives on when the vote result will be announced? I have seen some comments that it will come after the creditors meeting on the 12th, but surely they would need to announce the result prior to the creditors meeting rather than announce on the day?
So RNS tomorrow perhaps?
Would love to see a double bubble RNS day - either Bybrook or Vinison please!
288k
Franky- didn't you say the other day you were being propped up by government recovery loans? Saying you've investing any spare business cash in a speculative share is quite frankly, franky, a spit in the face for the tax payer.
Some rather chunky buys and sells going through. Something fishy going on.
Great to see the continued stake building, and this is from last Thursday.
Interesting how the RNS title is now 'Major stakeholding'.
Will be interesting to see if we have something from bybrook later too
What on earth happened at close. That was weird. News come Monday? I'll be up waiting at 7am
The thought of a 10 bagger at the level I'm invested at (13p average) thrills me. Stevie suggesting a 20 bagger has made me explode! What a thought that is.
Are these RNS updates an early indications of which way the vote is going? Or just pre-meditated stake building?
I'm not sure how much of a strong signal £300 each is!
Maybe a crackle of static at best lol
I actually could have been clearer with my wording Franky. I meant thoughts from the message board, rather than Amigo Board of Directors.
I'm keen to understand what signals other investors are looking at. Or if people are going to bury their head in the sand for the next few weeks....
I would be interested in hearing from the board what indicators they will be looking at for how the vote is progressing.
Personally I will be looking at the communications strategy to the customer base. Is it increasing in frequency, does the tonality and messaging change etc.
Other (constructive) thoughts?
Just picked this up on debt camel. Amigo demonstrating that they are customer focussed and hopefully will rebuild trust and loyalty ahead of the vote!
Unfortunately, we did not manage to fully resolve your complaint before the scheme was announced and for this I can only apologise The time taken to investigate and respond to the complaint that you raised is unacceptable to put things right for the delay we are making a payment of £100 to you for the inconvenience this has caused you
So as not to mislead people. Gary Jennison is not ex FCA. The chief risk officer, Paul Dyer is who is new to Amigo and a clear sign that they want to do better going forward imho
By switching from ordinary shares to financial instruments, are JPM able to get better leverage i.e get greater gains in share price movement than conventional holdings? Could this be their motivation? Or do we think it is simply fine tuning ahead end of financial year (particularly as given ahead of FCA RNS)
My entire portfolio is very heavily red today, so I am not just looking at this being an Amigo problem. Admittedly my portfolio is very risk on / covid recovery dependent! IAG, RR, TUI, CINE, KNB.