Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I agree that the cash helps a bit, but not to the extent that 37.5 % more shares has no effect on the SP. Most sp's fall after a substantial dilution. Time will tell.
Seems logical in one way. However, it is a fact that an SP always goes up once divis start or resume. Over on the Lloyds board everyone is expecting a jump in SP once divis resume aftyer a 5 year wait.
That should read "less not more".
Lunatic are you trying to live up to your name ? The lack of a dividend makes them worth less lot more.
Does anyone else find it incomprehensible that the SP is similar now or slightly higher than it was before the rights issue ? There are now 37.5 % shares in existence. It's hard to think the company is suddenly worth that much more. I wonder if it will drift down from here ?
Just realised the last sentence doesn't make sense. Obviously I meant to sat if I am wrong I will eat humble pie.
What you say is valid up to a point. You are right in that Sportingbet has a greater global reach than William Hill. Incidentally, their estimate of £50 million was industry wide not just for them. Just because the Olympics are a global event I see no reason why the proportion of people betting on these events, will be much greater than the UK, in say Spain or Australia. The biggest earners are always going to be horseracing, football and to a lesser extent the other global sports such as cricket, golf etc. Dog racing has always come a distant second to the horses. Another point, is that people generally only have a certain amount of disposable income with which to bet. A big event can sometimes produce a short term effect, but over the longer term it is not that significant. I speak as someone who has been doing money on all manner of sports for the best part of 50 years ! Time will tell who is right and if it is me I will eat humble pie. But dont bet on it !!
How have I contradicted myself ? The point I was making that although Olympic turnover will double, it is still tiny compared to total turmover. £50 million is less than 0.5 % of the £12 billion bet on horseracing 4 years ago. As a percentage of total betting once you include football etc it will be an even smaller percentage.
Anyone who thinks the Olympics will significantly increase betting turnover is totally misguided. William Hill have estimated that turnover will double compared with Beijing to £50 million. To put that in perspective, something like £100 million is bet on the Grand National alone. Total horserace betting in 2008 was about £12 billion !
Like everybody else on here, I haven't got a clue why the SP is going relentlessly down. Trenners - I hardly think 0.6p for going ex. div. is relevant given that we have lost 15 P in a 3 month downtrend. I also think the Europe situation is only a small part of the story given that the present trend started well before the latest episode of the Greek tragedy. Of course the dividend will be paid. It cant be cancelled at this late stage. The fact that the SP has fallen doesn't alter the fact that this is a profitable company. Only when enough investors realise this, will the SP rise to more sensible levels.
So this is what Maxwell meant when he said we wouldn't see the 40's again !! So much for all that inside information. So without wishing to say I told you so ( oh all right, I will anyway ) the share price was telling us all along what the likely outcome would be. All we can do now is hold on and hope for the best in the long term.
Not looking great at 45.25 to sell ! The market consensus is obviously, that it aint going to happen. If it was really considered a high probabability, then the general market malaise today, would be having little effect. I am just hoping that view is wrong, as I am quite heavily invested, having bought in last Autumn at 67. That was more on the basis of long term prospects, rather than hope of a takeover. Now I would be happy just to get my money back ! Mind you this stock doesn't owe me anything, having bought in December 2003 at 40 and sold in March 2005 at 303. By the way, I dont know why anyone would think I would be looking at this board, let alone posting if I wasn't invested.
If it's a done deal, I would have thought that the price would be closer to 70 rather than 48. Get a grip !