Member Info for devonplay

""Indeed, a 5.45% equity exposure in the combined group would infer a £2.6bn combined market capitalisation, based on Premier Oil's current £156m market capitalisation.""

" they have a market capitalisation of £4.5bn"
Why pick a reverse take-over to secure a listing?
I'm betting they haven't IPO'd as they know they wouldn't achive that market cap on a public market.
Please correct me if I'm wrong, and it is publically listed somewhere. So until, thy do...we have to wait and see what discount, if any., the market applies. But we do know this; they are being discounted against estimates of the assets held.

How? "15p calc. If it were true we wouldn’t be at 14.79p as of close today. In fact, we should see a small premium to, say, 16p"
You just don't support the 15, I'm saying if it's accurate you'd expect a discount, otherwise you're paying 16p to get 15p

pay 16 to get 15 LOL

Why? You'd expect it to be discounted gives the uncertainty, as you sais earlier "As usual with Premier, it’s a mess"
You would expect investors to pay a premium for a mess? Hardly.
I think it's got lower to go on the bases that if 15p is correct, then it's not discounted enough to offset the risk.

That could be quite right as we appear to be hovering around that price. 15p.

"Stamp collecting must be up there on this metric."
Yeah, right there behind Netflix and chill, as they say in modern parlance.
This time next year Rodders, this time next year!
All the kids will be so.... SGI and chill ;) LOL of course the opposite might also be true, the demographic most likely to have been killed by covid is also the most likely to be stamp collecting, so another step towards extinction!
"birth boom", surely not. All that wooing is going to distract a person from their collecting!

"Only question is. . . Who’s Anthony?"
Don't you mean where's Tony?

I hear SGI are doing roaring business with 3 Penny Reds.....
Each time the share price gets close to 3p it turns red!
Maybe later in the month when we get those figures it will be more like a proper penny red, a face value of 1p!
I've held Premier Foods for a while, decent bet against lockdown. Still not convinced we are all sitting at home thinking of buying stamps and medals. Maybe some people are? Between a french fancy and the Tiger King.....Oh Misses!

The smell still lingers, but don't worry, creditors have opened the window for you.

I tried to give it emphasis...thought it might help you understand LOL

"I might be thick but isn’t shorting the equity and long the debt, just shorting?"
No, it's called risk management. It's a bit like not being over exposed to one position. It's about risk.

pppsssttt don't tell them about your recent performance. They might start worrying about the fee when it's dues.

Just tell then you won't pay, cus you've taken a vote on it LOL

or even the other way round: short equity/long debt.
Give me a few minutes and I'll try to come up with an working example for you.

...for Traders.

Maybe you should consider hedging SK? I hear short debt/long equity can work quite well....

Maybe you might have been better off doing that ;) LOL
Or bought the debt at 32% and be likely to have been paid back at c75% or even 90%
It really comes down to how good an investor you are doesn't it?

"Just a general question,
I am thinking of buying some PMO shares but I can't understand why the price is going down after the merger with Chrysaor. By the look of things a lot of shareholders are against this. Why?"
Because there's a chance the reverse take-over won't happen and then once again the company faces a default on it debts, a potential tecnical insolvency situation. They could offer shareholders a zero return, so the continuing weakeness reflects the very real risks of a creditor revolt and the companies inability to refinance..

"Agree, DEVON"
But, of course the implication of that is this could be the only option on the table.

Lovely idea, but there's credibility needed. That would be the 3rd strategy the company would have propsed in as many months...there's a limit to credibility, and I suspect they've spent that coin. To some extent you might have expected an instutional investor to come forward and try to force management change, but they haven't and that speaks volumes.