Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
That director knows little about large dilution type Rights issues!! When the share price as 150p pre announcement - the rights issue should have been 1:1 at 100p. That 10:3 was fingers up to shareholders. Treating us like fools! Of course the final insult will be a 4:1 share consolidation post Covid. By the way anyone who examines the FTSE 100 index will see the fraud that it is in light of massive FTSE individual drops!
From where I am looking (at the share price!) I am beginning to kiss goodbye to dividend. The world has changed and BP will do so. A new generation of shareholders will come onboard and vintage ones like me will be edged out when all the FTSE companies come to the markets with their Rights Issues - expect one here as well. The final insult to me will be a Rolls Royce/IAG type one forcing great dilutions!! The former 10 for every 3 at 32p and the latter 3:2 at 88p. These companies traded 6-10 pounds pre-covid. My advice to 60 year+ investors - Get out now with dignity. The FTSE Index is even a joke! Look at all those massive share price drops and the index is only down about 20%.
SELL now and BUY Rights. Why take the chance?
Somebody today at about 3.30pm finally figured out that there are 10:3 coming down the tracks at 32P!!
At 200p Pre-R = 6+3.2 = 9.32/13= 71.7p XR
At 150pPre-R = 4.5+3.2 = 7.7/13= 59.2p XR
At 100pPre-R = 3+3.2 = 6.2 = 51p XR
So take example of person who sold at 250p recently. Lets say he has a 1,000 shares.
He raised 2,500 Pounds. If shares fall to 150p Pre-R, (they may go even lower, like 105p recently,) he can use his 2,500 Pounds to buy 4223 shares XR (52.9p x 4223)
If he stays put then he takes up 3,333 rights shares at 32p = 1,066
Total shares now owned = 4,333 - nearly same as above BUT he had to put an extra 1,066 Pounds into the equation - to take up rights. This is the GAME going on here!!
Great little story this. William Hill whose share price hit a low of 30p in March (now 278p) being taken over by a company whose share price hit a low of $7 in March (now $56). We can all tell this as a bedtime story BUT how will it end?
This is not a Rights Issue- Its a Rescue Right issue!!
In that case SELL now. BUY later.
No chance of a takeover here by the Americans - Golden Share!!
If such a Golden Share was not there IT WOULD BE TAKEN OVER BY THE AMERICANS!!
Follow the recent IAG RI. This almost identical.
In that case the share price is now hovering close to the actual RI price - 92EU Cents- approx 83P.
Expect this to go close to 32p as well. The smart people here will follow the IAG people and SELL now and buy back close to 32p.
I love the company taking this company over. Caesar's -March Low $8.82 currently $57. You could not make this up!!
Share Price movement clearly indicates a possible takeover!