The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I feel your pain Chaiwala, I bought 175k at around 12p jut prior to JB promising a minimum 20p per share if he won the vote. That was well after the irresponsible lending that was unfair to many ill-informed borrowers had ended, so I just saw it as a reasonable punt without any great moral concerns. Can't believe the shareholders voted against JB but pretty sure the majority of institutions and executives will have got their cash out before too much personal damage. I just wish I had screen-shotted my account on the evening before SOA1 .... 30P a share and £53k of funds. .Finally sold out for £488.....but that's life so no tears on my part. At least the judge, FCA and creditors have the result they wanted ... I just wonder if they ever think about those that were responsible.
Anyone know how much the creditors would have got if SOA 1 had been accepted by the judge? They voted for it so will be cheesed off if they get less now under the wind down. If so, then well done judge & FCA you will not have acted in the best interests of anyone but the paid execs at Amigo that continue to draw large salaries
Doesn't sp depend on demand and supply?.....£83k bought today vs £216k sold ....presumably no one wants to get caught out during the run up to dilution, but when lending starts, even up to the initial £35 Mill permitted, then there will be some momentum until holders cash in or decide to ride out the dilution. I think if you can time it right you can probably cash out at 8p or so. I think the days of the SOA 1 fun are gone now but I'm sure there is good money to be made in the long run.... you'll just need to have balls of titanium.
£300 million in loans = £90million profit at avg 30% interest, less loan interest and running costs could result in £60 million profit...at x 10 amgo would be valued at £600 million. 9.5 billion share = c 60p share price. ....so surely 10p is achievable from 0.44p issue price.....its a 20 bagger at least for me. :-)
Well, amgo must have started with £nil turnover and nil profit last time and it grew to a very valuable company with good profits....so I think it can do so again with the FSA's blessing and an economic climate that will surely see an awful lot of people wanting to borrow money. Whatever annual profit amgo makes will see it valued at 10x that.
To raise £40mill from 9.025 billion new shares= 0.44 pence per share. That would dilute my holding by approx x8 at current price and value the company at £41.8 million at .44 pence per share. So the question is ...where will the share price be after dilution, mid tem and long term. Future borrowing will presumably be used to lend and generate profit. If pe ratio was 1:10 would £44.8 million annual profit value the company at 10 x that = £448 million....ie a new share price of 4.4 pence? If amgo ever made 440 million profit in a year then presumably share price might be c. 44.48 pence?
Jimmy, current shareholders aren't poor old me's ....they have what they have based on current SP, the gamble didn't work, but that's fine. However, making them suffer specifically by insisting on a minimum 19:1 just seems to be penalising the wrong people. The company will carry on, it will just be under the ownership of new shareholders ..... and some may think that the borrowers and their guarantors knew what they were doing so even 10% back is more than they would have expected at one point..
Evening Beastly...sorry to say this but I'd have another couple of beers as I think we're doomed. The court wants existing shareholders to take the pain even though they probably weren't shareholders when borrowers were shafted. The ironic thing is that I and many others won't be able to afford to take up the rights issue and maintain our position so the majority will be wiped out and the company will just pass to new institutional investors .... probably the same that bailed out at 20p, 15p, 10p etc when tipped the wink. Its horrible to think that honest small private investors just tryingvto boost their pension funds and savings are the ones that lose. How does that penalise the company for poor lending practices? Just grateful I never managed to join Vinson and his Balls of Steel gang... I feel more like a eunuch!
If there are 475 mill shares in issue currently and Gary has stated a minimum of 19:1 then that would result in 9.025 billion shares. £70 million divided by that = 0.78 pence per share, or £300 million, which I've also seen suggested ad a raise figure, = 3 3 pence per share. If it is 19:1 how can these figures be anything different?
While details of an equity raise to partly fund a return to new lending have not yet been finalised, the £15m contribution to the Scheme is expected to be funded from an equity raise and new capital commitments of between £120m and £300m, of which it is hoped to raise a minimum of £70m in new equity. It is required that the new equity raise must be completed within a year of the sanction of the Scheme by the Court.
Apologies, it was 70 mill from new equity not 300 mill. However, Gary also stated that a minimum of 19 new shates will be issued for each one currently in issue, leaving existing shareholders with no more than a 5 % stake in the company.....unless they take up the rights issue. So that would make the RI price around 0.75 pence and I only need to find around £35k to take up my allocation.
I must be missing something but to retain the value of my current 250k holding I'm assuming i'll need to buy 4.75 million shares at 19:1. If £300 million is to be raised for creditors and future lending the RI will need to be at 3.3p. Therefore, I'll need to invest around another £150k, which is an investment of £165k including the current value of my existing shares. So, will these quickly go to 6.6p, in which case its happy days, or could they fall below 3.3p .....or do I get out at 20p after the court hearing like the rest appear to be planning? That's assuming it is £300k and 19:1, but Gary has said it will be at least that. Happy to learn from the more enlightened of you.