Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Hi Thoth, I respect a lot of what you write on here but the scenario you describe is simply not true. UK brokers segregate client assets under CASS rules and will not allow anyone to 'borrow' stock. Investment banks may engage in this with institutional clients but retail brokers won't use your shares - i can assure you :-)
Would it make sense for SAR to consolidate its shares to artificially inflate the share price?
If every 50 shares were rolled up into 1 then in theory the share price would rise x50 to circa 45p. Some investors get scared investing in stocks worth less than 5p each (in reality i know it makes no difference) but may help attract some further big players.
Wall St Journal suggests this is due tomorrow too.
https://www.wsj.com/market-data/quotes/SRRA/financials
Not sure how this will turn out...
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
24-Jul-20 08:24:24 0.95 2,590,932 Buy* 0.93 0.96 24.61k O
24-Jul-20 10:05:21 0.85231 3,000,000 Sell* 0.93 0.96 25.57k O
24-Jul-20 08:20:00 0.8431 7,273,874 Sell* 0.93 0.96 61.33k O
24-Jul-20 08:24:47 0.91 3,000,000 Sell* 0.93 0.96 27.30k O
This area has been my speciality and career over the last 14 years. Very rarely would a stock be suspended on receipt of an offer. More likely is that an announcement would be made to the market that two parties are in discussions which may or may not lead to an offer.
Once an offer is made it would either be a Takeover or Scheme of Arrangement.
Takeover - each shareholder can take their own action. Can accept or hold, no-one can force you. If the buyer receives acceptances for 75% or more of the shares they can initiate the share listing to be cancelled and if they hit 90% they can compulsory acquire the remaining shares.
Scheme of Arrangement - if 75% of shares are voted in favour and 50% of individual registered holders vote in favour it becomes binding on all shareholders regardless of whether they vote for, against or at all.
Good luck!
Two Weeks ago - 24m shares
Last Week - 42m shares
This Week (so far) - 640m shares
Tuesday 21st had 234m and we're set to beat that today as we are just shy of 200m.
Fingers crossed for a busy afternoon!
I agree with what the majority have said, but based on experience it is a risk. If it happens this will drop in seconds.
There is a massive upside here and I won't be giving my shares away, but as well as being aware of the upside its important to be aware of the risks.
I'll say no more on the matter! :)
I agree Andy, we shouldn't compare the two. Naturally a slower rise wouldn't attract one, but a 50%+ increase (regardless of how the price was weeks/months ago) usually requires clarification.
Have considered there may be a reason for the rise, but as above the market needs to know. Would be equally dodgy if someone else knew before the rest of the world and was able to build a nice stake!
Hopefully not long to wait!
It's odd that we haven't, we're up more than they were. I would be surprised if we don't hear something either way.
Never knew it was set in stone but I was under the impression over 50% for a period of time (hour or two) requires an update. This is a hunch on experience though and not something I'm certain on.
We'll hear soon!
Apologies if already posted, but at 5pm the Department of Health (700k followers) tweeted the following with a link to the BBC article.
The initial findings of a clinical trial into a possible coronavirus treatment have been published.
The results suggest that the treatment reduced the chance of developing severe disease substantially and reduced hospitalisation time by a third.
https://t.co/l9BuaM8wEQ