You could that badly wrong..That was a fundraising which they HAD to buy the shares to avoid complete collapse of the country..Since then,no director has bought voluntarily in the open market..They may do when the company name is changed at AGM.But so far nothing,which suggests the SP is not a bargain
If you read the last trading statement,they state the company has moved from slight cash positive,last year,to a big cash negative so far this year..The company is haemorrhaging cash at present.L suspect they are actually losing money on some of their contracts awarded to them
Hypothetically, if Rolex manufacture a watch for £5,000 and sell it to WoS for £10,000, and they in turn sell it via their retail outlets for £30,000, Rolex make a profit of £5,000 and WoS profit of £20,000..However if Rolex sell direct from their new bought stores,the costs might be tiny bit higher,say £6,000,but can retail for £25,000 (£5,000 less than WoS) Rolex profit is £19,000 instead of £5,000..It's a no brainer they will expand their new stores
This is much more worrying than people believe..Why did WoS not buy the chain of 39 stores..In time Rolex will open more stores..Watches is an unnecessary middle man .Rolex selling direct to clients means cheaper retail price and greater profit margin for Rolex..All that Rolex have guaranteed to WoS is that they will maintain adequate supply to them and nothing more
Don't get your hopes up...No director buying even when it was 50p suggests medium term sideways SP movement
Usually when an SP takes a thumping for an indirect reason,that company's board bring out an RNS statement to allay those fears and on course for trading as per forecasts..However JD have been very conspicuous in their silence on the massive SP drop???
This will end up the same as the Yorkshire potash mine,where more and more funding requirements will mean in eventual nil premium takeover by a giant mining company who have deep pockets..The company will have to accept as no further funds available to them..
18.75p and no substantive director Buying..No announcements of contract wins.Shorters increased activity and no takeover speculation..l think those in the know are getting out in preparation for a trading warning.. Otherwise it makes no sense (no smoke without fire)
No directors buying,for several years, even when it was below 2p a couple of years back..No takeover offers either at that price.This tells you a lot that the company is basically worthless.
Even when it relisted at 50p,no directors bought shares..Read between the lines.. Company is not yet out of trouble it seems
FTSE is down due to poor economic indicators from China..This means miners and metals etc demand will be low.. FTSE 250 is down due to sudden slow down in British economic activity right across the board (except travel and tourism)
It will be the new director announced a few days ago,buying shares..It's not related to trading or takeover etc
Market makers manipulating the SP to scare investors into selling so that they have plenty stock to sell to buyers come tomorrows trading update.. It's a corrupt business is the stock exchange..Or it could be people with inside knowledge selling heavily as they have wind of bad news tomorrow..l suspect it's the first reason though
I suspect Schroeder's has continued selling down its stake today,hence further slide in SP..Too early to average in at today's price..You will be catching a falling knife,which will carry on falling after it's gone thru your hand