The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Seem that I was wrong to doubt you chaps. Fair play, but you have to admit that Brian and I had and still have valid points when you look at the company impassively. At least with the marvels of electronic dealing and automatic stop / loss orders nobody should now get burnt.
Is it a secret?
Don't rely on LSE charts to show Buys and Sells accurately. Most of my Buys show as Sells and vica-versa. The SP is holding up reasonably well.
If Zine is de-ramping then it's time to look at investing in the company. ;) There seems to be a lot of trades going through and the Fundementals don't look to bad either.
Strange how those ramping this share seem to know a hell of a lot of about the company. Far more than any investor would be expected to know leading me to believe that they work for CWR. And, also the big question of why the need to sell off a small percentage of the total new issue? Surely they could have found a few extra £££'s to re-finance themselves? The most strange thing about this whole affair is that the SP is holding on around the 3p mark when logic would suggest that in a few days time the company will be worth less than 1p a share!
Interesting first post on LSE. I find it unusual how so many people know so much about the positive side of CWR when it is time to put some more money in but go quiet when allegations are made of board room fraud. I agree with Brian. The share price of 3p will drop to around 0.8p just because of the dilution. Whether it will regain anything like 1p depends on whether CWR can demonstrate results very, very quickly. No good having a R&D expert when you've only got less then 12 months to exist. It takes longer than that to design a mousetrap. I'd be very, very careful about investing in CWR given the duplicity of the information coming out of the boardroom. The £3 million raised might just be a golden goodbye.
the current price holds. When rumours of this new issue hit the streets the SP dropped to less than 1p. Given that after the new issue the value of the company will be divided by even more shares than it is now what chance has the SP of remaining above 1p?
This share has dropped 2.5% today and yet there has only been one trade for 891 shares at less then 10p a share. Results due out on the 17th (not the 9th as I had previously posted). Something fishy going on methinks! I'm holding on tight. ;)
I might believe in batteries, but the board of CWR is another matter altogether. LOL The whole situation is absurd and there are a lot of questions still to be answered about the financial situation. I had decided to leave well alone, then the roller-coaster started again and I sensed that there might yet be short term profit so I put my toe in the water with a Stop / Loss parachute. That kicked in when the SP plummeted below 1p, but ironically after I had become eligible for the new share issue. So, in a nutshell I got out unscathed in the 3p stakes and have the option of getting back in at 1p. Can anyone explain why the 1p new share option is worth having? I asked earlier, but no one has yet come forward with an explanation.
By my reckoning there should be a RNS out on the 9th. Hopefully this should give us a lift before Christmas.
Thanks for the information. From it I glean that most of the board have already left and they need a bailout of £3m to keep going for another year with no guarantee of future viability? And they want shareholders to vote for this? Hmmm! Sounds very much like my favourite Norah Jones song: Sinkin' soon!
Being a thicko when it comes to corporate finance I'm at a loss as to what is going on? If someone has say 100k of shares at the going rate and they take up their option of the 1p shares would those 1p shares then float at the same SP as the original 100K holding? I would imagine that the new issue would drag the SP down after issue if that was the case, but if they sold the original 100k before then it would seem to be a decent proposition. Or is that not the case?
Kline and co. I take my hat off to you. To have the nerve to make money out of this dead duck must be really satisfying. I'm a Yorkshireman and this share is too risky for my deep pockets especially when the CEO is falling over himself to tell punters that he is winding down the company. Maxtheaxe16 - why some people including myself are advising against buying this share is because it is not unknown for those concerned with selling shares to try and ramp the SP. After all, in a falling market you need buyers in order to be able to sell. The forums are full of posters ramping shares for their own purposes. I'd hate to see an innocent being sucked into a loss by them.
Yes, I was pleased that the SP held at 10p. I had expected thatround figure to trigger a flood of auto sells. Perhaps we aren't the only ones who see profits yet to come?
Sorry, what does that refer to? The 3p placing, not the "yikes"
I always have at least one stop loss order on each of my shares tranches. That way if there is an unexpected drop while I'm not able to watch the computerI don't lose out too much. With some shares they roller-coaster so much you can actually ratchet up your holding this way selling just after they start to go down and buying more back at a lower price. When small company shares rocket up by 100% it is natural for a lot of smaller investors to take profit. Unless you also get a surge of interest from wiser buyers who have only just had their attention drawn to the share due to the rise you will often get a big drop in SP. Looking at this share I think some of the Fund Managers have added it to their radar. Expect it to undulate upwards rather than rocket from now on ;)
Lot of small investors taking profit today. Last minute big buy shored it up though.