Member Info for Hexam

"Sp clearly being suppressed"

Not clear to me at all - surprised it's holding above 10p personally given the discounted dilution below this price, the need for it plus all its other problems. Suppressed by who and for what reason? And what evidence do you have?

"Obviously anyone can simply sell the same amount they took up at the offer immediately from their current holding. A simple profit."

Now that's just daft logic.

No it's not a FACT in real terms as those shares only have a value when they can be sold which is not until next week. If they are still at a discount then they would have made a little money, or even quite a bit, which is great for them and well done. But let's wait and see.

So 12% today, maybe 20% tomorrow but next week is when it really matters to see if they were better off buying the new issue or waiting until then to buy existing shares (or before then if it drops below 10p in the meantime).

*barmy

Yes it says investor relations but then says the response was from the shareholders group. I can’t imagine any response from IR being other than, at best, bland e.g. “Thanks for contacting us but…”. They certainly wouldn’t agree with each suggestion - that’s not their role. Nor would they pass stuff to the shareholder group.

Maybe he sent it, or a copy, to someone else in the shareholders group? I don’t know but clearly the response is not from IR - made up or not.

Anyway it’s all academic anyway as the whole idea is barny.

To be fair CWWX I think the poster is just confusing investor relations with the shareholder group and it is only the latter that they are in contact with.

"Instead of trashing ideas think with your one brain cell"

I have more than one brain cell thanks which is why I know your idea is a daft one. It just doesn't make any sense in any world.

If Chapter 11 goes ahead as planned we no longer have any shares in the saved CINE that an 'IOU' can apply to (and there is no way the lenders would let us keep all our shares as if nothing happened - which is basically what you are actually suggesting). If it doesn't then the IOU you describe is really the same as just simply holding the shares (if they go up we get the cash value if we want or we can keep holding). Not that it would do any good as where would CINE then get the cash from to survive?

This is just another company that ran out of cash but unlike many they've found a way to keep going through the lenders injecting more money - unfortunately it just doesn't involve us any more. I am not fighting it simply because I can see nothing that has been done that is illegal, poor management - yes, but criminally wrong - no. It was my choice to invest. I got in wrong and that's on me and barring some kind of miracle I won't get (anything near) my investment here back.

I feel sorry for other LTHs who have lost out but have got no time for the gambling vultures that have turned up to try and pick something from the carcass and are just trying to pump and dump it.

That would be mean to name them. I just get tired of rampers continually throwing out silly sp targets with no justification (and derampers who do the same). In my view both are idiotic and irresponsible but to my mind the rampers a bit more so.

"Some wishful thinkers hoping for another raise"

Why not? They only raised £5.75m (less costs) this time when clearly they were aiming for more. This is not going to get them very far unless BTC goes ballistic. I actually agree though - not because they won't need more cash soon but that they won't be able to get it very easily. If they could only get this much at a heavily discounted price now it will be tricky trying to go to the well again anytime soon.

As for suggesting '12p tomorrow' that sounds like 'wishful thinking' to me but anything's possible especially as the real test is when the new shares are actually issued. Mind you the poster who topped up last week and replied to my scepticism by saying "I will remind you of your post Hexham [sic] when we sail through 20p next week!" has gone very quiet. I suppose the week's not over yet but somehow I don't think he's feeling so smug or confident now.

Everyone should indeed have known that they were struggling for cash - but not quite so desperate as to need to raise just £5m from a heavily discounted equity raise. That’s truly shocking in my view and the market seems to agree.

"this leaves ARGO in a marginally stronger position than back end of last week"

Financially yes (a bit), but they've now laid bare just how desperate they are for cash and that's what trashing the sp (along with the discount/dilution). As for anybody being annoyed for not taking part in the offer that will probably be eased when they are able to buy at below 10p - which is very possible in the next week. I won't be one of them - why, when there are plenty of better (and safer) BTC mining plays out there?

Intuition or science, it doesn’t matter so long as you get it right! What does your intuition say about the number of posts today that will say the drop is ‘overdone’ and what great value and opportunity it is to buy?

Indeed HC, well done! Though I’m not sure how much of their likely cash issue has to do with monthly cash burn rather than their unknown commitment on the intel chips (or other, one-off spend).

Either way, the raise won’t go far in meeting any of their stated objectives on debt or growth but at least the raise was ‘successful’ which may limit the damage on price over the next week.

They are clearly in a dire situation though and running out of levers to pull so will be interesting to see what’s next…

"I don't get it, how is that suppose to have any tangible impact at all other than the negative effect of the dilution."

Totally agree. Screams to me that they are seriously strapped for cash - why else raise such a small amount rather than just use what cash they have? To be fair the £4.775m is a minimum so perhaps they are hoping/expecting to raise a lot more? Maybe enough even to make an appreciable dent in the debt and/or fund meaningful growth - but they've set the bar so low.

It's a fallacy that for all (or even most) placings and RIs the sp falls below the issue price of the new shares - but I'll be amazed if this one doesn't. It will probably be even worse if, even for this low amount, the raise is unsuccessful.

Could be carnage tomorrow which would be sure to attract the usual bottom feeders saying what a bargain price it is and ramping it for all they're worth - along with those existing holders posting today who astonishingly see anything good in these RNS announcements.

"To add to the long list of silly suggestions we've had over past few months."

I think it may actually be the silliest - and that's really saying something.

I think maid has me filtered so perhaps someone can tell them that BTC doesn’t have a balance sheet. Or lenders. I’m not sure quite what he thinks BTC is?

This board really has the most bizarre comments.

Hi Oke, fair points and debt could well be a big factor in why ASOS and MARS are trading well below NAV. Barclays are another one and think you’d need a different reason for them. I think someone posted that over a quarter of the top 350 FTSE companies are trading below NAV.

All I’m saying is that NAV shouldn’t be seen as a guaranteed support level. For plenty of companies, for differing reasons, it hasn’t been the case.

a third of the

Surely if we get some really significant news then whatever the charts say goes out the window?

If there is some really unambiguous, bad news the price will fall sharply, if there is some really unambiguous good news it will rise sharply.

Charts only show historic movements, and at best they are a questionable predictor of futures ones - and if significant news arrives it will ride roughshod over any such predictions.

So yes, whilst I don’t expect fireworks there will be if there is news big enough to light the fuse.

BNS - I’m not sure that’s correct. Just looked quickly at a couple and unless I’m reading them wrong they are both trading well below NAV (ASOS around 50% and Marstons even worse)?

Sure there are probably good and different reasons for each (and others in a similar position) but such a reason could equally apply to BOO perhaps?

I just think not too much should be relied on for NAV being a natural floor.

There are plenty of companies trading below NAV so I don’t think that is necessarily a very solid barrier.