Member Info for Hexam

"it's only a sweetner, if you can afford to take up the rights issue - any left go onto the open market"

If you cannot afford to take up the rights then it is you that can sell those rights on the open market. This means you are no better or worse off INITIALLY than if you take up the rights issue - just that you have swapped possible extra shares for cash. Which of these two options turn out best depends on the subsequent sp performance.

The key thing to remember is that although the new shares will be offered at a discount it doesn't mean they are 'cheap' - it just looks that way - in reality the discount you are getting for the new shares is paid for (offset) by the reduction in value of your existing shares.

Yes, 15 may be a bit toppy but if Mooky remains involved then growth will be very much on the agenda given his history!

A reasonable PE ratio might be 10 to 15 but more to the point is what would the earnings be that this ratio would be applied to? Encouragingly the RoW seemed to punch above its weight within the group so the scenario you're describing might be relatively good if it happens.

One thing that won't be happening though is closing any cinemas in the Netherlands - as according to their website they don't have any there.

They defined the 'group' when they said this as being all the parts in chapter 11, so effectively all the company except ROW so no conflict here.

However, as others have rightfully pointed out, even though they are looking for an asset sale if someone steps up and offers an attractive price for all the shares (or assets) then presumably this will still be considered.

@Tegop - the $800m mentioned was a 'rights issue' for lenders only in addition to the D4E. So two separate steps to the dilution. How accurate those reports/numbers are (including the $4bn valuation) is anybody's guess though.

Actually the full quote is:

"Plan Status: To date, the Debtors have not yet filed a chapter 11 plan of reorganization (the “Plan”). The Debtors are engaged with their secured lenders on a standalone chapter 11 Plan and at the same time running a sale process for substantially all of their assets."

So both options still very much on the table and both involve dilution (one via shares, the other via assets sold).

It's been covered here before. Basically it's a backward calculation so it is not an actual hashrate but calculated back from how many BTC are being mined at any given time and since there is an element of randomness in this it can lead to sudden pronounced spikes or dips. It's better to look at the average hashrate over each day or week as this gives a much better idea about what is online. Whichever way you look at it though hashrate is rising quickly - just not nearly as fast as that spike suggests. A description of the method is actually given on the link below the chart:

"The global Bitcoin network hashrate is a calculated value and is measured in hashes per second (H/s). The calculation uses the current mining difficulty and the average Bitcoin block time between mined blocks versus the defined block time as variables to determine the global Bitcoin network hashrate."

Does that make Elvis Lois Lane?

I think that's just the meeting looking mainly at the 4th set of proposed lease rejections which was meant to be on the 16th but got cancelled?

I agree Chae - I wasn't commenting on the impact on sp (in the short term) just whether the deal makes business sense which (hopefully) the shareholders will see the benefit of longer term. Very little sp movement seems to be about any company's strategy and financials at the moment - only about BTC and sentiment (and clearly ATMs aren't popular with the market).

As you say, once the dust settles we'll have a better idea of how all the different strategies have played out and then I think the sp will differentiate between them.

Btw I now have more MARA than CLSK (not because I think MARA is necessarily better but it certainly seems more volatile and therefore more tradeable).

Roxy - the short answer is that if it is a share acquisition the purchaser buys the shares of the company (for say 20p a share) and takes on all the assets and liabilities (including the debt of that company). We, as shareholders, therefore get 20p for each of our shares.

If it is an asset sale then CW is selling some of their assets for a cash amount. For example they could sell Regal (an asset for this purpose) for $4bn. Usually (not always) the purchaser doesn't take over the debt associated with that asset and so the money will be used first to pay down that debt before the Company (and therefore the shareholders) see anything of it. There are lots of variation of this though (especially in the treatment of debt) so don't take this as the only option.

In either case how we benefit depends on how much is paid and (in the case of an asset acquisition) what we are left with. So it doesn't really help I'm afraid in terms of which is better or whether we ultimately 'win' or 'lose' and by how much - that depends on the price/terms in each case.

$43m to add as much EH as ARB has in total (for a fraction of the cost) seems pretty good to me. Yes any ATM required for the outstanding $33m is not great but even if it's for the full amount I would say the maths still works out well for shareholders - the more so if BTC continues to rise.

Yep, reading off a phone is often tricky where columns of numbers are concerned - easily done as I know only too well!

James, where are you seeing $430m profit? PBT was $212m and after tax it was $180m.

Hi Finchy, it really depends on the circumstances.

If FOMO takes over before any official announcement on initial bids and/or possible D4E terms and the sp rises then I’ll take some out before 15p and all of it out if I can get my money back - rather than risk what those announcements actually say.

Otherwise If the announcements are adverse then unless I feel there’s really no prospect of long-term recovery I’ll just bottom drawer it.

If the announcements are positive though then I’m happy to wait for 15p and beyond but I won’t set a target yet as it depends on just how positive those announcements are. I have confidence in the cinema industry’s recovery and if we still have a reasonable stake in the business it should be a good ride going forward.

Obviously though if it’s a complete sale of the business or (very unlikely) liquidation then my mind will be made up for me - for good or bad!

Sorry for the long answer but the short answer is ‘it depends’.

"One would think you weren’t even invested as you clearly are reluctant to see the share price go up."

No idea why you think that. My average is now 15p and the sooner it gets there the better. I just don't have unrealistic expectations of when that might be and am certainly not going to base them on your lack of understanding of this bidding process and everything else surrounding it or on how often and loudly you shout.

There's optimism and then there's guaranteeing a 10-bagger! Come on, surely you can see the difference?

And yes, I get there's excitement - just a shame not enough to really push the share price up.

And as I keep saying I think there is upside here - which is a long way from being 'extremely pessimistic'. I just don't think raising expectations to absurdity and beyond is in any way a good thing - far from it in fact.

Indeed Wellington.

Also, must admit, when he reappeared here my heart sank, not just because of the endless drivel it meant was coming but he also tends to be a bit of Jonah when it comes to shares and generally turns up after the horse has bolted. Hopefully he's not the kiss of death here too - again.

His non-stop nonsensical ramping is aimed at inspiring hope and confidence but strangely has completely the opposite effect on me!

Fair point Wellington, and same with the D4E, it's unlikely to wipe us out completely.

Sharebel - If we get an offer of 50p+ then I will be humbly apologising. As it is I think it much more likely we won't and you'll just skulk off this board like you did before when none of your ridiculous predictions came close to be being true.

Is that 6p still 'incoming' by the way? It's taking its time...

"Question, surely whoever puts forward a bid , it has to be higher than the share price at the time, so if 5p bid would have to be 6p and so on ?"

No. Assuming they are bidding in line with the RNS of Jan 3rd they could offer, say, $5bn to pay off the majority of debt and leave the shareholder with nothing (so effectively 0p). That would probably be considerably above the D4E 'minimum' in the eyes of the lenders.