CK you are the first to moan when companies place! MTR are in an almost unique place on AIM with near cash. All they have to do is leverage up on the SFR shares and structure an appropriate loan note and then make the SFR shares work harder. What is the point at this stage in dividends to shareholders. As they say Cash is King! You should know that! Nom de plume ou nom de guerre? C’est le question mais non?
Hi Geoff, not sure that MTR would go for a share consolidation. A share buy back far more preferable. This would squeeze any potential short position. A share consolidation a big yawn and probably play into short sellers. Look at the market reaction to many of the big companies that perused this route,
Interesting Forrest equity swaps to build a stake and not declare it! Consequently now banned from voting at the 1 October meeting. Probably puts pay to any rival bid if there was indeed one. The MOD/SFR deal must now be over the line. The paid MOD bashes will now be silenced on Hot Copper. MTR looking stronger and stronger. Roll on next week.
Joe, just catching up on chat. I re read your post of the 23rd August. I agree with you entirely on SFR and holding on to the shares. Madness to sell an income producing asset. As SFR shares are highly liquid then a finance house may advance a credit line using them as collateral. This would allow MTR to retain SFR but gear up and use loan proceeds to finance other projects etc....
Ok Joe something different. Personally I do not want to see another equity raise at these prices. Too dilutive. The trouble with using shares as collateral the amount advanced would probably require the majority of SFR shares to back any loan. Banks normally have a loan to share collateral of 25% I.e £5m would require £20m SFR collateral plus a Forex margin and Interest lockup margin. Too much tied up at a time when there maybe opportunities to use a larger amount of capital. Banks today do not look at the collateral but at the ability to pay. The SFR shares are highly liquid and could easily be placed in the market should MTR need funds quickly.
Evening DR, I see LSE have started to moderate posts which is a real positive. I have only started to post and have a number of sizeable holdings in AIM investing and exploration companies. Some of the low life that inhabit these BBS’s need to be investigated. I understand that the FCA are undertaking this.
Thanks DR. I feel like a lone voice at times! No doubt the Village Idiot will come back with a smart comment to justify his financial existence! Usually a one line quip and poorly constructed sentence! He ho!