Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Surely at some point this will become a great opportunity for a big investor to buy possibly up to 20% of a great business?
The possibility to earn yearly dividend's. And if not that just the value of the business as it will be generating profits on a yearly basis as it has been in the past. That in itself will add a good value to any Investing company to add to their bottom line......or am I looking at it wrong ?
One doesn't loose the capital one put's in because it delists. You will always have your shares as long as the company exists and you decide to keep your shares.
There will be various ways of doing it, but most of the time companies set up some sort of dealing facility platform that you can sell your shares in. AJ Bells has such a platform. I presume they can also use that facility to pay dividends via your broker then.
I tell you one thing. At some point this is going to become a bargain....if you are willing to wait it out and try and sell on the new facility.....
Also what will happen with the dividend payments? Will it continue? As the last payment I see was around 11p. If you buy at around 50p and keep getting 11p yearly, that is not a bad little investment...A retirement fund :)
Unhooked, that would be brilliant if it could happen, and I guess if you have an investor that is willing to buy everyone's else out then it could happen. But in most cases I wouldn't think it will happen.
The problem is, that most Aim companies that keep going are lifestyle companies nowadays. So investors are getting clued up to this now.
The other side of this is the few decent companies on Aim like this one then struggle with investment and are normally not valued as they should be. So the value for them to be on Aim disappears. Have seen at least 4 companies leave Aim already this year, and that is only the ones I know about.
The regulators will have to do something about it at some point as otherwise Aim will disappear in a few years.
I'm not invested here, just to make it clear.....but have some experience with Aim cancellations....
So the company today informed the market that a vote need to be cast in regards to the proposal. Normally they will need at least 75% of the votes to get it through. Unfortunately the market always reacts negatively to news such as this and it always wipes millions of the market cap.
The board must be confident that they will get the 75% otherwise they wouldn't have suggested the vote.
A lot of time they set up some sort of facility but it's never the same as a free market, and you do struggle to sell your shares as you effectively need to find someone willing to buy the exact number you are trying to sell for the price you are selling them for.....no market makers....
So your best chance of getting your value back in what to me looks like a good company is to hope for a no vote of more than 25%....
Like someone already mentioned, there is quite possibly a large background seller. So the MM's will know of this party wanting to sell their large holding. And to allow that to happen they let buys go through until the value of the big sell is covered......
We already had one TR1 yesterday of an II selling out. There might be more to follow.
There is a huge amount of trades going through....and they do look like a lot of round numbers. Maybe an II?
Don't know the full history here yet but it seems to me like the trading today is massive against normal days. And I cant think that the Midas recommendation will the the only reason for that .