Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Also, in earlier years they welcomed the capital infusion also from the Swedish share holders, now the don't need more bail outs so they cut us off.
It is not as easy as just holding on to the shares, many are forced to sell because they can't hold foreign shares in their account.
It's a kick in the face for them.
With that said, the immediate fall in the share price when the news came out prices everything in, as it effectively prices all Swedish holdings to zero. So at least we should not go lower, everything else being equal. But there are many moving parts. Fundamentally the company is worth much more, and I think that it would have been easier to for AB to get a good selling price for the company (if that is what he wants) negotiating from 17,5 p/2:50 SEK instead of 14 p/2 SEK.
Not sure about that they understood the effect.
This last fall in share price is totally the companys own making imo. I just can not understand if they were totally oblivious to what the effect of a delisting would be or if they understood but actually chose to go forward anyway. A very bad decision in either case.
When Sunak and other UK government officials say that their mechanism will keep investors confident to keep investing its like when Bagdad Bob said that there were no americans in Bagdad.
In the end they will look very stupid...and not just in our opinion, but in everyones opinion.
All imho.
VCB2,
There are a lot of people here with +1 million shares (some have multiples of that). That leads to home work being done and calculations being thorough, and somewhat of a slower decision process as million of shares are not as easily sold as thousands. All in my humble opinion.
Stupmy,
One way to look at it is to start at the swedish holding which AB said were between 10-15 % of total capitalisation. Now, if one just imagine all swedish holdings being priced at zero by the delisting (which they of course are not, but bear with me..) that would lead to a 10-15% loss of capitalisation. As the value of the company is unchanged (cost savings aside and all things being equal, etc, etc), the fall in share price yesterday priced in everything at once in my opionion. So further selling will be met with bargain hunting and the actual selling pressure do not have to lead to lower prices from here. But this is just a hypothesis, and there are so many other moving parts going forward (e.g. oil price, stock market sentiment, etc, etc). But although selling from swedish RI can put a damper on the share I for one think it will be more of a slower rise than otherwise as opposed to any actual further fall. Now please AB, take advantage of the swedish predicament and buy hand over fist please. It will help all of us who intends to hold. Including yourself AB...
Stupmy,
About the reason for delisting, being more blunt (although still sincere), would there possibly be pressure on AB from his surroundings concerning the listing in Sweden considering voices having been raised to boycott Sweden among countries feeling offended by recent events here? Or is that totally out of the question?
Stupmy,
I think we can be sure that arbitrage is always there, otherwise there would be a difference between the price in the exchanges in which case, well arbitrage would take place (or rather we all could do the arbitrage that the algos do.
Stupmy,
I believe you are right in the sense that there is a lot of selling to be done, but most of it is priced in now as everybody could sense right at the release of the news, what will have to happen during next three months, including algos and possibly short sellers. When the PI's actually sell, algos and short sellers buy (and Amjad too perhaps).
On the topic of delisting; why and why now... I ask this is all sincerity, but would there be a pressure towards distancing from all things swedish in light of the recent incididents here? I just have a hard time taking the explanation regarding costs at face value.
Kraken and Pelle,
Specifically, Amjad mentioned 4 processes they were in right now (as I understood it) in answering a question about the competitiveness for assets. He also said that they feel it is less now, as PE is balking out.
Pelle,
The meeting was at 10.30 CET, and the meeting the 13th is for retail investor especially. There was no problem signing in to todays meeting as retail investor and presentation should be posted on web site shortly as usual.
Yes, we have both been shafted, but if there is actual problems or prohibitions to transferring shares then for some there will not be a possibility to be along for a later rise in share price even if they do not want to sell.
This is gross incompetence on the part of the company today.