Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Let's hope your right Aspers because consolidation followed by a RI is a definite passion killer for the market. My own gut feeling is that there will be a RI followed by another RI within the next 2 years and I think the consolidation is the pre cursor to them , get the amount of shares down and then back up with RIs !
Problem is the impending consolidation of 1:10. Reducing the number of shares by this amount and increasing the sp by roughly 10:1 could be a pre cursor to multiple RIs. e.g.--- reduce the number of shares then increase them again by RIs. Already a threatened RI to come. Too much uncertainty is suppressing the sp.
Dont forget chumba that there will be considation of 1:10 prior to any RI so that would make your RI price E25 not E2.5. Its a bit of a cleft stick really because if your going to take your rights you want the RI price to be as low as possible but we don't know when the RI will be ( could be months if at all --- not guaranteed ) so now we want the sp to go up as much as possible. Difficult knowing what is best. Regarding irritants --- an irritant is only an irritant if you let it be an irritant. An irritant is not an irritant if you ignore it. Simple --- just ignore it.
Nice write up Steep. My concern is one of your points , the appeal to investors of a high priced travel share and in my opinion the appeal will be much less than the appeal of a low priced share and thus the suppression of the sp.
Yes of course Avocet , if Mcap triples your investment does indeed triple but for the Mcap to triple then the sp has to triple but for a travel company it is much easier for a low sp to triple over a period of time than it is for a high sp. If the consolidation does go ahead then Tuis sp would become approx £15 at todays price and to multibag at that level is much more unlikely than to multibag from an sp of £1.50. Tech companies yes but not travel companies.
I hope the share consolidation proposal gets voted down as it would be very bad news for small investors who are in negative territory at the moment as if it goes ahead it would mean future percentage growth would be badly stumped. It's is much easier to increase an sp 100% , 200% , 300% etc if the sp is relatively low to start with. For example if an sp is say £1.50 now and it goes to £6 ( which is quite feasible with Tui ) then you have quadrupled your stake. If you consolidate at 10:1 making the the sp £15 now , then to quadruple your stake the sp would have to go to £60. Those sort of levels just wouldn't happen , not £60 per share. Consolidation is only good news for penny shares when the effect would still leave the sp relatively low. Bad news if consolidation gets voted in by shareholders!
To me it sounds like a 10:1 consolidation of shares in my mind. So you will get 1 share for every 10 you have. So if you have an average of £2 now , your average will be £20 which with such a high price will make any substantial increase in sp much harder to achieve. And the share price for the 1 won't necessarily be 10x what a share is now , it will be determined by the market! Talk about the unexpected. It dosnt sound good whatever it is. Just when we were starting to get a little positive and optimistic about tomorrow's results. If i have read this wrong then please tell me.