Member Info for mathsprof

Yes, it's a win for the company - it needs the cash. Currently it's a lose for shareholders, because of the increased dilution of new shares.

However, there is the opportunity (as after most fund-raises) to buy more shares cheaply.

In the long run it may make little difference to the eventual worth of the company. Why worry?

Continued:

Yet at some point we have to buy. It's the way to stop the SP drift while we wait for meaningful news. The only question is - What is a good buy price?

This share offers good value now, but better next week (perhaps?)

At some point the SP will be irresistible, and I'm sure that will be well before 50p.

How is this win-win? GDR has dropped from 28p to 12.5p in six months. Notice on their chart a few short lived upward periods. SP has now lost 55%. I don't know anything about the company (GDR), but any mirror performance here would be a disaster.

We can see here that any buys are being mopped up by RF, who still have quite a lot of shares to sell of their first batch.

I really like the potential of the SAR pipeline, but the short term prospect for the SP, for me, outweighs this potential. Why buy this morning when the SP will be less by 4pm? Why buy tomorrow when the SP will be less next week?

Yes and clearly the seller knows what's going on, and so can sell the same unpublished amount. Not a coincidence.

Notice that RF or someone immediately sold the exact quantity in next 5 mins.

I think it might be an RF sell.

If not that will come tomorrow.

Yes, strangely I could sell now at a higher price (75.33p) so 28k could well be a genuine sell. Perhaps a delayed trade coming or .....?

Nice to see a large red buy (28k). Expect a RF sell later.

Parrottalk - this is not debt finacing as in your quote. New equity is being issued - and dilution with it.

I'd decided £11 was my buy target weeks ago. So I doubled my holding on Friday, expecting a further slide!

But then botbot comes to the rescue with his much bigger sell!

How unfair investing is. We can't guess which way the market will turn, so my advice is - make a plan and stick to it. CCL will rise or fall on any given day, but you'll make money in the long run.

Freetrade Vs ajbell.

The bad thing about freetrade is that you are trading blind on the free account. They don't ask you to agree a set price. Ajbell give you 15 secs to execute once price quoted. You can see live price change at the same time. But it's 9.95 or 4.95 a trade.

Now for something completly different. I was amazed to see the Ocean Majesty in port at Lerwick on Saturday.

It brought back happy memories of my first cruise over 20 years ago, and was what got me hooked on cruising. I remember the ship as being rather old at the time, and thought it would be scrapped when Page and Moy were taken over.

Not so. It's now 57 years old and still going! I bet none of the current Carnival ships will ever last thtat long! I won't be around to find out.

Is RF going to sell before or after it gives notice to sar ? I can't see anything in the RNS to say what is expected.

I guess they would want to sell first, then give notice.

Anyone remember this name?

Back in 2014 Sar had an equity swap arrangement with them (which was terminated early).

Sar is no newcomer to this type of funding arrangement. I didn't like it at the time, and was glad when some normal placings occurred later.

During the time of the arrangement the sp dropped by about 35%, but subsequently increased again after good news. I don't think lth's need worry if this happens again, but there is still the feeling that the likes of RiverFort are the Wonga of the investment world.

I suspect the lack of cash from 737 is the reason for the funding now. Nothing to do with 1801 since they are not expecting cash from a successful p1a. So knowledge of progress of this trial has no bearing on timing of funding.

Dorset. Read the RNS carefully. If they sell below 102 they will ask for more new shares. 102 is simply a reference price to estimate how many shares might be needed to repay loan. If say sp drops 20% they then can sell 25% more shares to cover the remainder of the loan. It's not a pretty arrangement. But it may be what the Bod want.

The sp doesn't matter to riverfort. Up or down they make their 10-20%. All they need is buyers to mop up their unwanted stock. There will only be a death spiral if no-one wants to buy.

I've now had time to reread the RNS to try to understand what the company has decided to do.

It seems to me that RiverFort don't need to be too discerning as to the type of company it lends to or the area of business it operates in. It is guaranteed to make a good turn on its loan whatever happens to the shareprice of the victim company.

In the main companies take this type of loan when they can't or don't want to raise money in the usual way. Often they regard shareholder value wirh low priority, and consequently we often get a death spiral. Here the proportion of new shares is relatively low, so we may nowt get too much of a negative impact on the sp.

One good thing about the event is its timing. When(if) good news hits after good results, then the lower fixed price kicks in, and I guess the loan will then be paid off quickly. Better than a placing after the good news. However what I'm not sure about is whether a placing now at a discount would have had a worse or better impact on the SP.

But, in the big scale of things, it won't make much difference if the drugs are successful or 737 has a good deal.

We were lucky to get past the double decker on our way to the glacier, there was a crowd hanging around the bus. Must have sent a replacement, since our big delay was on the way back, about 3 hours later. I wonder whether they ever got to Briksdal?

AParky. Lovely trip. We were glad back in May we used the PO tour, since we were an hour late back. Why? the glacier sightseeing bus had gone off the road, was tilted at an angle of about 20 from the vertical, and it took for ever to get it back on the road. Meanwhile no traffic got past.