The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Bah1 no worries, what a shambles for a main market company. Utter manipulation!
There was no accident in releasing those 4 rns after cop on Friday. They intended to crash the share price. For what reason we will soon find out.
āconcluded that a takeover offer from Julian Dunkerton for the Company is unlikely to deliver an outcome for shareholdersā
What an outright lie, of course it would have delivered a better outcome for shareholders they would have been bought out at a higher price and wouldnāt give a hoot what happens to the company.
It wouldnāt deliver the outcome for JD because he (or investors) would have had to fork out more cash.
Now they can grab it for cheap from distressed shareholders.
If he goes ahead with it heās put the shareholders between a rock and a hard place. Take what Iām offering or risk administration or CVA in a few months. Before they were expecting Ā£1+ or at least 79p. Now heās focused their minds they may bite his arm off for 30p or even 20p?
He only needs to raise around another 63m shares to have a 51% controlling stake. Who knows maybe he wonāt even front up the money to buy out the remaining shareholders maybe some other investors heās been talking to will come in with him to take it private?
It was a really underhand tactic and quite clever. Completely cut-throat. He couldnāt/wouldnāt offer a fair offer price, so he puts the share price into distress with those RNSās panics the shareholders (remaining ones anyway) to the point they would gladly accept a lowball buyout price to go private and get something back rather than lose everything if its left to go into administration.
If he does go ahead I wonder how much heāll offer? 30p? 20p?
AJ bell are just repeating the RNS without thinking. 5m extra isnāt even going to touch the sides. If Ā£20m is only going to last 3 months.
A placing from this low market cap is next to useless.
How would new shareholders participate if the company is going private as a part of the same package? Unless he offers them a buy out price substantially higher than the placing price.
The only thing about the equity raise, itās such a fake plan. Heās saying it will provide the company with much needed cash but it wonāt. Letās say he prints 100mil more shares at a āvery substantial discountā, at 5p that would raise a pitiful Ā£5m, at 10p only Ā£10m. That will do nothing for the company. They already have a Ā£20m facility and that wonāt be enough either.
So it couldnāt be clearer that it is simply a ruse to get the company on the cheap.
Question is how will he sweeten it for shareholders to vote for it?
Assuming he hoes down this route (big if)
Not all of us are emotionally invested here, but its a good caution thanks.
Some of us came in for the offer gamble (not necessarily JDās), knowing it was a gamble. So far we called it wrong, but its not over yet.
Time to be tactical and gamble a bit more for a better get out price. Or cut your losses. Its still a massive gamble lets see what happens next.
All the best to genuine holders especially long term holders I really hope you get your money back.
Alternative reading. Founder has failed to get cash to buy out company, and is desperate to take it private before someone else grabs it and he loses it forever.
Looks like a desperate last ditch attempt for the founder to take get it for himself.
Garydav
Watch out for this shorter! Which other sane person posts dozens of posts per day on a stock they are not invested in and claim to have no position in (ie short)?
Whenever you see this type of behaviour be weary. Is he a good samaritan here to āsaveā people? Donāt make me laugh.
And if he turns out to be right (eventually) even a broken clock is tight twice per day.
Filtered!
Ted Baker, didnāt they get bought out for Ā£211m when their turnover was Ā£428m?
Thatās 4 months after they rejected a bid for Ā£250m.
What was their debt at the time?
Obviously its not quite like-for-like as times have changed. Still seems ridiculous for Superdry to go for 10 times less!
There will be a stampede to exit on open, thatās inevitable. What happens after that will be interesting. Most similar situations I have seen bounce by a substantial amount from the first hour lows. Just look at HUM for a recent example, similar thing terrible RNS, bounced back 50% from open lows, even if it heads back down after that.
What a cynical move by JD, trying to scare the market with a placing when the company has just secured Ā£20 million worth of funding almost the current mcap.
I hope no one falls for it. Sp should not fall below 10p for long.