Member Info for moorhey

The drop in SP this afternoon and volume of sales suggest all is not well with OPAY. This is a worry considering how much I have tied up in this company.

Interesting yes - but what does it mean?

35pt jump in price - over 7% - to 508. Is this a flash in the pan or a sign of better days ahead?

All depends on how much of a risk taker you are SirRampsalot. If i held no shares then I'd be buying as likelihood Rights Issue will be taken up, Skrill takeover will happen, and entry to FTSE250 will occur. What happens then? Probably shares will rise 10% - 25% in short term. But maybe they won't. Long term (ie: 2 years) I'm expecting 50% uplift. But I'm a gambler not an expert.

Good point. The SP post Rights Issue is academic if you intend to hold some or all of your shares long term. Based on current 565 SP, the post RISP will be about 318, tho' I'd expect a 1st-day rise of 10% - 25%. However, nothing is guaranteed. But if you're already a long term shareholder (I've been on for 2 years now) then you will be wanting - nay, expecting - this £2-billion company to become a £40-billion company over the next 10 years.

This is what I've just posted on my blog http://pensionbuilder.blogspot.co.uk My OPAY shares are worth £22,600. To take up the rights issue - 5 new shares for each of my 3 existing shares - I will have to find another £11,332 plus dealing costs (if any). I'm entitled to 6,666 new shares at £1.67 each. Given that the combined OPAY / SKRILL company will be worth about £1.80 billion (compared to the current £920 million of OPAY) and that the number of shares in circulation after the rights issue will be increased by 163 million divided by 3, then multiplied by 5 = 272 million (or thereabouts): then the enlarged company will have a share price of £1.80 billion divided by 435 million shares £4.13 or thereabouts. If I do not exercise the option (and don't sell it) then my 4000 shares at £4.13 will be worth only £16,520 after the rights issue. If I take up the rights issue in full, it will mean I will have 10,666 shares worth £4.13 per share (based on Market Cap of £1.80 billion) approx £44,000. This would suggest the "premium" for the option is £44,000 less current value of £22,600 = £21,400 less cost of exercising the option of £11,332 = £10,068 (or thereabouts) Premium per share is £10,068 / 4000 shares = £2.51 per existing share Looking at the numbers, I should be able to sell an option for over £2.00 (leaving some profit on the table for the person making the purchase to enable me to finance my own option) per current share. I'd appreciate any comments on the above, including if I am completely wrong.

That's a factor I've been wrestling with. Currently there are 163 million shares worth £920 million. On 17th April there will be 272 million shares worth what? Current estimate is £1.80 billion resulting in share price of 660 or thereabouts. Then I'll sell 80% and bank £40k profit.

Any idea how much - and how - will I be able to sell off the option to buy 5 for 3 for? I'm holding shares in my SIPP with Hargreaves; will they organise any sale?

I'm assuming the recent upward movement from 430 to 490+ is due to a combination of upbeat forecasts on the European economy, and an attractive dividend due soon.

Spot on nimrod22. This company could go all the way to total global domination of the ethereal money market. Come 2025 when it'sworth £50 billion we could be thinking 520 a share was a gift.

That makes sense to me, igglybiggly. However, what the shares are worth after the rights issue is concluded isn't guaranteed. Share price seems to be settling after initial flurry.

Thanks Wolfhound. my information is via my phone (trading websites banned in the office) so great update. Much appreciated.

Largest trade 3000 units. Most less than 500. Scooping up the whitebait, but no garoupa. big boys not playing.

HL don't have any prices online. I'm not inclined to sell just yet (reckon we'll see 660+ before Easter) but wondering who's dealing.

Thanks for that link Libero. You never stop learning with the Internet. I'm into GVC and also use its product. Personally I can see Internet gambling continuing to grow ever stronger as wealth spreads into new markets.

To take full advantage I need to find over £11k from within my SIPP. Any suggestions? See http://pensionbuilder.blogspot.co.uk

First bought OPAY in March '12 at 165. Now holding 4000 units. Always expected a takeover bid, but not a reverse takeover. The enlarged OPAY group should be worth well over £2 billion, maybe £3 billion by year end.

Currently sitting on a 20% loss on this share. I'm tempted to go back in, but company has spent it's cash pile and it may be some time before I break even.

The market makes no sense. Record full-year profits. Dividend raised 29%

Final results are due out on 25th Feb, and I'm expecting them to be better than for y/e 31Dec13; especially if the 1st half-year performance has been repeated. The half-year results were hit by the "exceptional item" of a £22m loss on a bond by-back. Assuming that can only happen once the shares look cheap compared to this time last year - they were at 490 before final results, and 550 after. Then they continued to climb to 630+.