agm feedback - part 110 Jul 2011 09:24
of course DYOR but this was posted by leeds on advfn who unlike many actually attended the agm ..the price spike Friday had more to do with bargain hunters, traders moving in buying a cheap stock for a quick turn or cheap entry point - and some stale bulls exiting and traders selling for their quick turn... however it is worth reading and thinking about this...(in no particular order and please again DYOR...)
leedskier - 30 Jun'11 - 07:48 - 2757 of 2804
Those who actually studied the resolutions which were voted on will have seen that the last one permits the company to '' BUY BACK '' up to 15% of the companies shares.
We discussed this at length yesterday. I commented that many companies were doing this whilst shares were at rock bottom prices. I must say that the Chairman has all his ducks in a row.
If and when the share price rises to something like fair value, if they want to raise cash, a resolution was passed permitting shares to be issued up to 20% of the shares in issue.
Buy them back when they are cheap and the company is sitting on cash, reissue them when they are fair value, if the cash is needed.
leedskier - 29 Jun'11 - 16:53 - 2746 of 2804
Ok after the close.
The Chairman and CEO know I moderate this BB. They were genuinely delighted to learn that there were long term share holders who took such an interest in the company.
1. Last week I posted the CEO the LSE Guide to Investor Relations. He had taken that fully on board and concerns were directed today at those who purport to look after their interests. That was happening as I popped my head around the board room door at 9.15am and was confirmed to me later by the Chairman. This afternoon the company were/are meeting with a City PR firm, with relevant expertise, with a view to engaging them to deal with all PR issues.
2. I asked about Hendersons, who have taken over Gartmore. They too were concerned about the fall in the share price, but not about the company, I think. They arrived and meeting and greeting on first name terms, after the AGM, as I was leaving.
3. In my six pages, I said that the market was not interested in plans for the future expansion of the company. All the market wanted to know was:
(i) Was the Chairman, a lawyer, still confident about the arbitration, and if they lose, how much will it cost. He is still confident and the downside risk is no greater than £1m.
(ii) When the company was going to buy its own crude and the Chairman told me that because of the volatility in currencies world wide so far this year, buying large quantities on the spot market was risky. But all the cash is still there when the price (which he thinks inevitably will keep rising in line with rising demand --- palm oil being much cheaper than other oils)stabilises.
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