RE: reThis YA loan versus Steelmin loan5 Jan 2018 10:40
In regards to the JMS potential listing I don't personally put much sway in that outcome. LTHs here have seen how JMS shares have been "managed" in the past. At one stage a few years back the RRR shares were worth over 25m and yet the BODs failed to sell them all for that lucrative price. They would have had 25m+ cash in the bank and thus funding for all manner of projects. Instead AB mostly sat on those shares whilst their value plummeted. Shareholders were then subjected to years of intensive dilution with the likes of Yorkville, Cornhill and Magna.
I guess it's perhaps more lucrative inventing money out of thin air through the endless issuing of confetti !
My key point here though is that in reality, those few remaining JMS shares are, imo, the foundational core asset of the company. The MCAP is where it is because of those shares. Indeed, the MCAP imo pretty much IS those JMS shares. If you took the shares away today what would be left? Mugpunters imo just wouldn't be interested in the rag tag collection of failed, stalled, legally tied up projects here.
So with that in mind, and also bearing in mind that AB is an Exec Director of Jupiter, how likely is it that he would sell those shares anyway? Personally I don't think for a second he would sell them. Those shares are imo constantly needed to act as the backbone for mugpunter speculation here. So whatever notional value people put on those shares, and there have imo been some shamefully overstated valuations bandied about this year by unscrupulous rampsters, that value will remain notional rather than actual. The value will go up and down with the JMS share price whatever that turns out to be but unless the shares are actually sold, that value doesn't turn into cash.
To view this situation more simply.
If AB, who has recently bought a few RRR shares here, were to tomorrow announce that he had sold them all (or even half of them) then one could reasonably expect the markets to react quite vehemently saying "Oh dear, the CEO clearly doesn't have confidence in his own company). The SP would be trashed fairly quickly.
How then would markets react if AB, as a director of Jupiter, decided to pull out all his RRR shares? That would surely reflect very badly in the markets for Jupiter. One might also reasonably think that if he did sell those JMS shares, that his continuation as a board member might then come into question. With all this in mind, I persoanally can't see him ever selling those shares unless he is forced to give them up by Jupiter.
These are simply my personal speculations and opinions. DYOR as always.
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