The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Judging by last week's price action 530p is holding as support. There has also been a slight reduction in the shorts.
If the nominal value is one tenth of a penny and the issue price is say 1p, that means nine-tenths will go to the share premium account. A capital raise is £24 million (share premium 21.6 million), results in another 2.4 bilion shares on top of the 4.1 billion shares already issued. Will need to consolidate.
British Bulsl are a bit late. Why wait to 2925? Whatever one may say about crossing moving averages, charts do point out support and resistance levels. Currently 2800 is support and 3100 is resistance.
I expect this message will be removed.
The main reason why LO can manipulate the share price is because they are the only "institution" on the share register. Management has been unable to get other institutions (Woodford!) to invest which would reduce the sharp movements of the share price. Down from around 30p to 6P and then back up to high forties, all within twelve months.
One RNS states how much has been received to date. An earlier RNS mentions how much there was outstanding. Clarity and transparency please.
The small purchase by LO yesterday could be:
A feint to support the share price before making another sale around the 40p mark. Their last sale was in the mid-thirties, or
a support operation so that FUM can carry out a Primary Bid fund raise at a reasonable price.
Very good news. The guy was toxic.
@daringinvestor
Good observation. Greater efficacy than placebo is key. Failure to demonstrate so on an admittedly much smaller Phase III test sunk IMM's proposed solution for Lupus. I wonder what the placebo in this case is. One thing IMM did do was a fund raise a couple of months before the results as an insurance.