RE: Confused27 Jun 2020 10:53
I had an hour long conversation last night with an expert on the aim market because I was getting a bit peed off with the negative comments on here. So managed to speak with an expert on it. Couple of the main points that I got from the chat:
1.) pension funds like what has been mentioned have to show a broad risk based investment strategy and not just keep to the ftse 250/100. It’s too easy and they would just be making a mere 7/8 % a year if they are lucky. Aim market albeit more risky could demonstrate a 10/11% but more likely much higher rate of return. That being said, they still have to do their to do their due diligence on companies to make sure what they are investing in has a good rated risk portfolio. This filled me some good reassurance on Bpc.
2.) takeover/merger - before this proceeds, it is a requirement of any company on any market to perform a stress test before the deal can be finalised. The fact the deal has been finalised and awaiting for shareholder approval fills me with excitement that the financials are ok.
3.) when a merger and takeover is announced, the share price is artificially kept at a certain level and the MM will not let it rise uncontrollably. This is a fact. I think someone touched upon it the other day but was met with some opposition. I didn’t really believe it a few days ago either but it is true. It’s there and done to ensure a fair option for shareholders and new comers etc etc. Again fills me with reassurance.
4.) after a deep dive of this takeover/merger, they told me that in their opinion, it’s a good deal (I have already voted yes anyway but it was good to get their view). Provides an income to bpc shareholders along with tangible assets, and for cerp it gives them greater investment and chance to progress their company. Nobody loses out.
5.) breaking news, rns are kept back during this period and especially during the 10 day disclosure period. They can be released after the 10 day period. Again this is to ensure transparency. They are released however if there is a risk the news can be leaked.
Apologies if the above is what you already knew. I was so pleased after my conversation last night, and it just filled me with excitement on what such a great investment I am in all in my (or their) opinion of course. I wouldn’t want to be out of this for any length of time.
Good luck all.
Xxxxx