Member Info for Oldfortyniner

HL ok for me.

Prices softening. HL now showing Bid 0.8 Ask 0.9.

I've just bought at 1.0875 in order to average down and halve my unit share cost. Now it's hope and pray for something, at least!

Someone was certainly vacuuming up the shares in the tens, if not hundreds, of thousands on Friday!

"I understand about people’s opinion in diversifying my portfolio but investing in other companies is something that I have no desire to do currently as I have little to no experience in share dealing, or time for researching.

The shares have risen and fallen over the last 10 years but one thing that has remained consistent is the dividends. Therefore share price is currently irrelevant to a certain extent as I am happy just taking these payments twice a year and was more interested in peoples thoughts of this continuing?"

That sounds like you've taken your own advice on not diversifying, and that's ok. There are no absolutely right or wrong answers. Share price isn't totally irrelevant however, but as long as it's higher than you paid for the shares you're not losing your capital and hopefully you're actually making a capital gain. So then it's all about what happens next. Uncle D suggests that the future for the combined businesses looks good, and if Mondi do need Smiths more than the other way round, maybe the offer will be good for Smith's holders. That's what we have to wait and see for: how many new Mondi shares will we all have instead of Smith's? Then you can assess how much your new shareholding will bring in dividends by looking at what was paid last time. If the synergies work well and business is good, that dividend could rise, but that's speculative thought. It's only then will you be able to start evaluating whether this new scheme works for you and you hold on, or decide to pull out and invest elsewhere in whatever shape or form. Good luck.

Good thoughts from Trouts and Sussex there, Gregson.

Your question included what happens to the share price and divis after the event. We can only presume that the result of this bid will be that DS Smith shares will become Mondi shares, and then what happens will be dependent on the structure of the new combined organisation and how it performs. The only guide is probably what Mondi's performance has been up to now, but the old adage that past performance is no guide to the future rings true, so the real answer is we don't know 'til we get there.

You haven't said (and we shouldn't know) what 'considerable' means in real terms, so I can only echo Trout's line that you have the opportunity in this change to contemplate diversifying, if not all then a bit, into something that you feel comfortable with and offers the prospect of the dividend income and/or growth that you seek. That hedges your present risk of all your eggs in one basket, which has come about for understandable reasons, but needn't be how it remains.

If you've been happy just sitting on your old employer's share and now this is all new to you, I'd say look before you leap and do what you feel comfortable with. Best wishes!

If them's the rules there's no way round it.

i agree, flagging up a potential suspension would have lit up the sell sign; it was avoiding it altogether I was thinking of.

Let's hope for your 'positive commentary', and soon.

Gallmat, that's a fair point.

However what sort of a panic has he caused by getting the shares suspended? Doesn't he talk to his auditors and wouldn't he have been aware of the situation (on the big asssumption that it is staffing issues) and could have put out a notice saying report delayed because of auditor staff issues, no problem with the accounts, we expect to publish in 2 days/4 days/week whatever, and avoid a suspension?

It would seem Tony Gott's expectation management that was being slated only about 10 days ago wasn't so bad after all!

Sorry 2019 final

A1, did you miss this announcement on 31 Mar 2020?:
In order to help us to serve the needs of businesses and households through the extraordinary
challenges presented by Covid-19, the board has decided that until the end of 2020 we will undertake
no quarterly or interim dividend payments, accrual of dividends, or share buybacks on ordinary
shares. In addition, in response to a request from the PRA and to preserve additional capital for use
in serving our clients, the board has agreed to cancel payment of the final 2019 dividend in relation
to ordinary shares.
Seems pretty clear to me that the 2020 final was not suspended but cancelled.

I think (hope) so. It was certainly a shock! However plenty seem to be taking this as an opportunity, as I just have.

The shareholder circular is available on the company website and clearly says there is a maximum of 2,106,980 open offer shares for allocation. This is enough for 3 for every 365 of the whole issued share capital. If everyone were to take their allocation there would be no surplus shares available over the 3/365 allocation. Any surplus shares that there may be, will be solely from any allocations not taken up by shareholders. The numbers are unlikely to be huge and big requests will be scaled back, no doubt, or maybe ignored at the company's discretion.

Thanks Snooz, very kind of you. That principle must apply to every share but the differences created with other stocks are miniscule compared to YNGN. I guess I didn't word my question right, it's why does YNGN have such vast differences when others don't? Is it just the low volume of trades in this stock?

Could someone familiar with this stock explain why it supports such a wide spread given the value of the shares but in reality you see sales going through at higher than bid and buys at lower than ask?

Well I got back in and am happy with the outcome in terms of selling out before restructure and returning though the ride wasn't as easy as I anticipated. I hope the price moves somewhere now! They are busy buying and, all else being equal, as they buy and delete shares, the value of remaining shares should rise. We (or is it I?) will see if petrol, bog rolls and pasta would have been a better investment in due course!
Best to all.

Hello Gerry,
Still watching? Down to £11.20 now which is beginning to look a little more sensible, certainly better than £13!! I'm still sitting on my hands.

We are not alone in our thinking here Gerry.
Yesterday's Times had a report of Credit Suisse downgrading PNN to underperform. Analysts feelings are that this (value) is extreme. Although the price fell 44p to £12.68, about where it is now, Credit Suisse thinks they are worth only £11. Much more realistic I think. Hold on to your hat if you haven't already gone elsewhere!

Hi Gerry
Haven't been looking in here for a few weeks but I agree; the price is a surprise and Pennon are busy buying. Ho hum. I've just worked out that if I bought back in at £13.00 I'd just about have as many shares as I had before all this happened and that's with some extra dosh thrown in! I'll wait a tad longer in the hope...

Hi Gerry,
I also had the benefit of realising, and not before time, many years of gains which I'd be happy to reinvest but at the right price whatever that is! In the meantime I'm very good at being patient but sooner or later something else might catch my eye if this SP is going to stay in the stratosphere forever.