RE: Nick S - Downplaying Val's potential19 Jan 2025 17:38
Nick – While I respect your knowledge of the microcaps market, you need to read and process a post before responding.
I would have liked to have taken advantage of the 0.65p offer plus warrants. Unfortunately, IG (and several other leading brokers) did not support the offer. In fact, I contacted ME regarding this and queried why a rights issue was not offered. Apparently, the costs to Val were prohibitive. To be fair, Mark offered an intro to the private clients’ team at Shard. Unfortunately, the broker offer was only open for that day so I was unable to capitalise. Hey, ho. Never mind.
As a result, I have since averaged down multiple times in the open market buying in at range from 0.75 upwards. Suffice to say, your comment “cos buying Val at 50p and now we are 0.7p has been very costly for you” is so far wide of the mark, it resembles one of my serves. My average was 6p and is now almost 2p. That is irrelevant anyway as I am looking to make a significant profit on Val so anticipate top-slicing at a far higher SP. Do I wish I was buying in for the first time now? Definitely.
At no point have I claimed that buying at 0.85 is preferable to taking shares at 0.65 plus warrants. You stated “0.65p with a warrant is a good punt.” I have simply stated that given the current SP, you concede the warrants are good value. Why? If the SP never rises above 1.4p it would be pointless having the warrant option. I can pause if you wish to make notes!!!
Ready, to continue? Sit up straight! Ok, so when investors/ punters/ traders buy warrants, demand increases and the SP rises (remember introduction, economics). We have established in an earlier lesson that the SP has already reached 1.4p minimum prior to this buying pressure. Now I know you probably expect the SP to fall at this point but guess what? It increases further. Amazing!
So just to clarify, a trader buying at 0.85 and selling now is in profit, maybe 100%, probably more. Obviously, everything is conditional on the SP rising. However, you have already conceded that the SP should rise above the warrant price. In fact, in your own words “As I’ve said this can triple, good luck to many friends who hold.”
Incidentally, as an aside, your comment “Porky agrees with me and porky probably one of the most intelligent posters on here” really does not do your credibility any good whatsoever. Yes, he has called Val’s placings, but his losses, whether under his P9 or s4 guise, would put him 6-1 down in the tiebreaker with Val to serve. His sponsors 4D and Harland have unfortunately gone bust. GDR can't be contacted.
You might be an economics professor but your command of the English language and basic maths may need night classes. Want to be patronising? Secondary modern education or not, I will score aces every time! Professor you may be, but you are out of your depth in the word volleys.
Take care
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