Tory election victory = leap in shareprice?11 Dec 2019 17:47
Presumably any Tory victory tomorrow will lead to the shares rising decently given that uncertainty is out of the way and everyone can now make larger spending decisions with more understanding of the future. I certainly hope we get a Conservative win tomorrow. No doubt Labour would bring in a tax on stamp collectors as the stamps would be seen as untaxed assets by them!
Devon, these are all fair comments that you make. But I am not saying that an institutional investor is buying in, just because they aim to make a takeover offer for the company. Far from it, their objectives would be similar to smaller investors - they scent a turnaround story taking place here. With margins around 45%, once SG starts making profit properly, they would normally be an obvious takeover target were it not for their debt. But the debt is a red herring here as again, once profit starts to come in, but they make say £3m + per year which should soon become possible, the debt must also start rapidly falling away. For me, the model here is Game Development which shares many similarities with SG, especially since the company's goods are again not necessities but hobby related. Phoenix's shareholding is only then a barrier to a bidder whilst these barriers remain but they are dropping away fast. Any offer considered by Lombard Odier would have to be considered by Phoenix. As the turnaround continues to take hold, and sales continue to rise [and 2020 should be great with the various events due], I cannot see how profits won't follow. That is why institutional investors may already be getting back in.
Actually, upon closer consideration, it looks like an institutional investor has taken a small position, below that level at which they have to publicly declare their stake [3% or above]. I would say this investor currently owns 1.25m shares.
At this rate, we'll probably see a sale of say 1,000 shares, and the stock price falling 0.2p as a result! Certainly making heavy weather of it going up. Would have thought we could have got past the 2.5p level a bit faster than this.
Littlebricks, I don’t think you’ll be waiting TWO years for a decent return on your investment, more like two months as there’s a wall of support building now. We must be just about to rise and I’m pretty sure some larger buyers are about to disclose themselves