The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Nice to see some investors have the confidence to buy chunks of £100,000 . £51,000 and £81,000 worth today .
Just to be clear , I have no intention of shorting AFC , I think that would be very foolish as I expect them to rise to between 25p and 30p shortly . You are right Bumble I have seen shorters attacking various companies especially over the last year or two .
I just checked with City Index , AFC is not available to short
I think the correction is more to do with the fact that the share price had risen 200% in a few days , the fund raise just balanced out the euphoria . However we have seen this many times , the price tests down then comes back to the level of the offer .
Well I just took the opportunity to top up at 21.6p and 21.7p I can't see much downside from here .
looks like you called it just right Nickel , don't get your fingers burnt .
Hi Bmac , it is always good to look at both sides of the story and weigh up the risks , and it helps if you have all the information possible . A couple of years ago at the shareholder meeting in Chelsea , Mr Bond was asked about future placings and dilution of share value , he said there would not be any more placings and if they needed further funding it would come from other sources like the bank .
To say that the products have a warranty , a sort of guarantee that they work as advertised .
At some point there will be a warranty RNS , I think that will be a key inflection point , as Mr Bond alluded to at a shareholders meeting a couple of years ago . Not to mention everything else that is going on .
in the column on the left I see a lot of no opinions , what do you really think ? I think they will go higher .
If the new website looks good it will advertise the company and products to the world and create interest . It may be worth topping up on this dip before people have digested the information over the weekend . Just my opinion
I think the fact that there are more sells than buys and yet the share price is rising at this pace shows a lot of strength .
Nice after hours buys , just what I was hoping for : )
Hi Plface , The problem when people have fast access to their cash is that if there is a scare and everyone takes their money out just in case , then we get this kind of liquidity problem . We have seen groups of shorters stoking a panic in some other companies trying to gain from a drop in share price . the thing is once a few people fear there is a problem and others see them taking their money out then they think there is a problem and with a few scary reviews or press articles it can all escalate into a panic .
Also they will be charging the seller 1.25% of the loan which will go to the buyer , which I think is a damn cheek as a seller but it does offer a rather nice incentive for buyers which is what is needed at the moment . those of us who are already invested may think about not wanting to pay that charge and therefore not selling , which again would help balance liquidity . It is a solution which I am sure will annoy a lot of people but it does work for Funding circle .
Hmm , interesting drop in share price today , coinciding with an email I got this morning from Funding circle saying that in December they are introducing a new way of selling loan parts which gives sellers some money back before the whole lot are sold . At first I was annoyed that I may have to wait longer to get my money out , but after thinking about it this is probably a good way for the company to manage liquidity and at least I will get some chunks of money more quickly . My partner just got £20,000 out from sold loan parts (after a long wait) so at least they are still paying out . I just wonder if buying shares in Funding circle may be more lucrative while they are low as I believe eventually things will get back to normal .
Hi faramog , you mention solvency , the figures I have are approx £62 million annual cash burn whilst holding reserves of £270 million . It looks like they could survive for at least about four years without trying too hard . I think the present situation is just a liquidity problem which they should have time to resolve . What do you think ?
Had a chat with Funding circle , they said they are reviewing the situation regarding liquidity and should have something to say in a couple of weeks .
until recently I was unaware that the US company was Apple , was this info out there ? and was it factored into the share price before this recent drop ?
what amazing tech , using quantum dots and bacteria to turn CO2 into ammonia ( which can be cracked to release hydrogen ) it might take a few years but this could be the answer to a lot of ecological problems . I like it .