The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
There will be a big spike in the sp come February once the fca have concluded thier investigation and full relending is approved.
If you want to take part in the ri buy in before then or if you want to get out maybe sell up at that point!
The pain has already been felt for many existing share holders. I bought a load in at 24p and now to think I'll have my 4p worth shares diluted 19 tines over is obscene!!! But sadly that's the gamble we take... and anything you've bought at the ri will be worth a sh*t load more in a couple of years time!
Thanks guys. Yes it's a question of sell soon p, perhaps after the the next spike when amigo finally get to full relending and hopefully the fca close thier case in them, and take whatever hit it is ( I'm averaged down to mid teens on the sp now) or take the huge hot on the RI but buy more on the hope of a higher rise in time to come...... nothings simple!
Agreed but I've got so much money in this over the last 2 years it's all been worry about if they are going to get a scheme agreed etc etc but now I think it looks likely they will I wonder if its worth pouring even more money in on the hope of what it'll raise to later.
Say is was .2p a share at RI
If amigo do get to lending anywhere near £350m a year in a few years time, that will make the company 10 times bigger than at the RI.
So would the sp be 2p you think?
Lots of good points made there. I agree there is still a way to go and risk involved...
...but assuming the bestvcase and we get to full relending next summer, where could the share price go from there?
£15m needs to be raised with c470m existing shares diluted by 20 so over 9bn shares means they'll be worth a fraction of 1p? A shocking hit to any shares you won at the time. But if you then but shares at this price in the RI and they go to even a few pence then you'll more than make all your money back?
No idea tbh - with relending being agreed (appreciate test run but it should be a formality?) I dont know why these shares would go any cheaper now it should be on the way up so should be a good time to buy?
Perhaps people are still waiting to see what fine the fca will issue before the ri?
Hm yeah I can see it being .25 ro .5p a share.
But after when they are all guns blazing? 2p? 5p? ? As bad as the pain seems I can't help but think this could rocket in a years time??
I'm just trying to work out where the sp will be in say another years time? With amigo trading again in what will sadly be very favourable market conditions for a lender, even with there then being 9bn shares out there, could it be perhaps a few pence? Even only 1p I think would make it very tempting for people to take up thier rights next year
Even with dilution coming in what 7 months time? This is still priced like a company about to go bust, which it is definitely not and has a great future ahead. So frustrating i think this should be at least 8 to 10p now
Toncover a few points:
£15m needs to be raised by the RI
Remainder of the £40m (£35m) raised for relending will be covered by gearing and money amigo already has.
FCA will approve full relending by Feb, following the trial period. I thinknit is at thisbpoint that they will also conclude thier investigation and issue any fine.
Amigo then have a few months to sort the RI out before end of May. By this time they are home and dry, the scheme is closed (end Nov 22), FCA off thier back and fully relending (£35m limit until RI).
II will be buying back in then, who knows where the share price could be at the time of the raise? 15/20p? Or 2p?