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150m being raised for equity at proposed @30p will virtually wipe out existing shareholders if approved. Going to bring this around 33-34p . Will only help the majority shareholder at the expense of course retail investors.
Will worth buying cfd's with no expiry date and seeing this down under 30 with just the huge dilution of them extra shares will be a long hard road back to any sort of recovery especially also selling mortgages like family silver to raise some funds. This is going to get worse
My understanding of this 150m equity raise funds at @30p a share and dilute roughly 2 times more shares, if agreed would be a significant drop in the sp you'd have 2 times more shares but dilution would mean existing shareholders absorbing that reduced price . It would roughly be around 37p if done at today's market price.
Here below an example of a company raising funds and adding new issuing shares .
But adding at a reduced price has a significant difference
From a capital or market value point of view, selling shares should not significantly change the per share value. Shares going out from the new issue result in cash equal to the value of those shares coming into the company. Consider a hypothetical company with a $100,000 market value and 1,000 shares. Each share is worth $100. If the company sells 100 more shares, it will bring in $10,000. The value of the company should increase by the $10,000 to $110,000 and the number of shares outstanding increase to 1,100, maintaining the $100 per share value.
Just 7 months ago silicon Valley Bank was bailed out by the federal .
They had a problem with liquidity, with businesses wanting to refinance debt over longer terms leading to a shortage of cash actually coming back into the bank .
When rumours started circulating that the bank was in trouble ,it was compounded when customers were starting to withdraw their cash in a frenzy of panic !
Congress knew if it didn't act quick the whole banking industry in the USA would be undermined.
Think it's the effect of the metro bank and there financial state .
They have an issue with bonds they took out and need to repay next year . They want to raise 600m
as the regulator isn't happy with the cash reserve and the leverage they are using to lenders .
They also tabled selling present mortgages to some of the big banks Barclays etc .
Big risk when rumours about banks in difficult ,usually means customers taking their money out.
@Al4x my word for someone that has no skin in the game you sure spend alot of time waffling on about Asos . Although I'm only jealous that i wish it was me that didn't have a position here . But I believe it will reach 12-15 but now looks like a awful long time before that happens. Unless Mr Ashley of course bails us out .
this i've no doubt will see under £3 in the coming weeks . the interest by shorts and the chart is bearish . the update no doubt is some improvement in ordering but the market is less than convinced in a industry that has gained generally 13% in growth in the last year. asos has transgressed 10%. i'm getting some powder ready for the slump to the 2's in this **** show.
Never invest where the regulator has to jump in .
Buy some cfd's are short this fraudulent company
Why should the shorts close ? Revenue 10% down on yoy . regardless of headwinds etc etc .
The trouble with Asos when they keep mentioning these headwinds are Phenomenons it isn't a Phenomenon if these headwinds occur regularly it's could the norm.
Why has Next plc reported that sales are up 14% yoy and have margins of 15% profit from revenue.
Until ASOS can do similar the market in forward thinking regardless of now be profitable is seeing Asos as a declining business.
The CEO quickly needs to generate growth and by mearly cutting spending that will soon see further decline in sales which will ultimately lead too losses again .
Tin hat required at opening.
All the market will see is a 10% drop in revenue yoy . Just look at that thg as reference
Regardless of market conditions, cash flow ,inventory level blah blah blah .
Might though be able to average down under 3.
anybody notice on most items that they seem out of stock on sizes colours etc .
check for yourselves, i just hope they haven't ****ed up and under ordered to such effect that revenue to such a degree is really depressed.
just checking items randomly, seems huge unavailability especially trainers.
hope they are out of stock because of high volume of sells and not for under ordering.
i'm down heavy on this and i'm at the consensus of never underestimate these clowns to it's back to 15 .
probably management would have ****ed up somewhere. probably done the opposite of last time ,didn't order any clothes so they had **** all to sell. regardless of tomorrow's results it will still ******* drop. it's ******* cursed this ticker .
piece of **** . beginning to believe it wouldn't matter if asos beat earnings next week by huge margin , it will still go ******* down.
it's been going south for 2 ******* years !!
there's a reason why this is the most shorted stonk ,maybe the tutes hate the owners . who knows ?
With a comparison with Flutter. 888 should be minimum £7 . Either Flutter will retrace back heavy or 888 at least bridges some of that discrepancy. I'm happy to meet them half way 😭🤣