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LegalBeagleUK. I was fascinated to learn there was a word describing the utilisation of shares by banks/financial institutions bought by clients and kept with them, in a way they feel suits their purpose. I thank you for that and look forward to using that word in the future. However my understanding has been that banks/financial institutions can only use shares if it is put forward as collateral for a loan or margin requirement). If the shares are fully paid for by a client and lodged with them in a nominee account they cannot be rehypothecated (now I know the word!). Similarly if any shares are used as margin any excess over the margin required cannot be used by the bank/financial institution. A search on the Internet seems to confirm this but happy to be corrected if I am missing something or don't fully understand the practice. I used to lodge cash and shares as margin collateral when buying and selling Options and was aware the shares could be used by the bank/financial institution in those circumstances. I am no longer involved in Options buying and selling so margin requirements are no longer an issue. However, like many, I have my shares in a nominee account (HL, Interactive etc) so believe they cannot be used by those institutions. However I thank you for your post and look forward to similar informative posts by yourself and others. Rehypothecate, wonderful!
Unless Metro has difficulty of raising cash by debt or a raise from institutional investors /offer to include us PI's I do not see the demise of Metro. If a cash comes in to bolster the balance sheet this will put Metro on a better financial footing in the eyes of the Regulator and hopefully get the approval it is seeking quite soon after. Once the inews of the needed cash being obtained comes this should see sentiment improve, bring buyers in and see many shorters close out. I am deep in losses here but long term have hopes for a recovery. I bought in again this morning but fully aware this is not without risk. Fortunately considerable profits elsewhere this year have have outweighed the 50% slide since my last recent buy. This is definitely not a share to put more money in you are not prepared to lose, but I am hopeful my overall losses will be reduced once the bottom is reached. In the unlikely event the cash cannot be obtained by Metro and there is no takeover interest then further down the line I may have to add "old fashioned bank " Metro, as someone called it , this morning to a list of past investments in 40 years where they are no more or I give up hope and my investment become losses to offset against future gains. But hope springs eternal is my motto at present.
This morning's announcement and opportunity to take part in the offer is the first step towards getting this company back on a good footing. Re-iterating my sentiments in the last post 19 June I intend keeping my investment and adding, even it goes private. Nothing is guaranteed but today's announcement is reassuring to my mind.
I sold at 29p+ recently at a profit Although longer term I am positive but was unsure about holding a good profit up to the results which could go either way. I am optimistic long term and am intrigued about the BooHoo holding in the company which I see as positive. I see positive things in the results but the overriding points for me are nett debt increased, a reduction in current cash and that they are fully drawn on their increased banking facility. This may be the worst it will be on these areas and increasing sales, margins etc will get the company moving towards actual nett profits. Unless I am missing something I am not surprised the SP has fallen. New management and with BooHoo having a major holding and influence I am sure changes for the better will be made. I would not be surprised if a cash injection via an institutional placing or a rights issue could come to put the balance sheet in better shape. I will buy back in but am waiting for now. The risk I take being out in the meantime is that a bid will come by BooHoo or other seeing long term value. Unusual for me as I normally have long term holdings and trade with extra holdings but I am completely out of Revolution Beauty at present. Longer term I see better times though.
Been in CMC for years. I look long term but trade shares in companies in which I have long term holdings which I find a useful and profitable strategy. Do not get it right all the time of course. When markets turn back up I believe CMC will see increasing trades and SP will increase. I bought more this morning and am already seeing a profit on this morning's buy but obviously seeing overall loss on existing holdings as a result of today's trading update. Optimistic long term still. The unexpected happens so whatever shares you buy don't buy with money you might need in the short term.....like next month's rent etc! I know someone who did and the SP continued to fall big time before rising dramatically after a couple of years. Same thing could happen here but hopefully this may be the bottom. Think long term with CMC is my stance.
I agree. The significant drop in the SP was an opportunity to add which I did at sub 4p. Petro Matad shares have been one of my most successful shares for trading on volatility alongside my long term holdings. Once the oil flows or a start date is confirmed for actual oil flow comes the SP will rerate upwards strongly. If the drop in SP was a reaction to the interview then it was unwarranted in my opinion, perhaps some were frustrated at speed of progress but I have no doubt patience will be rewarded and we will see the SP move from single to double figures......at some point........just don't expect it in days or even weeks......well, might be weeks....you never know. One think I have learned in 40+ years of investing is the unexpected happens. I have had a stock double overnight (Amryt) and blue chip stocks I thought indestructible crash towards the floor overnight and eventually go bust....so don't put too much in any one stock is my advice. Just noticed SP is now 4.25p so looks like others are regarding this morning's fall as excessive.
Could good RNS coming, takeover or people seeing a rise in share price and just getting on board knowing this is likely a good company for the longer term. Time will tell. Always liked Calnex and traded the share profitably. Last holding bought at 117.69 quite a while back so pleased to see a profit now. A stock I do not want to be completely out of at any time.
UK Investor Magazine on 6 July highlighted the procedures necessary following LP granting before production could start. These procedures could take weeks. If those procedures are nearing completion or completed then the news of a production start date will see SP rerate. Article highlighted 17p nett asset value. We may not get 17p quickly but with the huge exploration area it has rights to and becoming a cash generative producer FOMO will see a lot of buying
and big increase in SP beforehand and once a positive RNS comes. As with all investments there is risk so don't put next month's rent in. Surpises come but with PM I am really excited as I always have, though I trade this shares ups and downs in addition to long term holdings. Today's SP movement suggests possibly positive news may not be long in coming.
Perhaps corporate activity is afoot or good news on trading / orders is coming. A few good buys can move this share up and down sharply even though there is no news. However I hope things are looking positive for Image Scan financials and SP going forward. Braveheart upping stake a while back adds interest.
Was surprised the lowest buy quote offered you was 3.42 since beginning. At 50 seconds into trading after 8am my first quote with Interactive Investor was 2p then quotes slightly above 2p after when I bought. Then it rose strongly. Interactive Investor confirmed a buy trade at 1.79p so someone was even more lucky than I was. I do not know why you could not get a quote lower than 3.42, may be your quote was a couple minutes into trading or your but Interactive Investor quoted me 2p then slightly above a minute into trading after which it rose strongly. I accept I was remarkably lucky with timing- such timing and dramatic rise in SP has never happened to me before and probably will not happen again but to suggest some people who claim to buy low and high are fakes because your lowest buy quote was higher is not really on. I cannot offer an explanation why your first or lowest quote was 3.42. All I know quotes to buy started below 2p with Interactive Investor (there was a buy trade at 1.79 showing) and my first quote to buy with Interactive was 2p, 50 seconds into trading then immediately after it started to rise when I bought. Then sold within half hour.
Further to my earlier post I guessed there may be a surge in buying interest after Friday SP fall and possible fall on opening following disappointing drill outcome. I bought on opening fall but I was gobsmacked at the dramatic bounce back within minutes. Never expected that dramatic turnaround. Unlike on the LP news last week when I did not sell part of my holdings when the SP rose significantly as I normally do, this time I stuck to normal strategy and sold all the newly acquired shares this morning for 91% nett profit. Do not recall such an event in my 40+ years of investing. I do not expect that to happen again! Helped to offset some of fall since Friday on my main holding. Will top up my main holding again if SP drops back but I am not expecting it to give me that opportunity. SP is very low for what the prospects are in my opinion. But Petro Matad has been extremely profitable for me for trading alongside my main holdings to date. Still very optimistic.
I normally part of holdings on any significant rise but chose not to last week as I felt the SP would rise more. With hindsight I should have stucknto my normal strategy but I am still optimistic. However as I have mentioned in previous comments there are risks with exploration and news of an unsuccessful drill is news that us likely sometimes and we got such news this morning. Well the silver lining is possibly an opportunity to buy more on any price fall. Perhaps many have reflected over the weekend that Fridays SP fall seemed an opportunity to buy in on Monday. If so along market reaction to disappointment on drilling there could a surge in buying today in this new soon to be producer of oil. SP may not drop significantly after all but if it does I am buying more.
I have profitably traded this share for years in addition to ensuring I have shares for the longer term. For the first time I think I am not selling some after a 50 % rise which I would normally consider doing. The blocks of shares I hold now became profitable at 1.764p (that was a well timed buy), 4.248p and 4.9975p. In my opinion the risk/reward is clearly skewed to the upside. Once oil actually flows the company will be financially stable, an actual producer of oil with a vast exploration area in Mongolia they can look at capitalising on. They are looking into "green" areas of energy and news of drilling at its other site is awaited. There is the possibility of disappointment with drilling for oil but PM is going to have wheelbarrows of cash coming in hopefully when the oil actually flows and when the economies of the world return to good growth with an increasing oil price certain to follow PM share price will react strongly in both circumstances. I thought the SP would rise more this morning than it has but oil has yet to flow and news of drilling elsewhere is awaited. All positive but we need that tangible news the Heron oil is actually being commercially pumped up for SP to react strongly. We may have a negative setback of a penny or two if results at the other site disappoint, but nothing will stop a rising SP once confirmation of first oil flowing from Heron comes in my opinion. I am holding my shares tightly.
I always sell part of my holdings on rumoured or actual bid news and sold 70% of my Ocado shares at 613 on the news that Amazon might bid. I was glad I did when the SP dropped back hard. But strength in recent days suggest something might be afoot, bid or otherwise. Perhaps it has got one or more grocers around the world about to take up its patented technology upon which its future depends. Still happy with my sale at 613p and with 30% holding of original shares being in at a nett cost of 503p after my recent sale I am happy to hold but will not be buying more now I am in profit. A bid will be icing on the cake but despite risks on the downside, if it continues to make heavy losses, I do not want to be out of this share at present.
I agree that something "must be in the air" in view of the rally in the share price. I am thinking the lyrics if a song by 5th Dimension aptly apply to recent rally and hopefully get to new highs on what news is coming.......hopefully.
Obviously I am not happy with what has happened here but I am not rushing to sell. It seems the worst scenario is 1p per share in a mandatory sale of my shares. However in April they said that in addition to the 3.385 billion new shares to each of ZQ Capital and Southern Fox under a share subscription at 1p each......."it also plans to offer existing shareholders, including ZQ Capital and Southern Fox the chance to buy up to 689.5 million new shares at the discounted price under an open offer. ZQ Capital has agreed to underwrite the open offer and subscribe for any shares not taken up" I wait for further information on this as it may be a way of getting more shares at 1p and staying with the company, even if it goes private. Admittedly trading in private company shares is not as easy as when listed but if the company turns itself and comes back to the market the gains could be substantial. ZQ Capital and Southern Fox see potential and if the open offer to existing shareholders comes I see an opportunity. I have been with a listed company before that went private, decided to keep my shares, remain with the private company rather than take the cash for my shares, and more than doubled my money when they relisted. Not saying this will happen here but I do not see this totally negative yet so wait for further information.