The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I suspect we will rise a bit more on Monday, let's see if there are more TR1s in the pipeline! The potential takeover dynamics make this one extremely interesting.
It all depends what he pays for the last few shares to take him over 30% - and if there is a response from Green. Ashley may want to sit just below 30% for a while - but Green may want to get to 30% himself now. Interesting to watch this play out and see if all goes hostile. Hopefully another rise on Monday, although probably nowhere near Friday's blockbuster. Zak Mir reckons we are heading for 6p - although that is usually the kiss of death!
As long as he doesn't appoint a joint management team of Alan Pardew, Dennis Wise and Joe Kinnear and MySale don't need a decent transfer budget....there is definitely short term opportunity here.
Been in and out of auction all day. Lets see where it emerges this time
I think this will move quickly now Ashley has declared his hand.
Hallelujah, looks like only one more hurdle to go! Normally would say well done for holding - but we haven't really had a choice!
Maybe the BoD expected to be back on HKex sooner than was possible and made the interims look better to offload shares onto the market before releasing the less than inspiring finals after being back trading? Maybe time and process caught them out.
There's the sting in the tail! Dividend gone in a puff of smoke. At least they are talking about potential projects in Africa and South East Asia (even if they are put on hold). Trading tough, but half year to June (2021) 34m yuan profit, next six months 26m yuan loss - that's one hell of a swing. Especially as the first year of COVID they carried on increasing profit. Will have to see in more detail what the accounts say on this matter. I just hope they haven't been up to their old tricks again!
Yup 48 hours to go! Overseas expansion and some already secured contracts would be a good driver for share price growth. Still think to see a rapid re-rate to IPO and beyond we will need a decent dividend as there will be selling pressure on the way up and investors, especially in HK, will need a reason to stay beyond breakeven after all this time locked out.
To be fair some success from the international marketing may have the same effect. Otherwise I think we will be seeing a positive relaunch (can't see it staying at 0.45) but a more gradual re-rate towards hopefully 1.5/2.
If there is to be no dividend, I would like to see a really good investment plan for the piles of cash they are now likely sat on.
Let's see what Friday brings!
Dividend will be the catalyst to a quicker rerate (unless there is a clear plan for investing retained profits to accelerate growth) - otherwise might be more of a slow and steady rise towards IPO levels and hopefully beyond. At least it looks more likely than not that it is coming back to the HKEX now - which wasn't always the most likely outcome. Assuming we reach this goal, whatever the share price action on relisting, not having a wipe out or shares in an unlisted company will be, in itself, something to celebrate!
That's a real positive as I thought the internal controls report would be the last piece of reporting to be done.
I remember it hitting about 1.2 on IPO launch before crashing when Double River started their mega dump. I think there will be a lot of sells when it starts getting up to this level. I don't think anyone would sell at 0.45 in light of the positive accounts, I certainly wouldn't - but there may be some resistance getting beyond 1.2. 1.2HK$ would be higher than it was in the UK before transfer. Let's hope and see what happens if/when we come back.
Totally agree Simms, pretty confident this will come back now (although not certain), but it might not be the rockets and booms we all want (deserve!) - not initially anyway. There will probably be many investors looking to get out all the way up to IPO price so it will need something to push it up and beyond this - and without a dividend not sure where this would come from. Paying a first dividend will set a future precedent and will probably unlock larger dividends in the future as the company organically grows. They are sitting on plenty of shareholders funds. The alternative is to invest to accelerate growth - but there is no clear plan to grow the business that requires investing all retained profits and I am sure the hydrogen projects do not need £20m of investment at this point.
I'm sure the accounts will be positive and show further steady progress, but I think IPO price will be a ceiling due to the collapse on listing. I imagine UK investors see AIM 8p+ as a trigger which was about the sustained highest it got before transfer. As things stand I'd be delighted with IPO price and would probably sell my modest holding at this point - but if the timelines are met, profits remain good and a dividend is offered I would probably stay in a bit longer, maybe another year or two. I suspect I am not alone in this regards. The Control Review will also influence my decision making - especially if it increases independent thought and input on the board.
The Directors run this business like a fiefdom - and the length of (and reason for) suspension shows disregard for both the exchange and shareholders. Ignoring the rules of the exchange shows there is no accountability in the business and is the behaviour of a sole trader acting like an ostrich with a tax bill. They have definitely taken some of the worst of an AIM mentality to HKEX.
Plus 1 HK$ is worth about 10% more now than it was at suspension!
Results out on HKEX
Fingers crossed. It would certainly provide a bit more confidence in the timeframes proposed and the fact that we might finally relist.
Fingers crossed, firstly the results are published and secondly they point to further positive progress. we have no real evidence of how the pandemic, positively or negatively, has affected CNEL
Yes I had a very pleasant surprise in my HL account too. Appeared at round about pre-suspension price. Not sure why, but hopefully an omen! Would look better with another '0 on though, but that at this stage is wishful thinking.