The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Expect the trolls to be out in force today spreading fear. And remember, the CEO has publicly stated he wants to take the business private. Also the company has has to announce the parties that are involved. That is not speculation, everything else is. Make up your own minds
Toffers, good post this morning.
Dean01, since you claimed to have sold your tone has been increasingly negative and transparent.
We don’t have long to wait now, it’s a nail bighter but I’ve only been in SDRY since early feb some am not going to claim to be an expert on the subject. However, I have done my research and am happy to wait this one out to its conclusion as I’m convinced it’s worth a lot more than the current MCAP.
Good luck all
He’s currently sitting on 27% not sure if the 1% purchased by L&G on his behalf is included so possibly 28%. He’s close to 30% which is a strategic level.
If he goes above the rules kick in and he’ll have to offer 131p minimum. That could work in his favour or not. My best guess if he doesn’t breach 30% by Friday then the offer will be lower than 131p. How much lower? Only JD knows.
Roll on friday
To add to my previous post.
Other potential buyers are watching this and if they see a bargain they will swoop. JD and his team will be aware and will have to bid enough to fend off a bidding war. Plenty of sizable hedge funds out there with very deep pockets and according to press reports, the UK is being viewed by the USA as cheap, which I completely agree with.
The only realistic question is: at what price, loads of speculation on this subject but reasonably it’s going to be north of where we are now.
JD could request an extension for various reasons but I can’t see why he would be so engaged if he didn’t genuinely want to execute his plan.
We will all know by close on Friday, one way or the other.
Bacchusll
The key difference in your chosen example is.
Press speculation versus CEO has engaged with investors to buy the business outright.
I think it’s fair to say there’s a reasonable difference between press speculation and factual RNS reports.
Can we please put this to rest.
I use IG. Market data shows 68% long 32% short. Number of IG clients holding SDRY positions range 51-250. We are not talking about a sizeable short here. Also the split last weekend was 60 long 40 short so they are decreasing.
If you think about it, his timing was perfect, SP at an all time low, company in the midst of restructuring due to poor performance financially. It’s cheap as chips and he can effectively steal it. It’s a global brand with a fan base, arguably not as popular as it once was but with a quality product that’s well known it’s gotta be worth more than Ted baker?
Dean 01
Not sure I’m qualified to answer that. However looking back at JD’dealings with shares in SDRY, he sold 4m shares at 1200p pocketing 48m a few years ago, he has waited until the SP was 15p to go public. Why has he waited? He’s a business man, he already owns circa 27% of the shares which somewhat destroys your second option, as why would he destroy his own holdings.
My feeling is that he thinks he can turn the business around, make it profitable again as is predicted and at some point in the future do it all again. Thereby repeatedly making a fortune.
Evolve
I suspect you aren’t short or long, however you are negative influence.
Anybody invested in SDRY recently is here to make a few quid. Because the founder is publicly putting a deal together to takeover the company.
The only speculation is at what price.
A bad year for weak reasons does not make a valuable business worthless unless it has no future.
Institutional investors have been buying the shares, declared shorts haven’t piled in, I’d speculate that the bid will be above where we are now at 37p, how far above, only JD knows but why would he publicly announce his intentions if he had no intention? If JD was selling his shares I’d be very worried but Infact he’s not. He is using other instruments to purchase Legal and General 1m shares at 42p I think.
If you are short as you claim, I’d close if I were you as the risk is real.
I’m happy with my investment as I suspect all longs are here.
Hopefully this helps
https://www.allenovery.com/en-gb/global/news-and-insights/publications/uk-takeoverpanel-extends-concert-party-rules-to-funds-and-their-investors#
Starbright
Whilst your statement is accurate, you’ve omitted the rule of being in concert.
And recently a former partner purchased or stated that he holds approximately 5%
Plus legal and general purchased 1% on behalf of JD.
So if JD is in concert with other parties and collectively they hold +30% he must make a cash offer and the 12 month rule applies
It’s about time the shorts started reducing, not enough to convince me yet, the reduction conveniently coincided with a rise in the SP, todays drop may suggest that Helikon has increased again.
We will find out after tomorrows close.
I’ve reduced and jumped onboard at SDRY as the opportunity for gains seems faster…….for now. Cautiously running the risk of missing out should the RNS everybody is waiting for drops or the shorts finally close their positions.
Genuinely GLALTH