Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
When there is a large short on the company it can hard to know what is fact and what is fiction when I read views, the short position has been reduced recently, the NAV is higher than share price and with a low P/E if anything like last years performance is maintained which are all good. On the other side I have seen even good business wiped out with negative interest and even when companies do turn around the share price can take a long time to follow as confidence has been hit. I normally keep a few shares like these in my portfolio and while some have increased 10 fold other have been wiped out. Not for the short termer in my opinion but when a company is consistently profitable (3 years+) they may be considered for a small part of a portfolio imho but don't use a Martingale strategy on a company that can fold probably best to wait for next results and check price around two weeks after.
Don't expect an immediate bounce, shares never recover in a day, trend change take months and longer, the fact is they offer a good return is key, noise will occur in the short term , don't let politics influence, politics could be argued both ways, Republican have an infinity with austrian economics which would let the banks collapse , in reality both parties are financed by banking in the way of political contributions and the Democrats take a larger share
Please talk to your family and explain. Loosing nearly etherthing has happened to me twice.In 1999 I started investing in the tech boom and initially made good return so remortgaged my house so I could invest more headless to say I didnt get out until I had lost nearly everything. At this point I should have talked to my wife and explain, I didn't and our relationship suffered as these experiences change you. I managed to work hard mainly away from home which my wife found hard to understand and my pride would not let me explain the reason. After several years of being nearly physically sick every time I heard the ftse mentioned I thought the financial crisis would be a good time to invest and get some of my money back again it started well so I borrowed again to help recover as much as possible, again it ended badly. It took years to recover again and I never explained to my wife why my moods had changed and I was often distracted trying to plan ways to recover. My wife died recently and that was a thousand times more devistating than and financial lose I had suffered. Discuss things with your family you may find relationship is more important.
RBS
There is no right or wrong, Ten years ago I stayed with a stock and kept averaging down from 60p down to 10p before giving up, lost over 220k and took myself out of the game for years. It did reverse after I sold but I would have lost my house if it hadn't so don't regret setting
As the bid price has now increased after a "huge sell" probably means the market maker is short of stoke or the trade was actually a buy but offered at the ask price, if you place a large order on L2 it can show as a sell when in
fact its a buy
The fact that the spread didn't tighten and offer price didn't change especially when 8M is way outside the market size makes the trade a little strange
Don't forget every seller has a buyer on the other side
I don't believe SD have a good reputation, they normally try to get a director on board before they take over as that has not occured yet their is still hope, If you are shorting it may be risky as not all options have been exhausted.
I agree this price is low but a lot is unknown at present. The profits are mainly in the managed division which has been allocated to Spirit for the leasehold business to prosper it is quite likely that extra cash will be required to fund Pub through this transition period. This could be achieved via a rights issues or a debt to equity swap i.e. The bond hold agree to accept shares both these options would lead to a share dilution. Another option would be to accelerate the sale of the leasehold pubs. I think until the shareholder have some firm information the share price will move with the market or may drift lower but there are a lot of bargain hunters out there so who knows.
Hi If you had 100 shares in Pub you now have 100 shares in Pub and 100 shares in Spirit. The profitable part of the business has been allocated to Spirit and leasehould pubs allocated to Pub
Yes , as the article states a lot of shareholders would like to probably like a default , but I would not count your chickens yet, I think Dyson might be trying to make a name for himself. I think a default and a quick 30% profit on our shares may not happen, unfortunately they are not running out of cash and the losses pub has made are mainly on the asset writedown, the situation could carry on for months or years so I would not get too excited yet.
Good to see some confidence, as I understand it you are allowed to buy 17 shares for each one you own at 5p a share, if the new non consolidated value is 8p a share that's a 51p (17*3p) gain plus your original share now worth 8p you get a combined value of 59p for the present value, the main issue will be that share prices nearly always fall with a RI .I agree long term it should be a good buy.
not the best news as the new shares will be equivalent to 5p
I think you are about right, If AIG take a 11% stake in new company it will be less than £20 billion, with the 40% discount quote and the fact the full details won't be known for a few weeks, I think the share price will be under pressure so my guess would be a 2 for 1 RI at @360p. I think long term it will be a good deal but the share may dip closer to 500p or below unless Aviva have very good results on Thursday that lifts the sector.
If they are selling there non performing pubs at book value that is more than positive, the fact we are in a recession is the negative update which is already priced in, Sorry I thought you may have had some insight into situation.
The company made a profit of 36p a share has a N.A.V of over £2.30 a share which it is realising. Reduced debt which most people think is the key to the share movement. There was a £100000.00 buy as soon as the market opened. Whats your reasoning?
They have desposed on 352 at current books values ( don't forget that NAV is arounf £2.30 per share) and have paid £434 Million pounds of debt ahead of schedule, as the share price dropped because of debt the statement is good news. i.m.h.o.
Re going down, being shorted Marshall Wace Morton Holdings CATAPULT CAPITAL PARTNERS
I don't know any company that has earnings to support its debts plus make a profit of a third of its market cap, has good cash flow etc that has a bleak future. The pub selloff has and is happening some will go to Auction, Pubs are turned into restaurant, quest house etc. I agree on price normally after a sell off a share has to regain support but I wouldn't second guess this market as it is setting new trends