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Thanks to those who responded to my friend's view of pre-packed administration. I am glad that there was no acceptance of his view but remain worried about the direction of the price. Shall I catch the falling knife or stick is now the big question for me,
AgArCu, "It'll go on until we find someone willing to bid for us or the asset" So tier1 assets etc and we cant find anyone willing to bid. !! . I am beginning to believe a friend of a friend whose view was- Strategic review will be to go for prepacked administration, sale to BHP for a song with undertaking to retain Board for their expertise. Yes I know that FN and others will not let that happen but then at that stage it would be lesser of all evils and no more.
Easyp, I have for a while now been convinced that BHP have lost interest in us and happy to just leave their holding as a token something that may one day one day pay pocket money. Originally they were very interested but have been put off by the messy diverse holding created by , I think, NM. I hope I am wrong and you are right.
"The broker cut its price target to 250p from 350p and lowered its rating to ‘add’ from ‘buy."
i have never understood this . To add you have to buy and if they are asking existing holders to add then they must be expecting price to go above average after add . Surely that means new buyer could also gain. Oh I give up back to my glass of whisky.
Josepi, I ma not an expert but I think he can sell his hares to anyone he likes. However, if as a result the major's holding reaches target at which bid is triggered then they have to offer to buy our shares at the same price
1981investor, I couldn't agree more with you. Now that Mr Cadwell has also been able to buy 1m. shares at knock down price he needs salary for many more years to pay for it! I think that means the directors have already decided the outcome of strategic review - ie steady as she goes for many more years. Of course you could argue that a bid would also pay for it but I somehow feel turkeys will not vote for Xmas. Hope I am wrong.
My guess of the length of the string is- 6.5% of the company sold at a low price, the share price still lingering around 16 -17 makes me think there are no buyers dying to buy. The directors have made up their minds as to the direction of travel which is to go to production. I have stopped dreaming of riches and instead praying that at some stage I would be able to get out with a modest loss.
Cash-My-Giro, They have just sold 6% at 17p. so I can see them tempted at 50p.!!. The only thing that may prevent them is redundancy. It is better to sale chunks at knock down price and enjoy a decade of employment and share options.
The company is in the middle of strategic review so why give away 6.3% of the company in the meantime at a knockdown price before the review is conducted. There may be some sense in the action if the price offered was irresistible. They have given 6.3% of the company at under 17pence when Cascabel alone is worth hell of a lot more than poultry 17p. It may be that the company is in dire need of cash but then there must be cheaper ways of raising bridging finance till the review is completed, after all we have tier1 assets.
There is some talk on the board that this has been done to entice BHP to bid. What a price to cut one’s own nose to spite the face. In any case - BHP have got their slice at much higher price than Jiangxi, why should Jiangxi be in any more hurry to bid than BHP. IMHO all it has done is introduce yet another player to make takeover difficult – May that is the answer BOD is looking for in strategic review