Algoman - agreed, I thought a 1:1 RI was inevitable but 19:1 is scary. Unless you realise that 19:1 at a 90% discount is almost the same as 1:1 with no discount. Lots still to play for here.
I don't understand why you think we have any rights. Without an SOA we have to cover redress creditors in full. This bankrupts the company. We're not negotiating from a position if strength.
The only way of retaining any shareholder value is to make sure the NBS offers creditors the best redress and hope they vote for it. Then we can raise money for the redress pot and for new lending.
I seriously doubt the RI will be at market value. Could be 50, 75 or even 90% discount depending on the share price in a years time.
Precisely. As I see it both shareholders and creditors are best served by the New Business Scheme but at least there are valid arguments for why creditors might vote against: they think their claims are more likely to be validated by an administrator or they don't want Amigo to lend again on principle or, maybe, they want to give shareholders like Stevie a bloody nose!
Stevie - accusing someone if deramping in the same post that you say shareholders will reject the one chance of ever getting any money back... delusional
Who knows...if day traders pile in...it's happened before here.
This should be fun today! Could easily be a 100% rise at some point before the close...
LTHamigo
Why will there "HAVE" to be discussions with shareholders.? Without an SOA were bust. The default is administration. Once we're past the creditor vote and court shareholders will have a choice to vote for dilution or wind down.
Sorry I just don't agree. If both schemes pass the creditor vote (likely), the court will sanction the New Business Scheme but allow wind down as a fallback. SOA3 is not going to happen. Noone is going to sanction further delays just because shareholders are taking a financial hit. All this action by ASAG is doing is adding another level of uncertainty and keeping the SP down.
I understand the anger of shareholders with how this has gone and, personally, I think that Gary should have resigned after the debacle of the first court.
Finally, as many have posted, dilution isn't necessarily terrible as long as you have the cash to keep your share.
Oh for goodness sake! We have no influence with the judge or FCA. Get over yourselves! The only way shareholders can effect the SOA would be to vote against it if the creditors and court accept it, at that point it would be aiming a twelve bore at our own feet to object. You buy a share, you accept it might be worthless.
I have just received the following from Investor Relations at Amigo with regard to the phone calls. Seems fair. I haven't had a response to my concerns about the text messages yet.
Thank you for your email.
We have worked very hard to make the Scheme process as clear as possible for customers so that they have access to all necessary information and can make their decision based on their individual circumstances and preferences. As part of this process, we have taken steps to check whether Amigo’s proposals are understood and whether there are any improvements we can make to Amigo’s communications about the Schemes. That involves calling a randomly selected sample of people to ask about why they voted the way they did. That process is nearly complete and it has involved calling equal numbers of people who have (a) voted ‘yes’ for both schemes, (b) voted ‘no’ for both schemes, (c) voted ‘yes’ for the New Business Scheme and ‘no’ for the Wind-Down Scheme, and (d) voted ‘no’ for the New Business Scheme and ‘yes’ for the Wind-Down Scheme. We certainly did not intend to suggest that anybody should change their vote, and we are checking to ensure that this did not happen.
I hope this helps to allay your concerns.
Stevie - the Text literally starts:
Hello *name* Vote for your Money!
It's not subtle at all, reads more like an advert than a serious discussion of the merits of the options. After the effort that has gone in to all the explanatory statements, this is really tacky.
I'm at my wit's end with this company. After all the hard work of putting together SOA2, why on earth are Amigo risking everything by contacting creditors and trying to influence their votes. I've seen multiple credible examples now of phone calls and text messages sent from Amigo to creditors and, in my opinion, they cross the line into influencing. God knows what the judge will make if it.
I have contacted Amigo Investor Relations asking for confirmation that this is happening but haven't yet had a response.
I would also like to add that our cause is not being helped by posters from this site infiltrating the Facebook Creditors Group. What you think your achieve by alienating people who we are all relying on to vote for our preferred scheme I don't know but it isn't very bright.
Fundamentally Sara believes that all sub-prime lending is bad as it targets vulnerable people who feel they have to borrow to have the things that society is telling them will make them happy. She doesn't believe borrowers or guarantors have personal responsibility because, essentially, she believes they aren't educated enough to understand the product. Therefore all sub-prime lending was miss-sold and all sub-prime lenders should go to the wall. She now has a Facebook page full of people who reinforce those beliefs and she has stopped questioning anything.
She would be better off tackling the societal pressures that promote the need to borrow but I guess it's a lot easier to go for the symptom than the cause. She has no answer when you ask her what is going to replace sub-prime lending - presumably she simply thinks they simply shouldn't be allowed to borrow. Easy to say when - like her - you've seemingly retired in your late 40s and can devote your entire existence to a not for profit.
Ultimately, I doubt she has much respect for her disciples and she has no qualms manipulating them to vote in a way that is less favourable to them financially but supports her ideology. Fortunately for us she's one voice influencing maybe half the people in her Facebook group. All the CMCs will be recommended approval of the new scheme as it benefits them, so I am very certain it will go our way.
Bryn81 - Just remember that last time they voted 90% in favour of a less favourable scheme, so its probably not worth driving yourself crazy reading their Facebook page also the more disrespectful shareholders are towards creditors the more likely they are to vote against just out of spite. Both creditors and shareholders are best served by passing the new scheme, so it makes no sense to oppose one another.
Red inky and eye-of-the-bull....try reading the post again...I know you're programmed to just pick out numbers and disparage them but try to concentrate...
I stand by the pointlessness of selling now. To make money selling at this level you had to be in the stock 2 weeks ago at 3pish or were lucky enough to get in early in the rise (few would have managed). To have stayed in this long means you aren't a day traders, so why not leave it until the next inevitable rise.
Now I know it's not "inevitable" but the next hurdle is a vote on whether to take 28p in the £ or 42p...I'd say it's a very very strong chance that it's the latter and almost certain there will be a rise to above these levels in the run up.
Anyway I'm going into hibernation until May with an upper limit to sell at 14 just in case.
GLA
Red inky - so you buy on a rumour of good news coming, don't sell on the spike last week, don't sell on the drop after last week's spike, don't sell on today's spike....then sell on today's drop? Some people deserve to lose money!
Who is selling at 5.9? I understand taking a profit at 7+ but surely if you were going to sell at 5.9 you got out last week? Weird...
We will have to wait and see won't we bullseye. As Franky says, an investor capable of taking part in the RI is getting a low entry price for a start up with experience in the sector. A sector with little remaining competition and likely to grow strongly in the current climate.
Of course it could still get spikey around here on rumours of and run up to key dates as day traders will target it. I would be very surprised if it doesn't see 10p at some point in April or May, so medium term traders should look closely at the current SP
Buzz - I like that reading. The initial spike will have triggered lots of sells from those than missed out last week and didn't want to hold long-term. Hopefully a steady rise now the news has been digested. It's another hurdle overcome, can only be good news!