The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
There's been a lot of comments here about how inflation is increases the price of gold, and naturally how this is good for GGP. This seems to miss that inflation pushes interest rates up, making borrowing more expensive (obvs bad for GGP operationally), and makes saving more desirable (better intersest rates) increasing peoples needed return for the risk, so driving demand for the shares down. Personally, suspect this is part of why GGP is hardly taking off as production draws near. A fall in interest rates and I think things would really take off, even if the price of gold cools.
Radhart - yeah, looks like Google accounts for this (and does your job for you!). 24/02 was 522, SP was sitting around 650 mid Jan
Hrm, the only people that lost out today are those that bought either on the spike at the end of Nov, pre-corona or first thing this morning given the fair, if not generous share offer.
Looking ahead, I think buying shares in TUI at the current price is risky with the newly minted stocks hitting the market end of month, but the prices definitely hasn't crashed today given the stock options.
Always will be wary of Bitcoin and Tesla as the price isn't build on fundamentals - only what the next person is willing to pay. Last out, can you turn off the lights?
"08 Jan - Existing shares and DIs marked ex-entitlement; Subscription Period begins and Subscription Rights trading on HSE and FSE begins"
Presume this would mean prior to opening today the share became ex-entitlement. Otherwise these shares at the current price are a total bargain. - or err, too good to be true..
At it's current price of 381p - if you paid 513p you'd break even provided you have the cash to subscribe. If you bought post covid crash - if priced holds you'll do OK (ignoring the spike in late Nov). The €1.07 subscription price is pretty generous I think.
Using yesterdays close of £4.87 and there being 5.90m shares outstanding - this would be a market cap of £2.874b
Adding another 5.08m shares at 97p would bring in £489m cash. This (again using yesterdays close) a mkt cap of £3.363b with 1.1b shares outstanding.
So using yesterdays close and the additional shares and cash - gets me to a value of £3.06
Obviously a few assumptions in that - but would say, definitely take up the rights issue if you can - but may be wait a bit before buying new shares as may fall a bit more. As above, would guess TERP of £3.20 - £3.05
Think people are nervy about a no deal and waking up to a hefty drop come Monday. Some uncertainty is baked in sure, but this isn't a no-deal price at the moment.
famous last words..
First time caller long time listener,
If I put a buy order through HL - would this show as a buy or sell on the trades? Presumably a buy but alas not?
Thanks