RE: Share consolidation4 Nov 2020 02:53
1509, agreed. Why would BRH dump their 310M shares on the market? Hold? Managed sell off?
If they hold them then the free float here has not changed. If you cannot buy shares to cover a short position would you want to short this before takeover?
Takeover today is all about the closing share price the market cap and the free float.
Do the maths with various market cap scenarios.
£20M, £50M, £100M.
If the share price closes low today then tomorrow it rerates. If shorters cannot close positions (due to the limited availablity to buy) then RMS rerates fast.
If the share price rises to give £100 Market cap today, then the takeover I would argue impacts shareholders more! A rerate does not happen. Sales can only move the market cap.
So where is the equilibrium position??
Today we find out!
Expect Volatility and large ATR to occur today.
The point I make is that a lower close today could be of significant value to shareholders as the market cap rerates tomorrow.
So everyone today has a dichotomy. Holders and shorters!!
Its all about the market cap and as a LTH the bigger picture.
Where do I see the market cap in 6 months?
£20M, £50M, £100M, £200M, ...
ThIs for me is NCYT2!
Like testing, where the best tests rise to the top, the ability for the UK to manufacture and licence a covid KILLER face masks and other covid KILLER products is of significant benefit to UK plc.
UK Manufacturing is needed to pay back the covid pandemic bills.
Control of PPE Quality was a major learning outcome from wave 1 for me! More reason to procure from UK suppliers!
Lets see if our products are also licensed to global face mask suppliers as is anticipated by the BoD! See the RNS:
https://www.investegate.co.uk/braveheart-inv-group--brh-/rns/final-results/202008040700029977U/
"P2F will seek both to manufacture disposable face masks in-house and to licence its technology to major face mask producers, in order to supply a global market".
The RMS production line, has the capacity to produce up to five million standard or anti-viral face masks per month.
DYOR! GLA!
Hold for gold!
Hands, FACE, Space