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Did anyone on here buy the shares offered through through Primary Bid last week? The reason for asking is that mine have not yet arrived in my Investment account - I am told this will happen some time next week. Admission was on the morning of Monday 20th July according to Nanoco's press release. That seems like a very long time from admission to settlement! Would welcome any observations.
Tony 99 - agreed. With the AA business model I cannot see how more cars on the road is a massive positive! As you say the last few months have meant that the AA has been collecting its membership fees and incurring very little cost due to the lack of cars on the road breaking down - a cash pile is possible?!
Ruxie, that is a question I have been pondering. I don’t get what that trade is achieving - but there again I do not know much about the intricacies of this sort of trading. Anyone able to pull the curtains?
Noted. This is a risky share. Potentially high reward, also potentially wipe out. I have had experience of both scenarios! It is not complicated - invest if you have the appetite for the risk - stay away if not.
I think if you get free shares they go into your ISA without any problem. The £20k a year limit only applies to money being paid into the ISA - not shares you are allotted free of charge from an investment you already hold..
No - Av have not changed their mind. The punters on this thread are talking about a company called Ferrexpo I think - but I am not sure why. It has nothing to do with Aviva. Anyone investing in Aviva should not bring Ferrexpo into their thought process I would suggest. Totally different market.
For clarification I am old school and when I refer to a balance sheet it is now referred to as a consolidated statement of financial position - and the accounts are presented in €millions so in real money it is €120 billion!
Mole-man has obviously decided not to respond. But what he said was 100% correct - the company has accumulated losses of £120 million. It is there in black and white in its 2020 balance sheet. Am surprised people posting on here (who are presumably investors?) did not check this out.
A balance sheet documents the past. But if you want to be invested here you need to form an opinion on what the future holds.... imo.
167 million shares being issued at 60p each. That is more than double the number of shares currently in issue. As I said earlier this going to be good for the long term of the company and ensures it remains in business - but the short term share price?
I can offer an opinion on question 1, why they might cut the dividend:
- Stalwart “reliable” dividend payers from every sector have been cutting or chopping dividends on the back of COVID-19. Insurance, banking, oil, house builders you name it. Some of these undoubtedly have legit reasons for doing so. But my suspicion is that others have either been leant on (politically) or have jumped on a bandwagon. So any company reducing its dividend has almost got what looks like a free pass to do so in the current climate. Even though some of them have until recently been engaging in share buybacks, a tactic which any savvy investor would regard with massive cynicism. If this is a long term trend the consequences are potentially catastrophic - pension funds are just one victim that comes to mind. I do hope that whatever BT does is not too drastic.
Question 2 will be better dealt with by others on here.
Toff, thanks for that.
How do you know that institutional shareholders were dumping shares first thing and that these shares were bought by retail investors? What is your source foe that piece of information?
Toff, I am intrigued how you can you tell the identity of the buyers and sellers - is there some info out there on this? I always assumed that the company has to disclose any changes of shareholdings by institutions via RNS, but that is usually some time after the event. And other than that there is no way of telling who is buying and who is selling - am I wrong?
Possible reasons why it is not moving up, based on the company's own publicly available information:
- Fund raise of up to £100 million has been mentioned. No terms of this have been announced. The fact that it is underwritten suggests that it might involve shares being issued. Given that the market cap is currently less than £100 million perhaps there is nervousness that the number of shares required could result in massive dilution. The funds raise would be good for the company long term but it might trash the share price short term.
- The last director share purchase was 6 months ago at a price of £1.71. They have had plenty of opportunity to buy shares at these lower levels. So far they haven't.
- The last material institutional purchase was at a price of approx 35p. No others have taken place.
These are just my observations and others may well disagree.
PE currently less than 4. This is a share whose price is propelled by the dividend. If they don’t start making decent returns to shareholders (in the future) the BOD can look forward to a crap share price, crap PE - and crap remuneration.
I am really curious as to what the terms of this fund raise will be. WH Smith had a small placing that only increased the number of shares in issue by about 14%. They placed the shares at a discount of 4% to the previous recent share price.
So if COST are going to raise £100 million (more than double their Market cap) the current number of shares that are going to be issued is massive! If it is a rights issue (based on the current price then it is going to be something like three shares at 35p for every one held by the shareholders. This would nearly quadruple the number of shares in issue!
If the rights price isn't based on a discount to the current market price then no one would take it up. See Kier for a textbook example of that..