Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Breaking news - Redde's non executive chairman has other non executive directorships....and...er...that's a problem innit. Non executive directors should only have one directorship coz you know they might get a bit distracted by their other non executive roles. Give me strength...!
If the company is not going to appeal either because it can't or because it won't then it has no business activity so a reverse takeover is probably the only option as others have said. In order to dilute you need a market for the shares plus someone prepared to participate in a placing. If the company has no activity whatsoever (and no market) then who will be interested in a placing? If OXS is allowed to appeal and wishes to do so then at least there is some scope for both a market and an institutional placing, although I would think with the original judgement going against the company it will be viewed as being even more risky than it ws.
I keep reading conflicting reports on this. The official RNS suggests that it is an all share offer with a cash dividend of 3p, Various stuff in the press talks about a cash offer but I can't find anything "official" that supports that.
The annual 80p divs are paid in quarterly chunks of 20p so ex div price on 14th May (Q1 ex div date) should in theory be about 20p lower than the market price immediately before it goes xd. Based on price now that would be 1520p.
It seems to have just hit 69p. No real idea why other than perhaps it is a re-rating due to positive views on the effect of the Columbus acquisition plus of course the brokers recent 87p target....On reflection it could be regarded as a share that is immune from the effects of our election (Central American/Caribbean operator based in Florida) so it is being viewed as a safe haven? Just some thoughts....
Thanks for that, I guess an adverse share move is likely over here when the share comes out of suspension. It sounds as though Ana Botin has resolved to shake things up a bit, maybe some short term(ish) pain but long term gain as you say.
I think the shares are suspended now both in Span and here. Any movement showing would therefore be what occurred prior to the suspension. The news today is mixed and how the market reacts tomorrow is anybody's guess. There was clearly some leaking as when the results came out recently (which were good) the share price dropped and in fact it has walked down from somewhere near £6 to about £5. The size of the dividend cut is a bit of a shock although it is not an immediate cut. I have read that the bank intend to get to a point in future years where they distribute about 30 or 40% of profits as a cash dividend and move away from the scrip dividends. The strengthening of the capital base will be perceived as being a good thing, albeit with dilution, but as commonstock pointed out earlier there is regular dilution every quarter with the scrip dividends so its not as though the concept is anything new. As I said before I have no idea how the market will react but its not all bad news.
As is usually the case the market is looking short term and seeing debt and dilution. The positives coming from the Columbus deal are as yet unproven and regarded as "jam tomorrow". So the key issue for holders is whether you trust the board to have made a game changing acquisition, if you do then some patience may be required. For those of us who have the patience, as ecovest has pointed out, there is the sweetener that the dividend is maintained at the same level.
I am a long term holder here and like the prospects. But I woudn't get too excited about the two trades you referred to. Bentley bought because it was a condition of his employment (bit unlucky with the timing imo) and the large trade after close of play was an uncrossing trade.
You can't buy Afferro shares at any price as the company has now been taken over and delisted.
Still cracking on upwards today with no apparent sign of profit taking yet.
I didn't think you were deramping and your scepticism of a takeover is perfectly justifiable in the absence of anything concrete being put in the public domain. It sounds like you have hedged your bets with your shareholding and no one could ever say that was wrong. I responded as I did because you appeared to be somewhat impatient about the lack of news whereas there are quite a few people who bought this stock for yield and long term growth and who will not be distraught if a takeover doesn't happen now. I must apologise for an obvious typo in my previous post - "Alphaville" should of course have read "AlphaValue".
If you are sceptical and a short termist then you should probably sell sharpish. The share price may have underperformed today but it certainly hasn't over the last week. It is, of course, quite possible that there is no potential predator lurking. I suppose it's possible that some of the recent price movement has an element of re-rate about it, after all Alphaville have been calling it at over 54p for a while now. For my part I shall remain invested here as I have been for about 18 months having bought in at about 30p. As I seei it this is a stock with a good yield that has potential for some excellent capital growth whether short term or long term. That growth could come from a takeover or simply from the newly restructured business performing well. Either way I have thought for some time this was a decent stock to be in, and if the takeover doesn't happen this time, and the share price inevitably dips, I'll be patient and keep collecting the dividends.
Still rising on huge volumes again today, if this is all based on "rumour" then it must be from a fairly credible source.
Interesting that the market is only putting a value of 4p or 5p on the second tranche of the value that is being paid by IMIC in two years time.
Today's RNS has been well received by the market it seems.
It's probably because of what we do know about. Buy now at 84p and yuu will receive 80p per share in cash as soon as the deal goes through plus 46p per share (in cash or shares) in 2 years time
Agree 100%.