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Here is two examples below that were to a premium. I've seen many more over the years. What happens is the shares are issued closer to actual nav or value regardless of U.K. market pricing. That day the RNS goes out the price gets marked up. Personally I think when a business is accounting its nav regularly it shouldn't be aloud to issue equity or even trade under a certain level as it exposes the business to attack and take over and the U.K. law should protect U.K. businesses.
This type of financing is not good. £2m financing has knocked way more than £2m off the market cap. Because it was given away. I'm sure £2m tried to be bought on the open market would have pushed the price over 29p. I would also ask, did it drop to 29p because those in the know were selling there holdings at 36p recently knowing they would be getting 25p gifts soon.
https://www.lse.co.uk/rns/SNT/issue-of-equity-hkle8gn9v5y6cv0.html
https://www.lse.co.uk/rns/TNT/issue-of-equity-8zk43hhzyag8ejx.html
Even cheaper today, one of the problems when you sell stuff for less than it's worth, the perceived value drops.
10 reasons why its sh*t. The most obvious being lack of communication again.
1.Nav over 40p, They could have raised at 35p and it would still be "discounted" & oversubscribed.
2. For 2millions worth of shares to be bought "open market" Would push the price way higher. Here we let them in cheap.
3. These "investors" aren't "investors", they are short term flippers and hurt price action.
4. The recent highs won't be seen again soon until all the selling pressure has gone.
5. We have asked many times to be included via primary bid.
6. Looks and stinks like mates rates corruption.
7. It will drop further like it has this morning and will in poor market conditions drop further.
8. You can raise at a premium to share price, it does happen in undervalued companies as it would cost any big investor if they tried open market.
9. Most of those sales yesterday would have been from trigger stop losses which would have wiped out many who were tipped this.
10. CEO implied and hinted last year, "no need for more fund raises".
In short, stop being t-nucs BOD.
We just had results that were excellent. NAV is over 40p. Yet they raise at 25p!!??
It's like me getting round the estate agent to value my house for rent, I'm told £1200PCM is achievable so I rent it out for £700. It's corruption and it stinks.
Where did you pick them up?
As an existing investor, this RNS is the first I head about another raise, Looks like an Irish one where we go backwards (Don't take offence, I'm Irish).
No wonder it's over subscribed when they give money away so easily. Again for such a low amount, no need to discount this much. As if we haven't had it hard enough with the Tech fall out. No Primary Bid means no "normal" investor gets a look in.
As much as I like what this company has and how undervalued it is, it always kicks you in the balls and reminds you its an aim company. Don't get too comfortable thinking it's a "solid" investment. Placings hurt and they still aren't learning after all our last moans.
Wow, when you thought you'd seen crazy.. It gets worse.
A couple of observations. I love a high risk play but to be fair, this year that has burnt me a few times. So worth saying, always only ever take risks with small parts of your portfolio you are prepared to lose.
1. This is not a rug pull. The team are trying to and have been trying to fix things. (NOT VERY WELL SO FAR!)
2. This was clearly an attack, could be by many. The Luna chain was getting busier the ETH in areas.
3. There is a whole host of developers and apps that have gone nowhere and are deployed on the L1.
4. They are all part of that community.
5. All of this is cascaded by leverage trading which is now being halted by exchanges.
6. If crypto is "community" based, why aren't the whole community (the ones who weren't recked) helping and now buying.
7. In doing so, they would prove community works, In doing so, every one entering at the under $1 would have the chance of 100x by next bull run.
I've bought a small amount of both. They are kind of hedging each other currently as tether recovers, Luna dilutes. I am fully prepared to lose it all.
Started buying here today again also, has been a painful year but still hold some and am planing to add throughout the bear market ready for 2025.
Make sure you turn off and enjoy life when markets get like this. Long term always rides it out. If you need your money, hold cash.
GLA
Different ball game indeed. More dilution, more shares issued, this time at a discount of over 30% to todays price. That's with some warrants at a 15% discount to current share price, with a life till 2025!!
If there are any here left thinking this is good, Please please go and read more investment books and educate yourself rather than listening to some very deluded people on a BB.
This is only good if you are venus capital.
Great news today, Touch under what NAV i was expecting of 40p but it was up to Nov21. Way over that now.
R.E. Two years for float or exit. BELL done, LUCY being done. Still on track I would say.
Great little firm with a very bright future.
I think you are correct about the 28p shares. However, looking at today, they look to be running thin on sales. I'm sure we are due final results any day which will confirm a NAV at Dec21 of over 40p. Add all the news this year so far and you know we are way above the Dec21 NAV now too.
Hi Seaman, Going to be a serious company for TEK. Starting to look very interesting.
Morning TC. The beast is awakening! 100% owned and going to be a giant market. Guident news not really moving the SP which is crazy as the current price is more than covered by BELL and LUCY.
So exciting watching Guident quietly grow. Completely under the radar.
GLA
Very high risk as historically shareholders get shafted a lot with small firms. Which you wouldn't think a £1bn revenue firm would be classed as small but this is at serious micro cap level.
However, the up side from here, could be very attractive if it's saved and the listing is also. To much risk for anything other than a small punt for me but even that could do well if it turns around. Interested to see what happens. However my faith in UK markets isn't high!
That £3m you mention would by the whole company now.
Something very very odd going on here. Company with £1bn in turnover is £3m in market cap. Yes it has high debts but this is way off. Stinks of planned (hidden hand) take over.
A 1% profit margin and it's 10m profit. Get it to 2% £20m profit. That's not a hard task for a retail management team. Well enough to service debt also.
So why are the UK markets again valuing our home grown businesses so low again???
£3m market cap!!
someone will buy this and sort the management. There on these boards with Pensions big enough to do that very thing. However I think it will be Investment firms like we see today. BNY Mellon connected. What is going on here?
Small punt taken.
You are correct, that was well over a year ago.
Those mark ups don't include the discount on the shares. Last CLN firm were making hay here. But looks like the liquidity wasn't enough. All these deals are simply costing shareholders. Shareholders are not the "investors" making money here. Serious returns are being made by what is equivalent to loan sharks and it's been this way for some time now.
Looks like working with AZ makes you resign.. Personally I think he should.
50% drop is because the shares were offered 60% under market value at last close. Not rocket science is it. Shambles of a company, just like SYME. As much as i hate to say it, TW was correct on both these.
Indeed they were Mick. Would have been great had we been in business by now and "flying". Back then I was 99% convinced we would be and thought we may even see a divided by year end 22. We live and learn.
Indeed Knowles, If only AZ delivered on promises. That may have been possible. Does look like it was all based on half truths though now. Storm Harbour was due 2020!! Its 2022 and still no sign.
MSMN tried it a few months back. Shares had fallen to 0.007 - 0.010. There was investors there few years ago who paid 30-40p. Imagine that, you pay 40p, after ten years they want to dilute your 10th of a penny share that used to be 40p. The share holders refused and voted against.
SAR have done it recently, COPL have done it recently. It's what early stage and poor performing companies do, they have no profit so need shares issues to keep the business going. Some come good after, others dilute again for the foreseeable future.
Anyone else with a LTD company would be bust a long time ago, however if you have willing investors, you can keep going for as long as they fund you.
It's inevitable here too if profits don't start to come. I can't think of any other company listed with as many shares as SYME. It's 37billion odd. Or a market cap of £6,000,000,000 (billion) if we get Hughez 16p. (this bb is the best for comedy)