Member Info for WhichWayNow

Did they know there would be a discounted equity raise. No.

Did they use their experience and judge the market well. Yes.

They de-risked in case the company was unable to raise the money and the SP crashed. And they then took the opportunity to increase their holding, probably because they like the potential they saw. And the money they reinvested helped the company.
A lot of the heat on this BB has been caused by a few people warning this was going to happen (it pretty much always does) and attracting the ire of LTH.

Surely there is a lesson for many to learn. Sell at around 20p in Feb and buy back at a lower price when the discounted placing happens. A big profit and importantly puts 'new' money into SXX.

Thanks. I agree there should be limited short-term effect given the 90 stay of execution. And in the long run people will migrate away from Huawei if the services are not good. Despite this, I think stories of ‘technology cold wars’ are likely to multiply and affect sentiment. So I e reduced my holding at a slight loss and will monitor for a while.

GLA

Results are as expected, but the Q1 production figures are disappointing (down 15% on the year end). And I had expected more news on the success or otherwise of the work over programme. Multiple work overs were expected by 'mid-year' from a rig that was 'being mobilised' according to a previous RNS. It feels like they are already behind the ambitious work programme they promised.

The equivalent in the Oil & gas sector is a farm in by one of the majors (BP, Shell, etc.). It typically sends the SP surging. Whilst the terms are not great for LTH and there are a few weeks diligence to do, this mine will now get built. As a new holder this definitely feels like the time to build a stake.

Chilting

Do you really think the IIs have not had specialists in to advice on crop trials, and that PIs have a better understanding of the potential? Seriously?

Taufour. I accept what you say about A and O trades, but the vast majority are A trades for SXX. The off-book trades are often reported late, but the snap-shots of the trading day I've just looked at for SXX are overwhelmingly A.

The point I'm making is that I don't believe MMs are manipulating the price of a stock so large and liquid as SXX.

Im sure you can trace patterns. But it is an automated system. There are no market makers. So unless your saying that SETS is fundamentally flawed, it simply reflects the balance of buys vs sells, rather than 'the mm fleeced us' or 'the mm are walking it down for a buyer'.

The trading system is SETS. No market makers.

The issue as many will know is that the simplistic algorithm that colours them red/blue on the various websites is only very approximate. You can’t use it to make any judgements or decisions

It would be good if the Exchange reported the data better.

Given that SXX is traded on SETS then no market makers are involved.

And given a convertible bond arbitrage involves shorting the stock this will drive the share price lower rather than than providing support.

Based on the 'fully funded' statement it would seem they have:

Ganfeng meet 50% of project cost - nominally $210m
Loan facility $150m
Equity investment £22m ~$30m

That leaves them a nominal $30m short of the $420m target, which is what I would assume is a~7% saving target. I recognise there will be some working capital requirements as well, but the numbers look positive!

Very positive message on full funding. Implication that Hanwa will invest more and I'm sure I heard words to the effect that funding was effectively secured.

Anyone care to speculate on whether the Huawei/Google issue will affect BGO. It looks as if Huawei phones may lose access to Google services.

I'm sure HMI will in time. But this is their first year and there explicit strategy is to grow their local market.

BOPD farms in Parana. Several hundred miles from the mine. No wonder they won't deliver........

I also suspect a seller in the background and am using the fall to build a stake.

Everyone has an opinion, but no one knows for sure whether the SP will go below 15p. Either way the OO will go ahead.

This is a good explanation:

https://palmersquarecap.com/pdf/PS_Convertible-Bond-Arbitrage_081312.pdf

And now we're in the high 50s and the the herd is arriving! Does the analogy work both ways?

And don't forget that the Apr 16 fundraising from K and CA was at a significant premium (15p)to the market price (10-11p). The warrants would appear to have been well-earned.