A very silly question....4 Aug 2015 12:42
All - sorry to ask what is a very 'silly' question but I am very new to share dealing and in particular AIM. I have never held a stock that was suspended, RTO'd, re-listed, consolidated etc.etc... however my situation is this:-
I "owned" 2,000,000 shares in VMP at a average buy-in price of 0.38pps (total invested £7648.00)
post consolidation and re-listing I will own 80,000 (25:1) shares at a possible listing price of 1.68pps (value now £1,344). For me to get my money 'back' this share price needs to get to 9.5pps (multiple of 5.6x current price). All this said, close price (prior to suspension) was 0.155p... 25x this is 3.875pps... is it not likely that it will resist at this price (with the offer price being heavily discounted to attract investment)... is this VERY naive?
Question 1: are my calculations/observations/assumptions correct?
Question 2: React are a relatively 'unknown quantity' to us all - one poster on here reckons the current MCAP supports the SP of 1.68p. Is anyone else in a similar situation to me and got any thoughts as to React's prospects? I have done some research into their operations (FM sector) and they are rather niche/specialist (possibly driving high value/margins - time will tell of course).
thanks in advance for any thoughts on this and once again - i acknowledge my naivety on this topic...