Member Info for WolfofWarks

Look over the pond and at the NASDAQ mate

Been a nice little cash cow for them eh?

Given the RNS yesterday I’m assuming they are intending to pay the bond due, assuming they are granted the license again.

I would hazard a guess that current liquidity isn’t an issue.

All of the shares held via a broker are in nominee accounts most likely. It’s the way the system works.

This situation was brought on by Putin, it’s hardly the UK Gov’s fault.

You’ve got your view that it’s better to hold paper in this scenario. But why? What evidence have you got to back up your claims. Do you have any financial expertise that qualifies you to convince others to do the same? What happens when trading starts again? Who is going to want to buy paper certificates in todays technology driven market. Or are you suggesting that people should be paying to transfer to paper (paying fees, possible stamp duty - maybe even capital gains on disposal) and then paying again to transfer back into paper shares in the event of the suspension being lifted.

I think this is a more likely outcome from holding a paper certificate with no large broker looking after your interests.

How on earth are you as a PI going to hold the management to account when they are tucked away on a foreign exchange and you have no institutional representation.

You might as well stick your paper certificates on the fire for all they’ll be worth.

I think you’ll have more protections under LSE and UK Government held through a broker than taking a piece of paper and being held at the whim of a majority Russian ownership and the Russian exchange.

Infinity - do you have any financial credentials to back up the risks and options you believe you have outlined here?

You have no idea of whether a buyout, for example, could be on the cards in any of the scenarios that you have mentioned. You don’t even know at what level the company is trading.

You shouldn’t really be dishing out advice on whether shares are better held though a broker or in paper form. All of the broker emails I have read are very careful not to offer any advice in this regard and I’m pretty sure at this point they would probably want this mess of their books.

There are two important considerations here. If your shares remain in the custody of free trade you have the £85k guarantee should your broker fail. They are far more better equipped to deal with whatever is thrown at the PI base as a collective rather then individual PIs with their paper certificates.

Secondly does the transfer to paper certificates result in a disposal for the purposes of capital gains? The main reason I ask is I’m sure the Evraz RNS mentioned stamp duty being payable which which suggest to me this is an identifiable transaction for the purposes of taxation.

What the transfer value would be would be anyone’s guess but anyone sitting on a large gain at the last known SP might want to give this consideration if their shares are not held in a SIPP or ISA or at least seek the advise of a tax advisor.

“Most miners have got themselves in the position they have to take on debt themselves going forward, as every shareholder has been paying for their gambling on future prices as you rightly say. “

This is a very good point. Whose coughing up for the next round of funding for the miners? Shareholders bled dry, crypto credit sources shaky and probably tapped out.

It’s telling how many btc are being sold now at the bottom of the market to keep the lights on.

So basically if you don’t move your shares from the broker into your own name you will never be able to deal with the company direct.

Given what could potentially happen here in the future if it was me I would be putting the shares in my own name and being in charge of my own destiny.

Was just about to say the same thing selecta. I think they go through the tax system as a reduction in the cost of investment when working out any capital gain.

He became a Portuguese citizen after we ended his visa long before the war ….

Yes you would have to sell out if one and buy in another, which you can’t do obviously while suspended.

Tax wise I’m not sure what the benefit would be anyway - SIPP won’t benefit tax wise from the loss as it’s already a tax free wrapper and if this was to resume trading and shoot off if you had a decent amount of shares you would be looking at a capital gain from any future disposal from your trading account.

With no credit insurance the first port of call would be a guarantee from a holding company (providing they were liquid) or if not a personal guarantee from a director, which wouldn't work here.

I haven't seen credit insurance come massively into play in my industry since the banking crisis where supply chains were desperate for their customers to have cover with their customers.

It's an historic process that no broker is going to want to undertake on the large scale required here. Modern investors demand trades at the touch of a button, not posting certificates to brokers and waiting. It would be like going back to DVDs and CDs.

I suspect this might be the first steps to taking the company private. Which companies with a public mandate can actually deal Ervaz now? Websites, accountants, share hosting services all gone, and that's all we've got exposure too. Imagine what is going on on a daily basis on the operation side. They must be losing contracts left, right and centre, hopefully Russian services can plug the gap but to the same quality?

I feels to me like the start of the great unwinding.

So once you have your paper shares who are you going to sell them to given everyone buys electronic shares now and which broker will be happy to take on this cumbersome work?

Even after sanctions this company will still be soiled.

From this weeks investors chronicle:

Cineworld 8.7%
Kingfisher 8.6%
Boohoo 7.8%
ASOS 7.3%
Naked Wines 6.7%

The energy piece doesn’t seem to be what’s it’s cracked up to be. I mean how cheap is this power (which doesn’t seem to be all that accessible) once you factor in the opportunity cost of the downtime?

So it turns out if something is too good to be true is usually is. The reason energy is cheap in Texas it’s because it’s unreliable.

That’s not great for a company whose largest overhead is power. Pardon my ignorance but are there a lot of other miners based in Texas and if not is there an area that is popular with miners, think Silicon Valley for tech companies?

Yes have to agree structurally this share is set up brilliantly for the long term.