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Three times the number of sells so surprised the SP held up most the morning. Big sell volumes coming through right now so putting massive pressure on the SP. Can see some people taking profits which is understandable.
Just wondering if this a bad thing for ESL or not? It looks more like something to do with the audit companies.
I'll take a slow 2-3% SP rise a day compared to a massive rise on nothing. Always means the SP will pull back by nearly just as much if not more shortly after.
It's in regards to the brand name. ESL didn't own the rights to the brand name and had a yearly deal with STOBART GROUP LTD to use it. Now ESL will own the brand name directly which is a future cost saving of £3 million a year.
The thing is truth would Dbay be willing to cough up the money to purchase the rest @6p? It would cost them well over £10 million in order to do it. They already own a controlling stake so don't need to anyway. I guess it will depend on which option they think will net them the most profit over time. I think they will be in this for a fair few years. The PIK notes are already a great deal for them at 18% PA. But who really knows at this point. Time will only tell in the long run.
Interesting RNS that's for sure. Investors reacted as expected at open sending the SP up to nearly 9p. Bet some who got in at 5p be selling for a nice profit. Explains why the SP has slowly ticked down for the rest of the morning so far.
If Dbay did try to purchase rest of the remaining stake for 6p then I can imagine it would be rejected. Tbh they don't even need to. They alrdy own a majority stake and even if they do a rights issue to raise the 6 million. They would either only do enough so they keep a controlling stake or take part in the rights issue too and purchase more shares.
Don't get carried away too much. A steady rise and little pullbacks are always better than shooting straight for the moon in one move. We are still not back to the same price levels before the latest drop. The 4th day in a row of green so far. Not going to complain about that.
If the share price keeps above 7.3p support today then that's a really good sign and could mean the SP continues to move higher till about 8.5 levels. Might keep the momentum up until the AGM then have to see how people react to it.
@bigbadben My guess is some limit sell orders at those levels. So the buys aren't clearing them before more gets added. Meaning the SP isn't able to move higher. We need much higher buy volumes to start pushing the price back up. Until then any buys aren't budging the sell resistance.
There is nothing wrong with ramping if it's reasonable. Some just get carried away and pull numbers out of thin air.
SP seems down due to most markets in the red and think we are in for the 2nd market dip which happen in most recessions.
Rampers/ derampers will just come back again once the share price volatility comes back. People forgot that Dbay are the same group that turned ESL around in 2014. So id be surprised if they couldn't do it again so I have confidence in them. Yeah they will be looking for profit but tbh what person isn't when putting money into something. Got to take risks in order to make money. Otherwise might as well not bother and leave it in a saving account.
Maybe but many PI's would have gotten spooked anyway. How many people do you think that have invested in ESL have done their proper due diligence beforehand by researching and reading all the past relevant RNS's? I'd imagine a very small amount. Hell, most people on this board didn't even know ESL was a cash shell until their COVID-19 statement on the 24th March. Or even who owns what when it comes to the trading company.
A lot then started putting their tin hats on saying it's some massive market conspiracy and was designed to drive down the SP. Which I highly doubt. It was just a massive judgement mistake posting it last minute before trading ended on Thursday. It wouldn't surprise me if they got caught out by the bank holiday been moved this year to coincide with VE-day celebrations.
I think the RNS that they dropped last minute on Thursday was due to time notice they have to give before an AGM. Which has to be 21 days before the date. If they waited till Monday then they would have been only 19 days till the AGM and that would have then resulted in them breaking the rules on a notice period.
Well even if they didn't. They are still legally bound to disclose anything that happens at the AGM to all shareholders.
One thing I'm expecting is some SP volatility following the AGM on Sat 30th. Plus we should get some information afterwards given the fact no-one apart from 2 people can attend.
Also, I recommend everyone goes to the link below and read the letter to shareholders about the AGM which is posted.
https://eddiestobart.com/plc-info/letter-to-shareholder-and-notice-of-agm/
No funds to add to my position so I'm just a spectator this morning enjoying the shows.
Might be the case Gyr1 but that doesn't give the complete picture. People fall foul of noticing things they only want to see while ignoring others. We all do it even when it comes to things like oh building sites near me are open so must mean everything is fine. Plus we all don't stand outside watching something 24/7 so our brief view is very much obstructed.
Very much the case with ESL. Last week I only saw a handful of ESL lorries on my travels to work. This week I can't stop seeing them. Doesn't mean business is booming or dead. Results will only give us the objectional clarity we need. Not pure speculation that people on both sides seem to use as actual facts.
Not really factual truth unless u meant fictional. If not then you are speculating and making a per assumption on nothing apart from because they posted an RNS really late yesterday. Only becomes factual when it happens otherwise it's not.
Monday is going to be an interesting one that's for sure. Grab your popcorn and be ready for a ride. If the SP goes down then expect a bounce off at previous lows from mid-March. (5p) Doesn't mean it can't go lower but that's where buyers came in last time. If it goes up instead then expect resistance around 7.2p. Obviously we won't know till the day so will be interesting to see what happens.
That's why I don't think Dbay will stuff shareholders in the long run. They just need to rane in the debt that the trading company at the time decided was a great idea with racking up to make big purchases. Tried expanding too fast and the accounting error last year took it over the edge. Not to mention also paying dividends which should have gone to paying down the debt. But guess that was to reward shareholders and line some peoples pockets at the companies expense.
I think some people really need to take a step back for a few days. Go enjoy the bank holiday weekend and come back on Sunday with a clear head. Too many letting their emotion do the talking. The only thing that has changed in regards to that RNS was the deadline got extended. Nothing else.
Dropping it 6 minutes before the close was a very poor judgement call from whoever decided it. What happens when you don't give anyone enough time to read over and actually understand an RNS. Panic and bad decisions. I've got a feeling there are far too many people who haven't done their own due diligence with actually researching ESL situation and going back through the RNS's. Then when they finally read the latest one. Guess what...... shock and panic leading to some selling ASAP.
Glad I'm working over the weekend so don't have to think about it until Monday morning.