Member Info for zccax77

Not sure about that, the brand has been tarnished and diluted in the last few months, will take years to recover fully.

The BoD need to be cleared out. Before the announcement the sp was 1550p compared to 530p now. That is almost 1bn of value diluted/destroyed to get in 120mn from the BCR. The 350mn is to show the BCR that they will be matching the 120mn which they won. Probably the most banal thing I have ever seen.

If the rights issue is above the market price, I imagine there will be fireworks and an implosion of the shorts. There arn't a lot of shares held by PI's on this, so I can only imagine the shorter's will be staring at a 8 lane highway turning into mountain goat pass in order to close their shorts.

Sources said this weekend that a placing would help the company, which has been beset by rumours that it is struggling to raise capital, issue new equity at, or potentially above, the current market price.

https://news.sky.com/story/embattled-metro-bank-to-unveil-350m-placing-11717260

HH was waiting for you to pop in, didn’t take long, lol!!

Crazy to sell now, this thing has more value in run-off than the current sp. Lehman’s European operations liquidation are only now being finalized and they are seeing a surplus of billions.

These guys need capital to grow and somehow they turn it into an existential event by creating so much negative sentiment in the market place. This rights issue will be their undoing, anyone who acquired them will book zero goodwill as an intangible.

The only certainty we have is the BoD effing up again, 100% guaranteed.

I agree, now they are actively trying to create a bank run. The terms of this rights issue should have been thrashed out months ago. The FCA are monitoring this and no doubt now pressuring the BoD to resolve. I now expect a brand new bod in the next few weeks, these lot are a complete shambles first the rwa cock up, then lie and finally declare a rights issue which they did not need without terms and sit on it for months whilst the sp falls and falls whilst the vultures circle.

Still in, but getting the RI underway would be at too high a dilution cost. MTRO now trades at 60%+ discount to BV, this is now the cheapest bank out there, all it needs is a new set of BoD's and new strategy, none of this dog bowl BS. Look at how profitable some of the other challenger banks are.

At these levels they are unlikely to get the rights issue under way, 350m is just too large to absorb for a 500m mc company. Looks like they will now have to sell some of their risky asssets through securitization. They left it too late for a rights issue by letting the sp slide and slide.

I am glad he has roped all HNW mates into this venture. Not sure he will have many golfing buddies in the future.

Why would anyone invest in a company where the sp can go from 40 to 5.

450p is now a pipe dream, not sure they will be able to raise 350m anymore. A great way to completely implode your share price.

every day this rights issue looks more and more futile. I am just xtremely doubtful of it being resolved by the AGM date.

I am surprised the FCA/PRA/BOE are not now getting involved and forcing their hand. The BoD are now inviting a run on the bank with all this bad PR. When punters look at the falling sp the only conclusion they will come to is Nortern Rock and will want to take their money out. Furthermore all this bad publicity will complete decimate the brand.

I sense a re-entry price of £2.40, when there is 65% discount to book value.

As Warren Buffett says. No one ever wants to buy when there is a sale on. The only reason this is down to a few mishaps and a unpriced rights issue. Nothing wrong with the underlying business apart from shorters trying to start a run on the bank.

This will spike post rights issue. The additional capital is being used for growth to match the BCR funding. Secondly MTRO is now the cheapest bank in tha uk from a price/BV perspective, most banks of this size trade at a 1+ multiple of book value. They are also profitable

I doubt there will be a blood bath look at the results of last years agm. This is hills baby so he is not going anywhere. Donaldson seems incredibly good based on the results call, it will be difficult to replace him. So I don’t think there will be any changes overall to the main protagonists.