Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
seem to have missed the case here.
Most problems with shares is determining what the right value is - which is why many duffers overshoot based on hype and twitter etc.
Here, someone has done due diligence for us, committed to a min of 10p and will increase it if another party pops up i.e it is worth more than 10p. All to be resolved in less than 30 days.
And someone sells 136k at 9.2p - giving Hanover [or me] £1,088 .
I suppose people who are already 200% up aren't bothered with any potential risk/reward of holding another month. 10p looks like the most likely outcome here IMO, so for the sake of 5% or so is it worth them holding. What if the worst happened and the deal didn't go through? I can see why people are gambling here, but I can also see why people in profit are now selling. There's a lot more than 5% to be made elsewhere over the next month with the profit they've made. That's their reasoning I imagine.
Always winning do you hold shares here?
I did hold here a little while ago from 4p to just over 7p. Not now though, just sitting on the sidelines. I just find the argument that people who are 200%+ in profit selling a shade below 10p are somehow crazy a little irksome. I mean they're massively in profit ffs, so why not sell and make hay elsewhere now. Not saying there won't be a counter offer, but it isn't likely at this point I don't think.
I agree that the company is worth more than the offer. The problem I have is that the board have obviously manufactured this situation IMO. The board are obviously going to threaten shareholders that they will take this over a cliff from now on the 15th November if they don't take the 10p offer. It doesn't matter what funds are in deep here because they don't have any executive power. They can club together and offer to give the company a few million for free if they like, but I'm sure the board wouldn't accept it because they want the company in this situation. Everything here has been done by design IMO and I think it's too late to stop them getting their way now.
Depends upon how pro-active the iis want to be.
They would win breach of fiduciary cases against the BOD if a higher offer came in - it would be obvious it was blocked to save their jobs. So they could destroy the BOD.
Comes down to do they want a quiet life or get peed off. -whatever, it will be very interesting.
Anyway, pointless continuing - everyone has to take their own view
Whatever happens, I hope you do well here either way.