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Devon, my hands are held up - you were right again.
The timing of this is very suspect, my interpretation of things being that the company is now turning round sharply and profitable days are on the horizon boosted by non stop Showpiece offerings. In addition, much of the legacy stuff is now well and over, and Phoenix clearly do not want to share the bonanza ahead.
I think that Phoenix should have offered a higher take out price to ordinary shareholders. Luckily I had been averaging down significantly so I am taking a loss, but nothing special and can live on to fight another day.
In fact, Devon, I have you to thank for that! You had mentioned a number of times about the risk of the company being taken private, and let's face it, you were right about DEB, so ~I mulled this over and frankly - I agreed with you. I did think Phoenix would be obliged to offer 2.5p as that was what they bought in at, but I averaged down over recent months to take advantage of a low takeout offer. It is a shame it is so low but that is life.
I see that today's results are accompanied by a financial update showing the company has current debts of £23m. That is a lot of money and shows how much the operation has been subsidised - it is also worse than I had thought things to be. What we are really seeing then is Phoenix taking the knock at 1.5p and they will now have to delist their own 58%
holding which as we all know, cost them £19.45m a few years ago.
There's no winners here - but at least shareholders have been able to get out at 1.5p.
For me, I have to admit, much as I was a fan of the company, my large shareholding had become too large to sell at ordinary prices, so it had become a prison for me, especially as I averaged further down. At least I have been able to sell today at a narrow loss - great news in the circumstances.
Devon, thank you for the lessons - one learns, one moves on.
At least at Frasers, that is turning out to be a stunning winner....
Only 2% of the shares sold to Phoenix so far.
I wonder if many shareholders are holding out for a better offer?
I would not hold out any hope here that a white knight will come to the rescue. The deal is already done. Without a higher level of stock market scrutiny, the company can go back to its old ways of promoting Royalty rubbish and investment items maybe turn profitable that way. Anyway, it really is a reflection of the stamp market and the fact now numbers of collectors (and dealers) are falling away rapidly now. That is not to say there are interesting areas such as Asia which are still big, but lack of material to supply these markets is hampering. I am sure SG will continue in some form, but maybe Baldwin's will now be sold off as we have postulated in the past on here. I am still a buyer in SG Auctions, so please don't bid on those lots!
I wish everyone good health especially Pearls and Devon. Until we meet again...as they say.
Carpe
As at 1.30pm only 2.3% of the shares have been sold back to Phoenix. I wonder if they will get to the 75% necessary to do the deal? It's such a poor price that I cannot blame many for holding out at the moment...
Good luck with the future Carpe, it's been a pleasuring meeting you and discussing SGI over the last few years. As I've often said, its been laughing hanging around here.
I'm working up a critique of SFOR at the moment, I still think there's an enormous short opportunity over there, even at the present price, so that might become my new home. I'll be updating my blog on the company, SFOR that is, for those that follow or subscribe.
"Devon, my hands are held up - you were right again."
I count 3 so far.....if you include HBR. LOL 3 nil
Don't forget to read my article on SFOR, I think there's a massive short opportunity there.
As ever, it's been fun exchanging ideas.
Aren't you a bit late on the short position for SFOR, Devon? The best time was after the Board advised their internal controls were not adequate a couple of months ago, as confirmed by yesterday's update RNS. I think many are averaging down on that share now at the new much lower price level. Their next update is supposed to be in September
Devon, you were not right on HBR - I made an absolute killing on that one.
Indeed as it moves to becoming debt free by year end, the only thing likely there is a takeover unless the price rises a lot. That one is currently a bargain price, but you did not get HBR right.
What's your view on DARK?
No, it's still got much further to go Pearls. I have it in a model that shows it reaching 80p.
DARK, I said at 420 it was a strong sell. Months before it dropped off that cliff. I think the present rally is week. Best avoided.
If you want to look back, you'll see that somewhere in the SGI threads.
Actually, when you think about it..I should include DARK 4 Nil ;)
Devon, Where do you write a blog ? It Would make interesting reading/ Learning im sure.
Hi Herdie, I'll be posting my paper, parts of it anyway, on why I think SFOR is a stonking short on that thread. I'll try to remember to include a URL for the site.
I'm off to a Festival now, so probably on Monday.
Thanks look forward to reading it, enjoy the Festival !!
'For me, I have to admit, much as I was a fan of the company, my large shareholding had become too large to sell at ordinary prices, so it had become a prison for me, especially as I averaged further down. '
Pearls how do you only make a tiny loss when you bought in at 50 times or whatever what you just got? 'Averaging down' JUST INCREASES THE LOSS when dumping at 1.5 PENCE.
Castelnau,
Lets pretend.
Let's say you had a strategy to buy bombed out stocks, and then try to pump them on a chat site....could you ever admit to making anything less than small loses? If everyone knew the strategy was a disaster. How little notice they'd take. If they knew you were chalking up huge losses all the time.....better to talk about profits and little losses.
5 NIL :)
Little take up of Phoenix's cut price basement deal for the shares.
In fact there seem to be some buyers emerging this morning!
If this continues, it may force Phoenix to pay more..........
427m shares in existence, so 4.27m = 1%
Friday turnover was about 3%, so far not even 0.25% sold to Phoenix.
another decent purchase just gone through - this opportunistic bid at 1.5p is looking increasingly likely to fail.