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.
Interesting to note that Maxit have also subscribed.
Its an illustration of confidence when the advisors are buying into a company which they are retained to sell. Scott also picking up another 1m. Boom times
BBG, indeed. Sangha's been banging one drum for a very long time and it's inconceivable that he's changed his mind and now regards this as a long term investment. It's also good to see Scott and other directors subscribe...unlike DC who refused to put his hand in his pocket for anything. It's also encouraging that given the current sp, there wasn't any re-negotiating on price.
It also tells us something else, which may not be too popular with some; and that is there's nothing on the table at the moment. I'm assuming that if there were, Maxit as insiders, wouldn't be able to invest.
I should add, neither would Scott and the other directors.
The stand out line in the announcement is this gives us extra optionality.
The important thing here is the book became a lot more diverse.
This makes any bid much tougher than before, as now BHP and NCM diluted percentage wise. And a new investor with a decent stake.
Also the statement on exploration and advancing of our project.
This can only mean Cascabel.
More importantly it makes things tougher for BHP and NCM at the upcoming AGM.
I'm not sure I would call it an illustration of confidence but more an example of insiders getting cheap shares alongside the Chinese issue. I'm not sure Maxit or Scott and co can justify taking 25m shares at cheapest placing price in years when it's pretty clear to me the Chinese would happily have taken the full 180m instead of 155m.
Maxit are an insider and some might say it's good news that they are invested as it ensures they will get a good deal done. But let's be clear here, 17p placing is rock bottom stuff. It's not a 25p placing levels is it?? Maxit are supposed to be getting the best deal for us but by them taking the 25m shares just looks like they did the deal cheap with the chinese so they could gain too.
I said at the time of the placing RNS a few weeks ago that I bet the insiders are the ones that took the 25m shares. At the time they didn't have the balls to put their name against the RNS but I suspect 'insiders' regs forced their hand in the end.
It's ugly nest feathering by the money men behind this and I do wonder what else is going on with the CGP books. What was the CGP cash balance prior to the merger?? What will the cash balance be at time of merger?? Mmm. Anyway, apart from the ugly stuff, the funds are in, the Chinese are in and BHP and NCM are diluted down to sub 13% I believe.
AGM up next.
Should add, remember Maxit are already invested through CGP so have nose in trough already. Adding another 23m shares at such low placing price just spanks of opportunism as Chinese would have had those shares.
Note that such cheap shares are available to anyone right now on the open market... The price will only look cheap if a future increase in value is obtained
"The price will only look cheap if a future increase in value is obtained"
Thanks for that.
Agree Fort but it’s also a firm indication that they know what’s coming and it’s a giveaway at these levels
I can't say I'm too fussed about Maxit taking a few more. As Orthern points out, we can all buy at that price or thereabouts in the open market should we so wish. For me it's a bit of a quid pro quo at this point. There are a group of investors who have wrestled control of SOLG who are going to take the fight to BHP and NCM on behalf of the little guys. If they are successful, we'll all get a handsome payday, and I won't resent them from profiting from that too.
Let's hope that when the resolutions get passed that we don't suddenly get an award of cheap options to the directors. CGP have already rewarded themselves with options via CGP. SOLG di the same earlier this year. Next options remuneration round is due for May is it not?? Just a hunch, but I reckon we'll see that renumeration policy brought forward lol!
Fast and smart indeed.
Done wonders for the sp....NOT
What a bloody car crash tis share is. Happy Christmas from all the directors at Solgold. Take that suckers.
The market has zero belief in our story any more.. it has no expectations of any bidding war any time soon, and it’s difficult to see when we may return to the 30s without some great drilling results from somewhere.. looking pretty grim unless Maxit can generate our monetisation event, and do it quickly, otherwise we slide south.
It only takes a day to start a bidding war Ortherncopper.
Fort …. Major shareholder list being updated this week …. Might give us a clearer picture of who’s been dumping/ accumulating
Qual… exactly and it’s coming
Hope you’ve got your votes in
orthern , I think you should give the new team a chance to get their feet under the table.
What has happened here is nothing short of a revolution and I think we can anticipate a wholly different approach to life. I know it's an over-used cliche, but this time around, patience really is a virtue.
Orthern - sounds like a case of Monday blues for you! The market was always going to use this as an opportunity to knock us back a few pegs to the placing price. I imagine there's some lingering uncertainty over how the AGM is going to play out. And there have been some big money trades going through of late which might indicate key players jockeying for position.
It'll be interesting to see whether traders start taking positions pre-AGM.
To be fair we don't know what the Chinese would or wouldn't have taken and at what price, other than what they have just bought.
From their perspective they may have said well, the SP is currently in the high teens and way down from where it has been in the past, you just failed to get a funding round away over the summer and are rapidly running out of cash and you can't just keep giving more and more of the upside away in streaming deals, and you're about to dilute us by up to 20% if we invest now so you can complete the CGP buyout. So if you want us to fund your company to the tune of 30-odd million dollars, we want to see you guys (management and shareholders who are driving this thing) put up some cash of your own so you've got decent skin in the game and all of our interests are aligned. And we'll have our shares at 20c please because beggars can't be choosers and right now Solg needs our cash more than we need to invest it in Solg...
Orphencopper,
Don't be so naive. The market is not a barometer of whether an offer is coming or not. That's been proven by the Noront example. Noront was 23 cents prior to BHP's 55 cent offer and it ended up at 110 cents with Wyloo.
So does it matter if the market had zero confidence in Noront getting bought out days before BHP made an offer??
The market is more an indicator of 'stock trading' rather than asset value or M&A. SOLG could be back into the 16's today or tomorrow and into the 20's the following week. SOLG is trading pretty much inline with TA. Nothing unusual apart from the near 100m shares bought andsold over the last couple of weeks!!
See the bigger picture and stop equating everything to daily share price movements.
It just seems like we now have have
‘Plan A’ wait for a bid, and for Plan B, see plan A…. no plans to restart exploration drilling, just see plan A.. It’s little wonder the price is falling.. it’s no confident business plan.
Absolutely nothing to do with naivety