UK Stockmarket 2009 and beyond

sabretoothtigger

No its not a big deal yet though it is extreme price movement, its history matches that.

I had another of my stocks CNR go from 10 to 2p, same sort of thing not bad news but people are fed up of nothing happening.

Long term support around 20 then if it slips under, theres a ledge of volume around 16. Presuming theres long term buyers still holding

AIM is always risky, they dont really have any production or cashflow?

john0

So you don’t think that it is likely to go private in the next year or so? It’s dropped below 20 now I believe.

sabretoothtigger

Is that the rumour. It was positive at first this morning

Equity is a form of capital raising, if they reverse that someone must like them alot I guess. Its possible especially if future revenue is not disclosed beforehand

Going private is pretty much the same as getting taken over, they got to buy me out first or at least own a massive chunk of maybe 80% shares. The free float is that available? I'd be surprised yea

If the market consistently values this company at 20p or less then I guess its tough luck, my guess this is just a weak patch a lull in interest.

XTA suffers the same fate in a less extreme way, they got massive value but nobody wants to actually bid up the price yet. Asset value is illiquid and only potential in majority
Hard to say but its like buses, when theres a takeover or whatever, they all come at once. Price can get squeezed either way. Im low on detail for CAD..


RRL down 20% on water drill, they havent reached target depth yet though ?

Thinking of swapping PMO for RKH , is that smart?

john0

I have only just started reading up, but I read somewhere, only pure speculation, that if they went private then all they would have to do is offer the average price for the last 18 months, hence why the sp is so low. apparently they passed through voting to waive rights of shareholders to vote on certain issues plus shares by BOD mates etc. so after 18 months CAD can go private without minor shareholders consent.

I don’t know how true any of this is, have you looked at FOGL?

sabretoothtigger

Doesnt sound legal, theres certain guidelines to listing on LSE. It is a public market and they would have to buy as such, so far as I know anyway.

For example, ERE is doing a tender now. They are buying shares, in order to do this even at a favourable price I think they had to pass a motion first . Even after you have to opt into that buying, basically they always need the majority vote first.
The directors dont own a company and cant force it into their own hands or anyone elses

HOIL was buying shares, from the market. They do talk about an average price but thats a limit to price not a way to force ownership which would be bypassing law I think

SEA is buying shares again above market and its optional

XTA takeover requires a vote, rescheduled to Sept. Qatar has bought shares this year and is now demanding higher payment for what they got in the market

Only debt outranks CAD equity and they arent in trouble?

FOGL

RKH I prefer as they are funded now and not exposed to full risk. They have the assets, its just a case of turning it into a business now. Xcite also similar, just got to finance that oil. I dont know if CAD are as much a sure thing, the market really thinks they wont make a profit

FOGL have to find the oil yet ? Maybe, why risk it when found oil is cheap already. RRL is exploring yet they do have oil, its really not that bad, they have more then one horse in the race.
If I was to focus on a singular type business, VGM is cheap with gold but high expenses. The fear is financing that cost yet money is cheap and gold I think will go up

cloud_dog

sabretoothtigger wrote: »

Doesnt sound legal, theres certain guidelines to listing on LSE. It is a public market and they would have to buy as such, so far as I know anyway.

Sabre, a while ago CAD amended their listing to be FTSE Secondary listing (or something like that, I can't remember the wording / title atm) but the long and the short was that this variation on their listing conditions was probably more relaxed than AIM listing. I don't have the time to research this bit so could be confusing it with another Co.).

Part of the reason for the change was to allow the BoD to make more 'responsive' decisions without the need to go back to shareholders for approval. All seemed a bit iffy at the time.

Am about to run for a flight so will find out the details when I get in to my hotel.

john0

Yeah i think that is what they were referring to, if it is the case then all they will have to do is offer the average sp for the last 18 months, not sure really.

StevieJ

cloud_dog wrote: »

Sabre, a while ago CAD amended their listing to be FTSE Secondary listing (or something like that, I can't remember the wording / title atm) but the long and the short was that this variation on their listing conditions was probably more relaxed than AIM listing. I don't have the time to research this bit so could be confusing it with another Co.).

They changed from premium to standard which means

Transfer between listing categories -- LR5 (No shareholder approval required)

This share is looking increasing bizarre with the cash balance being close to the current company value with misc other assets and little debt..
http://www.cadoganpetroleum.com/~/media/Files/C/Cadogan-Petroleum/pdf-media/Cadogan-AR-2011.pdf?
http://www.londonstockexchange.com/companies-and-advisors/main-market/companies/primary-and-secondary-listing/premiumstandardandaimcomparison.pdf

sabretoothtigger

If it were possible to hijack companies in that way it would happen far more often.
Why rob a bank when you can just arrange to seize a company, take its cash and sell its assets for a penny.

Even Gordon Gecko is filmed attending the shareholders meeting When Porsche seized VW it was with cash derivative options, CAD has no options this numerous ?

Ownership law applies is just my thinking, they can pass their motion to buy shares but I need to agree to sell. The only way they can force me is if they already own the majority of shares, if people start buying up to take over the company it'll double the price

This share is looking increasing bizarre

Quite a few shares exist close to cash value. I think its possible for it to be 'normal'
If they do nothing eventually the money would be used up I guess. ZEN had a cashpile also and no debt, but its used it up trying to get customers. Its failed hence its closing on zero even with owned assets

sabretoothtigger

Well that could be bad. I did get forced out once, on Thomson shares all I got was a cheque in the post. Didnt lose any money because it wasnt long after IPO

So the largest shown here is taking over. Looks like they'd have to gang up together, it is best I think when directors own large portions

Market Cap £43.91m

So 12m is 27% of company, presuming these figures are correct

Bought back some Rockhop today, probably jumped the gun there but its with profits from premier