I would never advise anyone to buy any share but I would say that I feel that AFC Energy has the potential to be a game changer in the power generation from hydrogen market.
It is on the point of achieving commercialisation of its patented technology and even relatively modest take up of its systems should result in the SP doubling several times over..... having said that it has been making the transition from research to commercialisation for some time now!
Having been in ARM for many years and being rather upset that I can no longer participate in its future growth I hope that AFC may become a similar success story.
A lot of news is due Q4 and if it is good then it will be a good start.... all the usual caveats apply!
Never mind the politicians, why on earth were the directors and shareholders prepared to accept such a ridiculously low price? I voted against it myself, but none of the institutions seem to have. The exit PE ratio was about what is paid for growth companies of much lower quality than this. To buy anything of comparable quality, you have to go to the States and pay upwards of 50x forward earnings. I cannot believe that the money was accepted so tamely. I will never again invest in a company run by this man.
At the moment I can't identify a replacement investment. Someone has suggested IQE and Nanoco. IQE is a good company, and I hold a chunk already - I think it has a good future but it does not have ARM's potential. I can't justify a purchase of Nanoco. There is a newspaper article suggesting MicroFocus and Sage as homes for the money - both good companies but not remotely in the same ball park in terms of potential.
So for the moment I am contemplating a Gold ETF, pending some more sensible opportunities arising. Any better ideas out there?
Why not keep posting on this board as a lot of us have done on the ACTA board since ACTA SPA stopped trading a few years ago. It is now essentially a private board but new contributors are always welcome. We were introduced to technical analysis by one of the founders "loadsadough", via Sam Weinsteins Secrets for Profiting in Bull and Bear Markets. Good second hand copies can be obtained from Amazon.
A lot of very knowledgeable people post and generously share their opinions knowledge etc. We tend to be open and honest about our successes and failures. Trouble makers are politely guided to the exit.
I have chosen IQE and NANOCO Group as hopeful replacements for ARM.
I have been trading for many years, building a portfolio. Never had to worry about CGT; I have never realised my gains, although I made quite a few losses!
But the unexpected takeover of ARM has meant that this year I make an unintended signfifant gain! I bought in 2009 for £2,400, and now will receive about £28,000! So I believe that I will be liable for CGT of 10%, on around £14,000.
I understand however that I can make use of previous losses, but they have to be notified to HMRC within 5 years. So do I wait until I do my Self Assessment for 2016/2017, and use that to notify those old losses, and declare the "Nett" gain?
I too have held ARM since they were trading at 50p. my wife also holds some and says she only wishes she had bought more. I tell her to be thankful for what she has. we could have sold them
all on some dark day in the past years.
Thinking about how to re-invest I cannot help but feel that Warren East had a lot to do with the
company's succes and my instinct now, perhaps sentimentally, is to put some of my ARM
money into RR where I imagine he is doing good things to re-invent that great British company
and cut out some of its dead wood. Years ago you had to be of a certain seniority to enter
Head Office by the front door, so I once heard!
I will also bear in mind the useful tip about Halma. Although I have not contributed before
on this bb I have found the postings to be very helpful and constructive and there hasn't been
the level of acrimony that exists on other bb's
A sad end but lets hope that we continue to produce world beating champions in the new
I agree, it is very very sad. I don't think those in positions of power realise how great a company ARM is and worry that this deal will turn out to be bad for them. I recall one saying that this deal would make the company a major player on the world stage - but they already are I shouted!
I held ARM shares on and off all the way from 50p and feel that my holding has been stolen from me. :-(
Real shame to see such an Icon of british technical brilliance disappear, this was not just another company! Says an awful lot about our ruling elite: public school and Oxbridge background - studied economics, ancient history, politics, uselessly employed as bankers, stockbrokers, lawyers, ultimately politicians, etc etc
Never designed, built or done anything physically useful in their pathetic lives. Wouldn't understand the value of anything without a £ sign in front of it.
On a positive note, I do hope that we see lots of staff move out and 'mini ARMs' start to spring up from the ashes of this shameful episode. Good luck to all the employees.
Re HLMA, great minds etc. 1st bought HLMA 2 years ago topped up 3 times since last on Nov 2015. I agree with you as my best investment in the last 3 or 4 years. One of my larger shareholding at 4% of total share portfolio.. I like the way SP growth has been consistently over last 8 years. Dividend growth similarly consistent. If anything SP growth has accelerated this year. May well top up again.
Incidentally my best performing share purchased this year is Dairy Crest Group (DCG), though longer term probably will not match HLMA. FCS is my 2nd best share bought bought 3.5 years ago. As an investment trust in global smaller companies gives balance to a FTSE 350 centred share portfolio. May top up FCS.
It's often said (wrongly) that we don't make anything in this country anymore.
One of the things we do create is outstanding intellectual property and technolgy companies to commercialise it, that we then sell to the rest of the world.
Sale of ARM reminds me of the sale of Cambridge Display Technologies to Sumitomo in 2007 and the OLED screen technology invented here that is steadily being incorporated into devices around the world. Of course CDT is still here in the UK employing, inventing traingin and educating the next group of engineers and scientists who will hopefully go off and do somwthign brllliant - let's hope ARM continue to have a long life here too.
Nice problem to have, a thought only, I recently bought a few OXIG as a growth/recovery play.
Operate in 3 segments Nanotechnology tools, industrial products and Services (mainly CT & MRI scanners).
They have been through a bad patch with profits warnings in 2014, SP dropped around 70% but now showing signs of fixing the issues, cut cost and returning to growth, forecast EPS +7% and 10% 16/17. As sales mainly overseas, drop in GBP should help. SP looks like it is out of the downtrend.
ARM now by highest value share holding worth nearly 7.3% of my total share portfolio of 36 blocks of shares, with a significantly value, I currently hold. I will need to find 2 to 4 new UK companies or investment trusts to buy. I am guessing others are wondering what to invest in next as well. Do not want recommendations so much as few ideas. Perhaps what sectors they currently favour. High yielding or high growth etc. Recently bought a small holding of 3i Group (III) which I will probably add to. At least my ARM shares in an ISA so no CGT worries.
'The £24.3bn deal to sell ARM Holdings to Japan's Softbank is an example of the UK "selling out of our winners", former City minister Lord Myners has said. Ceding control of ARM is an example of the City mindset of "don't back [the] British economy", he said. But Treasury adviser Eileen Burbidge said the sale was a "great deal". On Tuesday, 95% of ARM shareholders voted to back the acquisition by Softbank.'
Sad day IMO but typical of UK to sell out best to other countries and lose out on the biggest slice of long term gains.
Sadly it's very late in the day and the clueless ministers who purport to be running this country have opened up the biggest loss of IP this country has ever seen and ensured the complete demise of ARM when it becomes abundantly clear that the debt carried by Softbank becomes unsustainable and ARM will be an afterthought swept away in the panic to service that debt and cut costs.
What an epic disaster -- the ARM board, the UK government and the laissez-faire approach to Britain's industrial policy should be held up in a court of law,
The sale is through a Scheme of arrangement. I'm pretty certain the Directors will have discussed this with the major shareholders and will be very confident that they have the required support:
A Scheme of Arrangement is a Court approved agreement between a Company and its Shareholders. It can be used to implement a variety of corporate events. In this case the Scheme of Arrangement is being used by the Company to allow SoftBank to acquire ARM Holdings plc. Typically the proposals require approval at a Shareholder Meeting and a Court Meeting. The Scheme will be approved if Shareholders who represent a majority in number and hold at least 75% in value of the Shares held by those Shareholders who vote, vote for the Scheme. A Scheme also requires the sanction of the High Court at a Court Hearing. If the Scheme becomes effective and all resolutions are passed then the buying Company will obtain 100% of the Shares in issue regardless of whether an individual Shareholder voted in favour, against or not at all.
"Are you saying that TD will not act on this?"
No, if you vote to oppose motion that vote will be cast for the shares you own, as your brokerage company will pass this onto to the nominee company who are the named registered holder of your shares on your behalf.
It is up to your brokerage company to ask how you wish to vote. as far as I understand they are not obliged to ask you. Some brokerages leave it up to their clients. If clients do not make a request to vote against recommended bid offers they vote with board recommendations on your behalf assuming that is what you want.
Rhinos, I agree with all you say, however, the PI is voted on all the points you make so apathy is common in the voting be it for T/O or AGM's. On the other hand we should vote if to register our dissatisfaction with whole voting system. SoftBank have got this the cheap, another great company gone to a foreign outfit has question mark over it's affairs.
"A board can merely recommend an offer, albeit make irrevocable commitments in regard to their own shareholdings. Only shareholders can accept an offer, which is why there is a vote."
One important fact about recommended by board offers is that those that hold shares in nominee account which includes all ISA accounts will have the vote on shares they hold for offer by default. Most shareholders who have own shares via a nominee account never vote so that is a lot of votes for accepting offer. A lot fund managers also feel it is not up to then to decide company policy for those shares and leave it up to the companies board and go with them. An even bigger number of votes to accept.
I therefore agree with DaveHughes and blame board. Shareholders are sadly mostly sheep as far as voting is concerned.
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