A worrying time I think. I took a small but quick profit from these in 2015 and then stayed away until January this year thinking that the price was in recovery mode, (foolish by name and thought) Being on a looser I am holding to the next report and hoping for some good news for the anticipated dividend in May Its one of those shares that you see little written about
Down ~28% in three months and now "the Placing Price would not be at a discount of more than 10 per cent to the middle market price of the Ordinary Shares at the time of agreeing the
Invitees only though.
Who knows, i just swopped (taking a profit on LMP) for this think that it was low in comparison to LMP, and as per the last post with with new shares being taken up at 54p it looked good value - i am holding and expecting (hoping) the capital gain will come with a reasonable divvi
"Standard Chartered man bails outLSE:STAN:Standard Chartered has rallied by a fifth since plunging to a six-year low in January. Replacing under-pressure chief executive Peter Sands with former JP Morgan chief Bill Winters in June has been ..."
"REDEFINE INTL (LSE:RDI) Â is a share which has been tending make small - but reliable - steps and now appears capable of near term moves above 57.75 leading to an initial 60p with secondary 63.4p. Critically, for those blessed with infinite ..."
I think the drop is because of the ADR issue which will dilute present holders.
But perhaps the co. will make some good acquisitions and then the share price could bounce back.
The share does appear overvalued but then it does have a high yield, some London Holiday Inns and perhaps some news in the offing.
There was never any explanation as to why the share price went up to just over 60p, and there is no explanation as to why it is now falling back, It has, however, retraced over 7% in 2014. That is a significant drop in my book and thus, as indicated in my previous message, I have now sold and crystallised/protected a 15% profit.
I still like this company and may well buy back in future once the current shenanigans have ended.
Conventional wisdom suggests that we should run the winners and ditch the losers, and this share is currently very much a winner.
Fundamentals: I note the comment that the sp currently exceeds nav but that nav could prove conservative. Note, for example, that todays rns refers to sale proceeds some 12.4% above book value as at 31 August 2013. We are, of course, coming out of recession and property values should rise in consequence. There is also the near 6% yield to consider, and this can be expected to rise as rental income and other receipts increase.
Technicals: The share price has been rising for the last year and is currently above both its 50 & 150 day moving averages, both of which are on a steep upward trajectory. In addition, its positive volume has been consistently rising over that period. Its relative strength index has been fairly volatile but is now back in the ascendancy.
I would not sell this share unless there is a significant drop in its price.
I did reckon on 2.8p being the fy sustainable divi after the restructuring, and this confirms that estimate. I'd say good value, happy to hold on indefinitely. Good yield, solidly asset backed, and well run. Not a raging buy because of the economy rather than because of the company - if we ever swing back into a bull economy, this could fly quite rapidly
So just sold the lot; nice gain from around 28p but there are better looking property companies out there. I really can't think why I bought them; perhaps it was an 'off' day but seemed to work out OK. gla
The consolidation was announced in the same prospectus as the Open Offer and is there on page one in bold lettering (see below).
If you are a shareholder in a company I really cant stress strongly enough just how important it is to read and understand any prospectus issued by that company. If you either can't or don't want to read them (they are often several hundred pages long) then you should seek advice from an appropriately qualified independent financial advisor.
Not doing anything during a Rights Issue/IOpen Offer is almost always the worst decision because of the dilution involved. However in this case you shouldn't have done too badly. However in many cases doing nothing will result in a considerable loss.
RMBL - sorry I'll take that with a pinch of salt as you appear to have pasted an extract from R I's proposal. Given that you have a total of 6 posts and 1 in the last 7 days I think your on a bit of a mini ramping exercise or a wind up and I haven't worked out which one applies! lol
Top quality management with shareholders' interests at the forefront and prepared to employ a bit of repetitional risk over the Gamma facility. They have said that they will "REIT". If they bring LTV's down to +/-60% then they are classic.
Yes, Im going along for the ride. This company has a parent with deep pockets so it should be a survivor in this shake out, although there must be an outside possibility of the LSE listing going if they dont get support here and end up with too large a %age shareholding. Meanwhile they have a plan and are getting through it firmly in the Gamma case they may even be able to cherry-pick in a fire sale of their own property, given the advantage of the Lehman funding being non-recourse mortgages on property rather than the usual company loans. I know I will regret saying it, but if 26p isnt the bottom then it must be getting close?
Yeah, I've more or less decided to take them up to - I was going to buy some Sainsbury in my income portfolio as a safe div, I figure long term this is a better div and very likely to be able to return the capital too over 5 years, so may as well.
I need income (retired) and the div is paid gross into my ISA - I am going to sell some badly performing units and bank shares to take up the offer - The estimated div will be about 10% yield paid gross so I hope to prosper slowly!! Any comments appreciated especially selling the HSBC shares?
The company wants to reduce the current loan to value ratio of 82.5 per cent. down to not more than 60 per cent. to achieve a long term stable capital structure from which a sustainable dividend can be distributed to Shareholder. And the Directors believe the current loan to value ratio is excessive, and should be reduced to provide a stronger capital base and lower financial leverage.
I'm keeping my shares for the next month or so. If the sp accommodates the share placing well then i'm holding. Also IC seem to have faith in the company too.
Thanks Tentative predator. I have still not decided either. I was concerned by the further fall of 8.8% in property values in the 6 months to 31 Aug 12 as I would have hoped prices were more flat than faling at that rate and not sure which section of properties that relates to i.e. whether it is properties that the company is getting rid of.
Looks like I will be using my scietific approach and going for the coin toss!
Worked my way through it all, and basically they need the money for the restructuring or things get a little ugly, then after placing and restructuring and accounting changes they'll be able to get back to roughly a 34p NAV. But without the placing they would have to get much more expensive debt and so the placing is positive compared to where it would otherwise be. Although the subsequent free cash flow after restructuring would result in a 60% gearing down from current 80% gearing, so also a healthier company, and the lower finance costs will make up partly for the share dilution. Means that the divi should subsequently be more than half what it is now - I would guess after restructuring is complete, sustainable divi would be about 2.8p.
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