1pm Share Discussion Threads

[abbey8] 22/7/2013 13:38

QPP SEEMS DOING WELL AS AN EXAMPLE AND OPM IS ON SAME PATH?

[showmethehoney] 22/7/2013 10:22

And no dividend because it all gets recycled.

Every co. is keen to avoid dilution, the facts out there speak for themselves though.

What time frame is short and medium term?

hxxp://www.1pm.co.uk/Equipment-We-Finance

[willydoctor] 22/7/2013 10:00

One attractive thing about this company is that their loans seem to be largely short and medium term, and as these mature, the capital returns and can therfore be recycled. Although there clearly is the potential for dilutive fund raising, it seems to me that it is not the only option and I am sure the company is keen to avoid continued dilution because of the effect on share price and erosion of shareholder value.

[showmethehoney] 21/7/2013 17:57

My understanding is 'normally' they issue more shares. Look at how many shares have been issued since IPO, hence consolidation now. See my last post - showmethehoney 19 Jul'13 - 14:17 - 224 of 230

Below is copied from the half yearly report released 21/01/13


1pm plc

("1pm", the "Group" or the "Company")

INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 NOVEMBER 2012

GBP920k of new funding has been received since 31 May 2012 from high net worth individuals and Self-Invested Personal Pension (SIPP) funds, bringing the total raised from sources of this type to GBP1.87m. More information regarding how individuals or organisations may provide funding to 1pm is available on the Group's website hxxp://www.1pm.co.uk/Funding.



I don't recall reading any updated figures regarding this in their year end results?

The broker valuation has the formula that OPM's Nomad used to value it on assumptions, An accurate valuation can now be done from the figures in the final results.

hxxp://www.wh-ireland.co.uk/archive/WHIspy/WHI-SPY-Mar2013.pdf

[the oak tree] 21/7/2013 14:16

Raising via capital is just one way. My understanding is normally they get loaned funds by various groups, in different ways and they then use that to lease. The difference leads to their profit margin.

hxxp://www.1pm.co.uk/Funding

Copied in:

"1pm plc (1pm) is an AIM listed independent provider of asset finance facilities to the SME sector. The Group was established in 2006 and has an impeccable repayment history.

1pm currently funds its growing portfolio by a mixture of block discount funding, debt funding, shareholder equity and surplus receivables from the lease portfolio. The Company has also borrowed £420,000 from a SIPP fund.

The Company is constantly exploring ways to fund the increasing demand for new business volumes.

A number of parties, including high net worth individuals, have expressed an interest in providing loan funds to 1pm. 1pm confirms that it welcomes approaches from individuals, companies or other entities, who may wish to explore the possibility of making a secured loan to 1pm. By way of guidance the terms on which 1pm might, in appropriate cases, be prepared to deal are set out below. "

[salpara111] 21/7/2013 13:12

I guess the biggest thing that will hold them back is their own success! in other words they will need to keep issuing shares in order to get the cash to grow their loan book which will keep diluting current holders.
Clearly better to be in a growth stock but I do feel that there is a little too much exuberance at present.
I will wait until after the share consolidation and then look to take a stake.

[abbey8] 19/7/2013 21:57

Only time will tell , I think the company has the products to move forward
and enhance the share value.

[the oak tree] 19/7/2013 20:30

What happens is people pile in on the way up, then try to time their exit, but in a small cap stock like this that can be very difficult. People soon see the turn ofcourse and dive back out of it, this accelerates as more people go for the exit door.

Then a point comes when people realise:
1. they have missed the boat to sell (so no more sellers)
2. it looks a bargain once again as has fallen x% (so buyers return)

In addition this share needs a decent (realistic) broker forecast. IMO I don't think the current one is.

[adyfc] 19/7/2013 18:56

There's a bit of support around the 17p area.

[salpara111] 19/7/2013 17:34

As someone who has just experienced a similar share consolidation with Panmure Gordon, all I can say is that while it seems like a good idea Panmure suffered a fall of about 15% in the share price when it happened.
I had been looking at taking a stake here but now I think I will wait until after the consolidation.

[showmethehoney] 19/7/2013 14:17

Retrace in share price is long over due, after the 'Issue of Equity and Trading Update' (stating profit for YE) 1bn new shares, issued at 0.0015p were admitted to the market and the share price just absorbed the 30 ish % increase in shares and continued to rise.
Consolidating to about 30,000,000 shares I think is good. They IPO'ed with about 150,000,000 6 - 7 years ago, and now almost 4,400,000,000 shares in issue, due to fund raising, to write new loans. Consolidating will make it easier to issue more shares and raise funds.


OPM's nomad released this valuation of the company when the total shares were 3,400,000,000 ish

hxxp://www.wh-ireland.co.uk/archive/WHIspy/WHI-SPY-Mar2013.pdf

Do your research.

[peladon] 19/7/2013 12:58

Have also added. Looks like people panicking as their short-term profits erode, and as Willy says a misunderstanding of the RNS. Can't see any other reason given the upbeat results.

[abbey8] 19/7/2013 12:18

Just managed to add 200k shares at .223 . Still think we are in good hand .gla

[abbey8] 19/7/2013 11:16

I wonder why are they selling . May be most are trader's and can not wait.

[dubois] 19/7/2013 10:08

Good news for a growing company going up and bad news for a failing company.

Should be good for us here.

[abbey8] 19/7/2013 10:03

I think it is a good news for all of us . We should see buying in all day.

[fireman bob] 19/7/2013 07:41

mcpaulas,
You need to divide your existing holding by 147 to give the new number of shares you will hold after the consolidation (10p nominal value of new shares/0.06818.....p nominal value of existing shares)
At the current share price of 0.0025p that would give a new share price of around 36p
FB

edit: beat me to it Oak Tree :-)

[the oak tree] 19/7/2013 07:41

It will probably get more interest as a result and be seen as less of a gamble. So basically for every 146 shares you have now you'll get 1 which will take the current share price to about £0.38

Who knows with good progress continuing we might get to a £ ! :)

[jakleeds] 19/7/2013 07:32

Yeah it makes sense after the howler they made when they issued their trading update, when they put the decimal point in the wrong place.

I'm sure if was suggested on here by someone at the time that a share consolidation would be a good idea.

[mcpaulas] 19/7/2013 07:27

Anyone made sense of the rns yet??

[abbey8] 17/7/2013 17:26

No panic here , we are in good position to look forward for some more news.

[the oak tree] 17/7/2013 15:02

Its just profit taking, although not on large volume. Prices don't go up (or down) in straight lines. The large % amount is just because of the recent rise and how small the market is.

Wonder whether that guy ever got his car for his wife!?? He said 0.30 but round numbers are often difficult to get through....many put stops at odd numbers because of that.

I'm an investor so I tend to stay put and ride these dips out in what is hopefully an uptrend.

[davidosh] 17/7/2013 15:00

If a price is announced for UFG it will certainly help as guidance for what OPM is worth and of course it shows this sector is very hot at the moment. Shareholders here already knew that though. I am a long term holder so dips and spikes are immaterial to me except maybe to add or slice a few depending on valuation at the time.