Acorn Growth Share Discussion Threads

[phil1969] 08/6/2016 23:43

Hedge, you are right to point out its not as straight forward as Ssinachi makes it look to 25 bag.

But most RTOs do result in the original shareholders of the shell being rewarded for their investment and patience. Directors are normally large holders and in the case of ACO haven't been paid over the last 4 years while they search for a suitable acquisition or RTO

Normally a fundraising is also required which is the whole point in the new coming wanting to reverse into the shell but if it is a main listed company (ACO is main listed), less destructive financing options are available than AIM stocks leaving existing shareholders with a bigger slice.

The company was set up with investors money at 20p they will expect a return on that investment.

A good example is SEN, the last RNS states existing shareholders will get approx 15% of enlarged group.
At closing mcap (£1.15m),this means the new company must be worth £7m just for existing shareholders to break even.
But the business they are looking to reverse in could easily command a £30-£50m valuation. Giving a 5-7 bagger for those in just before suspension.

ACO is of a similarly tiny mcap, main listed, directors and early investors
still in, director buying in November.

ACO share of the enlarged company may be a fraction of the total group but 8 times out of 10, the Mcap and share price of new company means original shareholders will see a good return, normally many bags.

ACO has been as high as 35p on speculation of acquisition alone so plenty of upside.

Shells setup to take advantage of low oil prices in the hope of bagging a distressed producer/explorer have also had better offers from the tech and biotech sectors.
One to watch, suspension normally comes with any announcement made so it is normally a speculative buy and hold because you're locked out until the deal has gone through.

The sudden increase in volume and share price has me thinking we won't need to be holding too long before a deal is announced as has been the case with the last few shells to announce their intentions.

[hedgehog 100] 08/6/2016 16:25

ssnichani 8 Jun'16 - 08:41 - 209 of 209 0 0
"From Acorn website:
It is envisaged that the company or project acquired for the acquisition will have an enterprise value up to £50 million
That Makes it a 25 bagger from this level. Here is hoping that Tony delivers the company's stated objective ;)"


Ssinachi,

What ACO is saying is that it wants to acquire a RTO (reverse takeover) target which is worth £50M.

It will pay for that fully or largely by issuing its own shares in exchange.

In a RTO the acquiring shell will at least double the number of its shares in issue to pay for the acquisition, but it can be multiples of that.
In some cases the former shell is left with just a few per cent of the enlarged equity.

[ssnichani] 08/6/2016 08:41

From Acorn website:

It is envisaged that the company or project acquired for the acquisition will have an enterprise value up to £50 million
That Makes it a 25 bagger from this level. Here is hoping that Tony delivers the company's stated objective ;)

[keya5000] 07/6/2016 12:38

Getting a bit lively here. Usually good for 30p before it stalls.

[loverat] 06/6/2016 18:46

Best advice for anyone here is find out BR's current position (changes by the minute) and then do the opposite.

Good luck.

[bad robot] 06/6/2016 17:40

Kenya my man

Stop being a sneering prat. Hanging with ZenMUg usually is fatal.

You are popping a lot in the matrix which is under the One jurisdiction, e.g CZA.

[drmaccers] 06/6/2016 14:13

I bought some

[hjfe] 06/6/2016 12:46

Tango_golden ‏@tango_golden 4h
#ACO Positions being taken, reverse takeover Acorn Minerals

[runwaypaul] 06/6/2016 12:26

I would buy some as a trade but not sure about being stuck in for months on end if it has got a deal and suspends..hmmmm

[hjfe] 06/6/2016 12:03

Yep - news one way or the other I would have thought.

[keya5000] 06/6/2016 11:58

Last stirring was directors buying. Maybe this time?

[hjfe] 06/6/2016 11:56

Might be getting news of an investment soon then.

[hjfe] 06/6/2016 10:44

Something stirring here this morning........

[hedgehog 100] 29/11/2015 18:46

Keya,

I'm quoting the Model Code for fully listed companies like ACO, not the AIM rules ... though Tony Brennan's buying would have breached those if they were applicable:

"In the case of fully listed companies, the Listing Rules contain a ‘Model Code’ on share dealing by directors and senior employees that companies are required to adopt in full (though they may impose more onerous restrictions if they want)."

[keya5000] 29/11/2015 18:01

You are quoting AIM rules is the main listing different?

[hedgehog 100] 29/11/2015 16:20

ACO Chairman Tony Brennan appears to have broken the rules by dealing in ACO shares the week before the announcement of ACO's interim results:

"The Model Code on share dealing

This guide is based on UK law as at 1st February 2010, unless otherwise stated. It is part of a series on the FSA and Securities Regulation.

In order to reduce the risk that directors and senior managers of quoted companies might be thought to be taking advantage of inside information (see: Insider dealing, an OUT-LAW guide), both the Listing Rules and the rules of AIM require that companies restrict the times at which their directors and senior managers can deal in the company’s shares. In the case of fully listed companies, the Listing Rules contain a ‘Model Code’ on share dealing by directors and senior employees that companies are required to adopt in full (though they may impose more onerous restrictions if they want).

Like the rules for disclosures in relation to shares (see: Disclosures in relation to shares, an OUT-LAW guide), the Code applies to both directors and other PDMRs and defines ‘dealing’ widely. If there is any doubt as to what is caught, seek advice.

Directors and other PDMRs must not deal in shares during a ‘close period’, that is the period of 60 days before the announcement of annual results or the publication of the annual report (or, if shorter, the period from the end of the financial year to the announcement or publication). In the case of half-year results, it is the time between the end of the half year and the date of publication. If a company reports quarterly, the close period is 30 days before each announcement or, if shorter, the period between the end of the quarter and publication. ..."




These rules are important, and it looks to me like they have been flouted in this case.

[hedgehog 100] 26/11/2015 18:12

Note that Chairman Tony Brennan bought the 450,000 shares sold last week:

23/11/2015 11:50 UKREG Acorn Minerals PLC Director/PDMR Shareholding

"13. Price per share or value of transaction

150,000 at 9 pence per share and 300,000 at 9.5 pence per share"




25/11/2015 11:03 UKREG Acorn Minerals PLC Half Yearly Report

"Half yearly report for the six months ended 30 September 2015

Chairman's Report
As at 30 September 2015

It is with pleasure that I present the interim report to shareholders for the period ending 30(th) September 2015.

In the past 12 months your board has continued to identify and assess suitable opportunities in the mining, minerals & energy sectors, including both conventional and alternative energy projects as well as mining and energy infrastructure projects that are consistent with our investment strategy.

To date we have reviewed well over 30 projects that have met these criteria and we are currently carrying out preliminary due diligence reviews on several of them.

Whilst we are keen to find a transaction we remain disciplined to only proceed if we are convinced it will be in the best interests of shareholders.

At the period end we have approximately LIR1.184m cash, no debt and continue to keep administration costs to a minimum so that maximum funds can be dedicated to the review of and potentially investments in suitable projects.

We will continue to review projects where we believe value can be created for Acorn shareholders which requires considerable work by your board and on your behalf I thank my fellow directors Charles Goodfellow and Brent Fitzpatrick for their effort and commitment to this cause and I also thank you for your ongoing support.

Tony Brennan
Executive Chairman
25 November 2015"

[purple11] 22/11/2015 08:46

paul keys ‏@paulkeys5 · 1m1 minute ago
ACO
watchlist



xXTiPSXHEETSXx

[keya5000] 21/11/2015 20:44

Noticed the large lumps, 450,000 with the half year results likely next week.

[hedgehog 100] 21/11/2015 16:20

ACO third on the top risers list yesterday with its recovery to 11p, a nice end to the week:

LSE % Gainers Top Lists
EPIC Name %
ABTU Aqua Bty Di +155%
MES Messaging Interna... +27%
ACO Acorn Min. +24%

And some big trades have gone through in the last couple of days:

Time/Date Price Volume Trade Value Type
14:09:52 20-Nov-2015 10.50 370 38.85 Ordinary trade
14:06:57 20-Nov-2015 10.98 44,323 4,866.67 Cancelled
13:50:10 20-Nov-2015 10.98 44,323 4,866.67 Ordinary trade
13:36:25 20-Nov-2015 10.50 7,500 787.50 Ordinary trade
11:40:52 20-Nov-2015 10.50 10,000 1,050.00 Ordinary trade
10:12:46 20-Nov-2015 9.50 100,000 9,500.00 Ordinary trade
07:46:51 20-Nov-2015 9.50 200,000 19,000.00 Ordinary trade
09:16:12 19-Nov-2015 9.00 150,000 13,500.00 Ordinary trade



150,000 shares is about 1% of the company.

ACO's interim results may be imminent based upon previous years, and it will be interesting to see if any progress has been made.

[moreforus] 17/8/2015 10:51

Dandee
Posts: 81
Off Topic
Opinion: No Opinion
Price: 13.25
RE: dandeeToday 10:39Moreforus, please be careful though. the man sounded confident, but let's not get over-excited. we have had false hopes here before.
Reply | Recommend 1 | Report
Bio_tango
Posts: 20
Off Topic
Opinion: No Opinion
Price: 13.25
RE: dandeeToday 10:37

Main man is not responding - complete silence. I spoke to someone else (English dude who migrated to Perth and works in the sector and in the area). He claims that a deal is beyond basic due diligence and we could hear within weeks. That could explain silence from Tony. Problem is that we have not seen any volume here, except the £5K buy weeks ago which required a major shake to fill the order. Tony also acquired 250,000 shares recently at 14.5p.

Ask just went up for no reason this morning. Weird, weird, weird. shame I don't have cash available. Let's wait and see.
Reply | Recommend | Report

[the stigologist] 17/8/2015 10:27

no


moreforus
17 Aug'15 - 10:25 - 529169 of 529170 0 0

ACO deal soon?

[moreforus] 23/7/2015 16:27

50k premium buy

[moreforus] 20/7/2015 10:42

interest off the back of the OPRA rns today...

premiums paid