Galahad Gold Share Discussion Threads

[alanji] 29/1/2008 12:24

Presumably any buying now would mean option C (especially in a SIPP nominee account). This reduces the IRR from a staggering 86% to "only" 40% assuming final payout at end June 2008.
Also, under option C there is a slight risk that the 16.5p is delayed or (very slight risk) reduced.

[skyship] 29/1/2008 11:51

Tiltonboy - sorry, just had to take another 100k @ 17.05p - as you say, in a month's time most of the cost will be repaid!

RE:CED - I share yr thoughts re the possibility of further declines in the oil price should the recession take hold; however the base metals may already have had their shake-out & the recession won't affect those prices so much as a vast %age is for infrastructure development in the BRIC countries.

Anyway, the NAV discount is now so high that there is a good cushion against any underlying portfolio fall.

[tiltonboy] 29/1/2008 09:42

nick,

I've got another 925K to buy, but thought I would step back for a couple of days to see if the stock came a bit cheaper, but somebody else is hoovering up stock at slightly higher levels, so it looks as if I might have to step back in at these levels.

tiltonboy

[nickcduk] 29/1/2008 09:27

Still plenty of forced selling in GLA. 750k on offer at 17.05. If whoever has been mopping up moves aside it could fall a little more. Are you still hoovering up stock Tiltonboy or are you stepping aside for now?

[tiltonboy] 29/1/2008 09:08

SKYSHIP,

But what will be your exposure to GLA once they have paid out the initial funds?

CED looking tempting, but I have concerns on everything bar Gold if there is a serious downturn in world economies.

tiltonboy

[skyship] 29/1/2008 09:02

Hi All - 17.05p - SO TEMPTING - already have 22% allocation in my SIPP, but also holding CASH - do I add!?!?

Alan & Tiltonboy - One of our other stocks - CED - added today @ 199p as the NAV is now 272p for a GRY of 16.32%.

[badtime] 28/1/2008 21:10

i took the 15k at 17.05
just hav to make sure they get registered quick enuff!

[tiltonboy] 28/1/2008 20:59

Alan,

A lot of the volume is switching from SIPP to own name.

I lowered my buy price a tad today, but the other buyer was happy to take the stock at 17.05p. I might have to reconsider tomorrow.

tiltonboy

[badtime] 28/1/2008 19:22

lol...probably..but hey it is for his clients :)

[alanji] 28/1/2008 18:08

Tilton buying at 17 ???????????????

[badtime] 28/1/2008 09:58

Still able to pick up stock at 17.05

[sharpshare] 26/1/2008 18:48

If your SIPP provider does not want to hold GLA for lazy admin reasons then it should be possible to transfer them out in specie to another SIPP provider.
A few forced sellers will allow the better organised to accumulate cheap stock.

The deal looks like:
16.5p return in mid Feb, around 2.7p return estimated in about a year
all for 17.05 now, that's about a 12.6% gross return or a net investment of .55p for about 2.7p of final payout giving a rough 390% return for your net investment. (Note the 2.7p could be more a less or nothing)
Nice to find a positive absolute return in this bear market.

[bisiboy] 26/1/2008 17:05

they were mine that you bought for 17.05 i sold at 17 notmuch of a margin for the mm
sold for the sipp reason.
think there may be a squeeze nearer the feb deadline may well buy back outside
if that happens.

[tiltonboy] 26/1/2008 15:59

SKYSHIP,

Absolutely......... but if you've got a good broker......lol.....

tiltonboy

[mjcrockett] 26/1/2008 15:04

Yes, I was amazed that Barclays have taken this stance. Their excuse is that they "consulted with our SIPP administrators and they advised this was the only option available for the SIPP account we provide". Surprising! Has anyone else had similar problems with other brokers?

I have been able to buy the GLA shares out of my Barclays SIPP and this was a relatively inexpensive exercise, but it was fortunate that I had the funds to be able to do this.

MJ

[skyship] 26/1/2008 14:34

Badtime - Yes, Option A for me as mostly held in my Sippdeal SIPP.

I'm amazed that Barclays should dictate in that fashion - surely they should be adjusting rather than requiring clients to sell something they would rather hold!

TILTS - 17.05P!! Incorrigible - was that really the price?

[badtime] 25/1/2008 23:42

Erm..in normal market if ther are people selling price goes down.....doubt if tht will happen...but cant c it going up tht far either.

Tilts it will b my sipp making the purchase run by TDW...so registration not in my hands really

[traderabc] 25/1/2008 23:29

Barclays have been advising all of the nominee SIPP clients who hold GLA in their SIPP account that they have to sell their GLA shares in the market within the next 2 weeks

What is the significance of the two weeks,anything? ie do (non barclays)we have to choose one of those options within 2 weeks? Presumabley there will be some selling preassure for the next few weeks,then it might be able to go up some more. If it got to say 20 p would it be better to sell them in the market rather than taking one of the options ?

[tiltonboy] 25/1/2008 22:51

badtime,

If you get the shares registered quickly, then you should still have time.

[badtime] 25/1/2008 21:58

tilts...ive had my voting form...so if u buy more shares now..how do u vote on them?..(re option to take)

[badtime] 25/1/2008 20:13

Skyshipper i take it u r going for option a
:)

[fez] 25/1/2008 18:44

Selftrade have given GLA holders the option which can be responded to via post or secure email - but the default to all those who don't respond is option C

[tiltonboy] 25/1/2008 17:25

MJ,

Interesting point.

I wonder what other SIPP providers rules are.

tiltonboy

[mjcrockett] 25/1/2008 16:52

Barclays have been advising all of the nominee SIPP clients who hold GLA in their SIPP account that they have to sell their GLA shares in the market within the next 2 weeks. This is because Barclays will not hold unlisted stocks in their SIPP accounts - the Galahad A,B or C shares will be unlisted. Perhaps this is where some of the cheaper stock is coming from?

MJ

[tiltonboy] 25/1/2008 15:31

Picking up some decent amounts of stock at 17.05p at the moment.