|still got the rest|
|Well done nod and look at the prefs go today as well so you may
well fine out that you trebled your investment in them.
Wonder how currypati finished up on them, did he sell anymore
because i'm sure he will be happy with 2p instead of nothing ?
|Well Gravy, not quite a 10-bagger but we didn't lose the lot either!
In the end I did equally well doubling both ords and prefs. All those indepth calculations and valuations were not really necessary after all... or maybe they helped a little.
It's been a while coming, time to move on... well done.
SPO looks cheap :)|
|2p offer for the ords.
Roughly a 110% gain for all my followers :-))
Yet another penny share success.
|CAS Hartstone : Gets Wooster bid
The boards of Wooster Investments and
The Hartstone Group have reached
agreement on the terms of recommended
cash offers to be made by Hawkpoint on
behalf of Wooster, for the entire
issued and to be issued ordinary share
capital and preference share capital of
Hartstone not already held or
controlled by Wooster.
The Ordinary Offer will be 2p in cash
for each Ordinary Share, which values
the existing issued ordinary share
capital of Hartstone at approximately
The Ordinary Offer represents: a
premium of approximately 13.0%. over
the closing middle market price of
1.77p per Ordinary Share on Apr. 29,
2004; - a premium of approximately
25.0%. over the closing middle market
price of 1.60p per Ordinary Share on
Mar. 17, 2004; a premium of
approximately 58.7%. over the average
market price of 1.26p per Ordinary
Share for the three month period to
Mar. 17, 2004.
The Preference Offer will be 95p in
cash for each Preference Share, which
values the existing issued preference
share capital of Hartstone at
The Preference Offer represents: a
premium of approximately 27.5%. over
the closing middle market price of
74.50p per Preference Share on Apr. 29,
2004; a premium of approximately 53.2%.
over the closing middle market price of
62.00p per Preference Share on Mar. 17,
2004; and - a premium of approximately
72.3%. over the average closing middle
market price of 55.13p per Preference
Share for the three month period to
Mar. 17, 2004.
In aggregate, the Offers value the
existing issued ordinary and preference
share capital of Hartstone at
Wooster has today acquired 32,622,613
Ordinary Shares and consequently now
holds approximately 20.6%. of
Hartstone's existing issued ordinary
In addition, Wooster has obtained
irrevocable undertakings to accept the
Preference Offer from institutional
investors in respect of 4,541,000
Preference Shares, representing
approximately 45.4%. of Hartstone's
existing issued preference share
capital. A holder of a further 831,496
Preference Shares has indicated its
intention to accept the Preference
The Hartstone Directors have also
irrevocably undertaken to accept or
procure acceptance of the Offers in
respect of their own and their
immediate families' entire beneficial
holdings amounting to 11,550,034
Ordinary Shares and 375,026 Preference
Shares, representing approximately
7.3%. and 3.8%. of Hartstone's existing
issued ordinary and preference share
The Offers are conditional, inter
alia, on Hartstone Shareholders
approving resolutions to amend the
rights of the Preference Shares.
Tony Cheng, a director of Wooster,
said: "Whilst Hartstone has clearly had
a difficult time in recent years, we
believe that it can prosper under our
Commenting on the Offers, Shaun
Dowling, Chairman of Hartstone, said:
"After a number of years of attempts to
sell our Aigner business, shareholders
now have an opportunity to realise cash
for their shares at a significant
premium to recent market prices, which
I shall do myself."
ICV Edited News from Dow Jones
1608 GMT Apr 30 2004|
|If you get a letter from Keirgroup holdings asking if you want a research report on HST just sign on the dotted line and return in the pre paid envolope read this first (copied from the FSA website under the heading of "share scams")
It is not on the FSA register so they might be all above board but they might not!
Sounds obvious but if a stranger rings you out of the blue and tries to sell you shares in companies you've probably never even heard of - TAKE CARE! They may be part of a financial scam using hard-sell tactics to persuade you to buy shares. If they end up persuading you to buy, they'll be the ones laughing all the way to the bank. And you may be left with potentially worthless shares and no rights to complain or claim compensation from the UK schemes.
But surely financial scams would be closed down immediately by the regulator? Well, yes they would if we found they were operating from within the UK. Firms selling shares have to apply for a licence and abide by rules designed for your protection, otherwise they're not operating lawfully. BUT WATCH OUT! These rules are not identical abroad. Financial scams based overseas are able to communicate with anyone anywhere in the world and could be targeting UK investors.
The first time you hear from such firms could be by post or e-mail, or they might advertise their services over the internet. They may offer you a free research report into a company in which you hold shares, or a free gift or a discount on their dealing charges.
The scenario may follow this pattern. You'll probably be an investor in smaller companies (often called penny shares). Therefore, your name will have appeared on the share register of the company you've invested in - which anyone can get hold of. Then surprise surprise, you'll receive a mailshot making you a great free offer. Sign on the dotted line and you'll receive a free, independent research report outlining future prospects for the company.
"Nothing to lose" you think. "And it's free". So you sign on the dotted line and send your response in the freepost envelope - but don't worry, it must be OK because its got a UK address and so if anything goes wrong, you'll be able to complain.
What you haven't realised is:
By signing on the dotted line, you have probably agreed to be contacted by the firm in the future. This was probably written in the small print of the mailshot.
The UK freepost address on the return envelope may simply be a forwarding address to an overseas address.
What happens next?
You'll start to get flooded with calls offering you a great deal on shares, often in smaller companies you may not have heard of or possibly other investments such as futures, options or foreign exchange. The firm's salesforce will probably sweeten, cajole, flatter, bully and even sometimes threaten you to take up their offer. Don't forget, they probably make a commission on every sale. After buying the shares, you may have difficulty in getting the shares or their certificates. And when you try to sell them, you won't know if the price is fair - or you could find the price is inexplicably lower. If you do manage to persuade the firm to sell your shares for you, you may have difficulty getting the proceeds from the sale or be put under a lot of pressure to buy other shares with the money.
Companies based outside the UK and which are not authorised persons are allowed to advertise their services in the UK, but only if their publicity is approved by an FSA-authorised firm or an exemption applies which allows them to advertise their services without such approval. In the UK, firms are generally not allowed to 'cold-call' potential customers to sell them financial services. If, however, you initiate contact with the firm, a follow-up phone call does not count as a cold call.
How to protect yourself
Always check whether the company is authorised in the UK. Ring the FSA Consumer Helpline 0845 606 1234 (calls charged at local rates) to find out or look at the online FSA Firm Check Service. If it isn't, take care. You probably won't have the right to complain or seek a penny in compensation from the UK regulatory system if things go wrong.
The FSA has published a warning about firms that it is aware of that operate this way.
However, be aware that this type of firm is likely to change its name frequently so if it does not appear on these lists do not assume it is genuine.
If the company is not authorised in the UK, then look carefully to see where the company is registered. Try and check whether the company is in fact regulated in its home country. If it is, try to find out as much as possible about how regulation, ombudsmen and compensation works there.
Financial firms authorised in a country in the European Economic Area (EEA) can offer certain products or services in any other EEA country if they have a 'passport' that entitles them to do so. Such firms will be regulated in their home country and meet standards which have been agreed across all EEA countries. However, if the firm becomes insolvent and you have a claim for compensation, you will need to deal with the relevant authorities overseas.
Read the small print. If you had, you would probably find that you had expressly agreed to receive calls from the company. And even if you think you're immune from such high-pressured selling tactics, you'd be surprised at just how many people give in - simply to get rid of the caller.
If you do decide to go ahead and buy the shares, at least try to check the current price in the financial press or with a broker. These firms may be acting as bucket shops, buying in shares from other brokers. If they do so, you may not pay the market price for the share. Even though they will be trying to get you to make a decision quickly, still try to find time to do your own research before buying - look on the company's website if they have one, get hold of the annual report and read the financial press.
If you decide to go ahead, be aware that it may be difficult to get evidence or confirmation of what shares you hold from the firm - and it may be even more difficult to sell them when you want to.
IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS!
What can happen
In one recent case, a consumer received a "cold" call from a company he had not previously had anything to do with and was persuaded to buy shares in another company. Later on he received some paperwork in the post, including a 'stock purchase agreement'. This mentioned two other companies and claimed that one of these companies was FSA-authorised. When he checked with the FSA, he discovered that the company was not authorised and that the FSA Register number was false. He told the FSA what had happened and FSA enquiries revealed that the investment was entirely bogus and that the address was false. This particular individual was saved from losing a very substantial sum of money.
Always check whether the company is authorised in the UK. Look at the online FSA Firm Check Service to find out or ring the FSA Consumer Helpline 0845 606 1234 (calls charged at local rates). If it isn't, take care. You probably won't have the right to complain or seek a penny in compensation from the UK regulatory system if things go wrong.
|More like a game of snap.|
|This what is commonly called russian roulette...|
|Darn, I knew I shouldn't have bought any then.|
|My, what a nervous bunch :)
I don't believe the situation has worsened at all - on the contrary, things have not looked so bright for HST since 2001. Although the light at the end of the tunnel is still dim, at least there is some light now.
The Bennett deal changed the future for HST. What's the business worth to HST or someone else? I have no idea. But if someone were to pay £15m then that would cover the pref conversion and interest plus a small premium on the ords. If someone were to pay £20m then ords will more than double.
In other words, it's ordinary holders who will reap the reward of any offer above £15m.
Prefs may not be any better off if HST goes under. After accountants and bankers takes their cut, there will probably be little left for pref holders.
Prefs may not be better off if HST is sold, unless it's sold for less than its curent market cap of £3.2m plus pref repayments.
If an announcement is made on a deal, positive or negative, there will be no time to get in or out. The only way you can win is to be in. You could also lose a significant percentage.
I've taken a balanced view and have half in ords and half in prefs.
These are both high risk and not for widows, orphans or the nervous.|
|and another...someone has some confidence then !!!|
|a 500k T trade doesnt really help either!!!|
|Sport.... yes I am out now...Sorry but the prefs made me think this way....Dont know if I will come back on this one...depends...I could not afford to get nothing on this one so I decided out....
Wait to see what happens.... There is plenty of good stock elsewhere...
I dont marry a company nor a product...I am going where I THINK the money is...
But wish you all double at least on this one sorry i could not risk it further...|
|Imho things have changed now for the ordinary shares.
I was hoping for a long term recovery but this bid approach
has changed everything and you have to be nervous if holding
the ordinaries with the prefs holding all the aces, i admit
i have reduced my holding in Hst because circumstances have
|adonis - i take it that you are now out...awaiting the price to fall for you to get back in with more shares..?|
|Each should consider the risk reward again.
It seems to me that the ordinaries are far too risky now. Riskier than ever.
The risk now is that we may get absolutely nothing, now that the company does well enough to be sold.....
I suggest total selling of ordinaries...|
|well the latest price fall only increase the profit to be made when the offer does come in....i am surprised that it has fallen quite as much on thin volume|
|well i am staying put....i believ that any offer will be at a premium to the current share price..it is worth a hedge though by buying into the prefs...just been a nice 250k broker buy of the prefs too....|
|I dont feel very optimistic about the ords .Am tempted to sell the rest of my holding.|
|A bidder would also need to settle the accrued dividends on the Prefs. Payments have been deferred over the past 2 years @ 8% each year. This makes the Prefs even more attractive as current holders should receive full back payments.
See HSTA thread for the sums.
The EA footwear business has effectively been 'sold' to Bennett although payments are by annual licence rather than a one-off payment. It's difficult to value the rest of the business.
I suspect Bennett may be a party in the bid.|
|You are correct sportbilly, they do not amount to a great deal and without EA Hartstone would hardly be worth a light. Had the sale of EA gone to conclusion last year, the proceeds would, almost certainly, have been used to pay the outstanding dividends and hopefully met the cost of redemption of the prefs on or before July 05.|
|Besbury, from the interim report
accessory business held up well with a 46% increase in sales
This was followed immediately by negotiations to license our
wholesale footwear business to Bennett Footwear Group LLC which was successfully
accomplished on 23 September 2003.
I admit that they do not amount to a great deal, but they do count as other components to the business.|
|sportbilly. Please tell me what would be left of any value after a sale of EA.|
|besbury - that was for one component of the company - these talks are regarding an offer for the entire company..there is quite a difference|
|Sportbilly. Take another look at AFXF 29/07/03 09.19hrs. "Hartstone Evaluating options" etc.
The AFXF contains the para. "Hartstone also said today that talks to sell Etienne Aigner have been terminated"|