Prospect EP. Share Discussion Threads

[joan of arc] 03/11/2008 19:36

As an aside support the Kill the Spread campaign. It is in all our interests!!

See below :-




www.killthespread.com



October 2008 (2)

Dear Supporter,

We wrote to you earlier this month with details of the Kill the Spread campaign objectives - since then word has really started to spread! Below are the links to the latest news and articles written about the campaign over the last two months. Were you aware that the London Stock Exchange is facing a High Court claim of anti-competitive behaviour from Plus Markets??

Change we need.....so what's next?

Since we last wrote to you, we have been approached by several brokers, wanting to know more about the Campaign and offering their assistance!

We were very encouraged by this – it's comforting to know we aren't the only ones complaining about the AIM and its Market Maker system. It's killing their business too!

We have learned a lot from their perspective on the way the AIM works and have now started discussions on some interesting initiatives including:

1/ Ways of creating an alternative Broker account for AIM shares, which could effectively cross stock between buyers and sellers, bypassing Market Makers and avoiding spreads.
2/ Creating a "ring-fenced" nominee account, offering guarantees to shareholders that their stock will not be loaned in the Market to cover short selling.

We think these could be very compelling propositions for Investors and any views or feedback you could give us on this would be very helpful; [e-mail]

We are also discussing ways forward to achieve the big systemic changes we are looking for with Direct Market Access, and we hope to be able to update you shortly with some very interesting developments.

We are finding that there is a willingness to listen to the voice of the Private Investor, but to turn these initiatives into constructive measures, we need to prove we have sufficient numbers behind the Campaign.......... and this is where you come in!

Hitting those Numbers!

At this crucial stage your support is essential and we are now asking you to make a really big effort on behalf of Kill the Spread.....

As a growing grass roots movement, we are now being taken seriously. We want our demands to be implemented as soon as possible and the only way we can ensure this happens is to prove beyond questionable doubt that a significant number of Private Investors are totally dissatisfied with the way the AIM market currently operates and are demanding change.

In simple terms - we need to get the numbers up - and fast!


5,000 supporters = ACTION!

Our target is to get to up to 5,000 supporters. We're getting there – but we need to get there quicker!! We are currently up to just over 1,300 supporters on the Poll - so there is still a way to go.

We are getting publicity but we really need the word to spread......So please, make sure you tell as many Investors you know about Kill the Spread.

You can spread the word in the many ways:

Talk to others Investors about the campaign
Post a link to the site on your Blogs
Post a link to the site on Bulletin-boards,
Tell people in you Share Club/Investor Group
Tell Everyone!!

Ask people to sign up at the website


and get them to complete the on-line poll



it won't cost you anything and will only take a few minutes of your time.

Help give us a real push – and remember if every supporter brings in just 3 new supporters - our numbers will quadruple!!

We are now on the brink of making a real difference for all Small Cap Investors - so a big push for more supporters right now is just what we need!

Thank you once again for supporting Kill the Spread – with your support change really is possible!


Kind regards



Campaign Coordinator
Kill The Spread

www.killthespread.com
[e-mail]

Please email us at [e-mail] - if you want to know more about Campaign - all question & comments are most welcome!

Recent News:


The London Stock Exchange is facing a High Court claim of anti-competitive behaviour from Plus Markets




Great Article by Tom Bulford





another mention from Dominic Frisby
(mention is at the end of this article)

[joan of arc] 24/10/2008 22:16

If this company is as stuffed as the share price says why don't they just wind it up and give us a few pennies back? Or do they just plan to spend the last £5m on themselves?

[timanglin] 21/10/2008 10:37

i am not, nor was a holder(luckily) - however am interested in where the assets are now? ie who bought them? - as i understood the assets, they were producing large yields, (so someone must own these low cost, high yielding assets), out of interest who?

[wolstencroft] 20/10/2008 23:56

sort of goes like this....

Assets 100p Gearing 50p NAV/Share price 50p

underlying asset holdings (=shares in portfolio) drop 25%

Assets 75p Gearing 50p NAV/SP 25p

margin call (margin allowed is 50%) to sell 25p worth of shares in the portfolio

Assets 50p gearing 25p NAV/SP 25p

but this causes shares in portfolio to drop a further 33% because they are illiquid

Assets 33p gearing 25p NAV/SP 8p

still on a margin call to sell assets,17p worth sold to bring gearing down to manageable levels

Assets 16p gearing 8p NAV/SP 8p

shares in portfolio drop a further 25%

assets 12p gearing 8p NAV/SP 4p

at this stage the manager ring-fences the 4p of NAV and sells 8p worth of shares because the margin call is to sell 6p worth of shares or otherwise fund the account, they can do some funding but this would come from the dividend reserve so they transfer some shares into their offshore account where the dividend reserve is, using that reserve to fund the purchase, and the bank manager offering them margin tells them they cant leverage anymore as it clear that they are considering not honoring the margin call if they end up with negative assets in the subsidiaries which hold the margined assets.

assets 4p gearing 0p NAV/SP 4p

[joan of arc] 20/10/2008 23:40

I get margin calls that doesn't take my bet down to zero gearing.

[wolstencroft] 20/10/2008 23:11

because or margin calls

[joan of arc] 20/10/2008 23:07

Why should the gearing be 0 just because the NAV is??

[wolstencroft] 20/10/2008 22:45

The gearing will be 0 now I guess and the 4-5p NAV is safe I also guess. So if the REIT index doubles the NAV will be 8p and if it trips the NAV will be 12p. I think is a prime example of a bull market (Tokyo REIT) taking the fewest number of people with them - we have been burned and the market will now soar.

[joan of arc] 20/10/2008 21:58

I have lost a fortune on this bummer. Just start praying that the REIT Index suddenly goes into orbit otherwise we are doomed - if not already!!

[wolstencroft] 20/10/2008 16:03

they had to sell to meet margin calls which depressed prices further, which cause more margin calls, so the debt now equals the value of the holdings, and all they have left is the 5m worth of holdings they transferred a few days ago I guess

[wolstencroft] 15/10/2008 08:43

the reason they did this IMHO is that they now have assets worth 5m; if the subsidiaries go bust they still have the 5m of assets. the alternative was to give the 5m cash back to the subs to help them witht the margn calls, and who might still go under. wise move imho

[joan of arc] 15/10/2008 00:00

Seems shrewd to me but I can't find out to which holdings they refer and what percentage this really is. I don't feel that it will make ahuge difference though.

[webby] 14/10/2008 22:26

what do you guys make of the news release this evening?

[wolstencroft] 14/10/2008 10:43

I was just looking as ADVFN reported trades on the asset holdings - perhaps ADVFN is misreporting but the average holding for PEJR seems to be down about 10% today probably because PEJR is having to sell them down.

[joan of arc] 14/10/2008 09:34

How do you get that? The REIT Index isup 8.8% this morning so tha NAV should be up by about 16%.

[wolstencroft] 14/10/2008 06:51

I doubt it because property shares in Jaan are still falling

[joan of arc] 13/10/2008 23:23

And so tomorrow it will rise again

[wolstencroft] 13/10/2008 18:39

alas asmagliocco is exactly a geared property company share invested in geared property company shares

[sigmund freud] 13/10/2008 17:07

I thought Joan of Arc might be from Moneyweek....?

[asmagliocco] 13/10/2008 16:06

Unfortunately it looks ominous but hopefully things might turn up dramatically just as they turned down. My initial smallish stake is now worth so little as not to be worth selling. I wonder if that 5m would go to shareholders or a series of other folks first?

Mind you this is a sector that "must" recover eventually in that property is always worth something, it can't just go to zero like geared property company shares.

[wolstencroft] 13/10/2008 15:59

I note that they are keeping 5m in IOM rather than using it to pay off the subsidiaries margin calls. If they let the subsidiaries go under, the 5m should be available for shareholders which puts a floor on this of about 4p. Perhaps not worth selling at these prices?

[bossman1978] 13/10/2008 15:53

BUST!!! sold my holding at a large loss. I was hoping for a dividend. No chance. good luck everyone. I think we all need it in all shares not just this one.

[wolstencroft] 13/10/2008 15:37

I hold and its a sore lesson to suffer from the effects of gearing which was my big mistake on this one. If the margin call is not met then the assets are sold at distressed prices. I dont see this surviving; the gearing was simply too high