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Real-Time news about Setstone (London Stock Exchange): 0 recent articles
|snoopdoggywuff: Surely Government instability isnt good for any share price though BB ?.|
|snoopdoggywuff: Real shame we couldnt have relisted before chrimbo. When you look at the madness that is the AST share price, who are an empty shell LOOKING for mining/mineral aquisitions, gawd knows what the STN share price could have been by now.|
|johndavison: Any speculation on share price post suspension??|
|buzz no7: John - another excellent post.
The seller of the mining assets, gold/silver mineralisation in the ground together with the license area containing the mineralisation is going to take a stake in the acquiring company. This is excellent news and it will mop up a considerable quantity of the new (to be issued) Issued Share Capital of the enlarged STN.
STN will have considerable assets in the above mentioned and working and investment capital going forward. If institutions (Inc World Bank) take up a stake in the new entity then we are looking at very considerable appreciation in the share price.
Clearly there will be a rights issue. Im pretty sure that Setstone will be renamed to reflect its new status once the deal is financed and gets regulatory approval. Regulatory approval will only come when STN appoints a bona fide financial adviser which had experience in the mining area. The Regulatory authorities are awaiting the preparation and submission of the independent report on the proposed acquisition.|
|buzz no7: Dave,
We were only relieving the happy boredom.
Has your broker speculated about the price they are likely to return to the market at?
My own view is that in generally positive market conditions and for the mining sector in particular then, if there is general support for a rights issue (say on the basis of 1 for 2 or 3) then the market cap could zip up to a level approx 25%-30% less than the estimated net asset value of the assets being acquired. What that might mean for the share price depends largely on the post rights Issued Share Capital.
This has the potential to be VERY exciting.|
|auntie sandra: A poster on the CFP thread suggested that an RNS is due for the 23rd. Pure conjecture it turns out, but can anyone be firmer about a date?
There is steady buying in CFP (STN's nomads). CFP took in the region of 8,000,000 shares as payment for services at the last placing. If they still hold these then the buying may indicate that news of STN is imminent and that it is favourable. A 6p figure - as has been suggested here - would equate to 480,000GBP before an inevitable dilution.
If this is the case (and that is a fairly large if) I would expect STN news to be signalled by a buying flurry as this is factored into their share price. CFP have a market cap of only 3m.
Any further information regards timings would be gratefuly appreciated.
|auntie sandra: Fatnacker,
You are right in using guesswork. What the situation will be on relisting is an unknown...
i. What is fair value for SHG? (I have been trying to track down a credit report on the company to get some fundementals but finding this very hard, D&B Israel don't have any record of them). If they are valued at 10m and reverse straight in then in theory share price would be 10p, if 250k then 0.25p, but of course they have to buy them first.
ii. How are STN going to do this? Paper or cash or a mixture. Either way there's going to be dillution but to what degree is unknown.
iii. Why are STN buying them? What are the future plans, future earning potential and key personnel?
All these questions should be answered in the acquisition document distributed prior to the EGM. I believe there will be upside for shareholders as STN has settled it's historic debts so there shouldn't be further share restructuring.
Fatnaker, you shares could be worth 6p, 60p or a penny. Remember the acquisition has to be passed at the EGM, if it even gets that far, so the board are unlikely to table a proposal that will get turned down.
Looking forward to news over the next few weeks and months and best of luck to all holders.
|dvda: I've still got my old TWN share certs but not any new STN ones. Did they issue new STN share certs when the Co. renamed, or are the old TWN ones still valid?
Anyone know? Thanks|
|responsible lad: how dare you lot accuse this to be a ramp. This is quite the opposite because its a rise as I know the company are to be making new deals soon and double6 who highlighted TWN last year had tips which nearly all turned out to be 3 baggers or more.
For evidence of the strengh of my buyers, here is one of their trade coming up. Purchase of 105592 shares STN, Price of 0.90p.
Take it or leave it I will say again this company is still only valued at 0.31m and look what remarkable performance PBB gave and that was just related to market captial and this STN has much more to it again.
|chrisg: The company is doing rather better than the present share price market is giving it credit for.
The latest annual results were accompanied by a Chairman's statement, which said the company had been operating at a Gross Profit since February 1999, and that it expected to continue to do so for the current financial year. However, there is no implication intended in that wording that the situation would reverse after the current year: it is simply that if the company made any comments which looked further ahead than the current year, it would constitute a forecast! I was told that from the horse's mouth, and in practice the company is doing much better than that anyway.
The company's latest report said that total direct and indirect costs were now only 130% of turnover, whereas in the last full year they were 273% of turnover. In fact, I understand that as of today, not only is the company well into showing gross profits, but is now on the point of showing a net operating profit as well. This of course means that they can start to look at paying some of their interest charges out of their own income. The upcoming interim figures won't show that, of course, because they will only cover the six months which have already ended at the end of September, but they should still show the very substantial growth in the top line which is expected. The accompanying statement should be very bullish.
Turnover for the last three years was:
March 1997: £ 10,000 (!)
Growth continues. And with the breakthrough into operating profit, it will not now be long, with this rate of growth in business, before we see real net profits before tax being earned. This is one of those "new industry" companies which has now demonstrated beyond doubt the viability of its concept and business model. It has now even bought its own transatlantic fibre capacity, and has an alliance with GTE Corporation, to allow the company to provide, with GTE Internetworking, a range of services to international companies. Stentor are extremely relaxed about their ability to finance their future capital expenditure.
It really won't be long now before we can start to put a real price earnings ratio on this company. And with its almost exponential growth (as already demonstrated) within the telecoms industry, it won't be a low ratio. Yet the company is presently capitalised in the stock market at only just over £5m. Yes, I know about the preferred ordinary shares, but taking them at their ordinary share equivalent adds 22,750,000 ordinary shares to give a total future capitalisation of £15,500,00 for the whole company. How many other companies are there which are showing this rate of growth, which own their own fibre, and have telephone exchanges installed and operating in London, Ireland and New York, and yet are capitalised at such a derisory level?
Yes it is an AIM company which cuts a lot of investors out, but nevertheless, the company will be recognised in due course, and even the company expects its share price to be somewhat higher than its present level when they produce their next annual results. Bearing in mind the fixed conversion rate of the preferred shares into ords, even if the ordinary shares trebled from their present level, yes trebled, by the time of the next finals, the company would still only be capitalised at £26m! Even at that level, is that a bargain or a bargain? So what does that make them today?
Oh, and by the way, I have a feeling that the final results will be out in July next year, rather than September which they were this year. And we all know good figures take less time to add up, etc, etc.
And none of the above takes any account of their recent cash investment in an ISP.
I can't predict future stock market share movements, but these looked attractive to me, so I bought a load and thought I'd share the outcome of my homework and enquiries. All readers are cautioned to do their own research before making any investment decisions.
Setstone share price data is direct from the London Stock Exchange