Taihua Share Discussion Threads

[davydoo] 07/9/2016 15:32

I just had a look, the spread is quite wide, buy for 2.70 sell for 2.25p, so they're obviously not having to pay up to get stock yet.

Plus, who would sell now for 2.25p when the company is raising money at 2.63p per share for the purpose of buying back shares at up to 5% above mid price, and potentially paying an average price of 6.1p

[duplicate book] 07/9/2016 15:29

I have a feeling the MM's dont want to raise the share price too much, which makes me wonder where they are getting all the shares from to fill the recent buying?

[davydoo] 07/9/2016 15:03

I don't know yet.

If I wanted to buy 1% of the co absolutely I would, as I couldn't easily do that in the market. Which is exactly the reason why this is happening in my opinion. Tao ji cant reach 25% with market purchases, and while 2.63p seemed high initially, it is likely to be much less on average, than if he had tried to do it in the market.

The higher the price goes this week the more tempting the offer becomes, and I would almost feel compelled to buy.

The alternative though is buying in the market now, and leaving the offer, knowing that Tao Ji will have to buy them all. This would leave fewer shares remaining in the free float for the company to buy back from. This should be good for the price, knowing the company plan to spend up to £500k to buy only approx 8m shares.

It all seems quite positive though, even for new purchasers who'll never get a sniff at the offer, to know the company has a war chest ready to buy shares within certain rules. Even though they might choose to hold, its good to know you've got a possible emergency exit when investing in small caps.

My broker has given me until 5pm on Friday to make my declaration.

[duplicate book] 07/9/2016 14:49

Are you taking up your entitlement too then davydoo? Same question to lyonst5? Nice to hear a tone of confidence coming from those who hold a percentage stake in the Company! I have just over 1%, but dont think l want to put any more money in here! Maybe you 'big fish' know something that us minnows dont ;o))

[duplicate book] 07/9/2016 14:18

So, does that make you the elusive David Hearne then davydoo?

[davydoo] 07/9/2016 13:20

I've long been interested in special situations funds and activist investors.

So it's nice to see it in the small cap arena every so often and therefore have an opportunity to participate.

Here's how I see it... this is an inflexion point. it's a great shot at the company finding a win/win/win, getting a new investor (and hopefully new executive) on board at a price that doesn't frustrate the other new major holders, while raising some capital to steady the business and reduce the need to approach a bank for funding. Should they wish to, it gives some investors a route out, either by selling now the price has risen or waiting for the likelihood of a higher price when the company is spending £500,000 on buy backs. (that 6.1p+ figure is a very good way to tempt folk) As a knock on, this then makes applying for shares in the open offer at 2.63p tempting, especially as to buy now is 2.7p+ in the market.

If you think about each stage of this, it actually makes a lot of sense, which is in contrast to that initial news day of thinking that you were being asked to pay for 2.63p what you could by for 1p+ in the market.

I've had my frustrations with this share, but with new shareholders, new executives, long term land leases paid, certifications in place etc, it wont actually take much to address the things that might have put off attracting some new investors.

Its all been enough to make me take the 3% I have. dyor etc

[lyonst5] 07/9/2016 12:27

Well its going to be now or never with Taihua. It seems like the company are attempting to kill 3 birds with one stone and all now seems to have been put into new guy Mr Tao hands, who will surly be announced as a director or MD after the open offer has closed. He will have the refurbished factories, new GMP and the all clear from the Nomad having done the diligence over the winter to give him a good head start. And I will hazard a guess at better than average results in the next weeks will pave the way forward.

[davydoo] 07/9/2016 08:07

I'm not a big fish, but I would certainly like some more shares.

I'm not paying 7p though ;)

[oxtail2015] 05/9/2016 17:23

Going forward they should be able to do a buy back every year then maybe the pre 2009 buyers can get their cash back.Whether it be the prestige or the chance to raise funds in the future they seem to like the listing.pigs will fly before 16p,

''and also those Shareholders who wish to dispose of some or all of their Ordinary Shares in the proposed share buyback programme to do so''

^ they seem confident the buyback is going to make an impact for us to get out!.

[duplicate book] 05/9/2016 16:54

After the last few years of nothingness, 7p would be a tough offer to turn down for me too! If the Board have been listening to the shareholders, maybe we should all advocate the selling down of the Company, and it's assets, as 16p per share would do me admirably ;o))

[oxtail2015] 05/9/2016 16:32

It must be in the company's interest to buy as cheap as possible so i cant see them hanging around.who is this david hearne character will he buy more shares? are there more buyers wanting in.Seems some big fish want in at the bottom this maybe the last chance.If they are reading this you can have mine @ 7p.

[che7win] 05/9/2016 15:12

Interesting commentary in Shares Mag on TAIH this week.I don't have a copy, but from memory, the just of it was that they had to raise money outside of China to do the share buyback, as using cash would have attracted onerous taxes.It was quite positive to me, think they mentioned 16p assets.

[lyonst5] 05/9/2016 13:24

Also i see the new Chinese webpage went up a few weeks ago, just waiting for the mooted new Uk one as well now.

www.thzhiyao.com/index.html

[duplicate book] 05/9/2016 13:15

I'm sure all will be revealed once the open offer period is over. It will be interesting to see how the buyback takes place, and when. If the Board are serious about returning some shareholder value here, then buying that amount of shares in the open market over a period of months will certainly have a positive impact on the share price! I can see a reverse takeover coming off here with the business interests of our new man being taken into consideration. It would be nice to get the chance to sell my holding and make a profit!!

[lyonst5] 05/9/2016 12:58

I think maybe the 2.63p came from Mr Lui and Mr Yin not wanting new man Mr Tao getting in on the cheap and also i don't think there is any way of securung such a large slice of the company on the open market.

[lyonst5] 05/9/2016 12:49

The buyback could be some type of self tender offer, but i expect normal market purchases to be made, and the market makers will carve this up between themselves like a pack of sharks.
On the timescale issue, no start of cut off dates have to be disclosed. The company even had no need to inform us of a pending buyback policy, the resolution was passed at the AGM (Though no RNS of the passed resolutions was issued) so no nothing more need to be said until actual shares are purchased in the market and then the company would then need to start to release RNS's.

[duplicate book] 05/9/2016 12:26

Also, why pay 2.63p in the offer when you can buy in the open market for less!

[duplicate book] 05/9/2016 11:59

Surely it will be a Tender offer to buy those shares? The thing which confuses me somewhat is that there is no timescale as to when the buyback is to take place, and over what period of time. If they are to pay no more than 105% of the average price over so many days, what is to stop them making the offer straight after the 19th September, and if the share price is still going to be around the 2.5p mark, they could get them for around 3p. Am l right in that assumption?

[lyonst5] 05/9/2016 11:42

An oddity in the wording of the open offer and buyback RNS, reads as they are going to spend the full £500k on buybacks, which then means they need to pay in excess of an average of 6.1p per share to stay under the limit of buying more than 8173733 shares.

[lyonst5] 26/8/2016 14:52

Oxtail, The repurchases will be within the criteria laid out in the RNS, so never less than 1p paid or never more than 105% of the average share price over the previous 5 days. I remember Asian Citrus Holdings did this a few years back as back then they were sitting on a mountain of cash and released a RNS each day purchases were made.

[oxtail2015] 26/8/2016 14:34

lyonst5 once the money is raised from the offer will the buy back be at market price in bulk,or a set price in bulk?.I have not gone through this on any of my stocks before.

[lyonst5] 26/8/2016 14:22

Afternoon, Yes its not me. So it will be interesting to see how this whole offer thing plays out, and with the buybacks as well. Hopefully now with the three directors with substantial holdings there will be a keen interest to turn the company around pretty quickly.

P.S. £500k of buy backs could a have serious have effect on the share price if the larger holders stay on board, as the money on the table for the buybacks exceedes the amount of money needed to buy all the current free of free float of shares that the sub 3% holders have at the current share price.

[oxtail2015] 26/8/2016 13:56

no lyonst5 = GARY LYONS who went over 3% last year.looks like we have a new investor,things are warming up now.