West African Share Discussion Threads

[currypasty] 28/1/2010 15:32

market makers keeping a large spread to see if there are many forced sellers.
I would guess they will open about 22-25 after consolidation, much tighter spread, and alot more liquidity.

[devil20] 28/1/2010 15:26

Nice little buy there to try and even up those short sighted sells.

[sharewinner2] 28/1/2010 09:26

Moosh2 - I thought the same that my broker had them as untradeable but after a call it seems you just have to go to market, couldn't trade electronicaly.

edit - I can trade online today.

[bobbieblock] 27/1/2010 22:40

Jaudging by what stellar have managed to set up at mandala, with plenty of throughput, hopefully they can use their expertise on Bomboko. Unlike teh WAD mob, this lot seem too know their elecranon from their gluteals.
Good luck and hope we get $150 ct and 7pht from bimboko, then we might be in the money. I bought at 20p before dump 11 fiasco, so need £1 to get my money back.

[addict] 27/1/2010 17:58

Looks like a buying opportunity for those not already in,or holders wanting to top up.The enlarged company will be much stronger than WAD and once the formalities are through with I see a positive fue for the share price DYOR

[moosh2] 27/1/2010 17:50

cp - my broker still has my WAD shares as untradable!!!!!! am happy to hold though. WAD technicals was on the verge of going bullish before the suspension so let's see wot the future brings! and besides, compared to october, we actually know now that bomboko is 100% up and running, whereas we weren't sure then and were waiting for the flipping RNS. why are some people whinging? oh yeah, it's a british thing.

[currypasty] 27/1/2010 14:29

after 3 months suspension, there were always going to be some distressed selling. Now its re-listed, there doesnt seem that many sellers, and buyers are starting to take the shares. Buys are going through under the ask, at about 21 pence, so prety close to the institutional placing.
After the consolidation, you would think the market makers will work on a much smaller % spread.

[kajshares] 27/1/2010 12:43

Thanks Guys

[kajshares] 27/1/2010 12:39

Thanks Redleaf boy,

I am slightly confused as it was indicated that the placement and the injection of £5m would take place after the takeover and the new shares are issued. Therefore, the £5m the institutions would inject into the company would not form part of the valuation, in the calculation of the market capitalisation prior to the issue of our new shares.

I noted the suggested 5 for 1 but it appears wrong. Am I still wrong?

[leapinn] 27/1/2010 12:38

KAJ -

No there will be a 5 for 1 consolidation.....


"a proposed 5
for 1 consolidation of the existing ordinary share capital"



The WAD / Stellar split is used to calculate how many shares WAD need to issue to Stellar for their shares.


90m shares now in issue - 18m after consolidation - then Wad issue 54m to Stellar shareholders (ie three times as many a WAD shareholders will have.)

Then they will issue 25m shares in the placing to raise funds so in total the new company will have 18 + 54 + 25m shares in issue = 97m at approx 20p each hopefully.


(All figure rounded)

[redleafboy] 27/1/2010 12:35

Due to the £5M raised from institutions KAJSHARES the consolidation was actually 1 for 5.

[kajshares] 27/1/2010 12:34

I read the proposals this morning.

Stellar shareholders get 75% of the new company whilst we get 25%. Does that mean that when the new shares are issued on takeover, we get 1 new share for 4 shares we currently hold.

If the above assessment is correct, based on the proposed placement price of 20p for new shares, the current shares would be worth at least 5p based on the institutional valuation.

If I am wrong, I should be gratful if someone could kindly put me right.

Thanks

[addict] 27/1/2010 11:57

It's a fair price.They need to up the bid if they want to attract sellers,other than forced sellers.

[pamelling] 27/1/2010 11:02

RLB, I have been in here for 6 months and have not had a ROI...

I'm in here to make money just like everybody else...

[addict] 27/1/2010 09:46

Selling at less than 4p is giving the MM's a treat.Do the maths!!

[eh m es mx] 27/1/2010 09:43

Using Warren Buffett's quotes is quite ironic especially as Mr Buffett wouldn't be seen dead holding such a stock as WAD (or any other Clontarf Road stock for that matter).

[redleafboy] 27/1/2010 09:40

Maybe pamelling? Or perhaps it is as Warren Buffett would no doubt agree called INVESTING and therefore being an INVESTOR?

Sounds as though you are just in this stock for a quick turn? punt?

[eh m es mx] 27/1/2010 09:25

Contrast it to the ramptastic bull that was being posted in the past few months.

Seems the market has had enough of the twist and turns and reinventions the Clontarf Road companies conjure up every now and then. The days of valuing the company on rhetoric (aka AFD, PET etc) are gone. Welcome to the era of "show me money".

[currypasty] 27/1/2010 09:22

The new enlarged company, with the cash, should be able to make quick progress.

[redleafboy] 27/1/2010 09:15

What is wrong with that? It does take time you know - AFD went from 7p on IPO to circa 180p in about 3 years. Investors understand this, but if as i suspect you are just a day trader then you would obviously expect this type of move over just 2 to 3 days....lol!

[eh m es mx] 27/1/2010 09:06

"Give this stock 2 to 3 years .."


LOL.

[devil20] 27/1/2010 08:58

I bought a few of these before suspension as they were so much to do with AFD and not knowing what Stellar were about. I'm ok with whats gone on as we end up with a much larger Co and a rising diamond market. JT knows what he's about in diamond mines and retains a % of WAD. Good chance the new WAD will do ok.

[cliley454] 27/1/2010 08:36

Not the best time to be coming to market but Stellar have some interesting assets so see what the next couple of months bring. Also I don't see much downside from here.

Off topic have a look at APA. They are very under valued and news is expected shortly. I've posted some research on the bb.