Atlantis Share Discussion Threads

[a0148009] 03/3/2004 19:17

I prefer to continue to buy at this level until they have at least covered all the options dont think it is a gimme to Fidelity but it would be if the price were to fly lets take them out as cheap as possible.I personally think the NAV
is well north of 50p there are a number of undervalued assets in the portfolio.
The bulk of the options are still underwater at 40p so you have to be looking at 45p plus to make it worthwhile for the directors average cost of 38p.I know it is a slow burn but is solid and not long to wait expecting preliminary figures in May.The board has a very big interest in ensuring success. 4-5p fair guess based on the interim figures but I think they have a lot of flexibility depends how they value some of the assets.Board also stated would consider paying a dividend.

[capt bligh] 03/3/2004 17:13

I for one have been pretty disappointed at the effect of these buys, I thought the price would fly, it all rather smacks of a nice gimmey for Fidelity. Perhaps they'll hang on to the rest of their holding, but I rather doubt it. Still their ECK sales have been filtering through the second half of the year so they should be booking some interesting profits... what'll they make for the year between 4-5p per non-treasury share.

[a0148009] 03/3/2004 16:46

Well done baggywrinkle youve got it in one - total number of share options
granted 4,943,973 average price 38p - purchases for less prevents dilution, yes they can be re-issued to the beneficiaries. Obelix 6,500,000 purchase authorised bought so far 3,255,000.This authority of course could be renewed again at the next AGM.Up to 10% of the Company's issued Ordinary Share capital may be alloted as options during five years from date of resolution(AGM Resolution 8 Special Resolution dated 26th June 2003 Page 30).Incidentally the options are unusual they can be exercised after one year normally directors are locked in for longer usually three years or more.

[sugarbeast] 03/3/2004 16:26

They can pretty much authorise what Mr Barham wants.

I sold today.

good luck all.

[baggywrinkle] 03/3/2004 16:22

Don't forget that options were granted over some 4 million shares at the last AGM, some at 30p (now in the money) and mainly at 40p per share.

So the effect of buying in these shares so far is to avoid dilution when these options are exercised.

The fact that they are keeping the bought in shares as Treasury shares, instead of cancelling them, suggests to me that they will eventually be reissued as above.

Would be great to see buy backs continue with authorisation from an EGM for a further 15%.

[sugarbeast] 03/3/2004 15:59

so they can only buy another @2.5 mln shares ?

[a0148009] 03/3/2004 15:43

See Page 29 Annual Report to 31/03/2003 dated 30/05/2003

Resolution 7 - Ordinary Resolution

That the Company be and is hereby authorised to enter into,at any time before 24 December 2004(the expiry date)CONTRACTS FOR MARKET PURCHASES(WITHIN THE MEANING OF SECTION 163(3) OF THE COMPANIES ACT(1985)OF NOT MORE THAN 6,500,000 ordinary shares of 0.5p EACH IN THE CAPITAL OF THE COMPANY AT A PRICE PER SHARE ETC.

[sugarbeast] 03/3/2004 10:00

not at all stockport.
the company is legally able to buy back upto 33% of the initial amount of shares,which from memory,lets them buy upto another 16/17 mln shares.

ie the vast majority of the shares not owned by Mr Barham.

[stockport] 03/3/2004 09:53

Obelix

Looks like they sold most if not all of them to ARL. Does the announcement sjgnal the end of the purchase as treasury shares?

[sugarbeast] 02/3/2004 15:25

looks like fidelity have sold about 1.25mln shares since the company started buying them back.

[a0148009] 27/2/2004 14:46

capt

Indeed, share registers are very helpful have referred to them myself in the past When share values drop so dramatically, the low was about 15p,often institutions lose interest and dump.If their broker is worth his salt he should be identifying
blocks of stock from the register,I am sure the directors would be doing the same.Approx 70% of stock is held by the directors and Fidelity my guess is that
most of the loose stuff has been mopped up and the others are staying in for the ride or holding out for higher prices.I hope the Company continues buying at this level to enhance NAV.I am sure we will be well rewarded over the next twelve months.

[capt bligh] 27/2/2004 12:31

The point I was trying to make is that these 3million recently purchased, must have been waiting in the wings with a "Sale" sign for some time, and I would expect belonged to disaffected institution (s) who backed one of the issues. The question is how many more are loosely held, it would be interesting to look at the share register.

[a0148009] 27/2/2004 11:47

An initial investment on Offex of £5000 @ 40p in December 1999 and a further of £5000 @175p in February 2000 also on Offex gives those investors an average price of 65p assuming that they did not average down. The placings were made conditional that shareholders would not sell for one year(on the basis of "dictum pactum").When the shares came to the AIM market end November 2000 which was before the one year conditional period was up the price had collapsed to 38p having been up to 270p on Offex in the meantime. I am not sure if all shareholders were bound by the one year agreement but certainly those that I know were and stood by the agreement.I hope Nick and his collegues (first tranche of options at 30p now in the money)who are doing well on this investment will keep the stale bulls in mind.They have done well being patient,cautious and very selective on the investments since the crash and 65p is not that far out of range over say next 12 months.

[capt bligh] 27/2/2004 09:46

This was posted by Affinity in 2001, I guess it explains why there is a lot of stock still to be bought at the 35-40 levels.Still I am very suprised that 1million quids expentidute has created such a small rise.
""""""""Yes but how have they doubled the net asset value? First they set up the company with £50,000 and grant themselves 100% of the shares. Then they make a few unlisted investments and issue more shares in Arlington valuing the co raising say £5 million, the internet boom takes of the shares rise to 80p valuing the co at say £30 million, it is not worth £30 million so they issue more shares by a placing for 40p a shot and raise another £5 million, the internet frenzy continues and their company gets crazily valued at £100 million, they can't believe how stupid people are so they go for the jackpot and issue more shares they raise £20 million at £1.75p per share.

They now have approx £20-25million in cash and £15 million in unlisted, OFEX and AIM shares. This raises the Net Asset value from £50,000 to £40 million in 2-3 years. more importantly it raises cash. Instead of owning 100% of £50,000 assets they through dilution own say 40% of a company with £25 million in the bank and a few investments that may or may not be worth £15 million.

The share price collapses as £25 million cash and £15 million worth of investments don't make £120 million. Sentiment moves so far against these guys that they find for the first time that the company assets are worth more than the shares market cap of about £30 million. At this point the directors buy back the shares from the investors of the last two years for a fraction of what they sold the newly issued shares.

The shares may now be a buy as the next move will probably be to clean up the mess and run off with the money. Expect a derisory offer from the management to buy the rest of the shares and take the company private within the next year. I'd hazard a guess that they will offer 40p a share to the shareholders that don't sell out to them for less via the share buy back.

Why don't we all do this? Well you need a success story first to pull in the punters, arlington's happened to be a successful investment in XKO. I don't know of any of their other investments making any money, but they have lost out on Boxman, icollector, 365 and Talkcast to name but a few"""

[sugarbeast] 26/2/2004 12:33

strange that people are selling now ARL has a floor,as opposed to a ceiling.

[a0148009] 24/2/2004 17:29

From my limited knowledge of gold mining the Toka Tindung Gold Project seems a reasonable development for the following reasons:-
*Estimated reserves 1.75m ounces which gives the mine a life of 10 - 12 years
on a projected annual production of about 170,000 ounces per annum.

*The ore body is shallow 150 metres and will be mined open pit which of course is much cheaper than deep level with all the rigging,shaft, stepping etc. that goes with it.

*Estimated profitable cost of recovery is $290 per ounce against current value
of $403 a good margin.

*Most of the hard work has been done by the previous owners $50m spend.

What I would like to know is the grade of the ore body if any one knows?

Recommend reading RNS statement dd 09/09/03 by Archipeligo for more info.

[sugarbeast] 24/2/2004 13:26

a 25% low risk return looks sensible to me!

I do admire the patience of the boys at ARL in only commmitting their cash to no brainers!

looks like the co will be buying 300k more today.

[capt bligh] 20/2/2004 10:34

Sorry my mistake, yes meant 600k oops.

[sugarbeast] 20/2/2004 09:47

they must have read that!

[sugarbeast] 20/2/2004 09:46

I believe EVO are the housebroker and WINS are trying to nick the treasury share business,imo,and will get upto all sorts of tricks.
I havn't tried,but I'd bet that their offer at 37p is not in big size.

[sugarbeast] 19/2/2004 21:18

or tomorrow matt.
we are hardly a long way from 40p!

[mattboxy] 19/2/2004 21:16

Ah the return of Tom2468
I thought you might surface again
Still not prepared to say why they will be 40p about 2 weeks ago!!
They might be 40p in 2 months though

[tom2468] 19/2/2004 20:57

hello there

I knew this would motor soon more tomorrow I think

[a0148009] 19/2/2004 19:14

capt bligh
re share purchases:-
25k @ 30p 1.33m @ 35p 275k @ 35p & 100k @ 36p =£597758 guess you intended 600k.