Bigblu Broadband Share Discussion Threads

[idiotsinthe darkrizandlintard] 24/9/2021 19:43

Another great day and good price action. 135p by the time of the return and we will have another great pay day.

Have a good weekend all 👏👏👏👏

[punjabi_guy_band_wala_scene] 24/9/2021 02:02

Shut up special needs you clown 🤡

[idiotsinthe darkrizandlintard] 23/9/2021 22:04

Prices usually rally strong into a big distribution as income investors get involved. On a pure financial theory level the stock should fall by the amount of the divi on the ex date but companies with strong potential that investors like will go ex div well. IG group today is a case in point.

However if a stock underperforms into a distribution that implies that general consensus is that it will go ex div badly and it will weaken further after the ex date. Hence you want to see BigBlu go into its distribution with a strong price action so today was a good day but you want that to continue to the 135 level by then.

In terms of small number of customers that is irrelevant. This is a growth company and is valued by the market on future growth expectations as opposed to the current company dynamics.

Remember that a share price is not indicative of the present performance but of future expectations. Currently I am holding strong in this stock. Good luck all.

[plasybryn] 23/9/2021 01:39

Can you expand on your thoughts?Do you think it is still good value at this price? I guess we will drop to circa 80p on ex dividend day. Not many buying in pre the dividend which is perhaps strange. Perhaps more will buy post the ex dividend date at the lower price. I wonder what the directors expected to happen with the share price on the announcement of such a massive return of cash. The residual business looks set fair but the number of customers seems small which I don't understand.

[idiotsinthe darkrizandlintard] 23/9/2021 01:16

Better. 👏

[idiotsinthe darkrizandlintard] 21/9/2021 15:40

This is terrible price action again into the distribution.

[typo56] 21/9/2021 15:08

Presumably they've been hassled to clarify the ex date. It would have helped if they'd also specified the time, as they have on the other dates.

My assumption is they go ex-entitlement from open on 1 October. That would stack up with T+2 settlement to a record time of 6pm on 4 October, therefore not requiring market claims procedures.

[mfhmfh] 21/9/2021 11:59

from today's RNS, Ex-entitlement date is 01.10.21.

does that mean the shares have to held on the opening of the bell on that date to qualify or they have to be held until the end of the day?

[idiotsinthe darkrizandlintard] 20/9/2021 16:55

Good price action into the close so if the seller is now done we hopefully can see a rise. Tomorrow will be interesting.

[idiotsinthe darkrizandlintard] 20/9/2021 16:49

No - MMs are only execution traders now following the financial crash. Hedge funds can take a position but the price is now only based on orders and MMs no longer have capital in big banks to build their own position.

Currently MMs do not even want to carry any inventory if possible into the next trading session so they will call other banks to offload asap if a big seller appears which can push the price down.

Hence unless a hedge fund is going short aggressively the MM manipulation is unfortunately the excuse retail investors hold on to try to explain either a fundamental change which they do not understand or a real "flow" situation which they cannot see.

[cravencottage] 20/9/2021 15:30

MM's scalping weak holders with the view to making a handsome profit in the run up to equity distribution?

[idiotsinthe darkrizandlintard] 20/9/2021 14:18

It seems that the seller that I mentioned on the 15th is still around which again makes me concerned as to the reason an investor sells in size going into a 36% pay out!!!

[idiotsinthe darkrizandlintard] 20/9/2021 14:15

No - They are issuing B shares at 45p and redeeming them immediately to pay the dividends. Therefore there will be no consolidation but obviously in line with efficient market theory the stock should come down 45p. Anything less and good for the shareholders.

However, I cannot find the reason the stock is down 6% today and that is surprising given the distribution is around the corner.

[typo56] 16/9/2021 14:05

IDIOTSinthe darkRIZandLINTARD, is there going to be a share consolidation? It's mentioned in the RNS but I can see no mention in the circular.

[idiotsinthe darkrizandlintard] 15/9/2021 15:40

The ex date is 5 October. It will be very interesting to see how the stock trades into it. I would expect strength and if not then it will go ex badly as the weakness into the ex date implies into that investors are concerned that the drop will be greater than the divi amount.

However share consolidation for a strong company usually is beneficial to investors. So strength into 5th October bodes well for a few % gain on the ex date.

On another point, stock is readily available in the market currently which makes me think for whatever reason a reasonable size holder is selling out.

GL all and see you nearer to the 5th - Hopefully around that 135p mark.

[typo56] 14/9/2021 07:39

You're surely not going to have to sell because of the upcoming return of capital? If you sell the lot you've realised 100% of your capital gains. If you wait for the return of capital it only realises about 35% of your capital gains.

[mathewawood] 13/9/2021 20:17

Thanks for the reply Typo56. Going to have to sell but will probably buy back in again after the this is all done.

[typo56] 13/9/2021 16:50

Capital gain for most UK holders. However, you don't book the full 45p as capital gain. I think you need to take account of your acquisition cost on a proportional disposal basis. I'm vague on the details because it's a long time since I've had such a situation outside of SIPP or ISA.

It depends on your personal circumstances but for many, being taxed as capital gain is better than being taxed as income. For the time being anyway!

"This structure has been chosen because it enables all Shareholders to participate equally in the Return of Capital in proportion to the size of their existing holdings in the Company and is expected to provide capital treatment for the majority of United Kingdom tax resident Shareholders, as explained in Part V of this Circular. Shareholders who are subject to taxation in a jurisdiction other than the UK or who are in any doubt as to their tax position should consult an appropriate independent and authorised professional adviser"

[mathewawood] 13/9/2021 16:30

Can somebody help me. Regarding the companies return of capital of 45p per share. Will this be treated as a Capital Gain or Dividend Income?

I'm only asking because I've already maxed my CGT allowance for this year and my shares are sitting in my Trading account not my ISA unfortunately.

[typo56] 13/9/2021 15:36

The RNS of 6th Sept talks of the Return of Capital and the Share Consolidation.

Often returns of capital are accompanied by share consolidations, in order to maintain a similar market price. As it stands at the moment a consolidation would be about 16 new shares for 25 existing shares.

However, in spite of the RNS saying the Circular provides further information on the share consolidation, I can't see it mentioned anywhere in the circular. Also, the circular talks about the rebasing of the share options, reducing the targets by 45p. If there were to be a share consolidation they'd surely be no need to reset the targets?

Is mention of a 'share consolidation' in the RNS just a sloppy mistake?

[dogwalker] 09/9/2021 11:38

Oh. Am I wrong in the post above about the date? I've now seen the 'entitlement date' as being 5th Oct, rather than 28th Sep..