Capital & Regional Share Discussion Threads

[lol short killer] 25/8/2009 12:11

50p plus tmr. 100p again in 1 month. lol

[bottompicker] 25/8/2009 11:54

ok thanks

edit - I work it out at a 20p share going to £1. 49p is its adjusted share price, and its just below that.

Well, I dont feel excited buying this at £1 when it was 20p. Dont get me wrong, LOADS of upside to this, LOADS. Just dont want to invest at this price at this moment. Could be a big winner in a recovery, I would rather look for something else battered down and still down.

[lol short killer] 25/8/2009 11:44

Bottom, a summary is that the share rocketed to 100p and then RNS 2-1 placing at 24p and then the current 43p. lol

[bottompicker] 25/8/2009 11:42

Can anyone give me a summary? So much going on with this share right now.

[davius] 25/8/2009 11:28

You are truly a legend in your own mind 'lol short killer'.

[lol short killer] 25/8/2009 11:15

see, 40p is a solid bottom, I wish not many have sold at 40p or below. lol

[davius] 25/8/2009 11:11

But with the share price rising this morning (what's that all about then?) you need not worry cyber. For now at least.

[typo56] 25/8/2009 07:32

cyberbub, sorry for not getting back earlier.

Agree with what kibes says. You can hedge your entitlement by shorting the equivalent position with a spread bet or CFD short. Bearing in mind the tax situation you may not want to short the full position via spread bet or you mind end up over-hedged!

However, as kibes points out, at 40p you may prefer to wait and see. You could kick yourself by effectively selling out at 40p and then see them rise.

Morally I don't see much difference between shorting via spread bet, CFD or real shares. I think spread bet companies hedge their net position in the real market if it gets beyond a certain level, rather than bear the risk themselves. So if people short via spread bet it will still indirectly influence the share price. And if you use direct market access CFDs (as I do) every CFD position taken out is mirrored in real shares.

[cyberbub] 24/8/2009 22:13

Thanks kibes. In reality if I do buy my entitlement I will be looking to sell shortly afterwards, so I want them to be as high as possible... also worth bearing in mind that my original shares (now sold to pay for the entitlement if I take it) were a free carry, so I suppose whatever happens I can't lose, assuming that the shares actually do stay above 24p!! Final point is that I don't want to lock up my money for 10 days between 1st and 10th if the share price then starts to drift... I suppose them's the risks... argh dilemma!

[kibes] 24/8/2009 20:52

cyberbub - you use a CFD or spreadbet account to short shares. TD Waterhouse will do you a spreadbet or CFD if you ask them to set up an account for you. You do not have to borrow shares yourself. Spreadbet gains are tax free, CFD gains are taxable, but CFD losses can be offset against your gains so you need to choose which you prefer. However before you pitch into CFDs/spreadbets you need to do some research because if you don't understand what you are doing you will lose an arm and a leg!

In the current situation if you are worried about a drop in price (which is very uncertain actually) you would take up your offer shares in full and sell short the same amount. At the current 40p that would lock in a guaranteed profit of 16p/share whatever happens to the price afterwards. But you will be really annoyed if the price goes way higher than 40p!

[cyberbub] 24/8/2009 20:10

Typo, to be honest with you I don't even know how to short shares, since I have never done it, do you have to use a specialist broker or will my broker TDW do it? Having thought about it further, although I do think it's unethical to short shares*, it is probably fair enough if you are shorting your own shares! :-) So I might consider it if someone can point me in the direction of a broker who will do it.

* call me old-fashioned but I don't believe it's right to borrow someone's shares without their permission and then use them to try and bankrupt that person... I have no problem with people making money from a declining share price, but please do it via SBs and not shorting...

[whiterussians] 24/8/2009 13:41

quite a heavy amount of stock being issued at 24p so we could see short term selling pressure as they are in profit here

[typo56] 24/8/2009 12:41

cyberbub, that's the reason why people sell short their allocations. It removes the market uncertainty. It's like writing out a blank cheque if you commit to buying and then you're locked in and can't sell for a couple of weeks.

[cyberbub] 24/8/2009 12:11

Bit of a dilemma, I am tempted to take up my allocation as I think the share price should hold at 40p or so - if we don't get a flood of selling on the 10th. But tricky to decide. It would be just sod's law to press the buy button on 1st Sep and then see the price slide down towards 24p in between then and the 10th :-(

[davius] 24/8/2009 12:03

Diku, it's actually 26.4p per share, but well spotted.

[cool hand kev] 24/8/2009 12:00

sold on the 14th (80p)as i was going away so how does this new development effect the Nav?

[diku] 24/8/2009 11:45

guys I thought Parkdev were taking the shares at 26p...existing shareholders at 24p...stand to be corrected...

[davius] 24/8/2009 11:42

I still disagree, anyone with half a brain that didn't want to hold all of the new shares will have sold their original holding already, and investors receiving placings are not selected on their likelihood to bail on the first day of trading. If the market expected the shares to fall further, then fall they would.

[kibes] 24/8/2009 11:35

Davius/fastbaz - the shares to be bought by Parkdev (89 million) are locked in for 365 days. But the shares to be sold in the placing and open offer are not. Of these shares (190 million), 140 million will be sold to shareholders. But 50 million will be sold at 24p to 'firm placees' who can sell immediately if they want and these people will sell if the price looks weak in my opinion. Unlike shareholders who need to get 49p to break even these people will be in profit at anything above 24p.

[fastbaz] 24/8/2009 11:12

Davius,
Have re-read your post and accept that you are quoting a breakeven point of shares bought by pi's (if bought at top being 98p - I, like many, bought lower so my b/e is lower than this and is therefore specific to own circumstances).
But im my opinion, this is not most relevant price - of most relevance is what the shares are worth, and whether one should consider selling/buying a share if share price is different to this believed/calculated worth - whether this should end up being for profit, loss or breakeven - decisions should be made on what direction you believe share price is going, albeit sometimes at a loss if by doing so saves a potential higher loss.

[boobly] 24/8/2009 11:08

The potential value of this business , and their relationship with Parkdev ,
make this a very interesting investment .........

[davius] 24/8/2009 10:54

fastbaz, yes I am ignoring them, so what's your point?

For investors that can obtain rights issue shares, the break even share price is around 48p compared to the close the day before the issue was announced.

The fact that the average share price to retain the same effective market cap is irrelevant, the company with the extra funding is a different proposition and therefore should arguably be worth a higher market cap.

[fastbaz] 24/8/2009 10:54

"The Parkdev Investors have agreed not to sell any interests in the ordinary share capital of the Company for 365 days following Admission."

This is under "Relationship with Parkdev" paras.

It does not look like a legal lockin, but breaking the agreement would be extremely unlikely in my opinion.