Costain Share Discussion Threads

[theoldcodger] 28/5/2020 08:25

By my calculations it's just under 12%, although as you say Pejaten, it may well be higher with consolidated applications, although the "Company's discretion" bit might also make a difference.

I would have thought this a positive for the share price, although with Costain I've learnt to take nothing for granted.

TOC

[pejaten] 28/5/2020 08:03

so 140% oversubscribed, with 86% taking up basic offer. That leaves 14% of shares to allocate to shareholders applying for excess. In the prospectus it says that allocation will be at Company's discretion so not clear how much of our excess application will be accepted. Guess it should be at least 25% though. Of course for platforms like HL you tend to get more if they have consolidated shareholder's application, because some shareholders on their platform will not have applied for their entitlement

[gooner1886] 27/5/2020 22:17

This likely to end up at placing price , thinkk there should be buyers at 60p

[zeek] 27/5/2020 22:11

How does the price drop 8% on so few sales vs buys. Is there some manipulation going on in the background? I sometimes feel like the odds are very much stacked against the PI.

[saltaire111] 27/5/2020 18:23

I took up rights and applied for more at 60p. I think costain’s a completely different investment proposition post rights with hs2 contract confirmed. I don’t see hs2 being canned - too much skin in the game for that now.

Salty

[imastu pidgitaswell] 27/5/2020 15:08

Also with HL - and that's what I'm seeing. Ah well, we'll see on Friday, not doing anything, arbitrage or otherwise, before then.

Although looks like some are maybe selling ahead of receiving their new shares for 60p on Friday.

Edit - these are pitifully small volumes; hopefully things will settle from Friday onwards and there will be no more farting around.

[barnesian] 27/5/2020 14:40

On HL my money has been taken and my extra shares (above the rights) are shown in my holding.

[imastu pidgitaswell] 27/5/2020 14:17

Ah, OK. So not yet known.

[pejaten] 27/5/2020 14:11

I did likewise, but the instructions I read said they would take your money and then refund any difference if oversubscribed.

[imastu pidgitaswell] 27/5/2020 12:58

Well away from anything interesting re travel and banks today (30-40% gains), this meanders on.

I applied for more than the 4/13 at 60p and money has been taken, for the higher amount. So maybe not a massive demand from current holders.

Trading starts on Friday - let's see an ASOS-style response (I wish...)

[imastu pidgitaswell] 21/5/2020 13:39

hxxps://www.thetimes.co.uk/edition/news/hs2-london-mega-station-cleared-for-departure-66rj9zqvz


Today...

[optomistic] 21/5/2020 13:29

Rights issue seems to give a good profit but watch the shares when the rights become tradeable...and don't forget the biggest danger to the share price will be if HS2 gets shelved!

[grahamburn] 21/5/2020 12:57

Minerve 2. Re 6351.... Think you did get out of the wrong side of the bed in your interpretation of my query regarding how many retail shareholders would take up the offer.

It was simply a query in general - admittedly partly designed to find out whether there would be a significant number of shares available for excess applications. I had already decided on my general strategy on taking up the offer.

Good luck with your arbitrage method. Makes some sense provided your shares are held in a tax wrapper, but would make life complicated otherwise due to CGT computations.

[boystown] 20/5/2020 22:53

sharw - I get that and understand what you mean re volatility of markets - and Minerve 2 has a legitimate strategy. But for my own part, I'll simply take up my rights and hold the shares for a very long time, maybe even forever, for the future yield.

I was lucky enough to have bought on 27th March at 40.5p (and even that was c.33% above the low). Unfortunately, I also bought last June at 165p! :-/

[sharw] 20/5/2020 22:33

Boystown - see my post 6333

[minerve 2] 20/5/2020 22:20

Well I sold my entitlement worth today for c74/75p and committed to purchasing the same amount for 60p.

Basically a short arbitrage.

[boystown] 20/5/2020 22:03

But they will all be taken up barring massive fall tomorrow. It would be foolish not to take up your rights at 60pps.

Incidentally - why are the deadlines different? I have accounts with EQI and Hargreaves Lansdown and have COST in both. The former say I have to let them know by 5pm tomorrow but the latter give me til 2 on Friday. Hypothetically,they shares could plunge for some reason on Friday before noon???

[william7093] 20/5/2020 19:12

Go else where

[william7093] 20/5/2020 19:12

What happens if new shares are not taking up . Do these else

[minerve 2] 20/5/2020 13:00

Grahamburn

If you have decided NOT to go ahead with the entitlement sell the equivalent to your entitlement at today's price and take your entitlement at 60p.

You will have made the difference and your dilution will happen regardless.

(Have I got out of the wrong side of the bed? Noisy DIY going on across the field and I can't effing think straight)

[imastu pidgitaswell] 20/5/2020 12:58

It is marginal - I just have cash to invest, much more than last week thanks to other movements since then, and from my perspective, safe options in all scenarios are a bit thin at the moment; can't see anything better than this, albeit don't want to overexpose.

[minerve 2] 20/5/2020 12:50

Personally I think the dilution is a marginal issue on a turnaround/recovery stock like this. I think capital exposure is the more important consideration.

[minerve 2] 20/5/2020 12:46

grahamburn

If you are undecided why don't you just arbitrage the current share price versus the offer?

There is still a small difference.

[imastu pidgitaswell] 20/5/2020 11:10

So a couple of days to go - looking quite calm c70-75p. I think I'll be subscribing - happy with volumes and commitment, and not to do so would be dilutive.

But still a couple of days to go.

[grahamburn] 17/5/2020 19:57

My poing was not re: the funds raised BY the company (which is small), but rather whether small(er) shareholders will bother.