Costain Share Discussion Threads

[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.

[imastu pidgitaswell] 17/5/2020 14:56

graham - as per previous posts, likely to be clearer by Friday, but not until then.

It's only £20 million, so not a big issue - and 4/13 of your current holding, so not a big commitment. Feels quite positive to me, but only time will tell I think.

[farrugia] 17/5/2020 00:31

HS2 orders Tier 1s to speed up payments

[grahamburn] 16/5/2020 17:43

Anyone have any "feel" for the potential take up of the Open Offer?

[dollyparton95] 16/5/2020 04:13

This debacle has put the companies financial ethics in great doubt. Another nail in the coffin if you like.

[barnesian] 15/5/2020 17:35

What or who is Kier?

[htrocka2] 15/5/2020 16:34

Kier finished 'blue'...again.

[htrocka2] 14/5/2020 16:41

KIER finished 'blue'..

[sophia1982] 14/5/2020 12:33

The capital raising is fully underwritten. How likely is it that share price drifts under 60p? (I cannot remember many examples of this happening) Are bookrunners allowed to support the share price?

[barnesian] 14/5/2020 11:26

shawr: "That is the problem - the "next Friday" you talk about is the 22nd, which is your broker's cut off date. The cut off date for the company is the 27th and in these markets anything can happen in that time."
Very good point.