Galahad Gold Share Discussion Threads

[hattori_hanzo] 30/3/2007 15:20

Anyway, I was only responding to the rude comments thrown in my direction by cagr, so I'm off.

I wish all investors (except the clueless clown) the best of luck. I actually think GLA could still do well for you.

[tiltonboy] 30/3/2007 15:19

H_H,

Read my post again.

tiltonboy

[hattori_hanzo] 30/3/2007 15:17

Pomp - Why on earth would you do that ?

[pomp circumstance] 30/3/2007 15:16

why not give back a load of cash, then borrow to invest!!!!

[hattori_hanzo] 30/3/2007 15:16

cagr - 30 Mar'07 - 15:10 - 2761 of 2762

LOL!

You're a clueless clown.

[hattori_hanzo] 30/3/2007 15:15

Nope! Sorry tilton, you're wrong.

They will merely pay out a portion of the cash, so that amount will immediately be wiped off the share price, but the discount to NAV doesn't make it more attractive it makes it less attractive:

...it's worse, because GLA will then have a lot less money to invest, which means returns on invested capital MUST be a lot less in the future.

EG: If you've got 80 million in cash and you invest it & your investment doubles you get 160 million & the NAV & share price will increase accordingly.

But if you return 60 million you can only invest 20 million so if that doubles you've only got 40 million, and your profit is only ONE QUARTER of the value of an 80 million investment. That's really no good at all & was my main worry about the GLA strategy going forward.

It's that simple.

[cagr] 30/3/2007 15:10

Hattori, please try and speak to me from an intellectual and knowledgable standpoint before replying.

GLA will pay a dividend and will most probably also conduct a stock buy back and by doing so this would be in a tax efficient manner; both at a corporate level and from their shareholders level. So believe me, i understand perfectly how the company are most likely to conduct this £60mln pay out.

As for the company dropping like a stone ex-dividend, personally i doubt it, institutional support remains in abundance for the stock and major holders continue to add. There's also high prospects for further shareholder dividends and payouts in the mid term once the companys other investments are realised.

Now back to nursery you go before i embarress your inept understanding even further, there's a good boy.

[tiltonboy] 30/3/2007 15:06

H_H,

Of course they will drop the price by the amount of the dividend. The point is that the discount to NAV will look more attractive once the special dividend has been paid. GLA x the dividend will be a cheap proxy for UMN.

tiltonboy

[cagr] 30/3/2007 14:47

'short term investors'? more like fools to me, to be blunt. For any company about to return £60mln in cash (most likely) back to investors with a £100mln mkt cap, i fail to find anything else out there at present which offers such a low risk, guaranteed return. Free money and respite for the longer holding investors! they should announce something soon i believe, i look forward to the cheque in the post!

[jameel2] 30/3/2007 14:35

cagr, these boyz must be short term investors. GLA has alot of potential esp. with return of funds to shareholders. IMY is still great news for GLA. nothing changes! 2 weeks ago the IMY news about takeover and subsequent increase in price to 10p was excellent news. That news still holds as the takeout price is still 10ish

[cagr] 30/3/2007 14:14

how can people sell this company at such an imperative time? the company is about to give approximately 30-50% of its mkt cap back to investors through dividends, most likely. Crazy.

[hattori_hanzo] 30/3/2007 13:48

I must admit to selling this morning too. Just a gut reaction to the disappointing IMY price & seeing the GLA MMs moving down. But if I'd had time to think I might not have sold, I still think GLA is a decent investment.

Good luck to all holders.

[grgkecer] 30/3/2007 13:34

UraMin aims to be Africa's biggest uranium producer

[wiganer] 30/3/2007 13:33

The "new horses" were all mounted (if you'll forgive the expression) earlier this week on T20s, so a couple aren't as good value as they were back then. FWIW they were: BILL (doubling of existing position), FJN (new position), and MTT (trebling of existing position). I strongly urge against relying on tips from me or anyone else though.

[jameel2] 30/3/2007 10:50

wiganer, let me know where ur going next? Of ocurse IMHO

[wiganer] 30/3/2007 10:03

Thanks jameel. Good luck to you.

[jameel2] 30/3/2007 09:59

apologies for the sound of my post. no hard feelings. im far from being an expert on all this. and still waiting to make a profit. :-)

[alanji] 30/3/2007 09:46

Assuming offer goes through, I calculate GLA nav still over 20p - ignoring tax on capital gains. Looks like MM's are short of stock - now offering 13.35 for GLA.

Some good posts on the IMY thread about IMY share fluctuations, including this:

vermilion1966 - 30 Mar'07 - 09:05 - 333 of 348


I think once 90% of a company's shares are owed, a mechanism is triggered which means the remaining 10% can be compulsorily purchased by the bidder.

Here, thou, Galahad have 78%, and unless other institutions holding 12% or more are in on the deal, then this is not so much a take over, but Quadra buying GLA's holding. They are legally obliged to make an offer for all the shares in the company, so it is called a 'takeover'.

Galahad will still own a chuck of IMY thru its new holding of Quadra, and is obviously happy with the deal - just like any of us, it can sell its shares to whoever it wants. I think when we learn more about the deal, it will be shown that this is v. beneficial to GLA (thru seats on the board, options, whatever)

If you're happy to hold, then hold. Unless Quadra get more than 90% of the shares then nothing has really changed, apart for the name of the majority s/holder.

[grgkecer] 30/3/2007 09:45

The price rise in IMY had obviously led to higher expectations, but based on the price before the bid announcement, it is positive for Galahad.

[jameel2] 30/3/2007 09:38

grgkecer, pls can u comment on my above posts. Am I talking rubbish or is that quite obvious? In terms of the impact on GLA

[grgkecer] 30/3/2007 09:35

Galahad will have about 8%.

[jameel2] 30/3/2007 09:30

UMN flying again

[jameel2] 30/3/2007 09:30

all good news for GLA. offer made at a good price irrespective of IMY's current price hike!