Geopark Share Discussion Threads

[tyler90] 10/9/2013 11:24

May see interest in the US as markets open there in the afternoon. Also not a chartist but a possible 'W' formation developing which could see the share price shoot up to 650 in very quick time. As usual AIMHO and DYOR.

[sailing john] 10/9/2013 10:01

They are too big for AIM so inevitable really. The only issue for UK investors is that they chose NYSE rather than London. But I don't know of any major brokers who don't trade US stocks so other than a minor bit of admin - form filling it really isn't an issue for PIs. Personally I think NYSE is the right choice because I think it will be far more liquid and I assume that American PIs will have far more knowledge about oil and South America than UK PIs and far more fire power. Not that Instis aren't important but quite often it is PIs trading that set the short term price.
Edit as in the 8.5% fall today on just £80k traded!

[woodcutter] 10/9/2013 10:00

I'm not sure how it will pan out but the chairman owns 17% of the business and the CEO a similar amount so i'm sure they wouldn't be doing this if they were to see their holdings suffer. All depends on the demand, and float price and the consolidation at the end of the day.

It'll be an interesting learning experience so i'm retaining my holding, it's a sound business, aimho.

Woody

[tyler90] 10/9/2013 09:53

Note: There is no bad operational news and expansion through earning enhancing acquisition is usually welcomed by the market. It shows a progressive management who are not sitting on their bums drawing large salaries while eating into the company profits! Small shareholders are bring panicked into selling due to lack of knowledge and apprehension of US listing. Whatever we may think of the US, the NYSE is not a 'noddy' market!

[varies] 10/9/2013 09:50

This_is_me
I think your view of GPK is coloured by your having sold out. Congratulations on making a profit.
I have sold half mine, also at a good profit, but take a rosier view than you of the move to NYSE. I would expect the placing to be at a higher price than the equivalent of 2 x 540p and am tempted to buy back the shares I sold.
Luckily I hold my shares in a TD Direct account where $ holdings are eligible. Those holding theirs in a £ only account are obviously going to be put to some inconvenience.

[sailing john] 10/9/2013 09:50

Tim - I don't share your view - I think PIs might well be able to buy below the proposed US placing price as I think it will be well North of 600p equivalent. The AIM price does not reflect the true valuation as it is so illiquid and it is pretty much impossible for Institutions to pick up volume unless they trade with each other or the Directors neither of which are likely.

[tyler90] 10/9/2013 09:47

IMO the US offering will be oversubscribed & price will be nearer £20 in March/April time after consolidation. This is the best course of action to realise the true value of this company. Private shareholders could have sat on their shares for another 12 months and the price may have moved up to £7-£8 range; now we are looking at possibly x2/3 present share price in a shorter period of time.

[this_is_me] 10/9/2013 09:32

What we wanted was for institutions to pick up large chunks of stock and inflate the price. Why would we want more on board? With increasing cash flow the money would be there for expansion anyway.

There was no chance of private investors being able to buy more shares at the placing price - shafted again to let the broker's friends in the NYSE get half the company at a knock down price.

[tyler90] 10/9/2013 08:52

One of the issues with this stock has been that institutions have not been able to pick up large chunks of stock without inflating the price in a matter of days. This will allow more to get on board and don't forget the extra cash for further acquisitions etc.

[this_is_me] 10/9/2013 08:49

So you are happy with the dilution are you?

[bbluesky] 10/9/2013 08:47

As I recollect you need to sign a form to trade in the US. All fairly simple.

[tyler90] 10/9/2013 08:45

Let's get a reality check; they are moving from AIM to the NYSE NOT the other way round!One of the world's largest, if not, the largest market in the world. Good move IMHO.

[this_is_me] 10/9/2013 08:19

Well that was a disaster! Fortunately I only paid 424p in January 2010. I managed to dump the lot which were spread over various accounts.

In hindsight I should have sold at £7.

[woodcutter] 10/9/2013 08:19

m999 it's TDW and from recollection they do trade nyse, but i'll check. Bit of panic selling and mm's droping price on so few trades, ott reaction.

WC

[melody9999] 10/9/2013 08:05

Woodcutter - depends if your broker trades the NYSE. I don't believe it matters whether it is in a SIPP, ISA or normal dealing account.

[woodcutter] 10/9/2013 08:03

well i'm assuming i can still hold this in my SIPP which i think i can. No experience of such a move but don't believe it's a too much of a problem and possibly beneficial in the longer term.

Woody

[melody9999] 10/9/2013 07:57

SJ - thanks. There is something in me that feels that, if this is undervalued, then the Yanks might start to buy in now .....compensating for AIM punters selling out. But I am an optimist - you have to be in this game

btw SOLA was my first real big win ... share price went up X3 as I recall in a very short space of time.

[sailing john] 10/9/2013 07:51

Melody - agree a possible short term dip and long term gain imo

I have NYSE experience with Renesola - was AIM traded now US. No problems trading with Selftrade although there is a simple form to complete (exemption from US tax or similar - can't remember). US stocks are far more liquid so no problem in trading volume if needed.

SJ

[melody9999] 10/9/2013 07:33

Does anyone have previous experience with an AIM cancellation / NYSE listing? Assuming it proceeds, we could buy more shares now and transfer under the premise the price will be higher on the NYSE. On the other hand, are people likely to sell out and therefore the share price will drop .... at least in the next 3 / 4 months?

[zengas] 10/9/2013 07:16

Issuing 30m new shares along with the circa 45m in issue.

Should raise £165m if at say £5.50 issue price.
This should leave them hefty capital for acquisitions.

Consolidation of 2 for 1 should leave 37.5m shares in issue with a theorectical new price of £11.00.

NYSE only and cancelation on AIM.

[sailing john] 09/9/2013 15:52

Decent volume today and a small move in the right direction.

[gopher] 03/9/2013 21:45

Thanks Sailing John

The only point I would make is that you do expect to see a bit of action in the market around results announcements. This seems a very thinly covered stock

[this_is_me] 02/9/2013 12:22

Increasing amounts of stuff coming out of the ground, plenty of cash on the balance sheet.

[sailing john] 02/9/2013 12:00

Yes
Significant increase in admin costs - salaries and travel presumably mostly reflecting growth in size I presume.

One off cost Bond Fell SpA cancellation costs (Note 11) $8.6m. Without this cost profit would have nearly doubled. Not sure why they haven't bothered to highlight this fact to the casual reader ie in the headlines or initial commentary. Hopefully the analysts will look closely and see the wood for the trees.

Still waiting for Brazil to complete but cash on books.

Solid results with good cash generation

[tyler90] 02/9/2013 11:51

Classic 'Warren Buffett' stock. Boring but nicely building up value. When the 'shoe shiner' is talking about it we should be nearer £20! All IMHO and DYOR.