If I were the CFO I would have the following priorities for my cash generated:
1. Get debt to below $200 m or 2*EBITDA
2. Carry out any postponed maintenance/improvements to existing fleet
3. Share buybacks (at least while the share price has an Adjusted PE ratio of less than 8)
4. Purchase of additional vessels (always assuming that the comments about rising demand are true) |
I much prefer buy backs to dividends, but prior to the warrants being cashed in and returns, which to be fair will be quite small to start with, should be via dividends. These do not accrue to warrant holders, so they probably help to force conversion sooner rather than later, especially for those that might have forward sold. |
Averaged up this morning having been waiting patiently and missed the last dip. Will also add on any further weakness for the long term portfolio. |
We don't know how many were bought to flip, perhaps that 0.8%?
1% is 17.17
2% is 17.34
3% is 17.51 - this look like the lowest availability
4% is 17.68
5% is 17.85 - plenty want to clip at this
I've bought some at 17.55 and have orders in at 17.5, though it might be a bit late for that, we'll see through the day. |
Still in auction. Shifting nearer 5% is excellent. Just come out at 17.8 18.00. |
That was quick! |
Zeus announces that the Selling Shareholder has sold in total 51,136,347 Ordinary Shares (the "Placing Shares"), representing 4.8 per cent. of the issued share capital of GMS, and equating to c.$11 million. The Placing Shares were placed at a price of 17 pence per Placing Share and were sold to investors in a Placing managed by Zeus Capital Limited ("Zeus") who acted as sole bookrunner (the "Bookrunner") in connection with the Placing.
The trade date of the Placing is 28 June 2024 (the "Trade Date") and settlement of the Placing is expected to take place on 2 July 2024. |
gen_romer - Zeus won't be on the phones to random people, they'll have been doing what a broker does and have a investors lined up for those Seafox shares. We'll see what the price turns out to be, it does say minimum 17p so there might be more demand and a Dutch auction. Maybe they can't sell the full $10mn who knows? We'll find out tomorrow. Yes I too would expect the share price to drop, but how far depends on sellers as well as buyers.
Stock turnover last 12 months was about 1/3 of the issue. It is difficult for any new investor to accumulate a position of any size. Ideally we'll see Seafox be able to work down to a much more comfortable position.
Edit - the largest trade today was well over half the daily volume at 20.475p at 16:05:40. |
There is no "decent demand";in fact there is "significant supply" from warrant conversion and as if that weren't enough,we have this supply from SF.Warrant conversion supply is months of overhang on the stock if anything.Share price going up in last few sessions means nothing.Brace for 15pct drop tomorrow! |
I think Seafox could have got a bit more, but we know how these things work, its more of an off market deal not a placing. Someone might have wanted 3% or similar and would have paid 18p and Seafox said how about 4% for 17p, or something. It suits both parties.
Edit - the share price heading up is the indication there is a buyer that has used up that period of liquidity on the offer. |
Surprising as the shareprice has been going up the last few days… |
Seafox shifting 4% of equity, or 14% of their holding. Must be decent demand out there and the buyers are getting a very good price. |
Thanks for the correction |
Correct:
11. Additional Information
Reduction of overall shareholding resulted due to increase in shares in the issuer. The shareholder has not sold any shares. |
Not unloading. Just more shares in issue. It does say on the TR1. |
Seafox unloading |
Yes, that was one source I considered. |
Could this selling be related to the 4/6 RNS?
"Gulf Marine Services PLC has reported a change in major holdings, with Ivan Lindsay Brunette’s voting rights decreasing from 3.18% to 2.85%, as notified on June 3, 2024. The total number of voting rights now held by Brunette is 30,534,573. Hargreaves Lansdown Asset Management Limited is listed as the proxy holder of these voting rights until the shares are sold." |
Someone is clearly selling down their position, or possibly shorting to offset warrants, or both, and it looks like the lowest they will go is 18p. The trips into a 17 handle I would think are smaller players selling on top of that as there is no stock at that price. 18p is a very attractive entry point offering at least 50% upside over H2 IMO. |
I also bought back in yesterday on the drop after the minor spike. |
Thanks for the useful posts. I've bought into the story. This from yesterday:
Gulf Marine Services PLC - Abu Dhabi-based provider of self-propelled and self-elevating support vessels for offshore oil, gas and renewable energy projects - Signs second phase of four-year contract announced in March. The contract with an unnamed customer is for one of GMS’s vessels operating in the Middle East. Says order backlog now totals $431.2 million. Current stock price: 18.75 pence, up 3.0% in London early Monday. Copyright 2024 Alliance News Ltd. All Rights Reserved |
I'm just going to keep accumulating if the market will offer these prices. The action here is flow related rather than "someone knows something", because the only thing they could know is how well the business is performing. The contract official sign off is not news as such, but there have been queries on here about how solid backlog is. With something around 3 years of revenue visibility in aggregate, and some contracts operating into 2028 the company is fantastically situated. |
Would be nice. Trading at a 20% discount to EV in a market where rates are firming makes little sense. |
The OPEC+ news was good new too as they are increasing production come September. Not that it matters too much in areas we operate as UAE and Qatar haven't cut back, the latter being gas mainly anyway. These are still some of the most economically advantaged oil fields in the world. My price targets remain the same, 28-32p end this year, and 40p end 2025 with some form of dividend in addition. |
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