Jessops Share Discussion Threads

[sbs] 19/10/2009 15:15

I don't believe you can buy a listing for much less. Can you point me to one for, say, £100k?

[sportbilly1976] 19/10/2009 15:07

the best one out there for what though...?

you could buy 99% of the shares around - you will only get £99k for it, but it will cost you over £1mln for them.
The business has been transferred to the new entity, there is no legal connection to the shares here any more.

If you wanted to rescue Jessops, you would been to pay the debt owed to HSBC and other creditors - in the rns they put it at around £30mln so that would be a starting price...

you can buy a listing for much, much less than you would lose on the share purchases.

its a brilliant idea as a means of throwing money away....but other than that??

[sbs] 19/10/2009 14:54

You have to admit that my theory is still the best one out there. Or are you saying "no idea" is better ;-)

[1howie] 19/10/2009 14:31

nope. indeed i couldnt undesrstand it.

[sportbilly1976] 19/10/2009 14:31

...but all the reason to sell unless you wish to get 10% of what you could realise today by selling the same asset.

[sportbilly1976] 19/10/2009 14:22

so not £900k then....

so no reason to buy any shares here unless you are a short closing, or you are of a very charitable nature towards market makers.

[1howie] 19/10/2009 14:19

money raised about 3-5% and about 50,000 max for the prospectus plus legals

[sbs] 19/10/2009 14:15

+ £500k for a prospectus?

[sportbilly1976] 19/10/2009 12:54

not sure if it will show the calculation...

but 102 mln shares at 1p would cost £30k to list & then an annual fee of £5k

[sbs] 19/10/2009 12:51

You get a quoted shell as well. Now how much would that cost to make from scratch?

[sportbilly1976] 19/10/2009 12:50

ok...not advice...but as an idea, spend >£1 mln to get £100k????

[sbs] 19/10/2009 12:49

It's not advice.

[sportbilly1976] 19/10/2009 12:46

sbs,

??????

to buy the 102mln shares here would cost you at least £1.15 mln.....and you would then receive £100k to start a new business....

that surely has the be the worst buiness advice given on these bb's.

(no offence intended)

[sbs] 19/10/2009 12:41

You could buy the shares here and start a new business with the £100k.

[sportbilly1976] 19/10/2009 11:55

The Jessops that you know (the photo shop) is effectively a private company now, owned by HSBC, the BoD and the pension fund.

The 102 mln shares here are simply trading to see how the £100k will be divided up once the legal process is complete and the company's shares delisted.

There is no way that the company can be taken over by buying the shares traded here - they have legally separated the business as is and the listed company

The only way you can buy the company is to pay HSBC the £66mln it is owed, pay the other creditors what they are owed and then transfer the assets back to the former "Jessops" from the new company.

[sportbilly1976] 19/10/2009 11:49

sbs,

in relation to your post 3318...please can you say what you think you are currently buying a share in if you do buy any shares at the moment?

[1howie] 19/10/2009 11:48

ok fair point. plenty of shells around though

[sbs] 19/10/2009 11:43

If you bought it, you could always not pay out the cash, and instead keep the company going.

[1howie] 19/10/2009 11:41

this isnt even a cash shell though is it. As far as I can see the 100,000 will be distributed and the company closed down

[sbs] 19/10/2009 11:37

Yes - or have a bolder plan eg an acquisition in mind.

Cash shells used to be valuable - is that no longer the case?

[tr65] 19/10/2009 11:36

Hmm. You'd need to be pretty brave, or stupid, to try averaging down at this stage.

[sportbilly1976] 19/10/2009 11:33

sbs,

but you would need to buy 2 million or so to get your ave price down to the 2-3p levels to begin.

And what is the short position at the moment...I dare say that most have covered by now, we are past the T10 brigade if anyone sold on the day of the news or immediately after...

[sportbilly1976] 19/10/2009 11:32

Barclays clients reducing slightly....

[sbs] 19/10/2009 11:17

You'd have to buy enough to get the shorts to cover, and then sell to them. Of course, you may end up owning the whole company first!

[sportbilly1976] 19/10/2009 10:15

sbs,

a nice theory....however;

say for example you have 50k shares at 20p...so outlay of £10k + costs.

to bring your average down you would need to buy at least 6 million shares at 1.15 at a cost of £58k (your average price now would be 1.337p).

You would then need the share price to be sufficiently higher than this to sell them into the market and make a profit (try sellng 100k and then 300k at the moment...100k will get >1p but 300k will get about 0.8p to see that there is not much demand)..so imagine the discount offered for millions!

That is a lot of expense to try and recoup a profit.

Or, you could sell them today and get £525 for them, or hold on and get £47 from the £100k compensation pot.