Mid-states Share Discussion Threads

[reg5] 03/2/2005 14:28

Thanks callumross - I'll stick it out until the end of February - fingers crossed that it'll turn out OK.

[callumross] 03/2/2005 13:54

Keep the faith Reg5, keep the faith!

[reg5] 03/2/2005 08:20

Are you still around callumross ?

I'm beginning to waiver - considering cutting my losses and trying somewhere else. Maybe those who have been selling know something we don't.

[reg5] 22/1/2005 13:25

Good to see you post again callumross. This thread has gone very quiet.

I hope you are right about the deal being "just about to be announced". Given your contacts how imminent do you think that will be?

I got hold of quite a few before Christmas based on its rise and the rumours. I'm still hoping for a nice return but if nothing happens before the end of January I might reassess my position. They are currently trading below the price I paid for them.

REG

[callumross] 20/1/2005 15:21

This is fun watching all the short term traders who bought 6 weeks ago leaving just before the deal is announced and missing out on all that upside!

[dottle] 23/12/2004 19:40

Oh alright then...but seeing as it's undergoing MaSsive hearT surgery, it'll have to be the Merc SuperTanker. :)
It's all in the beans, y'know..

Doncha just lerve fairy lights! ;)

[bones] 23/12/2004 16:14

Sounds like an overdose of cocoa to me! I would like a ride in that if possible!

[dottle] 23/12/2004 14:25

Hohoho bonesie...MuSTn't get carried away now ;)

...it's a beaMer SporT of course :))

[bones] 23/12/2004 10:18

Is a Dottle a kind of small sports car or just a Rover?

Sorry, just my MusingS To pass the time. Merry ChriSTmas to you all!

[dottle] 22/12/2004 21:22

and a very Merry chriSTmas to you too, Reg.

[boiledantelope] 22/12/2004 19:26

maybe the reverse document has been sent to the takeover panel for approval...

[reg5] 22/12/2004 17:01

Dottle
I suppose I'll have to wait until the New Year now.

Thanks, I was wondering why it was so quiet. They all seem to have disappeared. Maybe they are away for their holidays. Or getting ready for a big rise in January.

Merry Christmas

Reg

[dottle] 12/12/2004 11:38

Patience, Reg...it's not the end of the year yet.

Tett the trucker's gone quiet too - something up with the back axle?

[reg5] 08/12/2004 12:14

It seems to have gone very quiet. Has any body got any news or more rumours?

Aren't they supposed to have made a decision/informed shareholders by the end of the year?

[baggywrinkle] 03/12/2004 12:56

mm very short - on line offer in 1,000; bid in 50,000

[wal footrot] 01/12/2004 15:04

edited, sorry

[ben value] 01/12/2004 13:06

Black and Edgington - brings back memories. Held them for years and sold them just before they rocketed. I will try not to make the same mistake with MST. I bought a few more MST this morning.

[bones] 01/12/2004 09:32

Martini - thanks.

Reg5 - no prob. Let's hope something comes to pass. I watched Black and Edgington for months but was never in it so didn't benefit from the 9-fold hike that occurred soon after the reversal took place. There is usually a suspension while the formalities are done so no chance of getting in dirt cheap after the announcement. Patience is needed with these shells.

[reg5] 01/12/2004 08:16

bones
Thanks, I'm a lot clearer now.

REG

[martini] 30/11/2004 22:25

bones - nicely summed up.

[bones] 30/11/2004 21:32

REG5

Reverse takeovers are takeovers of a live business by a shell company. They can be complicated arrangements but the simple ones often involve an issue of new shares by the shell (eg MST) to the owners of the target business as well as using the cash it has. This is in exchange for the shares in the target. It may be that a takeover comes with a rights issue - that might be necessary to protect the rights of existing shareholders in MST.

The result is that we existing shareholders own a smaller percentage of MST than before but the value of the assets is larger. MST would own all of the new business. In theory, the value per MST share should not change but often there is an expectation that the new business has been bought out cheaply since the owners of the target will sell cheaply to obtain a public listing. Consequently, share price goes up, but it all depends on the perception of the business being bought.

That's how I see it anyway.

I remember a shell called Black & Edgington that traded for ages at 1p. Eventually it was used to reverse a business into it and renamed itself Skyepharma. They had a 10 for 1 consolidation after that so you have to compare the before price of 10p with whatever SKP is now. It did reach 200p at one stage I think. Shows what can happen.

[reg5] 30/11/2004 17:53

bones
I picked some up the other day after reading that. I took a look at the company mentioned and it seemed like a good bet. Same as you, but managed to get in at 16p.

What I can't work out is what a "reasonable" price might be and how it would work.

Mid States has about 50 million shares in circulation and a cash pile of about £7.5 million. Does that mean that, for instance, MST buys 25 million shares in Interquest from the current private owners and they buy the 25 million MST shares so that we own half and they own half of what would then be a new company. That would mean that the new company would initially be worth on face value £7.5m. As that would undervalue that new company the shares then rise to a more realistic level. If the speculation is for a price of 55p that would mean Interquest would be valued at something like £30million.

I haven't been involved in a reverse takeover before so my thinking might be completely wrong. And, if you then ask me why I invested I have to admit that it's because I did it mainly because of the names of the people who are involved with Interquest, and Luke Johnson in particular. He seems to have the midas touch.

Can anyone enlighten me ?

REG

[bones] 30/11/2004 13:03

Callumross - "ADVFN competitor article" is no more than a thread opener and the guy has not been back to post again since mentioning the rumour. That said, there are some savvy investors on board so I believe there may be some smoke which suggests a fire somewhere. But, it is all smoke at the moment.

I've bought some as a speculation mainly because the company is sitting on 14p per share in cash and says it will return it to shareholders if a suitable acquisition cannot be found. At current buying price of 16.25p, there appears to be a max loss of 2p per share assuming they don't waste the cash on a dud (by which time I would be out as the acquisition (even if it turns out a dud) should in theory spike up the share price initially anyway!).

[callumross] 30/11/2004 12:23

tett - just read that an ADVFN competitor article where the writer suggests that luke johnson is seeking to reverse his recruitment company into mid states - it states that this could mean the shares rising to 55p a share if it goes through but cautions that a doubling of the share price is a more realistic outcome.