Pcf Share Discussion Threads

[bobthetrader] 28/9/2015 16:11

I decided to sell my shares, as I couldn't wait any longer. I've invested in another stock that I've been following for a while.

I was hoping the banking licence decision was going to happen sooner rather than later. I think this will fly if it is approved, so I wish everyone good luck with it.

[graham1ty] 19/9/2015 18:39

The reason why Somers converted was probably to do with the banking application. As CULS they counted as debt. Now they are equity so the capital base of the company has been transformed. The company has made no secret of the fact they will need to raise more money to get the necessary capital base to be a Bank. This is part of the process.

Somers made it clear again at the AGM that they see PCF as a good investment and will back PCF in all their plans on the way to the banking application. How lucky PCF are to have a majority shareholder that supports them absolutely and happens to be a Banking Group.

That is why they converted now

[hpcg] 19/9/2015 18:11

topvest - highly illiquid and an enormous spread.

[topvest] 19/9/2015 09:43

The share price of the convertibles intrigues me. Jumped 50% or so on Friday. Why were they not pricing in the ordinary share rise many weeks before. All very odd. I guess they are quite illiquid.

[che7win] 18/9/2015 21:27

Cheers,
I wouldn't be too disappointed to have the shares.

[topvest] 18/9/2015 20:35

You might want to check the rules. They may be able to convert the rest early if over 90% are converted this time. Not sure, but worth checking.

[che7win] 18/9/2015 16:30

I won't be converting my CULS until next year, don't understand why so many were converted this time, but that will provide cash to the company I guess.

[graham1ty] 18/9/2015 11:51

Very good AGM. I think underlying trading is very good. Not sure whether brokers will upgrade today or wait for Dec 1 interims. Banking licence application continues. Happy Scott ?

[hpcg] 18/9/2015 10:48

topvest - I put in my conversion notice earlier in the week. All of my CULS were bought above par and some substantially so, so I need control of the shares if things start to look ugly in the stock market. It has to be said though that PCF is operating in what is at the moment a sound market place. Nice to have an ahead announcement on a Friday.

[topvest] 18/9/2015 09:34

Agreed - they will back them. They did de-list Westhouse Securities in a low offer though so don't expect them not to take advantage if the share price gets too low. That was a very different situation though as Westhouse was heavily loss making.

[graham1ty] 18/9/2015 09:20

PCF need a much stronger capital base to support the banking licence. This conversion raises the cApital base at a stroke. They will need to raise more at some stage and from what I gather Somers will support them all the way. I do not think there is any predatory angle from Somers. They saw a good investment, backed PCF when no one else would with the Convertible, and are now going to back them towards the step change in the banking licence. From every conversation I have had with Somers they just see this as a very good investment.

[topvest] 18/9/2015 08:05

Share price taking off - that's your answer!

[topvest] 18/9/2015 08:05

I put in my conversion notice at the start of the week as well. I would expect all / most holders to convert now. This should already be reflected in the price as it was inevitable. Ahead of expectations trading wasn't in the price. Very slow progress on the banking licence is disappointing though. This is taking ages. Overall, it all looks pretty positive. On balance, I think Somers will retain the listing if they can use the quote to raise funds for the core business and it also gives them a valuation of their holding. Suspect they will take it private if it gets too cheap and an obvious bargain though. I hold shares in Utilico Investments Limited anyway so that helps me mitigate the risk a little. Overall, good news though.

[solarno lopez] 18/9/2015 07:40

The conversion is heavily dilutive but still a solid company

[graham1ty] 18/9/2015 07:20

Good statement for the AGM. Ahead of expectations. However do, wonder how the market will react to the Somers conversion ? It was always on the cards as part of PCF strengthening its balance sheet ahead of the banking licence application. However, will this be understood ? They are a passive investor, but rumours will swirl thAt they will take it out, or that they are a dominant, blocking shareholder.

Overall, the underlying business is strong, the banking application moves on, so the AGM statement should dominate. However,methinks Somers will instead

[graham1ty] 28/7/2015 09:35

Hey what is that trade ? Must be input error. Got a shock when saw had fallen 35% !!

[graham1ty] 27/7/2015 22:47

Topvest, think Somers may add to avoid later dilution, but do not think they would announce a takeover. Am sure they hold as a damn good investment, but no intention to take over

[topvest] 27/7/2015 19:39

I will convert early if I can, keep a core holding but may sell some depending on the price. Somers are the main holder and they will hold / add more / announce a takeover in my view.

[bdroop] 27/7/2015 15:38

Thx che7win, I suppose if people are here already ( and have been for some time ) they maybe more inclined to hold than "sell" - I want to "run" this one too and want to build up my position coherently...
GLA.

[che7win] 27/7/2015 15:09

I have convertible loans and I will convert next year, but not to sell.

I fully expect to keep PCF for the long term as it will be much higher with a banking licence and the higher loan margins (should they get it).

[bdroop] 27/7/2015 15:05

Thx Graham. That lifts a layer for me. I was aware of the need to raise capital and BofB being a benign influence here, but didn't grasp this interpretation. I'm comfortable with Somers in all of this, so haven't been concerned about them holding so much, if anything it has helped misprice the stock originally.. So I have to be thankful! best to you.

[graham1ty] 27/7/2015 14:08

bdroop. Bank of Bermuda have always said they are in for the long term. I do not think there is any danger of them selling ( the negative being they will be perceived to have too dominant a shareholding). They have said they are likely to convert when the Banking Licence is granted. The banking licence would be seen as very positive and the shares should be strong if that happens. So, overall, my conclusion is that BofB converting will be positive.

Secondly, as a bank, PCF will need more capital and have made no secret of the need for a fundraising at some stage ( to boost their regulatory capital). Again, assuming the banking licence is seen as the next major leap forward for PCF, then I would assume there would be a fundraising simultaneous, or shortly after the licence is granted. If I am right about how positive the licence would be, then a placing would almost be at a premium. No dilution to exisitng shareholders, but WOULD dilute BofB down to a more reasonable level ( or they take up more)

[bdroop] 27/7/2015 12:26

Can I seek thoughts and opinion about the moment that Bank of Bermuda converts, and the potential for the share price around that time. I bought a small dollop of the ordinary at 8 pence, I keep thinking of topping up but am undecided about everyone converting and immediately selling, when the bond matures, so wonder whether I should hold on until that "plays out" as the value will be obvious to more people then, or should I grab the value now... Wittering now I realise. I keep comparing this to OPM and I think there's possibly more growth here, but more obscured by some of the above... GLA.

[topvest] 27/7/2015 09:03

Yes, but the expected dividend yield is 50% of the convertible now. DPS forecast is 0.25p. Think I'm tempted to convert early to be honest given the obvious arbitrage opportunity.

[graham1ty] 27/7/2015 07:37

Top vest, is a no brainier. Except you get income with the Convertible. And you can convert at any time. So keep the income, knowing you can convert when you want to