Pires Investments Share Discussion Threads

[outspan] 04/3/2014 09:19

Just checking RNS again. Why do you say not earlier than 9 months Divmad. I see no interest being paid until then but the 6 month point has a greater bearing.

"If an IPO occurs more than 6 months after drawdown, conversion (which in any case will only apply to such CLNs as are then outstanding) will be at the Company's discretion."

[outspan] 04/3/2014 09:08

Wouldn't get too stuck on it being Rame. I heard a whisper they were looking for another home for that one. Things change all the time of course but I think PR's words relating to Rame being seen as the first of a number of such transactions were not hollow. He has since brought in RA. Past form of this pair says they'll have a plan ending in a reverse but most of all they are facilitators. With the demand for IPOs taking a recent leap for the better, I'd cut them some slack to benefit from this before settling on their chosen one.

[divmad] 04/3/2014 07:39

Pires, then, has, to finesse a deal with Rame to come to market, not earlier than nine months after the financing arrangement recently announced, but not later than April 2015, for PR's option package to have real meat, and for the share price to reflect the preparatory work done.

[outspan] 03/3/2014 23:08

This from LDP today:

"...In addition, Peter Redmond, formerly Chairman of Leed, has agreed to the cancellation of his option awards totalling 120,756,913..."

Wow, quite a gesture! The others agreeing today to similar cancellations are, after all, still Directors there. PR left LDP earlier this year "in order to pursue his other business interests" and things then started happening here. Now he obligingly forgoes valuable legacy benefits.

One might speculate that he feels PIRI will do him very nicely thank you. It made me also recall an extract from an earlier post:

"...I also note that, at the time of arriving to create Pires out of Oak Holdings, both AQ and PR were awarded warrants as part of their remuneration package to subscribe for 1.5% of the issued share capital. Something like 35m shares each and the expiry date for those warrants is l7 Apr 15, little more than 12 months away.

The price to be paid is 0.1p, the nominal value of PIRI, some 43% higher than today's offer price and some 65% higher than the bid, the point at which they'd merely breakeven if exercised and sold.

To me, that looks like one hell of an incentive to make the next 12 months really count..."

[outspan] 01/3/2014 15:20

Did you have something in mind Divmad? For what it's worth, I have been trying and I do at least like what I see at surface level on recent developments. I gather action on arranging a listing for Rame could easily be described as "active" but I'm actually hoping it doesn't get sorted too quickly if my reading of the PIRI convertible loan is correct.

The close period ahead of full year prelims must be imminent but it shouldn't preclude any intervening formal announcements and, of course, we can also look to the AGM later this month(?) to possibly provide some extra insight.

[divmad] 01/3/2014 07:33

I wonder if there's anything else we shareholders can do to increase our sum total of knowledge of what may come next, aside from waiting patiently?

[bungeetrader] 25/2/2014 16:07

Whatever it is they are up to, I hope it happens soon. I could do with some good luck for a change!

[outspan] 25/2/2014 14:53

Divmad, indeed, get all that and agree. Assuming all is gathered in as we might hope, I think it could be seen as less of a value issue and more of a highly practical thing to do while also raising the profile of the share price to a point of institutional liking.

I feel the pace of transition though will very much depend on the valuation of the prize e.g. I can easily see scope for MEN to attract a lot of buying interest on its return from suspension, easily seeing off any selling by those who think their "odd lot" is no longer worth holding. Not that I really get the logic of that because, although reduced in number of shares held, the value should be at least the same, probably greater, as should be the potential for % appreciation.

Still boils down to a consideration of fair value per share, as assisted by demand (or not) and therefore momentum (or not).

Right now, PIRI is not so different to MEN, AMED, ZOL etc. at some stage in their recreation i.e unloved and sold down to squiddly. What did it count for in the end BUT it strongly depends on either the value already being there or on the ability of those to build it quickly through acquisition or investment.

On which basis, it's good to know that Redmond and Armstrong have proven form together. On that we place our faith at this stage but it's always nice to have the added reassurance of being value-backed by assets before the event.

[divmad] 25/2/2014 13:09

I'm not disputing the inherent nav or prospective nav in the forthcoming deal for piri, vs its current MC. I'm assuming that the backers can sense a good deal which is highly value-accretive to them as large shareholders.

All I am saying is that it is inevitable that a shedload more shares will need to be issued as part of a substantive RTO deal here, and that will be a monumental task with 2.2bn shares o/s already. A share consolidation is then highly likely. And shsre consolidations in my experience take time for old holders left with smaller, often odd-lot holdings, drift away and represent a continual supply of paper until the new investors have accumulated enough of them to form a new base. Patience will be required here and then the upside could be huge.

[outspan] 25/2/2014 09:53

Agree with m4, market cap v nav (or prospective nav) is what counts in the end, not the number of shares in issue. How else is fundamental value assessed onto which is then layered either a premium for enterprise and prospects or a discount for lack of them!

I don't disagree that it could well be included here as part of any reverse. Whether it's absolutely necessary is arguable. There are cases like ZOL where they did and AMED where they didn't. What mattered for valuation and share price progress and always will is what the new set up is worth or seen to be worth going forward.

[moreforus] 25/2/2014 09:13

not every one

PTCM is higher....

in the USA they like them as they make the stock more illiquid,,,,

only on aim do they negative connotation

2 bill shares being cut down to say 40 mill shares should be better for holders ....

however what really matters is market cap and news - REM was constantly bashed by a nasty poster on LSE for have billions of shares in issue so it would never go up ..which it did from 0.05 to 2.4p.....

[t-raider] 25/2/2014 09:09

Only that every share consolidation of an AIM stock ( in my experience ) has ended in carnage for the existing shareholders.

Don't diasgree on its likelihood though.

"T"

[divmad] 25/2/2014 09:07

I am beginning to think that as part of an RTO type deal here, piri will need to consolidate its 2.2bn shares in issue, at a lowly nominal price of 0.1p each. It looks like MEN will do a 1 for 50 consolidation as part of its restructuring. A similar arrangement here would take the shares o/s to a more acceptable 400mn-odd, and with a nominal share price of 5p? Easier to raise II cash at above 5p without creating confetti paper, if the right deal is in place.

Thoughts?

[outspan] 24/2/2014 16:37

schoolboy, are you the same schoolboy who compiled some great summaries on the various shells about 18 months ago, including as I recall PIRI's valuation compared to similar? If so, do you have any updated views?

MEN is decent enough proof that there are some meaningful deals to be done out there and, as with PIRI, Peterhouse is at the back of MEN (ooh, er, missus!).

Difference here is that PIRI hasn't already got ahead of itself in terms of market cap v nav so on return from any future reverse has way less to do from current levels to increase shareholder value.

Unlike the discounted share issues at MEN (compared to recent share price highs and even the suspended SP) all of which led to a challenging market cap against no assets before the deal now in hand, major PIRI investors bought in at .1p, both at the time of the Oak rescue and again last Summer at a substantial premium to the then share price In similar vein, any share exchange for newly acquired assets here must be done at minimum .1p, a major premium to the current share price

We watch and wait but things are stirring for sure.

[outspan] 21/2/2014 16:27

The wind hit tavi out of the blue I see so good luck to you too. Lot of sudden winds around, good for wind turbines...

[pranchalee] 21/2/2014 15:36

fair enough outspan best of luck with this.

[outspan] 21/2/2014 15:26

pranch, my 1879 kind of explains. The tavi peak provided a rebalancing opp against those views and perception of respective value between the two so not nearly as heavy as I was in favour of loading here and waiting patiently for game to kick off as it finally did last week which I feel is just the start.

[pranchalee] 21/2/2014 14:46

outspan you still in tavi

[bungeetrader] 21/2/2014 14:16

Lol, yeah! Joking apart, never say never. You've only got to look at the likes of REM to say it is possible. So, given the right deal, maybe we're selling ourselves short at 1p.
:)

[outspan] 21/2/2014 13:10

Bungee, ha ha, I could easily take that to imply that you think they'll get there before too long. Definitely would take them especially since I said 1p and not .1p but somehow I think you'd prefer to take the market's bid at that time :-)

[bungeetrader] 21/2/2014 13:02

Well don't leave it too long outspan, the offer won't be on the table forever!

[outspan] 21/2/2014 12:55

Well, pranch, things don't get any better do they? I wonder if that tail wind is building up to something because despite the sell this morning, the quotes for volume have dropped from 2.5m earlier to just 1.5m now...

[outspan] 21/2/2014 12:07

Bungee, I'll get back to you when they reach 1p and are looking to go higher if that's OK with you :-)

[bungeetrader] 21/2/2014 12:02

I've got 25m I'd sell at 0.4p if anyone wants it?
:)