Harbour Energy Share Discussion Threads

[american idiot] 20/10/2017 15:36

It'll be like taking candy from a baby when this starts to motor :-)

Keep the faith.

[john09] 20/10/2017 15:34

Yes read it. Can't say I particularly understand complex financial instruments, so they want the share price kept low ? But they have warrants at 42.75p so why wouldn't they want share price growth?

[chutes01] 20/10/2017 15:31

fair to say the directors are a fuking disgrace for allowing this to continue into 2018

[volsung] 20/10/2017 15:19

Is anybody rich yet? Bar the directors of course.

[begorrah88] 20/10/2017 15:00

As per the last reply I gave you john?Arbitrage - did you read the link?

[nav_mike] 20/10/2017 15:00

john

There are funds who are allegedly shorting the ordinary shares as a hedge against the convertible bond.

In my opinion, the last thing they want is fast upward momentum.

Very low traded volumes are making it easier for them to operate

[john09] 20/10/2017 14:50

Begorrah why is the price being "kept" low in your opinion?

[marvin9] 20/10/2017 14:27

Common don't teeeeeeeease

[marvin9] 20/10/2017 14:26

Apparently that's me shorting it.

[begorrah88] 20/10/2017 14:25

We've had a few of these 'lunchtime' rises over the last few weeks.I see it as a simple case of the DMA boy tasked with sitting on the bid all day taking his lunch and not setting an auto sell bot on.The share price takes a quick blip up as it isn't being suppressed but as soon as he gets back and sees what's happened to puts everything back in order.Little flashes of hope are welcome though, even if only fleeting.

[marvin9] 20/10/2017 14:02

Maybe I should apply for the job as CEO, no way could I fail to do any worse than Puppet Durrant; and even if I did, I would get a comical pay rise like he did; and will again next year.

SOLAN DISASTER... RESULT.. HE GETS A COMICAL PAY RISE AND BONUS LOL U COULD NOT MAKE IT UP.. IN THE REAL WORLD THAT IS.

[badger60] 20/10/2017 13:35

Oi Marve.....get yourself back into rehab mate......... they've let you out far too early..........

[badger60] 20/10/2017 13:31

The 6.5% bonds have recently traded above 99%, having been as low as 93% 3/4 weeks ago. This does tend to suggest a vote of confidence, which in turn flies in the face of the decline in the shorted equity share price .......Who's right and who's wrong.......????

[american idiot] 20/10/2017 13:27

Shareprice on the rise.

RNS on a Friday afternoon perhaps ?

[fireplace22] 20/10/2017 13:21

The CV's can convert above 74p, on conversion we get dilution but also a corresponding reduction in debt. Status quo?

[john09] 20/10/2017 13:21

So basically 5% of the shareholder capital is in warrants exerciseable at 42.75p?

That's indeed a little annoying

Edit - sorry I posted whilst you were replying I'll digest your last post

[begorrah88] 20/10/2017 13:21

john09

As badger has put a link to, PMO, as part of the refinancing package, entered a deal with the convertible bond holders whereby the bonds [$245million] have a conversion price of 74.4p and the company can buy them out if the share price reaches £1.04.



Now, you wouldn't expect the CBH's to convert as they are getting fair interest but if they do then the company will have to find money from somewhere to buy them out either at the BH's choice or PMO's if the share price gets there. TD sort of hopes they won't convert, or if they do, there would be cash flow to assist and not raise capital but, as we've learned with the 'technical trading' at present, hedge funds may see a gain in converting and then funds are needed.

Part of the current high short position is perceived to be CBH arbitrage where the hedge funds short PMO shares to neutralise any fall in the return on the bonds.

hxxp://www.wallstreetmojo.com/convertible-arbitrage/

The above link gives a summary

In addition PMO may have to raise funds to meet the liabilities of the warrants were they to be exercised.

As I say, many, many variables and TD has said he expects no more than a 5% dilution as a result of the refinancing but that may be a very rose tinted view of it as hedge funds can, and will, exploit any gain they can and they certainly have PMO share price completely under control.

Good luck trying to get your head around all that.

[prewar] 20/10/2017 13:13

Re 31674 All the Convertible Bonds and warrant info is in the public domain so should already be priced in to the share price

Holders will exercise when economically beneficial to do so.

If like me you believe that valuation is based on discounted view of future post-tax nominal cashflows then all things being equal, the dilution should have no impact.

Hopefully Begorrah will be able to elaborate on his share price deterioration point.

[jelenko] 20/10/2017 12:58

Not if catcher goes to plan I suggest. If whytch farm sold for $200M what price catcher on its own?

[john09] 20/10/2017 12:53

Really helpful insights and so thanks for taking the time out to respond,

begorrah , one follow up question if I may on your point -

"We could see dilution via Convertible Bonds and Warrants which could tug the share price down into the 40's/50's but hopefully not."

What do you mean by this?