Provident Financial Share Discussion Threads

[gregsc] 21/3/2018 14:21

umitw
They are not selling ex-rights until tomorrow.

[umitw] 21/3/2018 13:10

If that's the case share price is holding up well!

[fhealey] 21/3/2018 12:45

No, 9.09 would equate to 6.63

[umitw] 21/3/2018 09:52

I make the new diluted share price 741p at today's share price of 909p!Is this correct guys?

[umitw] 20/3/2018 08:56

2 more days to go...!

[smurfy2001] 13/3/2018 16:59

Neil Woodford explains his current investment strategy

[umitw] 13/3/2018 14:57

Provident Financial Plc : Jefferies raises target price to 1077p from 915p

[smurfy2001] 13/3/2018 14:56

Short covering? But it's no longer on shorttracker any longer .....

[umitw] 13/3/2018 14:54

Wow what's going on ? Spike with PFG

[chucko1] 10/3/2018 20:10

Umitw, rather below 700p now. On an earlier post, I explained the calculation method. To update, suppose that the price pre-rights happens to be 900p. In this case, the ex-rights would theoretically be (900 + 17/24 x 315)/(1 + 17/24) = 657p.

For each 1p that the share price moves, the ex-rights price moves by almost exactly 0.585p (or 1/(1+17/24). When I last wrote, the share price was around 1000p, but I wonder if some holders have been selling to finance a quite heavy rights entitlement. That’s what I would so were I a shareholder (I was a mere bondholder!).

[smurfy2001] 10/3/2018 18:48

Ouch!!

Star fund manager Woodford cuts Atom stake amid £1bn outflows

[umitw] 10/3/2018 09:44

Chucko1Wouldn't the share price drop to approx. 700 p..after the RI?

[chucko1] 09/3/2018 18:01

Prospectus will be available on their web site. I suspect around March 22 as that, if I recall (I am on a plane, so cannot check definitively),is the ex-rights date.

So plenty of time to get some dosh together to get involved. Or not, as the case may be. I am happy to see the price fade from 1000p (actually 1100p, but that might have been some rapid short covering) as the blended price of the package (1 share plus 17/24 rights entitlement) becomes increasingly compelling.

[umitw] 09/3/2018 11:39

Did any holder receive the prospectus for the RI...?I'm not holding at present, I'm interested in the date.

[umitw] 07/3/2018 08:15

Is there any one holding Dixon's on this B.B. ?

[fhealey] 02/3/2018 08:55

That was just the share price on 26 February which they used to demonstrate the rights issue discount.

[umitw] 01/3/2018 23:28

But they said based on 588p..!

[fhealey] 01/3/2018 17:01

If the closing price on the day before the rights issue was the same as today's closing price (£9.80) then the price the day after (on the day the additional shares were placed on the market)would equate to £7.04 (theoretically).

[chucko1] 01/3/2018 14:59

No, that is not what I am arguing. Once the share goes ex-rights it will drop to £7 or thereabouts, but those who buy at £10 now will also get another 17/24th of a share at £3.15.

Same conc to as a stock which goes ex-div. Buy it with the dividend and you will pay if you buy it the day it goes ex-div (the difference being the dividend amount, naturally). Whether you buy it before or after may depend on tax, liquidity etc. etc.

[umitw] 28/2/2018 16:39

So we. Sin buy it around £7 or there about!

[umitw] 28/2/2018 16:37

I think that's more likely share price

[chucko1] 28/2/2018 16:08

Nigelpm, theoretical ex-rights price is as follows:

(1 x 1000 + 17/24 x 315) / (1 + 17/24) = 715.98p

This of course assumed 1000p to be the current market price.

So market cap would actually be 253mm x 716p = £1.81bn

Once upon a time, market cap was £4.45bn, so we are now around 40% of that. Sounds reasonable given the recent news for a company that has been around for a century.

[umitw] 28/2/2018 12:25

Thank you nigelpm.

[nigelpm] 28/2/2018 12:11

It's Woodford vs the Shorters at the moment hence the huge volatility.