Rock Solid Share Discussion Threads

[hatetrader2] 14/3/2012 07:56

If they dont delist there will quickly be another issue of equity and that will
be at 0.5p or lower which again will be mega dilution.

Tara the spin queen or drag queen has never mentioned fundamentals ever on a stock
probably because most it tries to ramp are shocking.

[multibagger] 14/3/2012 07:17

OT

My other sizeable holding VIY (3 mill) may see action today following RNS. Delighted that SUMM is doing well - another 3 mill there.

[tara7] 14/3/2012 07:13

So, reading the above posts it looks like the smart money may be with the directors.

Like one poster said, very hard for them to get 75%.

Look at PFO another share like here where directors said they were going to de list, [shares dropped 75% in a hour.]

A few weeks later told shareholders they were staying on AIM and shares shot back up.!!!!

It is clear to be a bun fight for stock will show up here one day soon.!

Not only that but de listing is NOT the end of the company, infact, could be the start.!

[rbonnier] 13/3/2012 22:30

scotswhaehae what are you talking about larger shareholders notifying of any disposals ? they are the ones who want the delisting and funding the company so I dont think they will be selling any time soon !

Why would staying listed be worse for shareholders the company currently has the backing of its major shareholders with a guaranteed line of credit and if you read the strategic review the second half of the financial year will be significantly better than the first,sort out the cash burn which they will have to do anyway and going forward this is likely to look a lot healthier in 6 months time .The company could then raise cash by a placing at a higher price .

As it stands I presume the major shareholders intend to launch a bid for a pittance once the company is delisted .The line of credit was no doubt a provision that the company delists and the major sharreholders no doubt refused to subscribe to a fund raising at these levels leaving the directors with little choice .However it looks like they are going to have to buy 20% of the shares off the open market to succeed so let all the pis sell out then start to mop them all up ,sp should start to rise significantly very soon otherwise how are they going to get 75% all in my opinion but its not over yet .

[jojo_jo] 13/3/2012 22:13

Fundamentaly they appear to have de-listed because the shareprice/mkt.cap does not allow them to raise a meaningful amount of money (through doscounted placings and the like). They have the belief (misguided imo) that it would be easier to raise finance as an unlisted company, away from the spotlight of an AIM listing. It could be that the major holders (also financiers) are looking to pick up 80%+ of the shares at rock bottom prices, giving them full control of the unlisted company for a relatively small additional investment.

Unfortunately it is usually very difficult to sell a chunk of shares off-market for a fair price. You have to be willing to hold until there's a takeover or re-listing. OK for a few hundred pounds worth perhaps, but not many thousands of pounds worth.

IMPO/DYOR.

[scotswhaehae] 13/3/2012 22:02

But RSI is clearly still heavily cash absorbent and a failure to delist could presage worse effects for shareholders as far as I can see.

It is of course in the interests of some remaining holders to try to get traction behind any share price rise that can be engineered...but only to lump shares onto some other poor 'hopeful' and reduce personal losses as much as possible before delisting. They can hardly be blamed I suppose though it isn't pleasant...but eventually larger shareholders will have to notify of any disposals so it will all become obvious.

If you really are happy being a small owner of a smallish private company...fair enough. If not, its a decent tax loss imo

Caveat emptor...

[rbonnier] 13/3/2012 21:22

Ok not the result we were looking for and definately worst case scenario but the shares have collapsed not because the company is bust but because of the delisting
presumably they will go back up if the delisting proposal does not get 75% of shareholders votes .So how are they going to get 75%, this looks difficult Euro Trans can only buy another 5% so East Hill and Sector Omega would have to buy a further 10% each to secure a guaranteed 75% this would send the share price up significantly so I doubt that will happen as its a costly option we know GLG is a seller so they wont be buying .I cant see them getting 20% from pis so how are the directors going to achieve the delist ?

[hatetrader2] 13/3/2012 21:11

"private equity buyout"

LOL !

It's just a waste of time, bulls are totally brainwashed with this company !

[multibagger] 13/3/2012 20:59

$1 million credit line will see the company thru' till end Sep 2012 according to terms...then what happens ? The expectation could be that the revenues achieved before then will negate the need for further funding and with the company potentially delisted, RSI management can then increase the value and fatten for a private equity buyout or comfortably gain returns thru' dividends (having picked up millions of shares from panicked private investors).

I am warming to the idea that this delist scare may be overdone and that RSI may actually give some decent returns in the longer term. (Been reading "Free Capital" by Guy Thomas - very interesting )

I am trying to work out if the whole delisting fiasco is a major glitch....is it worth buying more into the glitch and getting locked into an ill liquid stock with little or no prospect of an exit save a takeover ?

Is the RSI IP and team a franchise or is just a commodity play on the geophysical imaging sector ? Does RSI have a durable long term advantage and the barriers to entry ?

I would be closely watching for Director/management buying and declaration of 3% holdings, if they do come. Given their protestations that the company is significantly undervalued or words to that effect. At approx 4.5 millions shares, they will have to stump up about £30K - you can take out an unsecured loan for 10% to buy and still make money on the deal, if you are confident on the value of the company.

Which brings me to the next quandary, as to which way to vote with the delist !

These are my fluid thoughts at the moment and may change on deeper analysis. Views supporting or shooting down my line of thinking most welcome. I could use multiple viewpoints. Thanks in advance.

[hatetrader2] 13/3/2012 20:44

What defines a full order book then, it certainly dont matter to RSI, they would be better off with no order book and no staff then they would have 30 million in the bank, instead 30 mil has gone down the drain trying and failing miserably to
get this company into profits.

Last set of results :

The year to 31 August 2011 saw a reduced loss of GBP2.4 million from that reported the previous year (2010: GBP17.1 million loss). At the period end the Group had cash on hand of GBP1.7 million and no third party borrowings. This compares with a bank balance of GBP3.4 million at the end of August 2010 (also no third party borrowings).

What makes that look even worse is they did another fundraising in the middle of that (JUNE 2011)

Rock Solid Images plc (AIM:RSI) is pleased to announce the placing of 47,342,700 new Ordinary Shares ("Placing Shares") at 4p each ("Placing Price) to raise $3.1 million ("Placing") and intends to make an application to the Court to approve the cancellation of its share premium account ("Capital Reduction").

I aint surprised to see that Tara parasite here, only Tara can take these numbers and say it's a ten bagger, they dont have enough contracts to get even near break even, it's been the same story since they floated as OHM all those years ago !

[vision88] 13/3/2012 19:01

The dirrectors wish to delist they need 75% of shareholders approval,

assuming this 75% is achievable and the company de lists from aim; saving £125,000 aim fees, then they become a private company, with a full order book i understand' shareholers still holding after date off delisting 13 April 2012 shares will be tradable via company website trade shares with equal buyer off sellars stock at agreed price to sellers offer.

Now remember they have a full order book and possible more orders in the pipe line,given this is the case, why on earth do they choose to delist at this junction, and why did they list in the first place?

It has a smell of sharp praptice legal no doubt others may know better,

Totally unethical otherwise to string so many investors along with what appears to be a carefully orgastrated PUMP AND DUMP SCAM all quite legal.

Its this type off scam thats going to bring AIM into a root and branch shake up. SNOONER THE BETTER.








5

[jojo_jo] 13/3/2012 18:35

The conundrum is...
If instead they had just announced that the two largest shareholders were providing a $1m line of finance, the shares would probably have doubled to nearer 4p, giving little merit to the criticism about the negative impact of a small free float. Surely then everyone would have been happy, and there would have been enough money to see them through until the new business revenues kicked in.
However they decided to inflict mortal damage to the shares, without guaranteeing a de-listing. They still have to get 75% of the votes, and it's not a certainty by any stretch.

IMPO/DYOR.

[christianf12] 13/3/2012 16:41

Here comes the bitter and twisted Bam Bam, search his posts, notice the theme : )

[bam bam rubble] 13/3/2012 16:33

Circular posted thursday to approve the delisting so maybe one more day for have-a-go pumpers to pull the wool over peoples eyes before this gets locked down and the actual spread widens to match the quoted spread.

We've had the dead cat bounce so they are probably just here for old times sake rather than an attempt at a trade. You'd be hard pushed to find a worse trade than buying this after yesterdays news. Selling your granny for a packet of monster munch has more merit, at least you would get something back.

[tara7] 13/3/2012 16:21

Looks like you find it hard to make friends.

Same at school,??

Have you rung the NSS helpline.??

Good luck .!!

[tara7] 13/3/2012 16:14

Hatetrader, what time does mum put you to bed.??

[tara7] 13/3/2012 16:13

Hatetrader, me thinks you are shorting this stock.!!

You have told pork pies in the past i see.!!

[christianf12] 13/3/2012 16:12

No one said it was 2.5p, good deflection though.

[tara7] 13/3/2012 16:11

Bid is .45p and can not buy in size [as you well know]

[hatetrader2] 13/3/2012 16:11

It's not 2.5p either :-))

Scum you pump and dumpers are !

[christianf12] 13/3/2012 16:09

The bid isn't really 0.25p so stop telling lies.

[tara7] 13/3/2012 16:07

Hatetrader, best to report youself, they might give you just a warning.!!

LOL!!!!!!!!!!!!!!

SAD , VERY SAD.!!

LOL !!