Shanks Share Discussion Threads

[wig123] 18/6/2009 14:19

looking good !

[w.bramley] 16/6/2009 11:55

I imagine that for a while there will be quite an amount of stock on offer once the rights become fully paid, (start trading 24 June) but the service SKS provides is essential, and we should see steady and secure progress.

[stuartm] 12/6/2009 13:26

Thanks so much for your very helpful comments.

[typo56] 12/6/2009 13:24

stuartm

It's much the same as asking if you should be buying normal Shanks shares. If you don't take up the rights you're not really missing out on a bargain. If you take into account the value of the nil paid rights the net cost to you of taking up the rights is much the same as the cost to anyone buying the normal shares now, ex-rights.

At one time there might have been a CGT taper relief benefit in taking up rights, now it's just a matter of stamp duty and commissions which are within the daily price volatility anyway.

[w.bramley] 12/6/2009 12:03

stuartm

A strange question you ask - only you can decide - however, I have a sizable holding in SKS and not only am I taking all my allocation, but I have bought more SKSNP when they were 25p, (this is a deeply discounted price) and if they ease back before the payment day 23 June to around that price again, I will add more. To hold this stock or any other, you must have faith in the company, and although SKS is not rated as a buy, it is rated as a solid long term hold. - Also, I suspect you have looked at the graph and seen a price fall on the 9 June - in fact there wasn't a fall, it is the way ADVFN display the graph, they don't adjust it for the rights, whereas "Sharescope" do. I take it that you realise that each NP will have a 45p payment due on the 23June.

If you don't want to take up your allocation, you can sell them NP, but if you do nothing, the stock will be sold and you will receive a payment, but you will not be choosing the price, and it will be a while before you get paid.

SHORT ANSWER - take up the rights or sell them NP before the 23rd

[stuartm] 12/6/2009 07:37

With apologies for my ignorance but should one be taking up the rights having regard to the current share price? In anticipation many tks

[cambodia] 11/6/2009 16:36

Apart from Biffa getting bought out, no other uk waste/reycling stocks have performed well in the Ftse.

Also Shanks have no close peers currently in the Ftse.

Theres no real precedent as to how the markets will treat Shanks. As such I would not be surprised at some downside for SKS shares from the rights issue price.

[wig123] 11/6/2009 13:29

edit: can't read :-)

[wig123] 11/6/2009 06:51

SKS back in the 250, should be fun ;-)

[pinkkasti] 10/6/2009 20:49

Thanks Galles and Wig...something I always wanted to know, very helpful.

[galles] 10/6/2009 17:12

Pinkkasti, if you read the disclosure of short position dated 22/5/09, you can see that Blackrock has 0.84% of shares on loan and today's disclosure show they have 0.5% of shares on loan. That means they closed out 0.34% of shorts in between that time.

Hope that explains your question about where you can find about the short position

[typo56] 10/6/2009 16:34

I see that in the quarterly review just announced FTSE have decided to promote Shanks back to the FTSE 250, with effect from Monday 22 June.

I'm a little surprised as their decision is based upon the market cap at close yesterday. They must have included the nil paid shares as being fully paid and valued all 396.7m shares at 70p.

[pinkkasti] 10/6/2009 16:32

excuse me WIG123...my ignorance, but how does one know whether that was an opening of a short position or a closing..?

I was just wondering why Blackrock had opened a short position on this...

[cambodia] 10/6/2009 15:54

Is it not generally the case that when a company has a rights issue MORE OFTEN THAN NOT the share price will fall below rights issue price and test support.

I was kind of expecting SKS to test below its rights issue price which equates to 72.5p.

[wig123] 10/6/2009 14:22

any chance of a NP chart in the header?

[typo56] 10/6/2009 14:08

I think the NP will gain.the most

SKSN will pretty well track 45p below SKS. The gearing is such that at the present level the percentage gain in SKSN will be getting on for 3x that in SKS.

Same for a fall of course!

[wig123] 10/6/2009 13:40

looks like Blackrock are closing shorts!

[w.bramley] 10/6/2009 13:22

Shanks SKS up 2.5p (3.6%) - Shanks NP SKSN up 2.5 (10.2%) for the next 10 days, I think the NP will gain.the most

[wig123] 10/6/2009 09:44

10/06 10:43 - UPDATE: UK Industrial Output Posts First Rise In 14 Months

(Adds details, economist comment.)
By Nicholas Winning
Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--U.K. industrial production posted its first monthly increase for 14 months in April, the latest signal that the recession-hit economy could start growing sooner than expected, official data showed Wednesday.

Industrial production increased 0.3% on the month, the first rise since February last year, after a revised 0.3% drop in March, the Office for National Statistics said. That helped the annual decline in industrial output to moderate to 12.3% in April from a 12.7% fall in March.

Economists were expecting industrial production to drop 0.1% on the month and 12.2% on the year in April, according to a Dow Jones Newswires survey last week. March's declines were revised from 0.6% on the month and 12.4% on the year reported last month.

"Add in the fact that last week's service sector purchasing managers index showed positive growth and it is looking increasingly possible that the U.K. could lead the rest off the Group of Seven (leading industrial nations) out of technical recession," James Knightley, an economist at ING, said in a note.

A positive second-quarter gross domestic product reading isn't completely out of the question, but it still looks more likely to come in the third quarter, he added.

The ONS said U.K. manufacturing output increased 0.2% on the month in April, following a revised 0.2% gain in March which also marked the first increase since February last year. On the year, the drop in manufacturing output moderated to 12.7% from a revised 13.1% in March.

Economists were expecting manufacturing output to rise 0.2% on the month and fall 12.5% in annual terms. March's manufacturing readings were revised from declines of 0.1% on the month and 12.9% on the year reported last month.

"Today's data are particularly encouraging in that they suggest that U.K. firms, in contrast with their German counterparts, may have worked through their inventory overhang somewhat more quickly," Colin Ellis, a European economist at Daiwa Securities SMBC, said in a note.

[wig123] 10/6/2009 09:28

not forgetting the short position that has to be closed soon enough!

[wig123] 10/6/2009 09:20

I think with manafacturing and industrial output numbers better than expected SKS should be well placed now. More waste being generated, recycled material prices picking up a tad. Yep! fairly confident here, and as always we have the poss. of takeover at the drop of a hat.

Is divi still maintained? if so not a bad yield circa 5%

[typo56] 10/6/2009 08:21

Market cap would be rather misleading too, given there are more shares to divide it between.

The equivalent price Monday to 70p today would be about 86.7p, but it gets very complicated if charts are expected to be adjusted for every corporate action.

[bluepill] 10/6/2009 08:02

charts should plot market cap not share price since this makes sks look like its fallen in value, i was searching for the bad news.

[daytraders] 05/6/2009 11:46

yes very helpfull cheers, i am holding after big contract win.