Wagon Share Discussion Threads

[deanroberthunt] 25/6/2008 13:57

Could this be another AHT or Stagecoach style recovery???

Not many think so at present...

[deanroberthunt] 25/6/2008 11:16

I think the rights take up will be poor imo...cos if you wanted to buy, you can buy as many as you like for nay on 4p now....

and if thats the case the underwriters will have to drip feed the stock back into the market...I can see it going lower, still.

[bench2] 23/6/2008 21:00

hybrid which message board site do you find the most informative? I have not come across iii and sharecrazy before. I like all the charts and stats at ADVFN but are we only getting a fraction of other investors views on ADVFN?

[killieboy] 20/6/2008 14:06

havalchy - thanks (still undecided)!

[havalchy] 20/6/2008 11:21

killieboy - some more discussion here which can help you get others point of view

[killieboy] 20/6/2008 10:48

Big question: Should we take up Rights or see our current share of the Co reduce by 90%?

[bench2] 20/6/2008 10:16

Hybrid , pref will return close to 14% per annum but only limited upside in share price if Wagon perceived to be out of danger. In better markets could trade up to 70p to give a 10.4% yield. So mainly a high yield play. Ords are like a warrant , will be much more liquid post RI and could be a possible ten bagger from 4p to 40p , but with Ross calling the shots probably no ord divs to conserve cash and pay down expensive bank debt. Hope this helps.

[hybrid07] 19/6/2008 22:44

Bench are the preference shares a better deal than the ordinary?

[topvest] 19/6/2008 21:50

It does look safer following the rights issue. The business also has quite a good market position and so could do ok in the medium term. Shareholder value has been destroyed in the last few years and executive management should be dumped.

[maytrees] 19/6/2008 09:07

Yes Plus it is - at 4.83p

[maytrees] 19/6/2008 08:49

Greetings topvest

I topped up again today and as the trade does not show on
m.am I assume again it was effected on Plus.

Also if the new FSA disclosure rules about shorting and rights
issues will apply as much to WAGN as to banks etc
some closing of shorts might affect the co's share price

[topvest] 18/6/2008 21:39

I bought some more today. Looks in reasonably good shape when it gets this rights issue out of the way. Be interesting to see if some of the directors put their money where their mouth is for once and buy some shares; talking about the CEO and FD who have small holdings.

[hybrid07] 16/6/2008 16:12

Guys you know you can type WAGN.GB in Advfn to see plus market trades

[maytrees] 16/6/2008 12:59

Greetings Time To Share and TX

I hadn't thought about Plus. Although my trade was earlier I see others
at 4.90p are reported there.

[time to share] 16/6/2008 12:51

maytrees

Theres a good chance your trade is showing on the Plus market.I know mine is there. See below.

[maytrees] 16/6/2008 12:42

Bought a few at 4.90p earlier today; still doesn't appear
in trade stats; offer share price then fell to 4.50p and directors'
buys RNS showing they paid 5p+ recently not made any difference so far.
Directors' buys pretty small but imho still good to see.

[topvest] 15/6/2008 20:32

Hopefully, we will have a new management team post rights issue. This bunch need to be moved on.

[topdoc] 15/6/2008 19:27

Surely Mr Ross will be on their case. Cannot see him letting this go belly up if he is underwriting the RI.

[topvest] 15/6/2008 13:08

Unless management screw up again, of course!!

[topvest] 15/6/2008 13:07

It's a simple case of needing to raise cash at the wrong time. The bank, I think it's RBS, has them in a precarious position. Net result is the need to raise close to £100m in cash and this was the only price they could get to do it. I think that the rights look interesting. Downside is that you take up loads of shares at 4p or don't take up, but pay 5p for some shares now. Upside is that you can make a nice turn on the nil paid rights, which is an extremely leveraged play on the success or otherwise of this rights issue. All ways the downside appears limited.

[hybrid07] 15/6/2008 12:07

There is a good discussion on iii (but annoyingly I can't post there because I only registered yesterday)

My interpretation of main points

1. The very large RI at a low price has had the effect of collapsing the share price to close to the issue price of 4p. This is unfair on small investors who may not have the cash to take up the issue, and have therefore lost most of their investment.

2. The RI had to be at a low price, or it might have failed.

3. There is a lot of hostility to RI. But we have known this is a very risky investment for some time. Now share price is close to the issue price. Therefore the market is saying that the company is worth roughly the cash that the RI will raise i.e. it's worth nothing without the RI.

4. This RI has been approved by the financial authorities. It may be the best deal that shareholders - large or small - can get.

5. Logically, if shareholders could afford to take up their rights the RI would be neutral in an efficient market.

6. The market may be over-reacting with this low share price This would not matter if shareholders took up their rights because after the issue share price would rebound.

7. Since shareholders will miss out if they do not take up rights, the implication is that new investors who buy the shares cheap now and DO take up rights will do well.

8. Maybe shareholders who bought at higher prices will do OK if they take up say 1/10th of their rights

9. Can't see the point in voting "No" at shareholders meeting.

[hybrid07] 12/6/2008 14:14

Aleman, if he hurts people who buy at 6p he will be hurting people who bought at 20p a lot more. He is unlikely to go to an extreme, surely? Besides, as far as I can see he is not a shark. ALthough he is probably more likely to worry about the interests of employees than shareholders

What's wrong with being squeezed with say a takeover?