Wagon Share Discussion Threads

[topvest] 09/8/2008 14:42

You are assuming he wants to take it private- he may not!

[zastas] 08/8/2008 14:31

Very wide spread on my screen. Yesterday something like 3.5-3.9 pence. Who knows whether this is a SEAQ or SETSMM stock. If the latter, we should be able to creep within the MM's spread through DMA. I haven't yet tried with my idealing account but did confirm that WAGA is obviously MM-only tradeable.

Who will now still be selling at this late stage, below 4 pence? Only those who become desperate in need of money? The divorcing and estate probate executors?

[trygve] 08/8/2008 12:37

You are welcome Zastas. I see today a few more buyers and the quote screen showing a 15% rise if only.

[zastas] 07/8/2008 18:25

Trygve,

Good of you to try and keep a WAGN discussion going.
The director now owns 240.000 shares. Just less than £10,000 worth. Although in fairness, he too must have paid so much more for the bulk of it.

[trygve] 07/8/2008 15:54

A small Director buy today.

[trygve] 06/8/2008 21:33

Disappointing response to Wagon rights issue
Aug 4 2008

Automotive components group Wagon (WAGN) has received valid acceptances for less than 20 per cent of its 10-for-one rights issue.

Wagon, whose corporate headquarters are at Birmingham Business Park, said just 241.99 million shares, representing about 19.86 per cent of the total number of rights issue shares available, had been bought by investors.

The company announced the rights offer in June with the aim of raising £49 million. The net proceeds of the rights issue, which has been underwritten in full by funds managed by WL Ross, a major shareholder in Wagon, were to be used in part to provide capital expenditure funding to support the company's recent contract successes and to partly prepay existing debt facilities.

RBS Hoare Govett, which is acting as the company's agent for the issue, is trying to arrange buyers for the 976.66 million shares which were not taken up. It has until 3pm tomorrow to sell as many as it can.

Any shares which remain unsubscribed at the issue price will then be taken up by the underwriters.

A further announcement on the rights issue is expected in due course.

[trygve] 05/8/2008 22:51

I do see where you are coming from but my feeling is that he wants to have control and nothing else.What he may have done is moved the stock into a position where there is not too many shares floating around and he can then continue buying as the price rises to capitalise on his investment.

If you think about any bid situation in recent times this would be at a premium of 30% to current price which would need to be based on the RI price of 4p.Also I do not see why other Directors of the company would be buying stock if they did not think that they would see a return on their investment.

Time will certainly tell but the downside is very limited.

[hybrid07] 05/8/2008 21:57

Trygve, my understanding is that this stock will almost certainly be taken over by one of the shareholders, W. Ross, who underwrote the rights issue. See RNSs above. He already has or will have 85%. I think he needs to get 90% to force us to sell. Anyone understand this better than I do?

[trygve] 05/8/2008 21:32

Having bided my time for many a year I was scrolling over the threads looking for a stock where the potential upside would be significant. In years gone by there have been many a stock which has moved from it's lows to produce multi multi baggers.My research of the fundamentals indicates to me that this stock could be the next one.

The recent RI has underpinned the price however stock can be purchased at 3.5p representing a discount to the RI price of 4p.The plan is to ride the storm.Pick up a few now and add to them when the price starts to rise.I will be adding 50% of the initial purchase quantity of 50K when the price doubles and subsequently this will keep the momentum in the stock going and hopefully produce a significant return on my investment.

Target price is 50p and timescale is within two years.Yes this has been worked before with stocks such as AHT which hit a low of around 4p and a high of around 200p representing a massive return on what could have been a relatively small investment given time.

[hybrid07] 05/8/2008 18:07

Wilbur Ross has I believe 85% of the company now.

He has to get 90% to force the remaining shareholders to sell - am I right?

What price do we think we will get taken out at?

[topvest] 04/8/2008 21:36

Off to AIM we go then!

[bench2] 04/8/2008 17:03

Only circa 20% of rights taken up at 4p ! Mkt sees this as a vote of no confidence in the board , stock is now freely offered at 3.50p 13% below rights price. With Ross controlling 80% of the company we are a small minority and will probably be shafted. Pref have fallen to 41p also a bad sign .

[topvest] 02/8/2008 17:49

Received the annual report. The Board are seriously deluded. They make lots of positive comments about progress and no mention of the fact that they have converted £2+ to 4p for shareholders in a couple of years. The whole board should be sacked as they are a bunch of muppets in my opinion. At least own up to the fact that you have lost shareholders all of their money...seriously deluded!

[bench2] 01/8/2008 12:26

Last day of rights today . Don't be fooled by the new offer price of 4.25p , you can still buy stock at 3.80p in the market. Next week will be interesting.

[bench2] 27/7/2008 16:11

The difference between this issue and nearly all other rights issues lies with the underwriters. 99% of rights issues are underwritten by investment banks who then lay off the risk to a large number of sub-underwriters , neither the inv banks or sub-underwiters are interested in retaining stock if the issue fails and there is a stick. Wagon is more like a placing with claw-back , similar to the Barclays issue the underwriters are keen to own and retain as much stock as possible , so even if the holders only take up say 30% of their rights the other 70% is not overhanging the market as Mr Ross and associates are long term holders. The real problem with Wagon is the scale of the issue , the colossal dilution ( 1300 million shares in issue post rights ), and hence Wagon will need to produce £18.6m pre-tax , £13.0m after tax (30%) to produce 1p EPS to put the shares on a PER of 4x at 4p !. OK Wagon will probably not pay tax for three years but we need some serious improvement in margins going forward. I agree with KWT take up a few but leave room to buy more at 3.50p.

[kwtrader] 27/7/2008 15:26

Thanks for the reply, just trying to decide to go for it now or hold back and see how share issue pans out (buy later). At this price there seems to be very little downside and looking at the fundamentals I don't think this company will go to the wall in the long term.

[time to share] 27/7/2008 13:53

KWTrader

Firstly, the reason for the rights issue is....


Secondly, i dont know what will happen after Wednesday, but i sold half of mine on Friday, 25,000 @ 3.99p.I didnt want to sell them all.
The reason i sold half was like a kind of hedge.I can buy them back via the rights @ 4p (making a small loss) or get more via the market IF the price drops below 3.5p as it did the other week.I have set aside a certain amount of funds for WAGN and will get more for sure, whether its via the market or the rights depends on the shareprice between now and Wednesday 30th at 9:00am(the cut off point when i must let my broker know how many i want from the 500,000 options i have.)

There have been quite a few shares in this market doing R.I.`s and cash calls so not all will get good take ups but ours is underwritten which means WAGN will get their £49m but the shares in issue will multiply by ten from the 116m there are in issue at the moment.Thats the pill we shareholders have to swallow

I was in a share, SMG, when they did a 2 for 1 rights issue late last year.When they announced the R.I., the share price at the time was about 30p, the rights were at 15p and the share price dropped below rights price before the record date (a bit like here) and i bought on the market cheaper than the rights.
I think the take up was about 60%.

BUT each company will have different circumstances for their cash calls,
So should you take up the rights?
Its your money, your choice. Good luck in your desicion.

[kwtrader] 26/7/2008 14:48

Can anybody give there best case and worst case if I take up the rights issues. Is the share price going to full further once the extra shares are diluted back into the market or are we going to see a retrace.

Why are we having a rights issue is it to raise funds or some other underhand tactic? Peoples opinions would be appreciated.

[nicedude1976] 25/7/2008 15:49

Not the best time to reduce...

[hybrid07] 24/7/2008 16:47

Harbinger Capital Partners have reduced from 9.09% to 4.35%

[hybrid07] 24/7/2008 09:55

Yahoo shows the WAG nil paids have increased by 3,900% (0.01 to 0.39) lol

Still, it shows someone is buying them. Maybe we'll get something for them after all

[time to share] 23/7/2008 16:54

1 week left before the nil paids expire...did anyone find out what their epic is, just to see how many, if any are changing hands, even though their value should be "negative" relative to the sharprice.
I notice mine are now valued at 0.01p(bid)
So i will probably average down via the market after the weekend.

Remember, Wagon will still get their money from the rights issue.
But, our shareholdings will be diluted by 10-1.

[hybrid07] 21/7/2008 16:51

Topvest, TD Waterhouse told me that I can sell part of my Nil Paids and accept the rest.

What you have said above seems to be VERY unjust!!!

Obviously haven't actually done it yet (because it's cheaper to buy on the market at the moment) so I guess there could be some snag

[the manager] 20/7/2008 10:22

topvest, IF you want to buy Wagon then currently you'd be much better off ignoring the rights issue and buying in the market, something that I did on Friday, where for much of the afternoon you could do that for 3.25p (or less) - an almost 20% discount to the rights issue price.

topdoc, I agree with you I believe that the shares are now being held well below the rights issue price by those that have an interest in the rights issue failing. The way the issue is structured the underwriter will then get a very large stake in the Company at a price of 4p per share - I'd be extremely happy with that outcome if I was the underwriter and believed in the long term viability / potential of the Company.

Not without risk but worth buying (in the market not the rights) if you think the underwriter knows what he is doing with his money.

[topvest] 19/7/2008 15:10

Anyone else been caught out by the rights issue. It appears that you can only accept all of the nil paid rights and not a small number, letting the others lapse i.e. it seems to be all or nothing. This seems to be a cunning plot to freeze smaller shareholders out. Is this actually correct? I had planned to take up only 10% and let the rest lapse.