Wallgate Share Discussion Threads

[medicineman] 09/7/2004 18:35

tob, excellent post. 4mil or so shares traded today fade into insignificance when considered with the new shares that are being dumped in the market.If there was any chance of a takeout at 1p i hardly think that people like EVBG and SQML are stupid enough to dump stock they could sell at 10 times the price later on.They know that nothing is happening and what effect this dilution( which is only just starting)will have on the share price They are dumping the stock NOW because they KNOW they will NOT get this price later.

[tiredoldbroker] 09/7/2004 18:16

Look, I'll stick my neck on the block and say quite categorically, there will be no bid for the whole of WGT at 1p to 1.5p.

I'm assuming that you all understand that the refinancing agreements entered into by WGT are legally enforceable contracts, and that the other parties involved are not charitable in their approach and will look to make the maximum profit from the deal. That's why, in return for Square Mile dropping the June proposals after they'd been agreed, they had to be bought off with the right to acquire 345 million shares for £175,000 (i.e. 0.05p per share). So given that the new financing involves issuing 2.77 billion shares at barely 0.1p, I flatly do not believe that anyone will bid 1p or 1.5p, making all those new shares worth 10 to 15 times their issue price.

Oh, and I had expected more comment on the fact that WGT's number of shares in issue has already almost doubled, with EVBG turning £200,000 of their loan into 200 million new shares, all of which will get placed at a profit with MMs or other sharedealers - to be ramped on to naive mug punters at a profit. Wonder if the only reason the share price is holding up is that it enables such dealers to pump stock out at a nice fat profit margin ?

[sagem] 09/7/2004 16:45

i think Wigmore is going to be bought out.....I anticipate a bid of around 1p to 1.5p This is going to hot up next week, perhaps the National Papers will pick something up over the weekend. Runours already suggest a takeover is iminent.

[medicineman] 09/7/2004 14:03

some very interesting trades going through.Think there may be more to this than meets the eye!!

[tiredoldbroker] 09/7/2004 13:37

Whay hasn't it happened ? How about because it was clearly nonsense in the first place, and probably the story was placed quite cynically to help someone shift some stock to mugs.

[sagem] 09/7/2004 12:24

SAGEM - 06 Jul'04 - 07:18 edit


It is said in todays Daily Mail that an offshore investor is planning a 1p per share bid to take the property company off the AIM market and to go PRIVATE.

WHY HAS THIS NOT HAPPENED

[medicineman] 09/7/2004 11:20

the two trades at 0.34p are likely to be buys even though they are just below the mid price of 0.35p.Good luck to you whoever you are!!

[tonytaxi] 09/7/2004 09:54

Medicineman
Agree the bid will go to .2 very soon. I can't believe anyone is buying at .4p
An immediate LOSS of 50% YES 50% .Who would do that ??

[medicineman] 09/7/2004 09:36

There we go!!! it had to happen and it has.The 0.225p trades yesterday were MM buys.You should buy this stock when offer hits 0.25p and not before.Why give the mm's extra profit.Expect the bid to hit 0.2p today because the mm's do not want your stock.BE LUCKY GUYS!

[storminsteve] 09/7/2004 09:04

well done sagem you did the right thing holding on to your shares.

[sagem] 08/7/2004 20:42

P.SMITH Thanks for your comments on Blanchards.

[sagem] 08/7/2004 20:40

UP 20% TODAY Things must be improving for this increase or is confidence returning that means that Wigmore WILL be a success for the future.
With all the bad news commented on on this site why has the share price increased by a massive 20% its all very confusing. Your comments would be appreciated.

[medicineman] 08/7/2004 18:42

interesting move up on the offer!! This is only valid if the bid moves up tommorow as well.All that has happened at the moment is the spread has become stupid.If the bid moves up to say, 0.45p, and the mm's start to take in a good volume of shares at that price then I would say that something is afoot!!Should be an interesting day tommorow.

[martest] 08/7/2004 16:16

Let them drift now.These shares are being pushed out by all the telephone sales people here and overseas.Too hot to buy for the time being.Let it cool and then we can see the real worth and invest properly or youll get burnt.

[medicineman] 08/7/2004 15:03

tiredoldbroker ...that is an excellent post and should make the situation clear to all.I have been saying exactly the same re the share price that it will have to go down from these levels.anyone buying today will get burned.Unless you are desperate to throw money away wait and buy these cheaper.

[tiredoldbroker] 08/7/2004 14:34

I assume that everyone interested in WGT has already combed through these new proposals announced on 7.7.04, and compared them with the previous scheme published on 4.6.04. Just in case any of you haven't, here are the salient points.

The previous package gave WGT financing of up to £3.13m, at the expense of issuing 3.32 billion shares, diluting the holders of the 231.7m WGT shares in issue before the deal to a bare 6.5% of the eventual increased share capital.

Under the new scheme, Evolution Beeson Gregory still subscribe £0.7m in loan notes, to give them an eventual 700 million WGT shares (1000 shares per £1). That hasn't changed. Strangely, there is no mention in the latest announcement of the Directors of WGT subscribing £30,000 on the same terms, but lets assume they will.

Square Mile ends up being compensated for not going ahead with the financing it was going to offer, and is given the right to subscribe for 200 million shares at 0.01p (10,000 per £1), 100 million shares at 0.11p (909 per £1) and 45 million shares at 0.1p (1,000 per £1).

The new investor, Burnbrae, will provide an immediate £0.3m convertible into WGT shares at 0.11p (909 per £1) and will subscribe a further £0.4m by 20.12.04 for shares also at 0.11p and will underwrite a £0.7m share issue at an unspecified price (but let's work on the basis of 0.11p again). As a sweetener, Burnbrae gets warrants to subscribe for 132 million shares at 0.11p and 292 million more shares at 0.12p (833 shares per £1).

So let's see what all this does to raise cash for WGT, and what it means in new shares being issued.

Under the "old" scheme, it would have issued 3.32 billion new shares and received, over time, cash of £3.13m.

Under the new scheme, WGT will issue just over 2.77 billion new shares and receive, over time, £2.8m.

So about 550m fewer shares will be issued, but WGT will have a lower cash inflow, by £330,000. The only real impact on previous WGT shareholders is that instead of being reduced to 6.5% of the fully diluted shares to be issued, they will hold about 7.7%, but this hardly seems to be a major improvement, given that the smaller cash sum must increase the risks of a secondary failure.

I would also point out that, with 2,771,600,000 shares to be issued at an average of barely 0.1p, it is hard to see why the market should continue to value WGT's shares at 0.35p to 0.45p. EVBG, Square Mile and Burnbrae will be only too happy to keep tapping WGT for shares at 0.12p or less which they can sell at 3 times the price – look at the announcements, EVBG have started to do that already. I don't think anyone would honestly believe that WGT is now worth as much as 0.4p per share, or just over £12m, on the basis of having had promises of £2.8m – it implies that WGT "pre crisis" was worth £9.2m, and that everything is as good now as it was 3 months ago – when in fact, the intrinsic value of their only decent business, Blanchards, has been seriously impaired by the events of recent months.

So my view is that WGT will slowly drift down in price, and that there are 3 massive potential sellers who need to keep trickling stock onto the market to realise gains on their parts of the refinancing. Not an optimistic picture.

[medicineman] 08/7/2004 14:17

total 100mil traded at 0.225p.Offer should drop slowly all the way to 0.24p or thereabouts.Bid will drop to 0.2p and everyone will be "locked in"or selling at a loss.

[psmith64] 08/7/2004 14:02

SAGEM - Blanchards was bought for a sum just over £ 2 million in a cash and shares deal, as well as loan notes if my memory serves me right.

It is not worth that now though, I think they need to off load it, and put it down to a bad move, as Wigmore's reputation has trashed Blanchards long standing reputation in the area, Blanchards has now joined the ranks of one of those companies who can't pay their suppliers and subbies on time, in time that means they will loose their best subbies, who have helped build their reputation over the last 30 years, beacuase the trust has been destroyed. This week their inability to pay one of their sub-contractors mean't that particular sub-contractor had to put his own funds into his company to pay a VAT bill, I know this because I am a friend of the sub-contractor in question, don't forget I worked there for a long time, and left in 1995, but many of the people who worked there then as employees and subbies are still there now, and I see them on a regular basis.

I would not be surprised to see long standing members of Blanchards leave soon, moral is bad in there, Salisbury is a small, tight knit community, people talk to other people in the building industry, I already know of key people having interviews elsewhere.

When you have been used to working for a cash rich, profitable company ( hence I would imagine the reason Wigmore purchased them ), that pays it's subbies and suppliers on time, you get an easy life, no hassle from subbies that throw themselves at you to work for you, but once that changes, as it has now, the first point of contact is normally the surveyors and agents who deal with these people day in day out, and when you get pestered day in day out asking " when are we going to get paid, it wears you down, and then you start to look for another job.

Wigmore need to salvage as much as they can out of Blanchards, they have two choices to do this:-

1) Inject enough money so that Blanchards can continue as it had for the psat 30 years.

2) Sell it to a company who can do the above.

If they don't do either of the above, and let Blanchards become fully tarred with the Wigmore brush, Blanchards will be worth nothing to no one, because it won't have any loyal staff, and staff like Blanchards have are not easily placed, and the Vultures are hovering around Blanchards right at this moment, tempting it's best people away, and I don't think they will take much pursuading the moment.

Take a look at last years Accounts, who provided the most contribution, Blanchards, I don't think it will this year, so Wigmore shareholders are now going to have to pin their hopes on FNPM and Speymills, who looking at the accounts made no contribution last year.

Buy this one at your peril, my advice is to stay well clear, unless you want to take a gamble on the fact that someone gets in there soon to sell off everything to form a cash shell, and start again with fresh management and fresh ideas, that is the only way the Pheonix will rise on this one,

Regards

Paul

[medicineman] 08/7/2004 11:28

Yes I have argy2.SQML have been given warrants including 200mil to subscribe at 0.01p per share!!another 100mil to subscribe at 0.11p!Also they have right to subscribe for 45 mil shares at 0.1p. I agree it is good for wgt to get out of their agreement with SQML but at what price!!!

[argy2] 08/7/2004 11:04

medicineman

Have you bothered to read the latest rns?

[mick52] 08/7/2004 09:43

whats going on mms now paying .4p for shares