Yu Share Discussion Threads

[disc0dave46] 04/5/2024 18:56

"My understanding of a share premium account is that it's there to cover the expenses of equity raises or the issuance of stock options"Yes, but once again surely this could be funded from elsewhere, share issues or bonus share issuance costs aren't constrained to the share premium account alone are they?.

[disc0dave46] 04/5/2024 18:50

Thanks for that and fair points made. I agree they are making hay while the sun shines, that’s been my overall downbeat longer term view as I’ve made clear from day one. Things are not IMO going to continue as they have in terms of earnings, cash generation etc.
I’m simply stating why now as I’d have thought they would have done this around 2019 to maintain investor positivity by maintaining a dividend (but will admit I’ve not checked the annual / cumulative value of the premium account).
Appreciate your view and that you didn’t simply lower to a personal level.
One question, as I don’t know (and always will hold my hand up unlike most of my fans here), given the possible future realised profit from the capital reduction will ultimately go onto the P&L, would this be included in their brokers forecast profits going forwards?, I’m assuming it now will?.
Thanks

[bookboy88] 04/5/2024 18:41

My understanding of a share premium account is that it's there to cover the expenses of equity raises or the issuance of stock options. Therefore, closing the account would be an indication that the management no longer foresees a need to raise capital by issuing more shares. Surely it's in the interests of the existing shareholders to see their dividend yield rise than their equity stakes be diluted?

[bookboy88] 04/5/2024 18:31

By cancelling the share premium account now, it strikes me that the management may just be wanting to make hay while the sun is shining, in other words because they're now well capitalised. If I had £12m locked away in reserves I no longer needed, I would surely want to do something with the capital that would either generate greater returns or could be distributed to the business owners. There's more than enough cash already available to cover the debts and they must have confidence in their upcoming cash flows to have applied to the courts to cancel the account, in my view.Ultimately the court will have to consider evidence. Either the court agrees that cash flows now render the share premium account unnecessary, and the application is granted, or it decides the reserves need be kept and it is refused.The management is simply honouring their word, which can only be a good thing. You only have to look at the stock performance in recent years to recognise their effectiveness. Such advantages don't disappear overnight.

[equal shares] 04/5/2024 18:31

You would have thought that Disco would keep quiet after his mauling. He still seems to want to demonstrate his ignorance. Ah well. Hope he has a pleadant Bank Holiday weekend.

[sparky333] 04/5/2024 18:16

DD very active today, shame I can't see any of it no matter how tempting.

[disc0dave46] 04/5/2024 17:48

Hi Sparky
“Looks like equal shares is giving DD a mauling next door.”

Oh you mean by trying to diss someone and name calling is giving someone a “mauling”;, then that just goes to show how immature both he and you are.
Given its 52w high is 1945 hitting £20 wouldn’t be too surprising.
Perhaos you could provide your view on the reason they are cancelling their share premium (for ES’s benefit rather than saying SP) account for £11.9m?.
Particularly when they felt it wasn’t necessary over the past 8 years and they now have a lot more cash available plus could the premium be any better going forwards (they clearly think not IMO!). One other point, their previous divs were up to 9% of their net cash, so even a potential three times covered div could be accommodated from their cash without the need to cancel their share premium account. Just a bit baffled as to why now!!!!?????.
Hope your flu has gone. :)

[sparky333] 04/5/2024 17:29

£20 will be smashed soon enough and then quickly £30 putting us a respectable lagging PE of around 16.Not stretched one little bit especially if strong numbers and numerous upgrades throughout the year like 2022 and 2023 The key is what market share will have post 2024 ? 2%, 3% who know me until we get a little taster on May the 23rd or maybe earlier who knows.

[sparky333] 04/5/2024 15:48

TU soon and hopefully the doubters after several years of Stella performance finally wake up because can still multi bagger 2-3 fold over the next few years never mind dividend going through the roof.

[fidra] 04/5/2024 13:10

Some months ago he did write on the BATS thread his definition of the free float.

That was quite a comedy tour de force.

Basically his assumption was that these shares were not owned by anybody but were in a pool of shares not owned by anybody.

[equal shares] 04/5/2024 12:05

"Found on Google". ROFL. Dosco thinks I had to rely on Google
despite 3 years obtaining an accountancy qualification and a lifetime workimg in Finance. Disco wishes me a nice day but disses my professional qualifications. He is completely out of his depth... but is good for the comedy factor.

[fidra] 04/5/2024 11:58

Unsurprisingly that was also my first encounter with him.With actually him doing the same and misquoting what I had said despite the post being almost immediately above.

However did turn out my prediction was correct re price at the future date I had said and was correct.

I expect my latest predictions to in time turn out correct also.I think we will see £30 in September half year results and update assuming progress is being maintained as the company has said.

This is still and exciting company which will have good capital returns and share price growth in the near term.

So quite a win win.

[equal shares] 04/5/2024 11:58

"Share price account". PMSL. Disco claims to know all abiut distributahle reserves but he doesn't even know the correct terminology for Share Premium accounts.

[disc0dave46] 04/5/2024 10:45

Net cash £81.9m
Retained earnings £35m
Forecast dividend FY25 44p, £7.3m
SP Acc £11.9m, mmmm.
ROC £22m plus
Cash generation FY25?
Shell collateral?

On their listing to aim they did say they didn’t have sufficient distributable reserves and would cancel their share price account at some point. But now, with all that cash available to pay dividends?.

[disc0dave46] 04/5/2024 10:30

Thanks, yes I'm fully aware of the limits and constraints of the share price account.But you haven't really said anything, as usual, other than what you found on google.So basically they hadn't sufficient cash on the books to pay future dividends to the tune of £11.9m, yes or no?.Have a great weekend.

[sparky333] 04/5/2024 09:55

The guys just lies and twists all the time, takes what people say and twists it when challenged removes the post or refers to them as sheep or other rude names I remember once when I stated I saw no reason £30 was not achievable if 2024 H1 number comes in very strong.That got twisted to a claim I said £30 by H1 2024 Really warped when people can search back and pull up what I actually posted.

[equal shares] 04/5/2024 08:54

😁😁😁

[sparky333] 04/5/2024 08:21

Looks like equal shares is giving DD a mauling next door.

[equal shares] 04/5/2024 07:08

To help you out and to hopefully let you understand it better Disco why don't you look at the rules laid down in Company Law regarding dividend distribution? Any knowledgeable investor would be aware of them and would realise that the amount that can be distributed is limited by the size of the Distributable Reserves. Share Premium is not a Distributable Reserve. YU clearly intend to pay more sizeable dividends but a lack of Distributable Reserves has prevented them from doing so.High Court approval will enable this to happen. No cash is involved so despite all the "alleged" (your word - not mine. Do you doubt the work of the auditors? If so, and you can prove it sue the auditors) cash on the BS they are not "desperate" (your word again) for £11.9m cash. They have the cash. They just want to be able to give it away to the shareholders.