coldascheese
13 Dec 2017
Simon Cole interview today Very interesting[link]
arborman
05 Dec 2017
Re: Fund Raise Back to where we were before the fund raise which is very comforting, I will take up my allocation and any excess I can get my hands on at 4p
Peally
04 Dec 2017
Re: Fund Raise Hi BB> The same thing happened to me a few weeks ago at IQE - a placing of circa 10% at 140p, which saw the SP at 180 within weeks, without the tight market and large spread of something like 7D.Thanks, will take a look.....however in terms of similarity, the effect of a 10% dilution as above, and a...near 70%(?) dilution at a significant discount are worlds apart in terms of longer term effect on the share price. I'm not saying it's a disaster, just that every large % dilution at a level like this, caps the ultimate payback significantly if 7dig comes good as we all suspect / hope it will. I actually got it wrong in my original post - the new shares are around 41% of the *enlarged* issued share capital, therefore something like a 70% dilution from current levels. Worse than I stated in my last post.Considering there had been no warning that further funding was required prior to this (all talk was of profitability next year), it doesn't seem like great management or communication to me....P
blouson blouse
01 Dec 2017
Re: Fund Raise I agree with much of that, other than your final sentence. There are often commercial reasons for an accelerated book build, and why existing shareholders apparently get ignored. I can't see how the board benefit from this unless all shareholders do.The same thing happened to me a few weeks ago at IQE - a placing of circa 10% at 140p, which saw the SP at 180 within weeks, without the tight market and large spread of something like 7D.If you like risk such as 7D, take a look at it.
Peally
01 Dec 2017
Re: Fund Raise Hi BB.> The fact the Pacing was oversubscribed so materially is interesting. Yes it may mean it was poorly priced, but in that case it also sets a floor....absent trading problems.Not necessarily. SPs often fall below a placement / open offer values after the share price destruction and dilution has already taken place.> In view of their expectation to be materially profitable already, it isn't fanciful to think that finally tomorrows jam starts arriving, and the business then gets completely re-rated. Agreed - in which case this is even more galling. Given the level of dilution, the payback per share on any re-rate will now be only 65-70% what it would have been prior to this placement...> reading between the lines this level of dilution only makes sense either if it is a basket case and needs the ££ to fill a hole ( in which case the city would have run a mile from the placing) or it is at a tipping point and imminently cashing in. It never pays to try to try to "read between the lines" with any company announcement, let alone the AIM casino. This is a huge dilution at a knock down price. You may well be right that this is the final knockings before a re-rate, in which place a lot of people behind the scenes are going to be making a lot of money at our expense. The alternative is that they are being economical with the truth as to why they need this extent of funds to dilute the company by nearly half. Either way it stinks.P
Peally
01 Dec 2017
Re: No loyality to existing shareholders FB1:I agree with most of your post however this part:> I see the directors have not decided to take their open offers which also sends bad signals.Unless I'm misreading the RNS, I don't see how this is true. Based on the table provided, the directors seem to be lapping up substantially more in the placing than PIs would be entitled to in the Open Offer:Sir Donald Cruickshank: 1,712,231 + 1,250,000 -> 2,962,231Simon Cole: 2,731,046 + 750,000 -> 3,481,046Matthew Honey 353,847 + 250,000 -> 603,847Mark Foster: 250,617 + 250,000 -> 500,617Eric Cohen: 833,489 + 375,000 -> 1,208,489Paul McGowan: 2,186,097 + 2,500,000 -> 4,686,097So it does seem like "skin in the game" at least, which is good - but still leaving PIs out in the cold.P
blouson blouse
01 Dec 2017
Fund Raise This company has failed to deliver VALUE for a long time, but seems to have made genuine and exciting progress in its business in recent years.The fact the Pacing was oversubscribed so materially is interesting. Yes it may mean it was poorly priced, but in that case it also sets a floor....absent trading problems.For me the problem or opportunity is in understanding why a company that is raising £8m can only explain what it is going to do with ¼ of that. The only thing I can think of from the wording used is that they have massive potential clients who are anxious about the weakness of the balance sheet. If that is right, then before too long I suspect they are likely to be announcing major long term business wins from some of the major global behemoths. Why else would the Board feel such massive dilution is sensible just to add clients worth modest incremental business? In view of their expectation to be materially profitable already, it isn't fanciful to think that finally tomorrows jam starts arriving, and the business then gets completely re-rated. IQE is a business that trod water for years before finally proving it can be a global winner ( SP gone from 25p 15 months ago to 180p last month).Clearly 7D is high risk, and not in that league, but reading between the lines this level of dilution only makes sense either if it is a basket case and needs the ££ to fill a hole ( in which case the city would have run a mile from the placing) or it is at a tipping point and imminently cashing in. On balance I think it is the latter and am buying.
fireball1
01 Dec 2017
No loyality to existing shareholders No loyality to existing shareholders. An offer of new shares is usually at a discount to existing shareholders but in this case anyone can but at 4p, so what's the advantage to long term shareholder apart from being shafted again!I see the directors have not decided to take their open offers which also sends bad signals.Very poor timing and creates little confidence in current directorship.
Peally
01 Dec 2017
Placing ...and the reason for the fall becomes clear. Leakier than a sieve in a hurricane. Placing and open offer at 4p.Accelerated book build already closed and heavily over-subscribed, meaning - essentially - that they've priced it too low and PI shareholders get hosed. [link] chance saloon for 7dig as far as I'm concerned. Extremely disappointed with this - they should have proved they have a workable business model first, then hit the market for a capital raise. They have just moved the goalposts again. We need to see a profit making business by the end of 2018 with no further money raised to see whether the Emperor is actually wearing any clothes.P
masonruss
26 Nov 2017
Re: Geared for success nice one
Maverick
26 Nov 2017
Re: Geared for success Thanks for posting, great article.The next trading statement is all important here. If you are not already invested in these and it is remotely good then these will get to where they should be in a few days.HOLD
arborman
09 Nov 2017
Re: Freefall I expect it will, this from the half year report in September.....“2018 will be a year of profitability and positive operating cash flow as the full benefits of 24-7 Entertainment are realised” plus they are starting with Fender so I am confident in the company being profitable next yearGLA
fireball1
09 Nov 2017
Re: Freefall Well hopefully it continues to January's levels of 9.25 and beyond sometime soon!
arborman
08 Nov 2017
Re: Freefall fireball, 18th when u posted sp at 5.1p now 5.875You’ll look back and see that was a huge buying opportunity
arborman
18 Oct 2017
Re: Freefall Hardly free fall mate, down to a huge buying opportunity IMHO
