shugg1e
14 Mar 2018
new lows this takeover has 100% destroyed shareholder valuewhat a dog and one for the bottom draw
item club
14 Mar 2018
Re: short closed "closed out short put on in dec. expecting bounce and then will short again." Well.. Bully for you... !!!
Tricky_Dicky
14 Mar 2018
Re: Buybacks Is RPC even comparable to R1?
Mome Wrath
14 Mar 2018
Re: Buybacks "Certainly if R1 bought shares on the open market then the sp would lift"Not necessary so mon capitan.Frinstance, RPC have been haulin em in for six months or so and the sp's tanked 10% and falling and they are not alone!
Tricky_Dicky
13 Mar 2018
Re: Buybacks Hello Big Bear,"If not enough stock is forthcoming on the open market, then I suggest RhythmOne could make a tender offer to all shareholders to buy back, say, 10% of its issued share capital at a suitable premium to the current share price."This sounds logical and rather tempting at face value but do R1 have sufficient free cash available to purchase shares at a premium (beyond those available on the open market) or would they have to borrow more money?If a company's stock price is genuinely undervalued, R1 still puts itself at risk by either draining cash reserves or taking on interest payments to buy back shares, if cash reserves are insufficient.Repurchasing shares puts a business in a precarious situation if the economy takes a downturn or the corporation faces financial issues it cannot cover.Treasury stock can be created when a company does a share buyback and purchases its shares on the open market, that option looks more promising, but I suspect R1 wants to keep cash reserves for future use to purchase other companies and using it to buy shares on the open market, never mind going further into debt in order to buy back a percentage of shareholder shares at a premium, may not be in the better interest of the shareholders in the longer term.Not sure how much cash they have to splash on either open-market repurchase or at a premium from shareholders.Certainly if R1 bought shares on the open market then the sp would lift but good notice has to be given and by then the sp may have risen accordingly and made the whole buyback more expensive.Just saying...
vx1
13 Mar 2018
short closed closed out short put on in dec. expecting bounce and then will short again.
Big Bear
13 Mar 2018
Buybacks Let’s hope that share buybacks remain under serious consideration, IMO, it’s the best way for shareholders to benefit from the current share price undervaluation.If not enough stock is forthcoming on the open market, then I suggest RhythmOne could make a tender offer to all shareholders to buy back, say, 10% of its issued share capital at a suitable premium to the current share price. All shareholders would be eligible to participate pro rata, and shareholders would be allowed to sell more than their 10% allowance to the extent that other shareholders decided not to take up their full 10% ‘allowance’ to sell some of their shares.This would also send a clear signal to the market that RhythmOne directors regard the current share price as a serious undervaluation, which I believe it is.Incidentally, I do not think that Tosca have been given a ‘clear run’ to purchase shares until their 29% holding has been restored….I’m no insider, so may be wrong on that, but I doubt that’s the case…Even so, I can see that one of the problems with the existing buyback authority given at the AGM is that it clearly – for good reasons – defines the maximum price that R1 can pay for shares repurchased through a buyback – this being “an amount equal to 105% of the average of the middle market closing quotations for an ordinary share as derived from the Daily Official List of the London Stock Exchange for the five business days immediately preceding the day of purchase” (as per the wording contained in AGM Resolution no 10). So it’s easy enough for Tosca (or another) to ‘pip’ the maximum price that RhythmOne is able to pay for any new line of stock that becomes available as this ‘tree shake’ continues.A tender and buyback offer would get round that problem too. I think Tosca may even be persuaded to support the idea on the grounds that it will make it much easier for them to return to their original 29% percentage holdings, if that’s their aim.That’s because a 10% share buyback, if the shares are then cancelled, would automatically increase the percentage holding that Tosca has, just as it would for all shareholders who decide to hold onto their shares.An example explains: If, say, a 10% buyback of the current 77.5 million issued shares happened, then the issued share capital reduces from 77.5 million issued shares to 70 million shares in issue.Which means that Tosca’s current holding of 18.757 million shares (as per the Feb 15, RNS) automatically increases from a 24.2% holding to a 26.8 % holding…This example assumes, of course, that sufficient other shareholders would be willing to sell more than their 10% ‘allowance’ – if, as I think likely, Tosca decided not to sell any of its holding in RhythmOne shares under the terms of a tender offer.And another idea: In addition to a tender and buyback offer, I also believe that it’s possible to give existing shareholders a ‘scrip’ dividend in the form of long-dated “subscription shares” – these to be issued pro rata to existing shareholders, so non-dilutive…..I’ll spare the example of how this works; but there are, I believe, several advantages, and it’s worth considering.
Tricky_Dicky
08 Mar 2018
Re: Whitman Howard There generally seems to be a sp hike from March through to May, looking back down the years.Current sp being kept down by Tosca's buying interests and a bunch of recent acquisitions not yet seen to be earnings accretive / enough to excite the markets.Tosca must be filling thei boots and laughing all the way to the Bank.Whether they intend a buy-out or passively take profits at a later date remains to be seen.
oilovlam
08 Mar 2018
Re: Whitman Howard The years high was around £4.85.....which was a good feeling. If the SP was around that figure then I'm sure a forecast of £7.70 wouldn't seem that far away. Indeed I'm sure there would be 'talk' of over £10. It seems odd that after the 'transformative' YuMe deal the market doesn't seem to have cottoned onto the potential.....what has changed from the high of £4.85?As usual with RTHM it's back to the old mantra..."Wait for the next set of results.....they'll be amazing"
Tricky_Dicky
07 Mar 2018
Re: Whitman Howard Thanks for those links mol42.I understand you have to subscribe to 'RESEARCHTREE' to get the full text:"We have spoken to R1 and we are revisiting the buy case by addressing some of the questions impacting the shares. With 3 significant deals in last 12 months the market is looking for evidence of underlying performance and successful integration of these deals. As a result it is, in our view, looking at historic numbers, rather than the 2019 and 2020 forecasts. We see significant cash flow potential going forward, and the potential for a significantly enhancing buy back. ..."
mol42
06 Mar 2018
Re: Whitman Howard £7.70 perhaps related to this[link] notes issued in 4 dec 17 and 24 nov 17i've no further access to same thoughmol
Tricky_Dicky
06 Mar 2018
Re: Whitman Howard £7.70 Hi loafofbread,Would you post the blurb please?
loafofbread
06 Mar 2018
Whitman Howard £7.70 New note out this morning.Makes excellent reading. Takeover target/share buyback/guidence intact/etc.
Tricky_Dicky
05 Mar 2018
Re: Total Voting Rights Yes! 1GW is objective - many of the others on ADVFN (R1) are 'beyond the pale'.The detail of the finances are not easily understood and that leaves room for speculation and nonesense.
oilovlam
05 Mar 2018
Re: Total Voting Rights "I am no lover of the ADVFM BB but a number of posts have been placed there from 1gw during the last two days. They are worth reading."========== ========== ========== ========== ========== ==Brimach, 1GW has posted on here before now. He certainly seems to know his stuff and gives a balanced view on prospects. I think he pops up on LSE too. I will check out what he has written....thanks.
