Acquiring more Share Plc shares or not?

Discussion of the proposed Cashback Investment Club

Moderator: CIC officers

Should we....

keep our current holding as it is
1
11%
purchase additional shares to take us to the threshold required to maintain our discount
4
44%
purchase additional shares to take us just below the threshold to look for cash profit
4
44%
 
Total votes: 9

parchedpeas
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Re: Acquiring more Share Plc shares or not?

Post by parchedpeas » Sat Jun 20 2020 11:51am

If there's quick cash to be made, then that's what my preference is. Subjec tto that being the case.

The £3 discount per trade is hardly worth holding on to a turkey unless we think there is potential growth.
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Re: Acquiring more Share Plc shares or not?

Post by garindan » Sun Jun 21 2020 10:38am

richard@imutual wrote:
Sat Jun 20 2020 7:16am
If there is a genuine opportunity to make a risk-free profit, then fair enough. I am a little sceptical though; presumably all the Share.com members who did the same as us (got a small amount of shares to get a trading discount) will be in the same position. Is there a link to a discussion of this on an investor website which would confirm the opportunity?
I have asked share.com to confirm at first, as their email suggested we'd get 41p without any exceptions. I am awaiting their reply :thumbup:
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Re: Acquiring more Share Plc shares or not?

Post by BeautifulSunshine » Mon Jun 22 2020 12:51pm

Eight votes in. Please vote if you have not already done so.
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Re: Acquiring more Share Plc shares or not?

Post by Boro Boy » Mon Jun 22 2020 6:20pm

Share.com, most numerous traded share today....!

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Re: Acquiring more Share Plc shares or not?

Post by garindan » Mon Jun 22 2020 9:39pm

Boro Boy wrote:
Mon Jun 22 2020 6:20pm
Share.com, most numerous traded share today....!
Yes, everyone dumping stock, not wanting ii shares.
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Re: Acquiring more Share Plc shares or not?

Post by Boro Boy » Mon Jun 22 2020 11:43pm

garindan wrote:
Mon Jun 22 2020 9:39pm
Boro Boy wrote:
Mon Jun 22 2020 6:20pm
Share.com, most numerous traded share today....!
Yes, everyone dumping stock, not wanting ii shares.
They were top of the purchase pile as well; so you are not quiet right and not indicating the whole picture there... :eh:

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Re: Acquiring more Share Plc shares or not?

Post by garindan » Wed Jun 24 2020 11:16am

So I have now heard back from The Share Centre. Nothing has changed despite their email to suggest we'll be getting 41p a share. There is still risk it may be lower than the 41p, as noted in the documents. That does not mean it will be less but equally does not mean it will be guaranteed @41p.

Therefore, we really have to make a sensible decision here. To outline again according to the documentation:

- if we have fewer than 1196 shares we will get 41p a share and no ii shares UNLESS the total pot of money exceeds the ~£16m cash fund available, in which case we may still get the same amount or less, depending on how ii wishes to deal with it

- if we have 1197 or more shares we will get 4.1p a share and a apportioned amount of ii shares UNLESS the total pot of money exceeds the ~£16m cash fund available, in which case we may still get the same amount or less or different share allocations, depending on how ii wishes to deal with it

It is very important to note two things, as raised by Richard:

- ii shares are not going to be tradeable in the near term and we have no idea of their true value, so effectively we'll have whatever our invested monies tied up in a company that we cannot trade

- ii has said they will honour the trading discounts given to 500+ SHRE shareholders as a perk for the timebeing BUT have not given any time commitment for this. Additionally, ii has moved to reasonably quickly bring previous purchased company's platforms into line on prices, so it is quite likely our discount will not be around for anywhere near as long as we have had it to date

So that's the honest position as far as I have been able to establish.
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Re: Acquiring more Share Plc shares or not?

Post by garindan » Wed Jun 24 2020 11:40am

Now here is my personal view!

I don't want us to be holding any shares in ii. I see no point in this for these reasons:

- we only bought SHRE to have the discount
- we no longer need the discount
- we wouldn't be able to trade the shares in the open market
- we have no idea what the shares are really worth anyway

Should we sell our current holding? My thoughts:

- I can't see any point in selling our current holding for the current price, which is now ~28p a share, as ii must have made reasonable calculations to afford purchasing significant amounts of SHRE shares on the basis of information provided by The Share Centre, otherwise the offer would not have been approved. Offer was made when the share price was ~29p a share, so the current price isn't much different. Therefore I would hope there is sufficient money to make the payout @41p. Therefore, in my opinion, the risk seems to be greater of losing 1/4 of our original investment by selling now, against breaking even @41p or a slightly lower per share cash payout.

Should we buy more to be below the threshold? My thoughts:

- If we buy more shares, I see it as relatively low risk of making a loss. ii would have to cut the cash element by 25% to make it a break even position for us on any new investment, as it currently stands. That would be quite a considerable change and I'd personally be quite surprised if a case arose to this degree.

- as I have mentioned before, it would not be good PR to swindle SHRE shareholders they want to continue using their services. However, we do not know the proportion of SHRE shareholders that hold <1197 shares against those that holder 1197+. If everyone owning the minimum 500 shares for the perk bought the additional 696 shares to take them below the threshold for new ii shares and entitled to cash only payment, how would this change the dynamic of the cash element?

Maybe someone has the time to:

- find out how many registered users there are on Share.com
- multiple by 500
- take the sum away from the number of shares issued
- compare the result
- do the same but multiple by 1196 instead of 500, then comparing the result

The above might be enlightening.
-
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Re: Acquiring more Share Plc shares or not?

Post by Boro Boy » Wed Jun 24 2020 11:52am

garindan wrote:
Wed Jun 24 2020 11:40am
Now here is my personal view!

I don't want us to be holding any shares in ii. I see no point in this for these reasons:

- we only bought SHRE to have the discount
- we no longer need the discount
- we wouldn't be able to trade the shares in the open market
- we have no idea what the shares are really worth anyway
The original offer document and additional mailings since then to all share holders clearly states the new Antler Holdco A ordinary shares (new ii shares) have a value of £441.62 each. This is of course untested in open market where they may be worth more/less/the same but ii have made a commitment to consider listing the company on the market once debts have been cleared at the end of 2021 but not before; additionally the shares will qualify for company dividends.

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Re: Acquiring more Share Plc shares or not?

Post by garindan » Wed Jun 24 2020 12:41pm

Boro Boy wrote:
Wed Jun 24 2020 11:52am
his is of course untested in open market where they may be worth more/less/the same
So you agree with me that we have no idea what the shares are really worth. Anyone can make up a figure of what their company's shares are worth. It doesn't mean it is true.
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