BLY - Boart Longyear Group

[UMike]

I have an option to purchase up to 15k of shares at $0.27 which is 10% lower than the current price of $0.30 per share. The deadline is October 23rd.

I haven't been in such situation before. Is the price likely to drop if they raise too much money / sell too many shares? Or perhaps that's not their intention but I guess they can't control how many shares current holders buy, can they? The main capital raising is going to come from external investors, right?

The cost of capital raising is already included in the share price, are there any other factors that would push the share price higher / lower after finalising the process of capital raising?

Thank you.

The main capital raising has already been completed. This is only the shortfall.

If the SP remains around the 30c mark expect the offered amount to be scaled back.

 

[skyQuake]

The main capital raising has already been completed. This is only the shortfall.

If the SP remains around the 30c mark expect the offered amount to be scaled back.

SPP as opposed to a shortfall; I've seen a fair few unprofitable SPPs get scaled back because it gets so oversubscribed.

 

[Albi]

Hi,
BLY is doing pretty good. I am quiet nervous because yesterday I transfer the money through BPAY.Will it reach there, will i get my entitlement or not. I am very first time applying for such offers. Kindly please can any one explain this.
Thanks in advance. I bought the BLY first at .345 and sell it to get entitlement at .30
Dont know what will happen? Do I need to contact them or I will get it simple.
Thanks in advance
Albi

 

[vincent191]

Hi,
BLY is doing pretty good. I am quiet nervous because yesterday I transfer the money through BPAY.Will it reach there, will i get my entitlement or not. I am very first time applying for such offers. Kindly please can any one explain this.
Thanks in advance. I bought the BLY first at .345 and sell it to get entitlement at .30
Dont know what will happen? Do I need to contact them or I will get it simple.
Thanks in advance
Albi

That's the risk you take when you leave things to the last minute.

 

[milothedog]

I have left most of my SPP BPay transfers until the final day and always got the allocation. I would expect there should be no trouble with your transfer from yesterday. Better go do mine now...wouldn't like to miss out

 

[skc]

I have left most of my SPP BPay transfers until the final day and always got the allocation. I would expect there should be no trouble with your transfer from yesterday. Better go do mine now...wouldn't like to miss out

Are you crazy? You still have some 5 hours before it is really last minute!!

I wouldn't get too excited with this SPP. It will most likely be scaled back just enough to pay for brokerage...

 

[UMike]

I have left most of my SPP BPay transfers until the final day and always got the allocation. I would expect there should be no trouble with your transfer from yesterday. Better go do mine now...wouldn't like to miss out

I always do mine the day before.... Just in case.

Albi. The instructions are quite clear on the form. With Bpay check your Bank acc. It'll update as soon as you do it.

Or else phone them with your inquiry

 

[skyQuake]

Depends on your sending institution for most Banks, the cutoff is 5:30PM.

If after that... well, you'll get your cheque back in the mail in around a month.

 

[Albi]

Thanks whole heartedly for your advises. I checked the account and it is showing the transfer of money. I didnot did befor because I was thinking that might not go down. I have just draft that it will be at .30c at least and in few weeks bounce back because financially BLY is improving. I would be able to cover some of my loss.
Once again thanks for all your advises. I really learn a lot from this forum and hats up for all those who devotedly do reasearch and post on forum. We all are greatful for those hardworking people.
Once again thanks
Albi

 

[Donga]

Spoke with BLY and KGL today about BPay timing as I also missed my comfort planning by a day. They were both very reassuring about the transfers being time stamped before 5pm.

You ight wish to hold onto this one - got a lot of catching up to do given the last two months SPP stagnation while the miners have been surging. And guess who is going to be the big winner. Go you drill thing!

 

[fureien]

are you guys taking up your full allocations of $15000? even though it will most likely be scaled back.

 

[gooner]

are you guys taking up your full allocations of $15000? even though it will most likely be scaled back.

You gotta be in it to win it.

I applied for my full $15,000 allocation.

Twice

Only hold $500 of shares already as went in just for the SPP

 

[Julia]

I'm with you Gooner. Got spooked by the intos last time, though ended up buying half my entitlement at 28 cents just afterwards. This time will sell other holdings to take up the max. The fundamentals are just too compelling

Can you say what it is about the fundamentals that is so compelling?

Are you not at all concerned with the massive level of debt?

 

[gooner]

Can you say what it is about the fundamentals that is so compelling?

Are you not at all concerned with the massive level of debt?

Julia

Know you asked the question of Donga so I will let him reply, fundamental wise.

For me, I'll probably be out as soon as the shares hit my trading accounts. I buy small holdings in companies that I believe will soon do capital raisings with a view to getting $15k in a SPP or extras under a normal underwrite and then selling out. Given they are always priced at a discount to market, there is always some profit there. Unless of course the market tanks between BPAY date and shares hitting trading account date, but this is really short term risk and price can go the other way meaning more profits. As I'm not working at the moment, have plenty of time to research various companies, though I stay in ASX 300.

 

[GumbyLearner]

Are you not at all concerned with the massive level of debt?

That is exactly what has kept me away from this one.

They were cheap earlier this year, I traded a few a while back. But not I'm certainly not interested now

Notice also due to heavy debt-fueled M&A action in mining, that many global mining houses are geared to the hilt at the moment, take Rio as an example.

Also, It makes you wonder what kind of momentum for drills and rigs there will be over the next couple of years.



http://www.abc.net.au/news/stories/2009/10/26/2724381.htm

Mining debt to cut exploration, raise prices

A report on the world's major mining companies warns that they are struggling under a wall of debt that could push commodity prices higher.

The global accounting firm Ernst and Young has found that the combined debt of the big resources companies is more than $US180 billion and that this means they will be concentrating more on making repayments than on looking for new supplies.

Consumers were not the only ones enjoying access to the cheap and easy credit which helped cause the global financial crisis - mining firms got in on the sugar rush too borrowing billions and billions of dollars to fund takeovers and mergers as commodity prices jumped to record highs.

According to Ernst and Young, net debt at the world's biggest miners jumped by one quarter to $US182 billion from 2003 to 2008.

"In fact the gearing levels of the sector, and when we looked at the top 65 global mining houses, had actually reached an all-time record rate of about 58 per cent gearing, but most of that expenditure was used to fund acquisitions," said Mike Elliott, Ernst and Young's global head of mining and metals.

"They were debt-fuelled acquisitions, as opposed to being used for major capital expansion or paying returns to shareholders."

 

[Donga]

Can you say what it is about the fundamentals that is so compelling?

Are you not at all concerned with the massive level of debt?

Fundamentals based on EPS in 2008 before GFS (10c per share from memory) and mining boom crash which saw BLY go from $2.80 to 7c. Market thought BLY would go broke with debt. That has since been sorted with protracted SPP meaning twice as many shares and debt level now comfortable, so theoretically BLY SP could exceed $1 as mining activity recovers to 2007-2008 levels. I'd say we are well on the way going from Chinese demand and recent mining activity in past few months - seems everyone is drilling

SP has been kept low in last two months by instos and even retail participants in SPP selling above 27c while awaiting their new allotments.

Assuming US doesn't double dip, China continues their domestic consumption and BLY are well managed, SP could reach 40c once dust settles, 50c before Christmas and who knows in 2010.

I also took up 2 X $15k after playing the retail game with 50% of my holdings and see this as low risk, high potential gain but DYOR as I may be missing something

 

[skc]

I also took up 2 X $15k after playing the retail game with 50% of my holdings and see this as low risk, high potential gain but DYOR as I may be missing something

How do you take up 2 x $15? On your BPay form for SPP doesn't it normally says something like you are only allowed to apply max of 1 lot, even you may hold multiple holdings in different capacity?

 

[Donga]

How do you take up 2 x $15? On your BPay form for SPP doesn't it normally says something like you are only allowed to apply max of 1 lot, even you may hold multiple holdings in different capacity?

My wife usually buys all our shares and this time she let me buy some. Love is sharing the burden

 

[gooner]

My wife usually buys all our shares and this time she let me buy some. Love is sharing the burden

Donga,

You are in exactly the same position as me Donga

If I had a SMSF, potentially I would have been able to buy another 2 lots as well making a total of 4.

Hmmmm, should have thought of that earlier

 

[UMike]

SO with all these multiple holdings.... What is the general feeling about the scale back?