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Placing by major shareholders

lse:tap

#1

I am surprised that the SP has fallen to the placing price whereby two major shareholders have reduced their shareholdings - not surprising - in an OVERSUBSCRIBED placing at around a 9% discount. This placing is an extended one in that there are extra shares too, but that is available for expansion and the company has proven that it is capable of doing that profitably so far.
I would expect that the SP will rise gradually now. After all, whenever there is a placing of a size like this, the institutions generally want a ‘cut’ in the sense they expect to make some money quickly on their purchase.
NB I have just had a quote for a small amount of shares where I actually got a higher price for a sell than I did for a buy! That’s a new one on me!
I am considering topping up my holding at this price. I dont think the PER is too high for a fast growing company like this.
I do think it shows that the market is nervous and inclined to take profits after a very good 2017 if there is a hint of danger. Hence Watkins Jones yesterday. great results, butCEO/Family planning to step down - ooh, what does that mean? Major fall in SP though recovering later yesterday and continued today. Lets hope that Taptica does the same.


#2

I thought id buy in at placing price yesterday, lifted today ( D )
450p .

Did you find out anything about higher price for sell as opposed for buy claude ?


#3

Re your question Ripley 94, the difference seemed so small, I didnt bother. That is the closest spread I have ever come across!


#4

Not a good pick for me so far 425p now.
For second week shorts have increased on winnys table off.


#5

BST…
XXX
For some reason had it in my head i had topped up here the last massage must of threw me.
Good job i did not .
Week or so ago this dropped to … 270p
That is some fall since the placing. ( 40% )


#6

TAP…
XXXXX
Top faller today - 42% back to Dec 2016 prices @ 176p.
The price above relates to TAP … June 18th fell to 270p bounced to 380p by 6th Sept.
It bounced to 200p by 10am before falling back at close to 190p.
Back to 200p next morning . ( quick 14 % for the brave yesterday first thing )


#7

TAP…
XXXXX
Topped up @ 157p


#8

TAP…
XXXX
RNS … Merger / offer for RTHM … This one up 17% RTHM down 5%


#9

TAP…
XXXX
Both well up this morning Tap 11% RTHM 8.5% on further RNS .
Buy back of shares “maybe” after completion by company.
On 31st when market had a days knowledge of deal Tap was 6 % below rhythm ( RTHM ) on chart .
After this morning RNS and rises TAP was 6% above .
That was corrected at 11am with RTHM the larger gainer.


Next day Tuesday 5th ( Margaret’s Birthday )
Visit brings me luck !!!
Both up today TAP nearly twice as much as RTHM which itself went above the 200p recent resistance.
Sold mid morning on 245 limit ( D ) went to 255p before coming back a little.
Sold RM. ( Si ) Bought twice as many back with proceeds for 239.4 p


#10

TAP…
XXXX
This gained just a little today +1.49%… Range shown above 231.5p to 249p
RTHM …fell a little - 0.56 % “”""""""""""""""""""""""""""""""""198p to 207p.


Next day Thursday 7th … was going to buy RTHM as difference in price between two had closed .
But Tap decreased 5.5% to RTHM 2.5% ( the spread seems about 1% more on Tap )
Decided to top up @ here at 220p as i had sold it for 245p just two days ago ( it is approx 10% cheaper ) 11 more for a nicer number .


#11

Hi Ripley
Are you not falling into the trap of expecting both companies SP is going to improve?
Rhythm has been a disappointment since the Blinx days, the rebranding doing it no favours. Taptica is new to me, but it’s SP seems as wayward as Rhythms was.
Personally not expecting any great profit here from my meagre, much devalued, holding, so just looking for the best exit option.

To continue your comparison theme, TAP presently down 8.51%, RTHM down 2.81%, so no apparent consistency.


#12

Hi zanshin
I only took an interest in Rhythm when a friend informed me he had a small fortune in it
Since blink days ( it was his only direct share !!! )
So i bought in for a little solidarity ( Fun maybe ) and to have a little look at it for him .
I sold after a couple of months .
I did buy Tap a year ago or so, much higher price then averaged down.
When i saw you avatar i thought you were like him all in this one glad to see you hold others.
I do not understand the apparent inconsistency since offer any thoughts on that ?


#13

Hi Ripley,

Thankfully RTHM is not my only holding, having been a speculative purchase of BLINX when I thought they were going places. Should have sold ages ago, but didn’t, and added to my list of basket cases hoping for recovery. Even before that I should have done some homework on the fundamentsals and avoided.

As far as the flip flop values of TAP and RTHM, that’s difficult to understand. I did some calculations on their relative values a few days ago, thinking I might as well sell RTHM now rather than hold on for TAP shares and sell them. At that time TAP shares were worth more and were increasing in value, so I held on. Darn! The usual happened and both have since fallen in value, but TAP by a larger amount, so that RTHM shares are worth more now than the equivalent TAP shares, on the 28 for 33 basis. Sadly, that is less than a few days ago.

Both shares are bouncing off short term resistance levels.
Both shares are trading at significant discounts to their last quarter peaks.
Perhaps there is concern that 2 wrongs don’t make a right, and that the combined efforts of the companies will be worth no more than their current value, and there is some value averaging going on.
I guess we will know more when the fat person sings and the takeover is complete.


#14

TAP…
XXXX

Thank you for that reply zanshin .
I had to visit someone in hospital so put a limit buy in for RTHM for 185p which lifted at that set price ( it went lower to 180p )
I have baffled myself here as i do not know which is the better buy today Tap @ 220p or RTHM @ 185p based on the the 28 for 33 ratio you stated above .
Whats your maths like maybe you’d be kind enough to help :sweat_smile:


#15

At those prices RTHM is marginally cheaper, but next to nothing in it. You should note that there is a trading gap at 170 for RTHM. They are not always closed, but always worth being aware of. Likewise there is a gap at 168 for TAP.
I’ve mainly looked at selling prices as I intend to exit my RTHM position ASAP. No confidence in RTHM either as a standalone business or after the takeover.

I note that TAP intend to buy back shares as soon as the takeover is completed. It would be interesting to know the details of that.

I also note that on the 6th, the broker Berenberg has maintained its buy rating for TAP, but reduced its target price from 650 to 340; that’s some shift, so how confident can the new price be.


#16

Thanks zanshin
I have read about Gap up or down , but not a trading Gap can you explain your comment on that please .
The spread on Tap @ 2.44 % (10am ) is a lot larger then RTHM which shows a 0.45 % spread .


#17

Hi Ripley,
Gap, or trading gap, same thing in my vocabulary, in that there is a price range between one day’s quoted traded price range and the next where there are no quoted trades because of a significant price shift, usually caused by an RNS announcement. For some chartists it is significant because it usually, though not always, gets closed i.e. at some time the SP moves so that there is a traded range that overlaps the gap range.
RTHM is not far off closing that gap at 172, so with hindsight I should have sold when the SP was above 200.
TAP has some way to go to close its gap at 168, but with both stock prices still falling I would not rule it out. Neither is on on my buy list at this time.


#18

TAP…
XXXXXX

Thak you Zanshin .
Not sure i follow as can not see a “gap” in either this past week .
I topped up TAP today @ 205p .
Both been slipping back last few days.


#19

Hi Ripley,
I consider a wider time history than a week when looking at gaps.
In this case, RTHM gapped up on 4th Feb, and TAP on 30th Jan. There is also the down-gap to consider from 4th Dec.


#20

RTHM gap closed, but no sign of a positive reversal. Next stop is short term support at 165.
TAP still sinking and the gap at 168 beckons. If that is reached then RTHM would, by my calculation, be near 144 for equal value, which is the long term support from Nov '18 and a lifetime low.
All very good fun for chartists, but what is the cause of the relentless fall since the euphoria surrounding the buyout proposal evaporated?