Evil Knievil: Consumer choices

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Evil Knievil: Consumer choices

Since there are 28m Golden Prospect Subs (LON:GPSS) outstanding and since one can only get c. 3p for them there is inevitably selling pressure rather than going through the hoops and paying a further 46.14 to convert a GPSS to a Golden Prospect (LON:GPM) share. However, it may prove to be the case that perhaps c. only 7m GPSS will be converted (of which 1.15m are those of family Cawkwell) and as a result the dilutive effect of GPSS upon nav of GPM is sharply cut back. This suggests that the nav of GPM might be about 67p post the conversion period and that the 17p or more discount to nav represented by the current share price is absurd.

Obviously, one has to take a view on GPM (I already have) but this is an opportunity to buy an investment trust at a very attractive discount. Fill yer boots.

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I think that the £18m fine applied to CompareTheMarket (they of the cuddly Meerkats) for claiming that the prices on their site are competitive when CTM are deliberately covertly restricting competition is entirely fair. This principle is capable of being applied elsewhere. I wonder who is next.

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It is interesting to see that Schweppes, controlled by CocaColaGB, have failed with their competitor to Fevertree (LON:FEVR). It is depressing that FEVR have simply forged their dominance by advertising blather.

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Meanwhile Capita (LON:CPI) forges ahead. Now 43p, I do not see why it stops here.

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Finally, I made a mistake in dissing N Brown (LON:BWNG)‘s share price prospects, then 52p, in relation to a placing price of 57p. The market looks to be minded to get above 57p and hold it.


Comments (1)

  • philip baker says:

    REA preference shares re.b move higher potential yield next year now down to 11% and a further 22% owed in differed dividends. A little director buying. Palm oil hitting a 6 year high of $910 per tonne stability above $900 would be amazing as on other occasions it has been very short lived.
    Would love to hear your comments on RSAB preference, who will pay the interest after the take over and why didn’t the board push for these to be taken over at £2 as well as the bid for the ordinaries? Are these a risk or an opportunity?

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