Company Delisted

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piperalpha

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Hi everyone,
I have just started buying a few shares, literally one or two weeks into it. I've got some in New Star Asset Management (NSAM), there is a rumour the company is going to be delisted, then maybee relisted later down the line. Can anyone tell me what will happen to my shares ?
Thanks in advance.
 
piperalpha said:
Hi everyone,
I have just started buying a few shares, literally one or two weeks into it. I've got some in New Star Asset Management (NSAM), there is a rumour the company is going to be delisted, then maybee relisted later down the line. Can anyone tell me what will happen to my shares ?
Thanks in advance.
Click to expand...

Nothing. Unless of course you mean what will happen to the price running up to the de-listing and the price when they are re-listed. (answer-don't know).
Or if you mean will there be any corporate change when the get re-listed (answer-don't know)
Otherwise as I say, your holding will remain the same. When it is delisted you will not be able to sell and when it is re-listed you will be able to.
 
Holding and hoping is rarely a sensible strategy.

Why did you buy the shares? Are the reasons for buying them playing out? If not, sell the stock. 'Buy and Hold' strategies work if you have a clear reason for buying the stock in the first place, monitor progress against that plan and then sell if/when the facts change, or if you believe the price has risen to an extent that your thesis is now discounted in the valuation.

If NSAM delists then (and assuming its not a debt/equity swap which entirely wipes out current equity holders) you end up with a position in an unquoted company that you can't exit. Then you really are left holding and hoping. I don't know the NSAM story that well but I thought it was going to be bought by another fund management group rather than delisted. You might get 5-10p for it under that scenario.
 
I really don't see any point in selling as presumably your shares are pracitcally worthless anyway?
 
I'm assuming that if he bought in the last few weeks he bought at a couple of pence and may have already doubled his money. But then, I'd also assume he had a reason for buying them at 2p and would have thought about when to get rid of them....
 
Waiting Game ?

I did indeed buy at about 2.5, they are now at 4.00 with peak at 4.5 yesterday. I could sell and make a few quid, however, my reasons for staying the course at the moment are various statements in the press and ADVFN that this stock could rise substantially, silly predictions of between 8p to 10p and some even predicting 50p if the company de-lists then re-lists. However, I'm also aware that if the company de-lists I could loose the lot. There have been a number of very big buys yesterday and today from fund managers, my thinking is they wouldn't be interested if this was going to go pear shaped.
 
If the company is in a position where it needs to do a debt for equity swap then no-one in their right mind would come and bid above the current share price for it.

Let it fail and buy it out of admin.

good advice about selling part, even if you sell half now then at least if they are suspended you'll have very little equity tied up from your initial investment.

They could easily announce a deal overnight and tomorrow open up at 0.5p (or 5p i know, just warning you to be cautious.)

If you're in doubt about a trade the best place to be is out. Thre will be other trades, there won't bw another bank balance!
 
I can see the sense in that, I do wonder though when traders and fund managers who know this business more then I ever can are buying in large amounts...I'll keep and watch carefully.
 
piperalpha said:
I can see the sense in that, I do wonder though when traders and fund managers who know this business more then I ever can are buying in large amounts...I'll keep and watch carefully.
Click to expand...


Most of the fund managers are useless, how many funds are up much in 2008?

You look at how often funds buy something and then cut it later for a loss...

Nobody knows, except those that do, and they aren't supposed to trade on the back of knowing....
 
The other thing is it won't take much buying to drive such a stock up quite a bit... there really are few people who will bother selling at this price. So I would sell enough to, after commission, buy yourself a mars bar (a duo even!) with the profits and leave the rest as effectively a free call. Then before doing more trades like this do a bit more research on how to trade :D
 
mkhall said:
I think someone is trying to spike these shares!

Lucky you had that stop!

only for serious investors: Stirling Chase & Co.
Click to expand...

Spike what, NSAM.l? they haven't moved.

And whats that got to do with striling chase.

(whose name sounds like something from the film Boiler room, STIRLING ==strong respectable....CHASE...sound slike chase manhattan some may think affiliate)
 
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