Australia's largest stock trading and investment forum Australia's #1 stock forum

RAP

0.00%

20.5¢ raptor resources limited

Valuing ResApp Health, page-367

First 367 Last

Share
Profile

Follow
Myeverywish

3,464 Posts.

956

08/08/22

17:09

Post #: 62991910
Share

Originally posted by Taurean7 ↑

At every opportunity the Company has claimed that the T/O price currently on offer represents good value to shareholders based on it being higher than the market prices in the months prior to Pfizer’s involvement. Its contention is that holders therefore will benefit by accepting the offer. This of course does not hold for LT investors who built up their holding in earlier years at significantly higher prices.

In the chart below the blue line models the average holdings cost for theoretical investors who purchased RAP shares at regular intervals over the years beginning January 2016.

View attachment 4581415

As an example, this shows that someone who built up their holding throughout 2016 alone would have ended that year with an average share cost of 31.1 cents. Another who purchased regularly over the early two years would have achieved an average cost of 26.8 cents by the end of 2017. And so on.

A theoretical investor who purchased regularly over the six or so years up to 8^th April this year, when Pfizer’s first offer of 11.5 cents was made, would have been well out of the money with an average purchase cost of 17.4 cents.

As a good example it is possible to follow the average holdings cost of one non-theoretical investor – FIL Ltd (Fidelity) – because as a substantial holder all its transactions have been declared via ASX announcements. The trade history of RAP’s largest shareholder is described by the orange line in the graphic.

ASX announcements show that by July 2016 FIL had became a substantial holder of 32.84 million RAP shares via purchases in the 22c to 44c range. A further 7.14 million were purchased two months later and this continued until by June 2017 the holding had been built up to 60.85 million through further purchases in the 30 – 40 cents range.

The sudden jump in average cost in March 2021 was due to FIL off-loading some of its holding at prices lower than its average, giving a higher figure to the remainder. Fortunately however, in the following month RAP announced a discounted placement at 5.8 cents, with FIL participating through a 25.9 million share purchase to achieve a total holding of 85.8 million. This allowed the average cost to fall finally to 27.7 cents, a figure coincidentally very similar to the top of the IER valuation range.

So for long-term holders, such as FIL, whose major holdings were established around the 2016-19 period, the current offer understandably is unattractive. It is not attractive at all to those who recognise the Company’s greater value potential and wish to be part of it.

Expand

Vote No

RAP Price at posting: 19.5¢ Sentiment: Hold Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

RHK

Red Hawk upgrades Blacksmith with DSO mineral resource at the Eagle Deposit

Nine's staff strike as Paris Olympic coverage begins

NVA

Nova locks in NASDAQ US market listing at a value of only US$3.3M as ASX gets quieter and quieter

MIN

MinRes jumps 5% as the company meets production guidance – depressed iron ore prices be damned

MND

Monadelphous inks $200M contract with Woodside to help build Pluto LNG – but will it make Scarborough cheaper?

There are more pages in this discussion • 100 more messages in this thread...

First 367 Last

Add RAP (ASX) to my watchlist

(20min delay)
Last 20.5¢		Change 0.000(0.00%)		Mkt cap ! $176.2M

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

Valuing ResApp Health, page-367

Red Hawk upgrades Blacksmith with DSO mineral resource at the Eagle Deposit

Nine's staff strike as Paris Olympic coverage begins

Nova locks in NASDAQ US market listing at a value of only US$3.3M as ASX gets quieter and quieter

MinRes jumps 5% as the company meets production guidance – depressed iron ore prices be damned

Monadelphous inks $200M contract with Woodside to help build Pluto LNG – but will it make Scarborough cheaper?

Featured News

Featured News

Valuing ResApp Health, page-367

Top Stories

Red Hawk upgrades Blacksmith with DSO mineral resource at the Eagle Deposit

Nine's staff strike as Paris Olympic coverage begins

Nova locks in NASDAQ US market listing at a value of only US$3.3M as ASX gets quieter and quieter

MinRes jumps 5% as the company meets production guidance – depressed iron ore prices be damned

Monadelphous inks $200M contract with Woodside to help build Pluto LNG – but will it make Scarborough cheaper?

Featured News

Featured News