Unsure what has actually happened with CS as there are so many transactions will take a while to digest.
Their letter suggests that they are now taking into consideration the large number of shares they are entitled to borrow and that the effect of this is to increase their holdings from 9.83% to 16.89%. If this is the case why did they not do this previously.
They have had a massive number of buy/sells over the past few months. The question is has this caused any net change in their holdings (this is going to take some painstaking analysis of their transactions). If it did, why didn't they report this earlier. If they did actually increase shareholding then the covering letter about their share borrowing capacity would seem a red herring (if they did not have to include this before, why now?).
Interesting that their ann timed for last day of ASX trading.
Very interesting action in closing auction. Whatever happened, someone has bought a large number of shares. Doubt Mom's and Pop's had any involvement here - suspect they would have bailed out well before the last minute.
Interesting that LNC left last Q Oil and Gas report (relatively mediocre in my opinion) until last day of trading.
IMO would not be surprised if Abramovich announced as cornerstone investor.
PB might be right about minimal dilution of shareholders - cornerstones may be predominantly buying on market.
Institutions take advantage of pending move to Singapore, wait for retailers and ASX tracking funds to bail out and pick up a truckload of cheap shares. I am not implying this was a deliberate strategy by LNC. In the absence of any really significant information to be released before the move, I would of expected management to have considered that this was a reasonably likely outcome, particularly as their stated objective is to enhance shareholder value, not decimate it.
Despite knowing that I was 'P****** in the wind' I voted against the move but at the least I did think that some significant event would be announced (particularly re cornerstones) while still trading on the ASX.
I am a bit concerned that there may not actually be any cornerstones.PB has always only stated - negotiating with.
Dan, follow you closely, reasonable to expect that new directors may point to Temasek, however that may just be our impression with the link of the appointees just coincidental.
As The Three Stooges closing credits say (more or less) - Any connection to anyone living or dead is a crying shame.
Net effect - long term loyal holders demolished and those staying transferred to a jurisdiction where it is more expensive to trade and monitor prices for what may be no upside (with some very painful downside in between).
I personally doubt the move to SGX will be positive.
The problem with LNC is not where it trades but credibility. There have been far to many very positive anns that fizzle or worse and are only announced (if at all) in the small print long after the event. For example:
The Terasa (original) Sale in 2008 - this lingered for a longtime before being put to rest.
Bold headlines of Adani Coal sale worth Billions, when actual cash around 500 million and rest a future royalty fraught with many potential obstacles ( still think it will happen or would have bailed long ago)
Fanfare ann about flowing oil in Umiat only to discover weeks later (was it months?) that the pipe had blocked a couple of days (if that long, can't remember) after the positive ann.
Fanfare anns re Cedar Creek only to find out long after that flow problems encountered shortly after ann.
This from memory (that is ageing) - check it out yourself.
Hope I am wrong.
LNC Price at posting:
99.5¢ Sentiment: Hold Disclosure: Held
