EVO - Evolve Education

[silverblizzard888]

Question-- Are the institutional shareholders able to sell the shares they purchased last week today?

If no, then who would be selling?

Thanks in advance.

The answer is institutional holders can sell their existing shares, but not the shares they have just taken up since they haven't been issued yet, that happens on the 17th May, after that date they can.

Also correct me if I'm wrong, but any retail shareholder could be selling now since they are pass the record date, so even if they sold their shares they would be entitled to sell and still take up their offer. At the current share price it'd be a premium to what they are being offered on their entitlement.

[silverblizzard888]

I'm noticing a constant 100,000 shares block popping up on 11.5 cents get taken out, then another purchase order comes on, which is holding the price from falling so quite possibly other institutions are coming on.

[carrom74]

The answer is institutional holders can sell their existing shares, but not the shares they have just taken up since they haven't been issued yet, that happens on the 17th May, after that date they can.

Also correct me if I'm wrong, but any retail shareholder could be selling now since they are pass the record date, so even if they sold their shares they would be entitled to sell and still take up their offer. At the current share price it'd be a premium to what they are being offered on their entitlement.

I suppose you are right on the existing shares part...which they can sell as the record date is past..

But as Beagle puts it rightly, anyone who would have bought at $1.00 would be staring at a phenomenal loss if they would be selling today...

[silverblizzard888]

I suppose you are right on the existing shares part...which they can sell as the record date is past..

But as Beagle puts it rightly, anyone who would have bought at $1.00 would be staring at a phenomenal loss if they would be selling today...

Not really an opinion on my side just stating facts of the present and the option of every party moving forward and answering the above query.

Regarding the $1 share price purchase thats terrible what this company has done to destroy shareholder value, I truly do feel sorry for anyone who has been caught in that story and having to watch the pain of the share price falling so low as it has today. Theres not much to bring that $1 a share back, but shareholders can look at how they might progress forward and earn back what they have loss. You either believe you can salvage value by keeping this stock and possibly taking up the entitlement to average down or you take what you have and run for the hills and take it as a lesson to improve on what investments would not be so vulnerable under this type of management and industry environment. Learn from Buffett and find companies with better moats, cause this one got invaded and unless you believe they can build a better castle then why invest where you have no confidence.

[winner69]

Not really an opinion on my side just stating facts of the present and the option of every party moving forward and answering the above query.

Regarding the $1 share price purchase thats terrible what this company has done to destroy shareholder value, I truly do feel sorry for anyone who has been caught in that story and having to watch the pain of the share price falling so low as it has today. Theres not much to bring that $1 a share back, but shareholders can look at how they might progress forward and earn back what they have loss. You either believe you can salvage value by keeping this stock and possibly taking up the entitlement to average down or you take what you have and run for the hills and take it as a lesson to improve on what investments would not be so vulnerable under this type of management and industry environment. Learn from Buffett and find companies with better moats, cause this one got invaded and unless you believe they can build a better castle then why invest where you have no confidence.

Guy in this article says Buffett might be losing it .....keeps hanging onto investments that probably don’t have any moats

https://www.smh.com.au/business/mark...13-p51mmz.html

[steveb]

If you have taken up the offer.I suppose you could sell 22.72% of your shares knowing they will be replaced at .08cents.Making 3.5cents a share,but you would need a truckload of shares to make it worth it!

[silverblizzard888]

Guy in this article says Buffett might be losing it .....keeps hanging onto investments that probably don’t have any moats

https://www.smh.com.au/business/mark...13-p51mmz.html

Buffett has never lost it in my opinion, if someone is intent on pointing out his failures, they should also point out his successes too. Just because an investor gets it wrong doesn't mean they have lost it. In most cases its about probability, no one can guarantee they will get a good outcome from an investment, but you make the ones that where if you win you win big and if you lose its only a fraction of what you could have gotten if you had won.

To put it into perspective taking the recent filings, Kraft Heinz lost $3.4 Billion USD in the first three months of 2019, while including that loss Berkshires net gained was $19 Billion for that period for stocks. Not too bad for a guy who is meant to be losing it.

[silverblizzard888]

If you have taken up the offer.I suppose you could sell 22.72% of your shares knowing they will be replaced at .08cents.Making 3.5cents a share,but you would need a truckload of shares to make it worth it!

I'm not sure you've got the entitlement offer numbers right. As its stands you can sell 100% of your holding and be able to replace it by 340% more on top of your original holding. If you have 10,000 shares currently, you will have 44,000 shares in your entitlement. Meaning you can actually sell 44,000 if you take up the offer and still have you 10,000 share holding, you just have to wait until you get those new shares before you can sell though. The total consideration is 54,000 shares in this case, that is the better perspective to take.

Giving the closing price of 12.3 cents today thats a good 4.3 cents, or 53.75% premium on your entitlement offer price, though I don't expect it to last. Short term it'll head to 8 cents a share sadly like all capital raising situations, long time I hope their strategy pays off.

[Scrunch]

Good find, even more positive for the new Australian Strategy if this does happen. At least theres some silver lining, cause the share price today surely isn't

While the share price is quoted as down 10.7c, in my book it was actually an amazingly strong day. The institutional book build was at only 8.5c so I'd expected the price to drift down towards this price point. Although it followed this pattern towards lunchtime, after that it was a different story ....strength!!!. The price got pushed up, a lot.

The ex entitlement close was 12.3c. If the entitlement was tradable as rights, it would have been about 4.3c. Shareholders got 4.4 entitlements for each share. 4.3*4.4+12.3 = 31.2 which is up 8.2 on the pre-announcement close of 23c. The afternoon buying interest took the price up from under 10c to 12.3c.

From its afternoon timing, its a safe bet the buying was coming out of Australia. It was the same sort of afternoon price setting action that occurs all the time for duel listed stocks like ATM, WBC & ANZ. It therefore appears some Australian's thinks that they are worth more than last week. It could be due to the removal of risk re debt levels. My guess is that its more likely to be due to some similarities to the early day's of G8 (which Google shows as having been circa 10c in 2008 / 2009 and ran all the way up to over $5 by 2014). 50 Bagger's aren't that common and people that have enjoyed one will sometimes take punt's on their possible repeat's.

[dreamcatcher]

IMO SP heading back to 18-19c Institutional shareholders took up 98.8% of their rights. EVO having a refreshed management team and Director Chris Scott who owns 19 per cent having committed to take up his entitlements have plenty of skin here. Possibly a takeover target in a few years time. Scott and fellow director Sacre will use $25m of the funds raised to buy up to 12 centers planned in Australia boosting ebitda by 5-6m. August FY19 will provide more specific details in regards to recommencing dividends.

Sure has risks but doesn't every share but feel I have chance of doubling my investment here over the next 2 years