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Here's a conundrum which I just can't fathom the logic of the markets reaction to. Taste is instituting a claw back offer wherein existing shareholder can take up (on a ratio basis) additional shares at R 1.50 and that they will rank with the existing shares at the same par value. Now I can fathom that the share should move marginally lower than current prices to offset the greater quantity of shares in circulation. But surely the sellers would want to get a better price for their shares if they were selling based on the price of the share on the announcement date, which as the order of about R 1.95. However I see it is trading at about R 1.76. So buyers should theoretically pay more for the share right now to take advantage of being allocated shares and at the lower price, and they can then sell at a better price above the R 1.50 and make a small profit. I just find it strange that the market is seeing something that I am not seeing, because without a doubt I will follow my rights and take up the shares as the majority of their costs for conversion and the acquiring of the right to sell international product has been largely taken up in their last results released today

It makes sense give the results released yesterday. They were terrible, and I would be quite worried if I had a material shareholding, the cash situation is pretty dire.
To answer more specifically the price will move according to how valuable the market views those R1.50 TAS shares to be issued. Last week people were still prepared to pay R2 for 1 share knowing that they would need to spend R1.50 per share to maintain their existing shareholding.
 I think the point that one can forget is that after you acquire your R1,50 shares, which are about 20% of the total number you have, ALL your shares will (in theory) drop in price at the effective date, to take into account the dilution. So while you may make a profit of say 18c on your 100 R1.50 shares if the share go's to R1,68 after dilution, you will make a loss of 7c (175c-168c) on your original 500 shares after dilution. In that case you would be a net loser, but this is just a theoretical example. Think in terms of a share going ex-div.

Personally I prefer Grand Parade, but at the current share price of TAS not sure I would sell out either. Starbucks and domino's could do very well if they get through the next few years, so patience will be required. Fortunately there is an anchor shareholder with very deep pockets so it is likely they will survive, but I would monitor this one very closely as the cash position would worry me.

Quote from: dividendtycoon on May 30, 2017, 01:09:01 pm

Personally I prefer Grand Parade, but at the current share price of TAS not sure I would sell out either. Starbucks and domino's could do very well if they get through the next few years, so patience will be required. Fortunately there is an anchor shareholder with very deep pockets so it is likely they will survive, but I would monitor this one very closely as the cash position would worry me.

Now here I differ Grande Parade has wallowed along for years ( 9 to be precise) not knowing what business it wanted to be in from piggy backing on Sun International, their Worcester Casino, Real Africa holdings etc. The problem for me was Hassen Adams made almost daily bulletins on what the business was going to do and also the rapid change of directors. So after all these years in gaming they have decided to focus on foods. Not sure if they have updated their brands data recently as they show all their gaming brands but nothing about dunkin donuts

I used to hold their shares way back but sold out . Their best period seems to have been around September 2014 when the price got to R 7.60 and it has progressively dropped since then - now on offer at around R 3.60
So in my opinion you may have to hold these shares for 10 years to see them get their act together, and I don't believe they are au feit with the food industry - so why go into it

Respectfully disagree completely. I have attended some of their presentations lately as well as the AGM every year , they are very focused on the food business. What they have left of the gaming business is for annuity income, and Grandwest is still a cash cow. They have Burger King and Dunkin Donuts/Baskin Robbins, but also a big chunk of Spur now (about 18%). I believe Hassen Adams wants control of Spur, which has been grinding out profits and dividends since 1987.
I have been holding this share since 2010 and am a big shareholder, so may be biased, but think their capital allocation skills much better. Since 2010 I have received R1.72 in dividends, TAS shareholders about 25c. In 2010 there were about 200m TAS shares, after latest rights issue about 460m. In 2010 there were about 469m GPI shares, after recent buybacks about 450m. GPI could also probably sell remaining gaming assets for about R1,5bn, who knows what TAS will get for jewellery biz, but not even half of this. GPI cash flush without even selling gaming assets, TAS on their knees without rights issue and selling jewellery.

It will be interesting. Regarding the experience, my sincere hope is that Burger King etc will be 'sold' to Spur for an increased shareholding in Spur. Spur will then take over the food business including Burger King etc, and they are very qualified. By the way, Hassen Adams jointly owns Cape Town Fish Market, in his private capacity.

Nee

How does one now use iTrade website when no browser supports Java anymore???

Nee? WHat Thor ?

It'll be there just after markets open GCR.