United thread 2019/20

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Blue Mist said:
This Corona virus could be a blessing as well as a curse. It may stop the dippers wining the league and it may mean no one goes shopping to malls in America, in turn the Glazes take more money from their cash cow to prop them up.
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I love your thinking
 


"A hat trick from Odion Ighalo"?

lol_vladimir_putin.gif
 
Prestwich_Blue said:
And the share price has collapsed again today. Currently at $12.73 which is close to the all time low (which was just after the launch when the underwriters withdrew their support which propped up the price initially).
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So the owner buys as much of the shares as possible and sell at a later date for a massive profit that’s what they do and are doing.
 
Prestwich_Blue said:
And the share price has collapsed again today. Currently at $12.73 which is close to the all time low (which was just after the launch when the underwriters withdrew their support which propped up the price initially).
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Wouldn't be a bad time for the Saudis to invest.
 
waspish said:
So the owner buys as much of the shares as possible and sell at a later date for a massive profit that’s what they do and are doing.
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It's not the Glazers who are buying them. It's United. If you issue 1m shares and then buy-back 100k, that means you only have 900k in issue. If your company was worth £9m, then each of those 1m shares should be worth £9 in theory but with 900k shares, each should then be worth £10 so a buy-back is often used to drive the price up.

But it's usually done by companies that are sitting on piles of cash that they have no other worthwhile way of using, so as to increase the return to shareholders, or to fight off a takeover bid. Neither of those applies to them so my conjecture is that they're using the shares as collateral for other borrowings, maybe in their property company, and the price has fallen so low that the banks are saying those shares aren't adequate as collateral.
 
domalino said:
Wouldn't be a bad time for the Saudis to invest.
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If I'm right, and they're using the rag shares to prop up significant borrowings, then it's possible that selling those shares might not even be enough to cover those borrowings. And the lower the price, the less they'll get. They've halved in value since last summer. If they were going to sell, that's when they should have done it.
 
Prestwich_Blue said:
It's not the Glazers who are buying them. It's United. If you issue 1m shares and then buy-back 100k, that means you only have 900k in issue. If your company was worth £9m, then each of those 1m shares should be worth £9 in theory but with 900k shares, each should then be worth £10 so a buy-back is often used to drive the price up.

But it's usually done by companies that are sitting on piles of cash that they have no other worthwhile way of using, so as to increase the return to shareholders, or to fight off a takeover bid. Neither of those applies to them so my conjecture is that they're using the shares as collateral for other borrowings, maybe in their property company, and the price has fallen so low that the banks are saying those shares aren't adequate as collateral.
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Thanks for the explanation.
 
I'm torn now between watching this thread for news of a severe rag financial collapse or staying on the dipper thread trying to make sure that the cnuts aren't awarded the PL following the desperate attempt by the arse licking media and ex-dipper players.

A real dilema .

Prospect of jelly and ice cream soon despite the worrying corona impact news.
 
Colin Bells Boots said:
I'm torn now between watching this thread for news of a severe rag financial collapse or staying on the dipper thread trying to make sure that the cnuts aren't awarded the PL following the desperate attempt by the arse licking media and ex-dipper players.

A real dilema .

Prospect of jelly and ice cream soon despite the worrying corona impact news.
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‘Prospect’ being the operative word, have you seen the supermarket shelves?
 
BJL_City said:
wondering how long the Glazers can last, this might force the takeover we don't want.
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Interesting question. No doubt Glazer Properties is mortgaged to the hilt but if there's a big slowdown in the retail trade, many businesses will close and that will hit them hard. If they lose rents, then they'll find it harder to meet their mortgage payments and the whole lot could collapse. If they've used their shares as collateral then the banks will take them in the event of foreclosure.
 
Prestwich_Blue said:
Interesting question. No doubt Glazer Properties is mortgaged to the hilt but if there's a big slowdown in the retail trade, many businesses will close and that will hit them hard. If they lose rents, then they'll find it harder to meet their mortgage payments and the whole lot could collapse. If they've used their shares as collateral then the banks will take them in the event of foreclosure.
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Can they take even more out of united to cover their problems ?
 
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