In the new extensive report, the valuations of shopping centers were stated more logically. However, someone could explain what the difference between the present value of cash flows and the exit price in the previous extensive report was based on.
I still don’t understand the hybrid loan question.
I wonder if this is entirely accurate. Lujabetoni, at least, seems to be constantly recruiting new staff for their Järvenpää factory. Could it be that the new factory near the Helsinki metropolitan area can produce concrete elements much more efficiently for customers? There hasn’t been any massive drop in new construction yet, even if the number of starts has turned downwards, they’re still pressing on with those that were started earlier.
I subscribed to a reasonably large number of SRV shares. I placed the order using the form I received via mail, as it couldn’t be done online. When should the money leave my account? Will it only leave when the share offering ends, or as soon as the letter arrives? I’m a bit worried if I miss this and the subscriptions are invalidated 
Thanks in advance for guiding a beginner!
I participated in the share issue by phone, since it couldn’t be done online. It went a bit clumsily through Nordea’s phone service, but the money left the account the same day.
Okay, thanks, I guess I’ll have to try calling OP tomorrow. Somehow, I already doubted when mailing the letter whether this would really make it to the finish line..
What do you think, when will SRV’s stock hit rock bottom? The new shares (approx. €0.38/share) will be listed for trading on June 26th. Currently, the share price is €0.58. Inderes has given the stock a target price of €0.65/share, taking these measures into account. The share has been diluted. I remember after HK’s offering, about 70 million diluted shares went below €1.50, from which they started to rise again after better (not so good) news, reaching even €2.80. The construction business has been quite good in Finland during Q2, at least. Of course, SRV has often caused disappointment. Russia is a big question mark. Have you followed what has happened to listed companies after offerings? I personally think that some companies haven’t become very efficient and profitable after restructuring, but other companies have achieved profitability, albeit slowly.
Today is the last day for free arbitrage money!
SRV’s stock is trading at €0.58. It has been quite steady at those levels, even though the stock is being weighed down by subscription rights being sold at a cheaper price.
By buying SRV subscription rights (SRV MO) for, say, €0.12 and subscribing to shares for €0.38 by Friday, the share price becomes €0.50.
The selling pressure on the stock will end when subscription rights can no longer be bought cheaper from tomorrow onwards, and the stock price is likely to rise to the €0.65 level projected by Inderes quite quickly.
Assuming this happens, buying subscription rights now would yield a 30 percent return on investment after the total subscription cost of €0.50.
Such arbitrage is rarely available in efficient markets, at least not openly boasted about. Perhaps there’s a catch here?
On the other hand, cyclical companies are fluctuating at such a rate right now that the estimated market price of the share after the offering might be very outdated.
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Don’t you have to buy 1000 subscription rights and then use the subscription right for a thousand subscription rights if you want to own 1000 shares?
It’s highly probable that some kind of arbitrage is going on in that market. If you buy a subscription right, it takes, if I recall correctly, two days before you can use it. It should be: share price = subscription right price + subscription price, but there’s some risk of the share price changing between buying and using the subscription right.
I’m just asking, what do you think will happen to the share price on June 15th when trading begins with the temporary new shares? Why would the price stay on that 0.58-0.65 axis when a large number of shares acquired at around 0.50 euros enter the market?
I estimate that the price will not fall below 0.6 euros at any point next week.
Many things support the share price, including the following:
You cannot buy with an OST account. You cannot transfer from an OST account to an AOT account. From an OST account to a bank account takes 2 banking days…oh, modern times. When will the money leave the account if the sale of temporary new shares ends today? That is, when will the subscription right price of €0.38 leave the account?
One more thing. If you have bought SRV MO subscription rights, go and subscribe to the shares you bought in the new issue. For example, on Nordnet’s website where you can find the SRV offering.
With an OST account, this is quite a tricky situation as there isn’t much information available anywhere. The subscription right price was reserved from the account the night after the answer was submitted, also for secondary subscriptions.
I, at least, bought some shares and trust that the price won’t drop by 10% and I’ll still make a profit if I decide to sell my shares then. I think these arbitrations should be taken advantage of. Of course, there’s more risk than with regular stock trading because you can’t trade for a while. So a small discount is justified, but now it’s quite large.
Here, too, 46,600 units were marked. It’s just that the bigger chips are on the BUY side, but luckily there was that limit. Now, we’re holding our breath, hoping the markets don’t start running downhill. By the end of August, we’ll already be at €0.93.
Now the time is soon coming when companies will start revealing poor Q2 results. I trust SRV and the construction industry now in the same way as I trust IT companies. For now, it’s still doing well. Apartment sales are weaker. Public and office buildings are doing better, even surprisingly well. Work is being done for construction companies, and there are no signs of a slowdown, let alone a decrease in work due to Corona.
SRV will publish really good numbers for Q2 in August, as, for example, the third tower in Kalasatama, which has already been sold in its entirety to Kojamo, will be included in the figures, and debt servicing costs have decreased dramatically compared to last year. In addition, the ruble’s 15 percent strengthening against the euro in Q2 will directly benefit SRV’s bottom line. I understood that the company’s earnings targets for this year, after the offering, imply a P/E ratio of about 6-7 at the current price, and only about 11-12 for a one-euro share price.
Yes, in just over half a year, with the help of restructuring measures, this has changed from a risky paper to one of the stocks with the greatest upside potential in Helsinki for the rest of the year.
CEO Sipola, in my opinion, has started convincingly, and his appearances to investors are also confidence-inspiring.
Good points!
Business is good. SRV toteuttaa Siuntion sivistys- ja hyvinvointikampuksen elinkaarihankkeena - SRV Yhtiöt Oyj
I used Inderes’ stock comparison and made an interesting observation: out of all the companies followed by Inderes, only one has a journey of over 20% from the current price to the target price. This is, of course, SRV! Usually, I view target prices mainly for their entertainment value, but this is clearly a positive indicator.