The single order purchase yesterday of 2 million shares at 38c, which was completed ( and it was not a crossing) will have to trigger a substantial shareholder notice, be it a bnew substantial shareholder notice or a change in substantial holding. Even if the buyer started with zero shares, 2 million will put the holder above the 5% limit for disclosure ( there being 35.5 million shares on the register). This may provide a clue as to what is happening on the corpoarte scene. The return of a significant chunk of capital of 15c per share simply does not accord with a previous announcement that USR was looking to increase its borrowings. They are diametrically opposed. My assumption is the buyer for 2 million shares yesterday of what is a very illiquid stock has a strategic purpose. Since the company is not growing, its too small a market cap for mainstream instos to buy into (although there are some funds in it with circa 20% holdings arising from the 50 c placement), and the stock trades at a discount to NTA ( always has) surely its ripe for winding it up and returning all the capital to shareholders. The main asset, Patriot Pointe, has been revalued upwards, so its a timely proposition possibly. The purchase yesterday of 2 million shares at 38c at 3 cents above recent average price may well prove a very savvy move. Lets see what the substantial shareholder notice will reveal as to the entity buying.
USR Price at posting:
37.0¢ Sentiment: Hold Disclosure: Held
