(BFM Bourse) – The stock of the retirement home operator has experienced strong volatility since the launch at the beginning of the week of its first capital increase. The authors of the Vernimmen Letter were also surprised by the recent rise in the stock, given the significant dilution induced by this restructuring.
The nerves of Orpea shareholders are being put to the test. The title of the retirement home operator fell by more than 10% to 0.57 euros this Friday. However, it moves very clearly above the subscription price of the shares newly issued by Orpea for its first capital increase, launched this Monday.
This first fundraising marks the kick-off of the major restructuring of Orpea, whose reputation, finances and stock price have been severely damaged by the revelations of the investigative book “Les Fossoyeurs”, published in January 2022.
However, where the market becomes afraid, in the case of Orpea, the opposite scenario occurred, with a rather astonishing increase in the price. The day after the announcement, the Orpea share soared by 1389.49%, compared to the subscription price of the new shares issued, set by Orpea at 0.0601 euros per share. The next day, Wednesday November 15, the Orpea share price was even close to 0.90 euros at the day’s high.
A stock market anomaly for the authors of La Lettre Vernimmen who did not fail to emphasize, in an article published on LinkedIn, that at these prices, “it is to believe that the company can reasonably be worth 159 billion euros, which is as much as TotalEnergies”, which currently weighs 148 billion euros on the Paris Stock Exchange.
“Those who have kept their Orpea shares since 2022, and who have already lost 90% of their assets invested in Orpea, will lose another 98%,” recall the authors of La Lettre Vernimmen who are saddened to see that “ some investors are still totally deluded”, on a share whose value can theoretically be less than 2 euro cents after the multiple restructuring operations planned.
Questioned by Agefi, Gabriel Teodorescu, partner of Laffitte CM, suggests that the Orpea price will tend, in the coming days, towards the subscription price proposed during this first fundraising. “On November 21 or 22, a few days before this deadline, the Orpea price should tend towards the subscription price, i.e. 0.06 euros,” he warns.
“And it is sad for us as educators to see that reason, here resounding, has not been able to impose itself for months on this issue where only passion and illusion reign”, are moved by their side the authors of La Lettre Vernimmen.
Moreover to the question: ”What should I do with my Orpea shares purchased for €66? Keep them hoping for an increase, or close the line?”, asked Thursday to our colleagues at Figaro Bourse, the response to the distraught shareholder is unequivocal: “In view of your cost price, it seems illusory to count on a recovery (a return to this price per share, Editor’s note) to cover your costs, and it is more reasonable to take your losses on this issue.
Sabrina Sadgui – ©2023 BFM Bourse
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