Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
might have called that wrong
Also for today I predict a massive sell off at the close
I think this will come back a bit but continue a down trend over a few months. Too much uncertainty before the CMA initial report out in April/May. The CEO statements have paved the way for a major restructuring and maybe the rights issue/cash raising that noheartss mentioned on here earlier today. In terms of buying for the medium term I would wait for that all to pan out. Plenty of room to trade if you want a quick turn around. Wouldnt be surprised to see it go back up to £4.30 level but ultimately heading to £3p imo
"Nice if you've got the money to see it through" Where do you see this going? There must be a floor to the decline. Someone will want to buy this dog at some price. I wonder if the Directors will start buying back in.....I'm sure they can afford it!
Incidentally, I agree about Rockhopper......maybe two years is about it. But it is looking really grim right now!
Big sell in the background atm
Dignity trades is a war of the trading bots at the moment. Automatic bot trades moving the price for the large buyers/sellers. Multiple small buys to keep the price afloat before the huge sell kicks in. Nice if you've got the money to see it through.
I was actually going to mention Rockhopper, I was invested in this in the early days and have always kept an eye on it. Need to do a bit more research on it now, but I saw someone mention there is some kind of arbitration in the pipeline that could bring in a large settlement. The big risk is PMO who are over leveraged and may struggle with a prolonged oil price squeeze. Its unlikely now that RKH will get funding to open up a new oil production frontier in the Falklands with the current oil price climate, one to buy and hold if you have a couple of years. Another one that could see 10x from here.
An oil share I have been following for a long time is Rockhopper, in the Falklands. It has discovered massive amounts of oil and over the years has progressed slowly towards recovering the oil. Their share price has fallen from over £5.00 a share when they had just found the oil and no where near as close to extracting it. Obviously finance is the problem and they now stand at a lowly .07p a share, which I believe is grossly undervalued and this share could soar. But in the present climate, who knows what could happen.
I totally agree that at some stay oils will become popular again and now is a good time to buy. But they might become even cheaper for a while.
Haha yes would have been a Woodford buy.
Not sure about Pheonix, I wonder as they are now so involved with the board that they were in the close period. They are now of course able to sell what they want (£600k sells??), they have to advise of any 1% change of holding, if the TR1s start flooding in they could indicate a mass sell off over the next few weeks. They must know the business is done for. I always support PIs buying on the bounce because we are more flexible than the big institutions but I would be careful to let the dust settle here.
Granular Capital bought in recently 3%, ironic considering the name,I dont think they did much granular level of analysis. They will be at around a 25-30% loss currently and must be considering their options.
Bridgedogg1,
Appreciate your input. What on earth were Phoenix thinking here and why did Woodford miss this one ?
Thanks ahha, dont worry I get plenty wrong. A recently pulled out of a stock that went up 300% in the following 2 weeks.
I have to buy sensible stocks for my day job but for my personal dealing I go for the much more risky end of the market, non income producers, so might not be up your street if you are buying the likes of Centrica. Currently im looking at oil stocks, i was lucky enough to be out during the recent crash but think there are bargains to be had and I think that the Russians will come back to the table and agree a small prosecution cut before the end of the month, when the current cuts expire.
I'm looking at LEK. It got hit by a scandal before the crash and lost 70% but there wasnt really any material business impact. It has now lost another 40% on the oil crash. It produces a fair amount of oil for its size and is part of a larger consortium on oil projects so has some protection. Cash in the bank is OK. Keeping an eye on it and might get in at around 1.5p if I can. It is a bit of a binary bet but minimal downside from here and possible 10+ bagger once oil prices come back.
At the very small end something like ORM, pretty much a cash shell trading at 0.5p a share and cash value over 1p a share. It also has a small gold lease. in there markets a bit of gold and a bit of cash cant be back, good for a quick low risk turn around.
I'm not in either at the moment.
As I say that kind of strategy isnt to everyone tastes. If i was a long term investor id be looking at holding cash for a little while then buying some of the big dividend payers, that have been hit hard but had a measure of protection, reinvest the dividends of course.
Bridgedog, you have earned my respect as a genuine investor who really knows what he's talking about! I think we were both right. I was a sole voice in the last two years saying that I would not touch them at anything over £4.50. But in the light of the results and your comments, I must agree with you totally.
Its a bit of a shame, because a business like this, could have been a safe haven in difficult times. But these markets are extremely treacherous at the moment and it is very difficult to find anything that is safe!
If you look back over my investment history, you will see that one of my favourites was a firm called HUNTSWORTH. I got out a couple of years ago having made a handsome profit, only to lose some of it on what I thought was a fairly safe Centrica! And then a few days ago when everything turned red, the only blue share was Huntsworth up 50%! That's the stock market for you!!
What are your thoughts about other companies? I'm very wary about everything at the moment. As I think that the markets will continue to decline generally. And I think property will take a downturn and that gold will be the only safe haven. Oil may be good, when the current nonsense is sorted. What are your views?
ll of this magical accounting says to be that the BOD are looking to stay afloat until the CMA report in April which it will then blame for a massive restructuring resulting in closures and cash raising. In that way they can protect there own jobs which is what they are all in it for.
The latest actuarial valuations of the Trusts (at 27 September 2019) showed them to have a surplus of £17 million, based on prudent assumptions.
Wonder what has happened to the £17m surplus since September 2019. £1b x -20% = £183m deficit
Despite the companies best attempts to muddy the waters these are the metrics that matter.
Market share - down 0.2%
Average revenue - down 1.4%
Net Cash flow (£7.3M)
I've just seen that the trusts for the prearranged funeral plan have been brought onto the balance sheet. In a piece of magical accounting Investment gains have been counted as income at circa £79m. This wouldn't have been included previously and actually means the operating profit is much lower than shown. Also any subsequent investment loss will have to be reflected as an income loss, didnt the markets crash recently??????
I don't wish to sound insensitive but if the international news is anything to go by business might be picking up for one reason or another.
Looking at this years accounts it’s showing an increase in operating profit from a loss to a gain. But looking at last years it’s was reported completely differently. Very dodgy to change reporting standards but not reflect what it would have been like for like. Some press reporting an increase in profit but it’s just accounting changes.
This set of results just shows how utterly inadequate the board our. Absolute joke.
Only managed to gorge themselves silly on share options while destroying shareholder value over 15 years.
A timid, puny so called transformation plan that looked at the time mere window dressing for the shareholders now abandoned.
If asked a year ago would this survive in its current form I would have said yes. Now I have my doubts. Arguably needs a rights issue to pay down some debt, but this would surely be deeply discounted.
Could private equity take it over ? Not at this price. Its been run like a quasi p.e business anyway, loaded with debt, focus on price gouging, only gain market share by buying other business.
In the end there are few barriers to entry for small local independents in the funeral services business.
If you were inventing this business from scratch you would have a national chain of crematoria and leave the funeral services to the COOP.
A truly rancid company.
Results look bad but a disaster is hidden between the lines.
Transformation plan on hold.
CMA investigation likely to impact size and profitability of business = mass closures and restructuring ahead. Will be unable to pay debts. Expecting some kind of cash realisation in near term to pay down debt.
Ahha I think the last broker target was £5! We’ve seen new large holders come in and I think they are banking on a turnaround, the long term price action combined with the relatively high revenues make it look like it could be under valued, but I really don’t think it is. I originally started researching the company with a view to buy based on these factors but quickly changed my mind. It’s the first time I’ve put in a lot of work looking at accounts and doing a deep dive into a company’s financials as I usually go for event driven investments. I wouldn’t be surprised to see them out of business this time next year, possibly a private equity buyout at knockdown prices. Shares will get demolished to keep the doors open and pay off debt. I wouldn’t suggest a buy at and price above £3 and only then after they have sorted the debt out in some way.
Phoenix have people/person? on the board so they may well be in a closed period until after the results come out. I don’t know if this is the case or they work on a Chinese walls basis, but Phoenix is key to propping you the share, if they decided to get out it would be a bloodbath.
I could be wrong but I’ve put my money where my mouth is on this one.
Thought provoking comment. I have been of the opinion that I would not consider buying this share until I reached £4.50p
But maybe it is better to wait until after the results before making any buying decision . The points you raised about debt and the possibility of no dividend being paid are certainly important points to consider. Also, the point I have made all along that no Director has shown any interest in these shares since they bailed out at the top of the market.
On the other hand, Pheonix continues to hold a significant holding in this shares and must be aware if the dividend is to be stopped. They also are in a business that should be extremely defensive. It has always been a rather boring share, but over the years it did rather well. Im surprised there is not more broker comment.....over the last five years or so, most of the recommendations have been to buy or hold at a price of £25.00plus to £5.70. I think in today's volatile market, there is no hurry to buy any share. Best to wait and see!
Nice to see your comment Bridgedogg1
And to see the share price below £5.
A truly rancid company
So for those like me who think this company is going down the toilet the results will be out in a few days we will know either way. Has the restructuring worked - 1% of outlets given rebranding and staff role changes. How has the business faired with lower prices - probably not very well. Has market share been taken by competition - was only majoring market share through acquisition. Will the dividend be paid - highly unlikely meaning this will be a non income stock and income funds that hold it will have to sell. Will it even earn a profit - year on year decreases indicate this is a pivotal year, might see losses for the first time. . Will the debt covenants be breached - highly likely, already had been at the last report. will the largest asset be ‘goodwill’ - yes about £600m worth of goodwill vs £100m of tangible assets and £500m of debt.
Will dignity have to restructure the debt/raise cash/use credit facility - who knows??? I reckon so, the company has reached a tipping point. Only hope is for an immediate mass pandemic of coronavirus, still might not come soon enough. Screaming sell. May well bring going out of business / low ball takeover on 2020.
Its the business they are in. Simple as that. Are you suggesting all burials should be handled by the government or private companies ?