Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Bond prices still scare me though.
But do think there's a battle we don't see between those big money insider LSE types.
Major shareholders (115 placing lot? O tooke a few of thosefor my own stress) V bond holders..... bond holders now at 25p in their pound. Share holders not done that well by todays prices .
God knows what all that means...but theories running rampant in my own head....
So would welcome some other thoughts, theories and analysis.
Understand the logic simply.
I have gone over a few dilution scenarios in my head and although I still think I"ve taken a big gamble and could be wiped out....took the gamble anyway.
What's it worth with hardly any debt? 100mill? Doubtful. A several billion...probably not. So what, 400mill, 500, 800 feck knows. Hard to tell as I've not seen the contracts for all that 8bill of work.
Why did lending costs on the shares go up?
Where did that story come from and what could be behind it?
Scratching my head a little at that one....
Probably see another shorts reduction tomorrow.
Hi Beadlem - I agree with you that the shares would even in a share offer scenario be worth more than the share offer price as they have a huge backlog and the financial distress would be removed. What I was highlighting is that a 10:1 dilution in shares does not decimate the share price as the added value is added to the value of the company and even if the raise was priced at 15p it would not have a huge negative impact on the share price as it is already at only 23p and the most it would go down to is the raise price (which would demonstrate if sold out that the company is highly valued and the offer price was too low) and if offer sold out then I have little doubt the sp would be over 23p where it was when I made this comment. It would not be a shareholder wipeout which the previous person was stating and likely have limited impact on current sp and at this price not a total loss.
Could be results tomorrow.
Shorts 'getting' an easy exit.
They could have exited at a similar price throughout March, didn't.
Had a few of them squealing this month due to increasing their position size and price almost touching December highs.
PFC happy to help preventing the squeeze.
Tells you all you need to know IMO.
Short funds buy order being filled - normally with the volume of sells early doors the price falls back it was held at 23.1 most of the day until the last 20 mins
A bunch of buys going through
Yup..sudden jump
For the jump in SP?
yep the board are clearly ****s
Well, I can understand your frustration; while I have no such convictions about that myself in the case of the BOD here, a couple of things made me bail.
That extremely tardy Schroders holdings update was a strike, but especially that (IMO unnecessary) further mention of possible D4E after some good SP momentum.
The financial position of the company had already been covered previously. There was absolutely no need for the reiteration, as far as I am concerned.
Throw in the historic failures, which did not impact me at the time, but nevertheless I counted in the 'strike book' so to speak and that was enough for me.
But it remains on my radar. I had some good trades here and never say never as to a potential return perhaps, but happy to be watching from the sidelines for now. GLA.
Yes BoD and CEO cant be trusted as they intended to bring this share down price . As soon as CEO have interviewed and hint about 450 millions then shorters attack this share from 75 to 17 but they didn't give any infor why share down price then they withhold the RNS about reduced holding one late . Why did they do that ? It showed clear they planted this to kill share price and to to private or sell with cheaper as this is public share . The whole group of criminals mind are trying rip of this share and small PI s last one know what it meant to share price as things they hide it and never public.
Hopeful this week we can get a line drawn under what is happening with debt. Too vague too uncertain currently. May will be a different month a positive one imho
Tuan6: The directors did not buy shares. The company bought for them, as part of their remuneration deal(s). Check the wording of the document.
Sure, it gives them more skin in the game by having them, but not the same thing as a 'proper' inside buy from their own pockets.
None of which means I am advocating you make a decision either way here, but I read your post and wanted to just clarify it.
Tough credit market. Clearly the potential lenders have the company over a barrel here.
Nevertheless, the BOD need to get this cloud of uncertainty lifted.
Although the SP action the past few days suggests the market does seem confident that a deal not much worse than the current SP, will be done. So who knows?
You longs could be well rewarded for your bravery. No thanks to the BOD, IMO.
Simplyme, i disagree that the price would drop as much and my rationale behind this is that the company is already valued with the debt in play and the uncertainty. you take this away with the backlog then i would argue that the business is worth more than the current suppressed value. Only my opinion though.
Still holding, only just.
Rationality says sell, with contract backlog reason says hold but not looking good at all…
Hi Badvoc, you have to also add the value added to the company/ reduced debt etc. If shares get diluted 10 to 1 but raise 600m (15p a share) this has to be added to the value of the company. Hence new company might have 4.5bn shares instead of the current 520m (with value of 120m) but would be valued at say 0.7bn which means the shares fall from current 23p to only 15p. Very rough but gives a picture of the impact but is a going concern with 8bn backlog.
Thanks, Readheadedanger - So if I have shares worth £100k now and the shares get diluted by 10 to 1, I'll be worth £10k. then they may rise but will need to be the equivalent of £10.00 (new £1.00) to be the same value? could take years.
Sorry seriously questioning if to bail and take a £142k hit or hanging there (but if I have to wait years to get money back it could be worth just bailing and making up elsewhere). This BOD has seriously f**k PI's over and hand private equity control
@Badvoc - it’s not a debt issue per se - they have no issues servicing the debt. It’s a short term cash flow issue to stump up for the guarantees (that have been dramatically increased post winning the contracts - some would argue a little unfairly).
Different issues. Shareholders will not be wiped out. Equity will be diluted. But not wiped out.
Wasn't it contract renumerations? Not buys.
Petrofac’s shareholders have to accept that they are on the edge of wipe-out. The company has an US$8 billion backlog of contracts, but without a resolution of its debt issues, customers may well shy away, as McDermott’s own customers did in 2023.
https://www.bairdmaritime.com/work-boat-world/offshore-world/column-on-the-edge-mcdermott-petrofac-the-metals-company-and-cadeler-offshore-accounts/
Just week ago directors bought this share at 26p so if something really bad on debt and company cant pay it why did they buy on thier owe money? A lot directors never buy if they sense thuer comoany cant cope with debt and gone but this case difference so thier money on 26p we can safe buy at 22p and let this show run along .
You can see from the few trades we’ve had this morning that the shorts appear to be reducing - is it Helikon?