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Magnolia Pet Share Chat (MAGP)



Share Price: 2.025Bid: 1.95Ask: 2.10Change: 0.075 (+3.85%)Riser - Magnolia Pet
Spread: 0.15Spread as %: 7.69%Open: 1.95High: 2.025Low: 1.95Yesterday’s Close: 1.95


Share Discussion for Magnolia Pet (MAGP)


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MrEnglish
Posts: 537
Observation
Opinion:No Opinion
Price:2.20
View Thread (4)
RE: Robsky
14 Mar '14
The question to ask is what is today's RNS telling us?

I think as usual L1on is on the ball here, the key point is that the Credit facility has been increased. Other news around the increased revenues could have waited until the end of year results were actually published.

So basically, the BoD have requested an early increase (after 4 months rather than the previously stated 6 month review period) in the credit facility, presumably on the back of the un-audited figures for the period ending 31/12/2014, why? I can only assume that they have a worthy cause for the cash.

So at least two big positives:-
(1) the increase in the credit facility was granted, by somebody that has looked a the books
(2) this would have previously have to have been funded by dilution, $500,000 at the current SP would have been at least 15m shares (at 2p each) - or 1.5% of capital.
 
boak
Posts: 2,063
Off Topic
Opinion:No Opinion
Price:2.20
IFA Magazine.
14 Mar '14
Robsky
Posts: 2,396
Off Topic
Opinion:No Opinion
Price:2.20
View Thread (4)
RE: Robsky
14 Mar '14
Magnolia Petroleum have a unique way of funding participations which allows better use of cash flow.

Operator gives notice of well spud 10 days prior then MAGP has 15 days to pass over funds for the spud of the well on going expenses are then paid over as and when required by the operator.
Robsky
Posts: 2,396
Off Topic
Opinion:No Opinion
Price:2.20
View Thread (4)
RE: Robsky
14 Mar '14
Agree L1 rec'd nice to hear from you again.

the re-investment of income works ( I know this though experience, I have done it ) however the income received is never enough to "feed" the growing monster and therefore re - investment of income has to be either delayed to build up or be financed through borrowing hence the RNS today and yes this will be increased again in due course.

IMHO DYOR
maybethistime
Posts: 52
Off Topic
Opinion:No Opinion
Price:2.20
oilmagnet
14 Mar '14
Yeah, I know you havn't gone anywhere though you did "go missing" for a week a while back. Good to see you guys keeping the board going.That's appreciated.

I do remember that interview with steve. I don't remember if he was asked that specific question and felt he had to answer. But, yes, he did refer to "self funding" not being too far off. In fact many many people use it as a yardstick when evaluating companies. So, I do see where you are coming from.

Saw the picture of your car in the link. I hadn't known that you had such a wonderful classic car ; looked great.
Poacher886
Posts: 841
Off Topic
Opinion:No Opinion
Price:2.20
RE: Clever release
14 Mar '14
Yes, aspiring to get back to our placing price of 2.5p in MAY 2013 (almost a year ago) , seems crazy, but perhaps realistic with present sentiment...For me the lack of selling pressure of late is the best news i've seen for over a year.

Surely as the dots join up and the market is made aware of the progress here, the buyers will return and with it the sentiment and SP to follow.
charliereddog
Posts: 800
Off Topic
Opinion:No Opinion
Price:2.20
Clever release
14 Mar '14
Pointing out that the increase is due to "proven" rather than simply asking for the limit to be raised aka cap in hand.

Rita's one very smart cookie. Just wish the market would start to pay us a bit more notice, but we've had a very nice stable period and I believe we will start to rise over the next week. Just don't expect any massive gains IMO, if we can get up to 2.5p again and hold it, it'll be a good start.
Olderandwiser
Posts: 1,886
Off Topic
Opinion:No Opinion
Price:2.20
I presume...
14 Mar '14
..that if magp generated EBITDA in H1 2013 FY of $237k on revenues of $910k, and full year revs of $2.4mn suggest circa $800k of full year EBITDA, then looking ahead to this FY with the infill drilling "low hanging fruit", a further "doubling?" of revenues to $4.8mn might generate an EBITDA yield of 40% rather than 33%? So, upwards of $1.9mn for this year in EBITDA, given the inbuilt fixed cost base as well?

Any thoughts?
L1onheart
Posts: 1,935
Off Topic
Opinion:No Opinion
Price:2.20
View Thread (4)
Robsky
14 Mar '14
The key to today's announcement imo is that the Credit Facility has been raised by $500k NOT on the back of the CPR, but rather on the back of recent production figures. The Credit Facility will surely be raised once again, and probably significantly, when the CPR is published. As we all know, the benefit of all that is that we can invest in far more wells, land, etc at only Wall Street Journal Prime +1.00%, in other words standard, fully secured Interest rate. How many other AIM oilers can say that?????? This is a AAA+ company being extremely well run and financed, with a BoD whose interests are absoultely aligned with ours - it doesn't get any better than that on AIM. Patience!! GLA.
blue1
Posts: 1,304
Premium Chat Member
Off Topic
Opinion:No Opinion
Price:2.20
RNS
14 Mar '14
Good news but never reflects in the SP, when will this ever start to move North properly?



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