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Barchid
I agree, they appear to be sailing too close to the wind. £20m cash £20m debt. Not too much difference to the previous year, so where have the net earnings gone! Not in divi's, probably wasted professional fees. My thoughts are PE offered to buy the company but at way too low a price and now the BoD are wandering what they wasted all the money on these last 6 months
and now want the share price up to issue equity to stabilise the balance sheet. However more than 3% of the share capital changed hands today so some 'Holding'announcements must be due tomorrow.
Comeon
Do you mean private equity has the cash or Accesso ?
I guess you mean Accesso, in which case my guess is they are in need of some, which raises the question as to how profitable these much vaunted contracts they have really are ?
barchid . Do you think they have the cash though. Net cash must be a concern, 200K .
Uncle
Private equity firms usually drive a hard bargain so we could get left with the rubbish, the only plus factor is that the old CEO is back in position, fingers firmly crossed though.
barchid, this is a really good opportunity for a private equity co to pick up the pieces very cheap, perhaps one of the ones they were talking to. The co. is currently in a very weak position. Do I buy or sell?
Taverham
It is never good news when a CFO of 11 years standing leaves with less than 2 months notice given before departure !
Normally there would be a succession plan, clearly not here though, with this over rated & overpaid board seemingly making policy on the hoof.
I suspect the new CFO, whoever he/she is, will draw attention to the bolted on duds I fear this company has which we posted about last month.
Bad vibes - cfo jumping , before pushed? Did he mess up the fsp? or is it numbersproblems?
Taverham
I certainly agree with the logic - I have done the same on this one, expecting the US to buy us out at a premium given the heat in the NASDAQ. Clearly the previous leadership were hopeless, I would welcome a few more Director deals at this level and a resumption of the newsflow regarding business wins to move the sentiment needle the other way. My comment yesterday really was on available stock - I had bought a chunk at 342p on the morning of the fall and the market were practically falling over themselves to fill it, yesterday I topped up and struggled to get stock and had to pay above the offer - clearly there was a big buy order in the background which I was not aware - filled our partly filled just before the close. Looks like fewer sellers around for now, although these AIM stocks can behave like straws in the wind !
Risky, I always thought there was value here [ buying at around £20] on account of the multi year multi site contracts and opportunities from broader relationship management e.g healthcare. I alo thought a large tech company might swallow them because the contracts with the leisure companies offered a platform for further expansion. Then along came a new ceo and he never had a clue about the bigger opportunities or how to nuture potential offerors. Hopefully we are now back in with a chance of spectacular growth/takeover .,
Taverham
After being negative on this stock for some time I feel your sentiments look fair.
Today the market struggled to fill a large buy, and a few minutes before close popped 100,000 through but my feeling is , that is just part of a bigger order. Ennismore have 781k to buy back at a sizeable profit. I wouldn't be surprised to see them closing out. Some director buying coming through. The market is definitely fearful on this one some could be time to buy !!
Onwards and upwards now that normal service has been resumed!
Thats me out. 200k stinks and i can see no profit here . I might come in again if it drops to a 50 million MC.
Big volume of trades, have the shorter's done with this stock.
No explanation just final warning. I wonder now if the shorts will close.
comeonvog
I can't see that you posted anything controversial on this site, why the tug from admin ?
Just had my last warning from admin so have to be careful what i say.
comeonvog
Agreed, always look at the cash, not the "revenues", I hadn't looked that far through it yet but there must be some reason that cash is so tight ? If the company has as many valuable contracts as it claims, perhaps they have so many because they are too cheap ?
In this sort of business there is always someone dreaming up a way of doing things cheaper and better, perhaps that is the problem.
Fact remains it was offered for sale and no one bid, so there must be a reason for that.
Another point to bear in mind is that some small company funds and in particular Amati VCT hold a fair number of these so at these levels they may be tempted to take their punishment and run, a difficult call, rather like catching knives at present.
But the MC now looks appealing so i have just bought a few .
I agree the others were taken in by the dud ceo - my guess he promised he would open doors through his multiple contacts in the leisure industry. In reality he took a salary and got in the way...
barchid you have called this spot on and i totally agree about the to highly paid BOD. But now might be the time for to get heads together and work out what this company is worth. The $0.2 million net cash looks a worry to me.
Taverham
I hear what you say, but if the other directors were all taken in by this "one dud", surely that make them duds as well doesn't it ?
If they disagreed they could have argued their point, but none resigned did they ?
Too well paid I suspect.....
I disagree with the duds point - the usa bits look the best to me. The dud was the american ceo who was in reality a middle manager suited to large steady ex growth companies imv.
Risky
Spot on, imo.
Duds bolted on, I bet there are some real duds in this company, starting with the very overpaid board !
My take on todays news is that Steve Brown and other major shareholders thought the offers too low and also fell out with the now ex ceo who was never really a tech guy with the vision to seize the future opportunities. Thank goodness he is gone and the return of the main man is in place. The sp looks right to me given revenues , so whilst there might be a dip in anticipation of write downs , it should be offset by the executive changes imv.
I think we all expected this at some point given the share price - I'm just surprised the board let this carry on as long as they did I am concerned that the 24 March is going to have more holes in the Report than I would like and concerned that multiple bidders couldn't find a reason to buy a company which recently traded at around £30. My personal view is that the Bolt on acquisition strategy has bolted on too many duds and destroyed Shareholder value and there will be notable Goodwill wrteoffs - and that is why potential buyers are not prepared to waste their money turning this around - we will know in 2 months time.