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My CNEL shares still shown in 3 different accounts. And.... previous price of 4.5p in a Halifax account now showing as 5p.
Looks like its a bad ending, the shares have gone out of my portfolio.
Hope we are part of this trial. Only future for work in ethanol industry in prc.
https://news.cgtn.com/news/2022-07-02/China-s-largest-coal-based-ethanol-project-put-into-trial-operation-1bkYKL9hPaw/index.html
Given the mother of profit warnings, financial irregularities and extremely poor current market sentiment, I would expect the mkt cap at any re-listing to be nowhere near what is usually required for the Main Board. Is it possible that we could be relegated to the GEM? I presume this is a bit like the HK equivalent of AIM from what I have read.
Bear in mind CNEL invests all our profits in bigger projects as we get paid in arrears. This is why cash balance is low and just shows all profits are re-invested. We get all that money back as a projects rolls out and in this case if another project has not come along the cash balance will swell until such a project happens. we will see and quite soon but key is releasing news on delayed contracts and other news from last 6 months and some further forward guidance. Its with the BOD whether they want to return as best they can or not as clearly not answering basic questions on contracts that takes limited time is something you would expect.
It all depends on whether HK investors see 4.5p as offering value or not as they have only know a share price from IPO levels and then downwards - whereas we in the UK have seen the IPO as the top of an upward trend then back down again (i.e. a blip!). I think there will be a lot of selling pressure for some time after relist, but possibly a bit of buying also. With hindsight I did wonder if the BOD wanted to relist sooner, dump some shares on the back of 2 years good results, drop the profit warning and buy back cheaper. I hope their only way of getting any value out of the business available now is raising the share price and growing the pot to pay dividends. I guess if we could all benefit from hindsight we would have gone on the last day on AIM.
i cant see this staying at the price we got suspended at if it does relist at 4.5-4.6p it will drop very fast and can see a 2p-2.5p getting hit in the first week. could of been a different story if the profit warning didnt come and results are good like previous years. BOD have kept us in the dark for too long and i have a feeling investors are fed up by them now. all in my opinion but we will see.
simms accumulated profits means diddly squat in my view. the cash balance shows CNEL had a cash balance of around £850k which isnt a grrat deal for a company like CNEL. so we can all forget about a dividend any time soon. they might talk about a divi at the AGMs but there wont be one for a while in my opinion, was hoping in one before we relisted as a sweetner to current shareholders but that thought has soon evaporated.
although CNEL on paper (minus this years fall in revenue) shows a good growing company and possibly well run in that aspect but it doesnt treat shareholders well and is extremely poor at keep them up to date on things . if they ever want to raise capital where do they think the most of the money comes from? investors! they do nothing to support a higher sp with newsflow and rely on 6months/yearly report to show how well the buisness is doing. that in my eyes is not good enough.
you would think so but they have done so much to undermine trust in the share, not least dropping a profits warning the day before results, when they would have known for sometime things were not good and normal companies would provide some update on contract wins or delays at the very least in normal business updates and they could have said something that Covid could be a factor. The key question is have these delayed contracts signed and what is the first half like as they already know this as the first half is now over. if we return in August then i do not see why they do not release the half yearly before they go back to the market. If the shares had been trading for last 15 months the shares would have been considerably ahead after first set of results, maybe 10-15p and then the profits warning would have an impact. The question is how the market factors all these variables in. On the one side we have more accumulated profits that could be paid as a dividend almost greater than the current market cap of the company and lots of positives but on the other side we had a profits warning that was unexpected topped up with some bearish sentiment. This is set to against a backdrop of the greatest increase in Ethanol demand globally ever with countries pushing for E10 and more to keep petrol costs down now that Ethanol is cheaper than petrol. I guess China operates differently but CNEL should with all those lovel PR cash PR contracts should be rolling in contracts from India, sadly lacking the last time i looked. Lets get back to the market first and push like crazy to make sure the BOD release contract news as this is key to confidence. if the big deals were delayed 6 months from Covid that is fine. if they were canceled more serious but the update clearly stated delays only so that is somewhat different. on the top of all this you cannot assume the BOD are not up to something to maybe buy cheap shares and increase their holding over the company and one day pay out that dividend to themselves.
It’s worth noting that the majority of the shares are owned by BOD’s so they have an interest in boosting the share price even if they’ve not done a great job so far. I honestly can’t call this as they should be worth 20p but could come out at 2p, somewhere in the middle sounds about right that’s close to the IPO price of 10p but it froze at 4.5p.
what we need is the BOD to update on the delayed contracts news. this is key as we have had full 6 months since the eoy and that should be forthcoming prior to going back onto the HKex. if the BOD do not disclose new contracts they would surely be in breach of what the HKex expect them to fully disclose as per the RNS on suspension. if CNEl disclose delayed contracts have not started then that is equally important. if they fail to share this news and then allow insiders to trade on that news it would be insider dealing. they must fully disclose all recent news before relisting in my understanding. obviously the BOD have never disclosed anything so i have to say i am not expecting it but now they have released a profit warning surely the HKex will probe that the board are not up to some of teir tricks.
I think we will sit between suspension 4.5 and IPO price, but towards the lower end of that spectrum. The price had been slipping on virtually no news/impetus for a while. I do think it will slowly drift upwards from there - but I doubt we will be back with a bang. I think there will be anew buyers, but also selling pressure all the way up to IPO price from people locked in. I suspect it may need to be a longer hold to see decent returns.
Honestly, I think we will be lucky to be 2-2.5p as the results were a disaster. With the profit warning and 2022 already being described as a tough trading environment I can’t see anything but heading South.
However, markets are a funny thing and the investment might come regarding the future. I just can’t see people buying our shares on the maybe?! Unless we come back with a big bang and announce something big but I doubt that very much….! Just my opinion..
looks like we will be relisted soon hopefully! What are everyones guesses on what the sp is going to do!?
“Since all the resumption conditions have been fulfilled, the Company will submit its resumption application in early July 2022. The Company will publish announcement(s) to update its shareholders of further development on its resumption application as and when appropriate.”
Looks to be imminent then. My preference, given last update, is they to get half yearly completed or at least tell us new contracts as many were supposedly delayed so knowing they started in first half would go a long way. Am i asking too much or is it bau for board to hide away and only insiders get to trade on contract news?
"since all the resumption conditions have been fulfilled, the Company will submit its resumption application in early July 2022."
news out today. no real update on relisting
https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0630/2022063001932.pdf
Hallelujah, looks like only one more hurdle to go! Normally would say well done for holding - but we haven't really had a choice!
Finance statement released and letter to HKEX for resumption of trading.
I’ll be staggered if I get my money back…but who knows, frankly?
i dont think we'll see any update until the final report is published. its the only thing holding them back to apply to get relisted. but lets see what excuses they come out with im not overly confident it will relist. but we can hope!
Starting to really lose any confidence I had left
I think how revenue and costs are accounted for are problematic but if correct we had a bumper sales half year and then all our raw material costs for those contracts hit. Now plants are being completed and stage payments from clients will come in and if we have not secured the delayed clients discussed or new one raw material costs should be low, meaning next period up to June 30th 2022 might be quite profitable. I hope company rushes those accounts out but frankly it could easily be BOD up to tricks for some reason we are yet to find out. Their profit warning a day before accounts was to maximise pain as thet could have provided guidance a long-time before. we will continue onwards and we will get back on the HKex by September deadline and it does give us a window to see if next results see the last 6 months as a blip or that they can steady the ship so costs and revenues are in line. We are worth same as cumulative profit so we are still way under valued fundamentally.
To be honest whatever we think we are locked in for now and have to be patient.
Construction and engineering are roller coasters from a sales to installation of projects as a lot of the costs for materials and labour are front loaded to some extent. Plus all the heavy design doesn’t turn into cash for a long period on big projects.
If this company needs cash at some point it will need access to the market and investment. Neither of which can happen under suspension as the company as an asset is unknown and not accessible.
The BOD have have lots of opportunities to wind this up and go private if they wanted to, putting on the HKEX just opens them up to personal prosecution for any wrong doing.
Just my opinion
To know what Millsm thinks about all this?