Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Absolutely. This ship isnt sunk. Hard to swallow the debt position, but it will be traded out IMO. Just a waiting game.
@Baz and volume - large volumes and a drop in price usually (to a simple fellow like me )mean withdrawal of interest and might signal a further drop in price? Kier IMO still remains a risky play with the amount of debt it has.Debt is what kills and equity raising is always questionable . I am invested here and considering my position - this could go either way....
The only thing mythical is your administration theory Steve. Your a one stock basher with an alterior motive, my theory about you is that either a) you got stung on an investment here, wet the bed, sold out and feel bitter about it. b) have an open short and not enjoying the price increase. Regardless, If Kier was going into admin it would probably have done so already in my opinion. I happen to think the shorters agree with me considering the vast majority of them closed theirs. Kier continues to win work and cut costs. Ship turning round, come back in 2 years Steve and see where Kier is at financially and most important to LTH's, the share price.
About twice the sells to buys today, kier number 2 uk construction company, for contract wins, number 99 out of 100 for profit, balfour beatty number 1 for both, DYOR on construction index, anyone know where AD is, could be talking about a deal to a unicorn, both mythical ????
We are going to see a bid for the whole company!
Look at the tradevolume today. Massive! Kier is in play, but no one has said it out loud.
Stevie, they want the business. It's not a question of 'waiting for administration' because administration isn't coming. Goldman Sachs/Guy Hands want the business now before the company recovers its share price.
Buying Kier's debt is not a big deal. Net debt is about £300m and Kier Living is worth at least £115m. They could buy the whole firm for about £200m and then refinance the debt with some new equity that Goldman Sachs would sell (it's their business; that's what they do). The opportunity will likely be gone in 12 months. The market likes the sound of it so far. Share price is going to rise into the close most likely and finish positive. The long financial winter is over for Kier.
Share price rises apparently, and if they get the money for KL and the equity raise, that might last a few months, before more required, i still reckon the hedge funds will take the company after administration, why would they be interested in buying debt, input money and drive forward with debt free company, shareholders shafted,
So what usually happens to the value of the average mug's share when dilution of takes place through an equity raise?
Baz, an excellent summary of where we are/going.
Some interesting online discussion on Kier this weekend. Here are a few fragments.
A £1bn business currently valued at £150m. £3.5bn turnover and 2% net profit (before they pay it out in exceptionals -- and Davies is suggesting in the last RNS that that is over now). Last yr Davies said increased competition for framework contracts might push that margin down, but then kier managed a 2.5% profit in the next results. Also £3.5bn turnover was achieved in a Covid (recession) year. So net profit is nominally £70m, but with a BUILD BUILD BUILD Johnson administration, that is likely to be £4bn-upwards. Maybe very much upwards. I reckon net profits are conservatively in the range £80m to £100m. A reasonable p/e for the sector might be 12. Enterprise value currently is £310m debt plus £150m market cap. Call it £450m. IF the equity buy-in OR rights issue (whichever it turns out to be) raises one for one (ie perhaps doubling the shares in issue) or £130m plus £115m from Kier Living sale, plus perhaps £35 half-year profit, the business could have practically no net debt and a shareprice that goes to £2 very quickly (a p/e of only 8 on £70m profits) and MUCH higher on higher revenue and earnings.