Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Yep! Me included I am a bit annoyed to be honest as I did think that RNS showed they were financially sound! That is why I considerably increased my shares. I do think that it will still do well but I am a bit annoyed with them and how they've done this.
2 days ago AO informed the market that rebasing of supplier insurance cover had "no effect on its liquidity position". Believing that RNS, a number of investors, myself included, were sucked in and bought shares...
But 2 days later... it's a capital raise!
Gotta love AIM.
Took up the RI. Hopefully will get the full allocation as the market seems to think the recapitalisation will do the trick.
Suspect that’s why the sp has fallen. Rather than the other way around.
Not sure I would touch this at 43p.
Seems a ballsy move to go for a price that high with the free fall the SP is in, imminent recession and lack of profitability outside lockdowns. I assume the comments on sounding out major shareholders have given them confidence they’ll get it away at that price. Good luck all holders, hope this works out for you
WTF is wrong with some of you on here read the RNS correctly it is 43p not 25p !!!
Er, I think I’ll pass. Might wait for market to open and see where it drops too.
A good move in my opinion.
I also have a moving average of about £1.10 and hold
About 7000
I can’t seem to pick my nose at the moment
But same as you I see a future for AO, it be nice to see
the directors buying at these levels ( rather than planing to sell)
It’s impossible to call the bottom, I wish you good luck buddy
(I’ll add some soon as well )
Potentially yes!
Surely at these levels this is a huge takeover target.
In my opinion looking at the company credentials this is a great Entry point into AO. I had 10,000 shares in AO at 110p and I have literally bought another 50,000 shares over the past few days a few yesterday and again more today. I can see this going up considerably over the next few months!
This has really been overdone in my opinion! These should be trading at about £1.50 +
Gary Channon of Phoenix Asset Management (see Aurora Trust for instance), a 'deep value' investor I follow, has been steadily accumulating shares in this company since March. He highly rates the founder.
https://www.aurorainvestmenttrust.com/cms/assets/446/ofgos7oy4v6pdsgb6lfzj6jz/Aurora%20Investment%20Trust_March%202022.pdf
"AO told the City that the move was a reduction from the heightened levels needed during the pandemic, and that the move has not affected its liquidity position."
If true then def worth a buy at this level but after 2008 and seeing how people can say there is liquidity right up to the point bear goes bust has lessened my trust in these guys.
On other hand I expected much bigger drop so whilst i'll be holding , it might be a good entry position for anyone with this on their watch list
dyor
Personally I think this is a bit overdone nearly 20% down from a Newspaper article to which the company have even come out and said its not actually that bad!
Online seems to have had its day and all such stocks seem to be on a downer right now. Boohoo, Amazon, Asos are a few examples. Anything heavily reliant on technology to sell seems to be sat in a bear market. Selling bigger ticket items with a looming recession adds to the negative sentiment with AO.
it never made any cash or profit of any meaningful quantum pre covid thats the issue
you could buy Currys for not much more and have 6bn of sales v 1.2bn
in my view the last sentence of the RNS is very concerning indeed. why should they need to be focusing on profit and cash if this business can function healthily at normalised revenue?
yes they overinvested in staff expecting higher volumes but still
the most important thing is that the "board expectations" are too optimistic as they have been almost every year of the company's existence
Board Expectations high but yet Roberts and Norman Stoller, who backed him on day one, now selling their first material lumps of shares since the IPO
hmmm
RNS out to attempt to clarify and steady things.
Is this even more of a takeover target now?
Retail expert Andrew Wade, at Jefferies, said he believed the company has already taken action to shore up its finances in light of the reported credit cover cut – which he said happened in May – in particular by closing the German arm.
He added that recent performance outlook comments would also have been made in knowledge of the change.
He said: "AO is certainly tight on liquidity, but we understand that there have not been any negative new developments, and that the company continues to expect its position to improve in the coming months - particularly with the cash drain of Germany now resolved."
Bought a fridge freezer from them,very good service and never found it cheaper , 1 week later it was had another £40. off sods law , god knows how they make money
Was also in electrical retail for many years.All the profits came from "add ons" like warrentys and accessories which all had very high margins.There was little or no profit in the products themselves.Online sales generated far lower returns from those areas.This could go much lower imo.
Probably not cheap at that price!!
I don't know what happened there?
The last time retailers & manufactures made money selling domestic appliances was prior to 1984 when Recommended Retail Price was around. By the time I left the industry in the early 2021 I was selling products to major retailers at wafer thin margins and some products up to -10% loss?
Nothing has changed since I left the industry the retail prices are as low as ever and therefore the margins will still be just as bad if not worse. Returns are an absolute killer, you only need one to wipe out any profit on any number of sales.
I can see the price of AO going to below 20p and even that price would be expensive in my view!
I have messaged on this forum before as someone who was in the domestic appliance industry for 20 years.
T am going to say this again there is NO MONEY to be made in selling domestic appliances
sames,
I'm down to only a few hundred left in here though so not going to wreck me if this goes under. just a shame as I had high hopes this could move on and out from UK to other regions, I guess the talk about falling back from Germany was a bad sign.