Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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Ok so transaction complete.. now what?
Rocker - I hope your bet pays off. As DanBrown commented - the company hoped that by the sale and leaseback it would flourish but found that it could not find tenants to satisfy profitability (full occupancy). It also fell foul of Malay Govt promises to occupy two large areas which fell through with no occupancy and with a debt to the LL. This is a last chance saloon since the company said that it would not be able to continue without it. My thought only - but should the deal complete - the company may wish to delist from AIM - costs too high - as per previous attempt at delisting.
Well this has taken ages!!! I do recall my run ins with ProfW last year about hidden profits and balance sheets and I recall he had a share price target of 50p or something? I was apparently a troll (a shareholding troll - a new one on me) for daring to say he might be a tad OTT in his predictions. Guess what happen? The share price went to around 5p ... fell back.. and flat lined at 1p .. he disappeared ... and I felt vindicated.. there is potential here .. and the share price factors in all the bad news imho ... but a realistic short term target is 3-5p at best imho .. not 50p plus
PROFW will certainly be wrong with his prediction (66p to 132p) i will say albeit there will be nothing of worth left on Balance Sheet, the company will be in a stronger position moving forward so i'm happy to say 2p would be fair value until more is known on the position moving forward i have not seen Rocker's predictions on twitter so can't comment
DanBrown83 or PROFW or even Rocker on twitter. Time will tell soon fingers crossed.
first thing you got to remember - they don't own the Data centre's They built them, sold them for a profit years ago and then rented them off the new owner They are only selling the Trading Business of the renting of the Data Centres, which are currently about 30% occupied (that was last year and no further update on this) with a lot of tenants behind - as you mentioned there are some over 400 days behind terms They are selling this business for 35p, but a lot of the debts / cash will be wiped - you will be virtually left with a business with minimal cash but also minimal liablilities - almost a blank canvas to do what they did well and that was the design and build out of Commercial Property like these The sale needs to happen but don't think this company has �100m+ of assets and is going to make you a fortune and you have stumbled on a gem, its in a bad situation currently
what your call on this..
PROFW was clueless - unless you think its good business sense to sell a �100m of asset for 35p was one of the highlights of 2017 watching him keep posting incorrect information
If CSFG had spent For CX 1, CX 2 , CX 3 and CX 5 sums of � 5.5 Mill or 27.4 Mill or � 482K or � 72.5 Mill REspectively... Will they sell them at cost? I don't think so.. So it has to be at some premium to those amounts... Will selling CX1 or CX 3 make any signficant difference? NO... I don't think so. So Most likely the ones on offer is CX 2 or CX 5 Both these data centers are with >> Multiple power back-up supply >>N+1 or N+N Redundancy option >>Aircooled >>Servers are water Chilled >>Have an UPS with 15 minutes Back up >>Top of the line >>Tier 4 Data centers Especially Costs to build a Basic Tier 1 Data center is Building Space = 250 � 500 square feet at 20 per square foot per year = $416 to $833 per month Cooling = $150,000 to $250,000 depreciated over 10 years = $1250 to $2083 per month UPS = $85,000 to $100,000 depreciated over 7 years (you will have to replace the batteries in 3 to 5 years too) = $1012 to $1190 per month Generator = $100,000 to $150,000 depreciated over 10 years = $833 to $1250 per month Fire Suppression = $50,000 to $75,000 depreciated over 10 years = $416 to $625 per month Security = $10,000 depreciated over 7 years = $119 per month Total Fixed costs before Maintenance = $4046 to $6100 per month or Total Fixed cost of ownership before Maintenance per month is GB � 3,000 to �4500 Per square Feet https://ongoingoperations.com/data-center-pricing-credit-unions/ Especially when Google spends $ 3000 per square foot and Microsoft $ 900 plus per square foot as per media reports.. I am not qualified or knowledgeble enough to assess the selling price of a data center.. But I have never seen any Fixed asset sell for less than it's build cost... Infact it's usually at a multiple of it's build cost So If CSFG has an offer for CX 1 or CX 2 or CX 5 even if it is Nominal value They have to be at around � 10 Mill For CX 1 45 Mill For CX 2 And � 150 Mill For CX 5 Which translates into an additional 6.25 p For CX 1... an additional 28.125 p For CX 2... an additional 93.75 p For CX 5 Remember the cas on hand is worth 5 .16 p in addition So have a great return in CSFG And Destroy the TROLLS
Another post by Profw 11 Sep '17 The moot question is NOT whether or not CSFG is profitable... The Moot question is what are each of their Subsidiaries worth? CSFG Have 4 Data Centers and each of them is a Subsidiary of CSFG CX1, CX 2, CX 3, and CX 5 Let me calculate each of their fair values Data Center CX 1: Total Area Contributing to Rental Income >>> 81,000 ft� Annual Rental Revenue Contribution in Mill GBP >>> 1.19 Mill GBP Percentage of annual revenue >>> 8.00% Data Center Area >>> 45,500 ft� Exchange Rate Per MYR = >>> �0.180849 Build Cost per Sq.Ft >>> MYR 662.00 Build Cost per Sq.Ft >>> �119.72 Build cost of Data Center >>> �5,447,353 Per share addition upon sale >>> 3.40 GBX Data Center CX 2: Total Area Contributing to Rental Income >>> 321,000 ft� Annual Rental Revenue Contribution in Mill GBP >>> 4.71 Mill GBP Percentage of annual revenue >>> 34.00% Data Center Area >>> 157,500 ft� Exchange Rate Per MYR = >>> �0.180849 Build Cost per Sq.Ft >>> MYR 962.00 Build Cost per Sq.Ft >>> �173.98 Build cost of Data Center >>> �27,401,336 Per share addition upon sale 17.13 GBX Data Center CX 3: Total Area Contributing to Rental Income >>> 3,000 ft� Annual Rental Revenue Contribution in Mill GBP >>> 0.04 Mill GBP Percentage of annual revenue >>> 0.31% Data Center Area >>> 2,000 ft� Exchange Rate Per MYR = >>> �0.180849 Build Cost per Sq.Ft >>> MYR 1,333.00 Build Cost per Sq.Ft >>> �241.07 Build cost of Data Center >>> �482,143 Per share addition upon sale 0.30 GBX Data Center CX 5: Total Area Contributing to Rental Income >>> 550,000 ft� Annual Rental Revenue Contribution in Mill GBP >>> 0.04 Mill GBP Percentage of annual revenue >>> 0.31% Data Center Area >>> 201,000 ft� Exchange Rate Per MYR = >>> �0.180849 Build Cost per Sq.Ft >>> MYR 1,995.00 Build Cost per Sq.Ft >>> �360.79 Build cost of Data Center >>> �72,519,545 Per share addition upon sale 45.32 GBX When CSFG sells their Subsidiary... Assuming it is at the COST of Build it would bring in additional revenues of... � 5.5 Mill or 27.4 Mill or � 482K or � 72.5 Mill The per share contribution of that sale would be: 3.40 GBX or 17.13 GBX or 0.30 GBX or 45.32 GBX So Take a Pick... All the details are from CSFG admission document Page # 11 http://www.csf-group.com/admission_documents_circular.pdf
f you want the real story it's hidden DEEP in the annual report: READ the annual Report in FULL... Recoverability of amounts owing from IDCB : Trade receivables includes an aggregate amount of RM32.3m due from IDCB, the developer of the CX5 data centre. Subsequent to the financial year end, the Group received RM3.0 million. The balance of trade receivables of RM29.3 million is due to be received progressively in line with the expiry of the warranty period of certain components of the fit-out works relating to CX5, which is expected to end second quarter of calendar year 2017. The recoverability of the remaining amount due from IDCB is dependent on the completion of certain milestones anticipated in the legal agreements, which contemplates recovery over the next financial year. This represents a significant receivable on the Group‟s balance sheet, there is inherent risk in both the recoverability of the receivables and the timing of associated receipts. The Group has made a general provision for doubtful debts pertaining to trade receivables aged six months and above including IDCB to cover the inherent risks associated with trade receivables that are expected to be collected over a longer period of time. Onerous lease assessment The Group‟s business model is to lease data centres, and as such the Group is committed to lease rentals and certain other costs of ownership. As such, the Group needs to achieve a certain level of rental income from tenants over the life of the data centre lease such that revenue received will exceed costs. If this is not the case, then the data centre lease rental contract could be onerous. In order to calculate onerous lease obligations the directors are required to estimate the future tenancy profile of a data centre, which is inherently judgemental as the unexpired terms of the leases for nine years and the estimate may vary as a result of changes in the utilisation and price of a data centre‟s space. So these two PROVISIONS is a HIDING PLACE of profits If the company is in loss.. Why will they not use the Bank Overdraft? They use a minuscule 10% of the OD How are they paying their 169 employees.. With AIR? This is a classic hide your profits.. Show the company is going under.. Sell off assets at Normal value and declare a special dividend and take the profit scam.. Where 79% is owned by the management... They get the Biggest slice of the cake.. The classic way to hide real profits is.. Instead of collecting receivables in 90 -- 120 days.. keep differing the trade receivables... Take it beyond a year.. The Credit period in CSFG is a whopping 453 -- 460 days
The Group and the Purchaser are working together towards achieving the completion of the Share Sale and Purchase Agreement ("Completion"), which is expected to occur on or before 31 May 2018. The return to the Group of cash deposits lodged by the Group for banking facilities and rental deposits, which are currently estimated to amount to be approximately up to RM6 million (�1.0 million at current exchange rates), in connection with the CX2 and CX5 data centres is anticipated to occur following Completion. Other than the extension of time to complete the Share SPA, all other aspects of the Conditional Disposal remain unchanged. The Company will provide further updates as and when appropriate.
.... taken from RNS "The Group and the Purchaser continue to work together towards achieving completion of the Disposal, which is expected to occur within a deadline that falls in early May of 2018" Fingers crossed for good news any time now...GLA
Dyor
Left before deadline huge upside if this comes through
And only 7 weeks deadline !!! Buy before the herd arrives ... not get this any cheaper than what it is !!
Still waiting hit or miss for me !! If they do manage to complete then happy days back to 6p will sell out then. Guys at these prices a grand can make you 5k
Rocker1 - I see you have set out your stall. I shall include this share on my watchlist. I look forward to see if you are rewarded GL
Am in till the end now holding 5k worth ... . Will come good in the end
Around 12 weeks for some sort of clarification
Another drop and the spread is far too wide to trade... is it a large seller? Lack of news? Hopefully some form of update will happen soon
Lets see if I can buy a large chunk for 1.25
Patience the sale is still on Patience equals reward
FFS!!!!! AIM F****ks
Is moving for now anyway