The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Finish on day high and continue with the gap up tomorrow
Wouldn't be surprised to see a bid at these levels, but I hope not. Let see it rip upwards.
Thunder2040, carry on avoiding...we don't care ! Go p*ss on somebody else's parade....
At least the bottom should be for now, happy that I added too sub 300. Will be HODL now as the recovery takes hold and sitting on my hands to make sure I do not sell too soon,
Burnt a few shorters hopefully on the hop.
watching L2 pricing jumping up with not activity think ii's piling in bet we get a holding RNS in the next few day be nice to close near £4 but if not today for this week
Well I piled in here £30m = macp of less than 200m, the debt can be repaid over time, think the share price will kick on from here and with the CEO buying at £4 that will do me
I thought it was a solid RNS. It looks to be in agreement with my assumption and view here regarding the operating profit and banking covenants. I expect some funds will jump in now as this de-risks things considerably.
I remain unconvinced, they should have stated in the RNS the amount was roughly £2m I believe, which doesn't really touch the sides in terms of the net debt. Also, are we to then assume that without the receipt of funds they could have breached covenant? If that it the way they are running the business they are clueless. Will continue to avoid.
Was contemplating averaging down before Xmas and decided to wait till new year .. ! Still over the moon with the RSN.
Can’t believe I had the opportunity to double up sub 300.
As I’ve said on a couple of occasions when the CEO is buying 100k at 400 that was enough to tell me covenants wouldn’t be broken and no dilution was taking place.
Very good RNS … this will treble in price in the next few months
Time to move on from this nonsense Market Cap 154 m seriously……..
Thunder, you did muddle ebitda with ebit...which is an enormous deal
at least covenant control is ebitda not ebit
& 3.5* £50m ish D & A is handy base lol
Could it just be Montanaro selling the last of their holding? FSJ will likely be a small position for them and perhaps a new FM just wants rid. They had 1.47m shares left at end of November. Looking at volumes, I’d guess there has been around 2m traded since then, so should be a long way through it by now. Perhaps FSJ are looking to raise money, but examining the financials I really don’t think they need to - covenants frequently get broken - doesn’t mean lenders will enforce nasty measures if they are confident they are lending against a decent business. And this looks like a decent and diversified business IMO
I'd expected some bounce here...
I can't see the trigger/why to buy while sentiment poor *and* questions over covenants/management swirl
Thanks jolly, cracking post. Fingers crossed it goes lower. When you buying?
so many punters sucked in...
and no signs of even an oversold bounce @£3
wouldn't surprise me to see this sp dwindle a lot lower, unless turnaround clear...questions over management and debt is truly toxic combo imv
Seems like it, ticking slowly but consistently down, you too, gonna bottom drawer it and return in another 12 months
I bought some today kija, I agree long term value looks good. But the stock itself is very sick. Big seller in the background? ATB
Anyone even remotely bullish at these levels? I timed this one poorly but I've begun to average down as I don't mind the long-term hold, surprised there's absolutely no support, they've got a solid order book and barrier to entry in the respective sectors they operate in is massive, seemed like an easy hold, oh well
@Thunder - what evidence do you have that they're close to breaching covenants?
@ODONNELL : where is your NAV calculation? If you're going to make these fantastic statemnet, they need to be backed up by facts, not just hot air.
Watching an interview with Elon Musk he said electricity production needs to triple by 2030. This can only be good news for JFN as most of that will be Nuclear (maybe even fusion) so long term I see this share comfortably going back to where it was 3 years ago.
yep, any hint that covenants threatened would probably nosedive the sp
dyor, all
CaneToad, valid points but the things to be careful of IMO are:
- Forward p/e seems to be out of the window given management have promised Jam tomorrow the past 2 years
- Operational profit is one thing, net losses are another - the bad debt write offs are painful to the bottom line.
- The headroom you mention is different to the headroom they have vs their covenants - if they breach, the lenders could force them to offer more equity in order to renew of waive
- Broker targets are useless
There will become a point when it could be worth a punt again, but I would prefer to see them arrest the margin decline and also either execute a material disposal or raise cash to shore up the balance sheet, then I think it would be derisked for a recovery, until then its too risky here in my view