The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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This is interesting - www.bloomberg.com/news/articles/2023-05-16/adnoc-seeks-to-raise-up-to-607-million-in-logistics-unit-ipo
They had acquired the larger rival of GMS in 2021
Some said this would be touching down in the Sea of Tranquility round about now. See what the results say, the discounted loan interest came to a halt at the end of last year so could be up to 10% ish now.
Nothing ever good comes on this when things are going good, but the minute you have a risk off party, this one joins.....even my 6.9 target looks very distant now, forget the 14p target from the rocketfuel man
I'm curious, no one else has commented on the difference between the 'warrant calculation' back in Dec and the issue info from Jan. In the original calculation it was 7.11p for the warrants and 110m were to issued, it's now 5.75 p and 137m were issued. That's a significant increase in dilution, now almost 13.5% ..... :( And, yes I know it's because the SP tanked in Dec.
About the only possible upside is that COULD be 137m shares that someone outside of the two partners could get hold of, if only...
Happy New Year folks, let's hope The Mac is right about his rocket theories, mind you - that did not go so well off Cornwall on Monday evening!! I still think this more of a tortoise but at least one unknown is now out of the way with the issue of the warrants.
Just dropped your annual wage on GMS shares today. INVESTEVERYTHING or stay a broke wagey stuck in the depths of the matrix.
A few hefty buys there
Merry Christmas!
Never stop believing!!!!!!!! Merry Christmas to you all!!!!!
Invest everything let me tell you everything is not enough! Invest even more! Gms will make us all rich
Oh dear Brunetteski’s back in town
"INVEST EVERYTHING" if you have any left put it all on GMS! 2023 is going to be a great year for Gms!
Just back from a winter break at my place in the Caribbean! I can confirm the sea level on the rock in my garden is still exactly the same as it has been for the last 25 years. If any lunatic tells you sea levels are rising send them to my holiday gaff to confirm that they are talking ****e! Always a pleasure!
Sound like you know him
still rich im sure buddyo
……how rich the brunette feels today?
Yup
this is a 50yr old vessel.....i can see SF wanting to buy GMS as cheap as possible which probably explains the RNS last week and what i think is manipulation.
@amtech - not too worried about profits next year as long as contracts run smoothly. Assuming 10% interest cost, thats a 32m expense in worst case scenario. I would wait for the 2023 EBITDA guidance to get better understanding of how much they can reduce debt. If they do 80m ebitda, they probably have 35m to repay and if its 100m, they have 55m to repay.
https://www.thetimes.co.uk/article/british-worker-bludgeoned-to-death-on-qatar-oil-rig-mj5zfvs7w
Never said they did!
But they still have a large debt mountain, the last debt restructure got them in profit to pay that debt down to get them to the ratio that they are now at. That however has now finished so with the increase in interest rates from the 1st Jan plus higher costs for basically everything will they be able to post a profit going forward to continue to pay it down to that ‘normal capital structure’ ? Like 4C said it will be lower that the 340 due to this years lower interest rate and debt pay down. See what the next results say.
@ Amtech - since when does any company ever pay off all outstanding debt in the run-up to the facility maturities?? That never happens. What matters is the leverage ratio. Once they get down to 2-3x leverage it will be seen as a "normal capital structure" and they will re-finance the facilities which will be a customary, no-drama event and process. And they will/should be around that leverage ratio in the next 18-24 months.
Sorry 4c I didn’t update my notes at the halfway mark 340+wc loan, may get cash from warrants if exercised but pennies in the scheme of things. Still, interest is libor plus 5% on the loan and libor plus 4.75 on the wc capital. Higher day rates but still a strong head on this debt mountain to address. Will it be paid by the time it matures? No, so there’s another round of debt structure to come 2024/25. So from now until then how will the sp react ?
Where do you get 370m + working capital loan from? It's more like 340m as at 30 June, and perhaps slightly lower than that by the end of the year. Don't forget they get cash proceeds from the warrants, plus profits next year is looking solid. You speak as if there is no revenues or cashflows....jeez.
Depends how you look at it I suppose, they’ve just added another 110m shares (if exercised) and still have the 370m of loans plus working capital loan to pay off by mid 2025 with a massively increased interest rate from start of the new year.
They can buy shares directly in the market materialy cheaper currently, so they expect the SP to be much higher to make this warrants worthwhile excersizing at some point....
Well it looks like we finally know what the next move is, warrants at £0.0711 or 7.11p on a roughly 10% dilution, now that's a lot better than it could have been - no $50m raised at fire sale prices. Or, am I been too optimistic here?
Still some chunky buys though.......although there are big sells too