REMINDER: Our user survey closes on Friday, please submit your responses 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.
About tick tick upwards again on very little volume!
Tiny Market Cap and few shares on offer... She could really move today!
Extension of CULS GEONG International Limited (AIM: GNG), a leading Internet software solutions provider and operator for large enterprises in China, announces it has reached an agreement with Hanafin Investments Limited to extended the repayment date of the GBP1.0m of outstanding Convertible Unsecured Loan Stock ("CULS") to 31 December 2014. The CULS continues to carry an interest coupon of 7.5% and remains convertible into ordinary shares at a price of 5p per share. For further information, please contact: GEONG International Limited www.geong.com Tel: +86 10 8586 9655 Henry Tse, Chairman Weidong Wang, CEO Nomad and broker finnCap Tel: +44 (0) 20 7220 0500 Stuart Andrews Ben Thompson
Its just so cheap, you read about Warren Buffett when he started buying cigar butts, I believe this is one, compared to its cash and NAV, its at a knock down price right now.
I'd be very very careful, I've seen this several times before with GNG appx 200 - 250K buys go through in a short period of time pushing the ask and the bid up quickly, P.I.'s jump on board helping it along then the original buys get dumped and the bid pulls back to a new low. I wouldn't mind betting that you'll find there are significant CFD put on to capitalize on the the spike and subsequently CFD shorts put on to capitalize on the fall. It stinks of market manipulation. Just to be clear I have no positions in GNG long or short though I would potentially be a buyer sub 3p but it would have to hold the previous low of 2.55 before I'd buy. The only thing that would change my perspective would be director buys and they havn't bought any since 2012 despite the mega low prices. All looks very dodgy to me.
Certainly something happening. More buying today, and online now you can only buy 3,000 shares maximum, whilst you can sell 60,000.
Almost 400,000 shares were bought in a series of trades in the last 90 minutes yesterday at prices rising to 4p. Someone was keen. Perhaps news of the repayment of the CULS is coming (it's due by the end of June).
nagging
Trading statement out, and it's not bad at all, with some new contract wins on top. The MMs marked the price down because of the phrase "very small profit" to 31/3/14, when actually this represents a decent result for the year, as outlined in the interims and representing at least a £450,000 profit after tax in H2 alone given the £447k loss in H1. Receivables and accrued income are down, though I would guess not materially. Net cash is £2m (gross £3.6m) - against the £1.3m m/cap - but is down from £2.5m last year (gross £4.6m), so once again this is extremely poor given the growth in SaaS sales and apparent reduction in debtors. We need to see the cash flow statement, but this poor performance will hold perceptions back. GNG appears to - once again - have reported a clean full year audit, as presumably any material write-downs would have been noted. Let's hope the arrangements for paying off the CULS go smoothly this time.
http://www.investegate.co.uk/geong-international-limited/prn/trading-update/20140529070000PFD1A/ I advised caution as per my 11th & 14th April posts re: the current requirements for the CULS repayment as well as the necessity for established recovery in the domestic market to have taken hold. Until then, major uncertainties exist which the current trading statement does little to address.
Yep, almost 200,000 shares traded already today. Good to see just after the year end :o))
Something brewing?
I'll only top up once clarification re: the CULS is made. They've 'theoretically' been able to address such issues in the past, but instead have been subjected to the onerous conditions, which will have to now be addressed.
Interesting to see the share price sneaking upwards on quiet accumulation both on Friday and today despite the markets being so miserable on both days. The m/cap is just £1.5m. This compares to the cash pile of £1.9m (net of borrowings) at 30th September, which is the cash lowpoint of the year. With cash collections in H2, plus decent trading in H2 as per the outlook, plus the increasing SaaS sales, plus (finally) perhaps some collections of old debtors/accrued income, one would hope that net cash would increase substantially in H2, which would allow the repayment of Hanafin's last £1m, even if it necessitates loan facilities to tide GNG over the cash lowpoint in September.
Agreed, the CULS could significantly & adversely affect the Share Price downwards, hence a major uncertainty atm & as past precedent suggests on impact to the price.
Long long wait and as the sells go through due to low amount of shares it affects the s.p drastically...So i see further drops and loans need to be paid back with what???
Be interesting to see what happens in the next couple of months. The £1million CULS is due for repayment soon, and at the current share price. Hanafin aren't going to convert to shares so GNG will need to come up with another £1 million. Given we were told in the last trading update that they have already borrowed another £0.8 million this year taking there bank borrowing up to £1.8 million I wonder where the extra million is going to come from? If Hanafin don't convert (which would have been bad enough at the equivalent of a 36% dilution placing) will GNG have to try and get an even bigger placing away? I'd be interested in anyones thoughts? Heres the quote from last years accounts :- "Following a negotiation with Hanafin, the Board reached agreement for repayment of £1.5 million of the CULS in five installments, the last of which installments was paid on 6 May 2013. It also agreed to the remaining £1.0 million being replaced by a new issue of CULS, which expires on 30 June 2014, carries an interest coupon of 7.5% and is convertible into ordinary shares at a price of 5p per share, which represented a premium of 51% to the mid-market closing price on 22 March 2013. This new CULS is convertible at any time until expiry, if it has not been previously redeemed and, in the event of notice of redemption being given, the holder has the right to elect to convert into ordinary shares in the Company. If converted in full, the resulting ordinary shares would represent 34.6% of the enlarged issued share capital of the Company." Although the terms attaching to the new CULS seem unduly onerous, the board had no option but to accept the terms as the Company, for the reason stated above, was unable to repay the previous CULS in full.
...but yep...holding out for sub 4p
Been here for ages top sliced at 10p last time holding a few for the elusive 25p when we hit 13p, managed to do a few trades avg down with the 6-10p, but GNG is a long term investment and over the years it naturally drifts down with the odd sell due to lack of interest...The odd update would be nice...
nagging LOL
& I'm not feeling brave enough to double up lol ...or am I Jolly greedy & want sub 4p again? ...the pattern before the last whoosh up was for retraces back to c3p, no?
im a jinx
nice to see these come to life……
whether retraces below 5p...may have to double up there if it does ...may not get that opportunity ...when the wind catches GNG's sails, it sure motors (which is clearly a confused metaphor lol)
Stream of buys over the last few days, most p.i's know with GNG not buy to big as it sets off alarms and due to low amount of stock it usually sends the s.p up, whenever there is movement it goes massively either way..possibly something on the horizon for next week..GLA