Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video 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.
Net cash PS is only 0.89p & fixed assets just 0.30m. This sounds kinda lame to me! I hope I'm wrong because I bought some at 9.76p. I want some easy money from this! Lol
Well congratulations on your buy, it looks like you have paid the cheapest ever price paid by anyone for GNG shares!! How does that make you feel? lol Seriously though, I'm guessing there wasn't much volume available when it ticked down to 7.5-7.75p? I have been watching GNG for years, have been in and out several times with varying success, and have made a tidy profit overall from trading the companies shares. I have been watching as the SP has slipped and slipped and slipped, first below NAV, and now below cash value. What has stopped me buying any has been the question of why. WHY does the market value GNG below the amount of cash it claims to have in the bank WHY does the market not attach any value to the fact that GNG is profitable and debt-free WHY did GNG allow their clients to set the KPI's which determined the level of performance fee's receieved by GNG WHY does the market not find comfort and support in the following paragraph from the last RNS, which was the trading statement on April 20th: "Notwithstanding the reduced profitability the Board remains confident of GEONG's business model and its potential. The Company is still getting new IaaS clients in its core markets and new industries with two strategic partners, and has not lost any IaaS clients during the quarter and its business partner has not moved any business to the Company's competitors. Indeed, the SaaS business gained 2 new SaaS clients during the final quarter of the financial year, a total of 16 SaaS clients during the year and is in current negotiations with another 5 potential new SaaS clients." And WHY has the company not acted to stop the rot in the SP since the update, which has caused the SP to fall by 50% For me there are just too many questions like this, and therefore what seems too good to be true (i.e. GNG's valuation) probably is too good to be true! All IMO though and I hope for yours and others sake that I am wrong.
Paid 7.73p for small amount of shares 5,058. Cost me 400 pounds with tdwaterhouse dealing fees .. I then tried to buy larger amounts at 4.21pm today & price was 8p again? If it helps I've had these for some time buying all the way down from 28p to today...... If it helps I can't see them falling from these levels,I will hold for several months @ would love to see around 20p/25p I personally think we will see 40p again once the Market picks up&deals are done so good luck if you are thinking of buying or hold any of this stock...once buyers return the price will rise quick? It's a question of when lol
fair play to you, its a risky one but it could pay you back handsomely! If you dont mind me asking, what price did you get, and what is your target to sell at?
I topped up today
live price is now 7.5-7.75p, down 11.6% on the day. Seems as if the market is pricing in a significant write-down on the accruals, or expects some other negative news to come out of GNG i.e. lower than expected profits, need for cash-flow funding etc etc. Whose to say whether any of the above is realistic to expect? All I know is that I feel for those who have bought all the way down from the highs previously experienced with GNG, and I feel quite comfortable watching from the sidelines for now.
Anyone here care to try and call the bottom for this stock? I am still watching for a possible swing trade but the SP is at an all time low, and the market cap is below cash in bank, so where is the SP going to find support? My mother always told me not to try and catch a falling knife!
£5.3M CASH in the bank which alone equates to an SP of 14p. Thats without factoring in the additional value added to GNG as a commercial enterprise & one of the leading companies in its sector. Full client retention despite the economic downturn AND new contracts currently being negotiated Below most peoples radar imho but the cash value alone & near term news expectations should see a strong price correction upward for the stock dyor & gla
Price consolidating well
Faz, I think most of us appreciate ur comments to provide a better overall balance to any debate on the forum. However i agree with wizard about the investment case being judged on its merit at the current SP / Mkt cap. At this level its a STRONG BUY imho with whats looks like a consolidation of the price & i believe an impending move upwards. MY own view of the investment case here & sector potential vastly overides any possible concerns i may have with the BoD but everyone should make there own decisions anyway (obviously). Ill be buying my last tranche of shares completing next week to complete my full holding level gla
I agree with almost all of what you have said with regard to the history of GNG. But i am only concerned with where we are today and the likelihood of GNG's share price recovering, for me its a straight forward punt. If the shares go below 7.50 i'll sell at a loss, if they go above 12.50 I'll sell at a nice profit. For me on balance, I simply see a greater chance they will hit 12.50 before they hit 7.50 and as such there is a greater chance of making money than losing it......simples.
Id expect there many others also looking to get in but i believe most of the sellings been done with the price now looking like its consolidating for a good move back up. The low number of shares in issue which exacerbated the initial drop may very well see a very strong rise back up particularly if its off any news on the contracts currently being negotiated or further director buys - the management already hold circa 26% of the stock As always dyor
Now tahts over we can get back to assessing the company at its current SP taking into consideration the points made by the various posters. Accepting those Im very comfortable with my purchases around these levels with the strong cash position & current contract negotiations providing a good safety margin for my investment. The full client retention beyond the issues brought up also adds further credence to the investment proposition as well as Geong's strong position in the sector A great buying opportunity atm imho dyor & gla
What I said was: "If these drop below 10p I think they will be worth watching for an entry point which could present 15-20% as a short-term recovery bounce" which is in great contrast to your comment: "Sub 10p the cash value alone of GNG makes this a good recovery play" If you are aware of the issues surrounding GNG, and you have only bought in for a short-term "recovery play", do you except that as a potential longer-term investment there are several factors that contribute to an unusual and for many uncomfortable level of risk associated with the company? If you do then surely you see sense in providing a certain amount of balance to a BB that has for the past 3 years or more consisted almost entirely of posts containing positive predictions for the future, reasons why it is time to buy, and praises for the great things that the management and BoD have achieved. Do not assume that just because a poster is not 100% positive about a company, they are automatically a shorter or a de-ramper looking for a lower entry. As it happens I am still somewhat sitting on the fence with regards to whether or not a short-term speculative buy is a good idea, and my decision will be based more on the sentiment surrounding the company and the level of belief in the forward-looking statements of the company, than it will be on the prevailing SP or the market capitalisation. The SP could drop to 8p on the ask today and I could decide to leave it, or the SP could jump back up to 10p with strong buying and I might decide to have a "punt" on the recovery continuing. If you look briefly at the accounts, and then look at the market cap, I think most would come to the conclusion that it is under-valued. The problem is that PI's have being drawing that conclusion consistently over the last few years, but the value of the company has continually decreased. IMO valuations are not assigned to companies by chance or through luck of the draw, but as a consequence of their accounts, their public and investor relations, and the widespread perception of the people leading the business, amongst many other things. My question to shareholders regarding the market cap was to gauge the level of blame placed by shareholders on the management and BoD for the deterioration of the value of the shares over the last year or more, and whether the general consensus is that they can pull it around or that new people are needed at the top for Geong to realise its full potential. I doubt I will get an answer as I have now been labelled a de-ramper, but if I was a shareholder I would be thinking very hard about these points, and I would welcome anyone who brought these things up for discussion and debate. Happy investing/trading all, and be sure to draw your own conclusions!!!
We are all aware of the issues surrounding GNG. However as you have stated in previous posts. Sub 10p the cash value alone of GNG makes this a good recovery play. I'm not expecting it to return to the dizzy 40+p prices but I am relatively confident that I can make a 25% + return on my investment at a 9.1p purchase price. So I don't get the point of your original question unless you were simply looking for an excuse to post research....... Short or just hoping for a lower entry?
Between the results and the cancellation of the acquisition in November, the SP bounced back to c.25p, but when the cancellation of the acquisition was announced, the SP declined once again. I believe this was down to two reasons, firstly the board were still making noises about seeking acquisitions in Greater China, when shareholders just wanted them to concentrate on what they already had, and also a number of concerns had been identified by shareholders in the accounts, in particular the trade recievables etc. The SP dropped below 15p for the first time in December last year, when the board announced a change of auditors, which compounded the concers of some who felt the accounts were basically a sham. The results for the half year released in December did little to support the SP, despite all the previous hype from the BoD, and a clarification RNS for the trade recievables was required in early January to stop the drop in the SP, and it worked, for a while. Since then the trading updates and director buys have not been able to prevent the SP slipping to new lows, now sub 10p, because IMO the management and BoD are not trusted by the market, and therefore anything they disclose in RNS's is treated by the market with great caution. All IMO though so please DYOR!!
wizard I'm afraid you have got me wrong, I wasn't looking for explanations because I haven't done any research, I have been following GNG for several years, and have been in and out of the shares a number of times, most recently selling out at 42p in July 2011. I felt at the time that GNG's thirst for a bolt-on acquisition could do them more harm then good in the short-term. The alarm bells started ringing when GNG raised £2.5m by a placing of convertible unsecured loan stock ("CULS") in May, and then when the results were delayed in July by over a month, because the company had commenced discussions about a possible acquisition of Adbeyond, I decided it was time to get out and observe from the sidelines for a while. When GNG announced the details of the acquisition, they also disclosed that they would raise a further US$8 million (c. £5 million) by way of an issuance of a two-year 7.5% convertible secured loan stock. (CLS) I started to worry about the size of the acquisition deal, i.e. up to £9.6 million, and wondered whether GNG had bitten off more than they could chew. I still wanted to buy back in at 30p in early August because of the fundamentals and the cash position etc etc, but I was waiting for a sign that the SP had finished dropping and would start to reverse. I continued to watch throughout August, despite the absence of the results RNS that everyone was waiting for, and then near the end of the month we got an update which told us that the CLS issue and acquisition had been delayed, due to "volatile stock market conditions around the world". We were also informed that the results would be released by the end of September, and were reminded yet again that the net profit after tax would be ahead of market expectations. Shortly after this RNS, the SP dropped below the 29p support level that I thought would not be broken. Part of the problem was that as the results kept getting delayed, the company kept reminding us that the results would be ahead of market expectations, when they eventually released them, but this increased market expectations to the point that when they were finally released in late September, people had come to expect even more. The SP had already fallen to 25p before the results, and it soon fell below 20p, on the day of the release, going as low as 17.5p, despite very positive numbers in the results.
CONTRACTS being currently negotiated
£5.3M in cash equating as opposed to the current mkt cap of circa £3.5M. A circa 14.5p SP based on cash value alone let alone the added value of the business as a commercial entity going forward. Only 38M shares in issue which accounted for an exacerbated drop due to lower performance fee revenues as per the 20th april trading statement & in line with slowing economic growth in China http://www.investegate.co.uk/Article.aspx?id=20120420101018P34D3 Regardless of this they have full client retention & are one of the leading companies within the sector so well positioned for strong long term recovery as the economy grows Currently negotiating 5 new SaaS clients so strong near term newsflow expected to impact the SP The low number of shares in issue resulted in the drop being exacerbated although positive news & recovering sentiment should work towards an equally strong recovery Management hold 26% of the shares in issue A very good hold with a healthy cash base, strong position within the sector, a very low number of shares in issue & multiple contracts currently being negotiated dyor & gl
LOL - I am enthusiastic about GNG http://www.investegate.co.uk/Index.aspx?searchtype=3&words=gng I'll put more specific reasoning for my strong belief of a major rise here if im at the screen tomorrow Good luck
Hi can anyone give me a very brief/quick update of what is going on with Geong, Bonum, I have seen your ethusiasm with this share (ramping seems such a derogitory term,I prefer enthusiasm) just thought I would drop a couple of quid in here, look forward to any replies, best regards Diver Mike
eventually corrects itself
The markets tend to over react on news whether good or bad with herd mentality often overiding a more sound assessment & investment decision. This has a more pronounced effect on stocks like GNG with very few shares in issue.
We can, but why not just click on the RNS tab above and do a bit of research :)
Anyone holding here or buying recently, can you answer one question for me please - why IYO is the market cap currently £3.36million? Thanks