Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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Hindy, I didn't say loads & i agree it's not a day trading share because you need 10-20% swings daily IMO to make that viable. A fair few trading this now short term as far as i can see. Each to their own!
What will be absolutely comical is for them to miss a guide which they reiterated a few time.
If something like that happens it should be accompanied with 2 resignations IMO.
Day traders are scum š
Paddy where do get there are loads day trading this from? There isnāt
Why would you day trade this it has .5 spread and moves about 2-3p
Thereās loads better stocks to day trade than this. Eg rr it has 1p spread and moves about 10p+
Day traders want stocks with range.
They usually trade stock with news that actually move not junk like this mate
The div situation was clownish...but all we know is the BOD delivered the news...who made the decisions is somewhat unknown ... but it would be naive to think stakeholders like lenders/key shareholders werent involved in the debate
The dividend debacle was clownish and the BOD have some work to do to restore investor confidence in their commercial capabilities. To say the least :)
I remain here because I too think the worm will turn sooner or later.
Either with this management team, or some new blood.
Not buying more before the next update, but if they surprise to the upside (within the narrow range of reasonable expectations of course - we know it is not going to be amazing) - then we could see some nice action here from the current SP level.
The Cosman angle is also part of my thinking here to be honest, but equally, I am ready to add more if we see the SP tank after the update. Subject to the obvious caveats, naturally. GLA.
I guess so.
We do not know what is going on in the background and you might be absolutely right.
"..that is the right decision to reinstate a dividend just to take it away 6 months later. 2
Fish
I guess we will never know just what or who the forces were behind such decisions , but as we have discussed .. I dont personally think it was down to the CEO/CFO themselves .... lenders/key shareholders often have their say on such things and the BOD represent the stakeholders, after all
People need to remember that very few investors ever catch the bottom on a SP. On most investments you will spend a period of time in the red. That is a given because as soon as you buy you incur a trading & stamp duty cost. Best not to get too fixated on the daily SP. Anyone here who's bought these for sub Ā£1should be well rewarded if they can remain patient & avoid panic selling. This is a huge global business. The worm will turn eventually!
To be honest Poker they did mentioned that they cannot do anything about the market view on how the company is progressing.
All I am saying is that communication could have been better and they also stated they are fully confident that is the right decision to reinstate a dividend just to take it away 6 months later.
Now anyone can make mistakes and I am glad they have stopped the dividend as that money can be used in a better way.
I made my peace with the fact that it will be long process. I just hope they are on the right path at the moment.
Paddyboy
I agree.... they have the revenue to pay the bond coupons, pay their loan interest payments and work on improving margins ... they cut divs, save costs, and chase new business opportunities ... and do what is necessary to sell a business if so..
They cant determine when interest rates come down, what the German Regulator will or will not do, or the state of the German economy or UK economy....
Just keep moving forwards, pay the bills as due, and press on ..
I see full support from lenders at the present time, myself
Fish, same as, i've not sold any. Just accumulating & also plan to add on Monday if the price is right based on the RNS!
" and there was a complete disregard to shareholders or share price"
Fish
There are a lot of stakeholders here and shareholders are but one group.... I think they know too well that the market isnt going to love a share that has no dividend and high finance costs .... so..in some ways they focus on the business ... the market does its thing ..a BOD cannot always chase or defend that
My main concern here is liquidity/headroom issues. I believe a company like this just needs time & quite a bit of it to return to profitability after a black swan event like Covid. Personally i've read all the documents based on risk assessments etc &i really don't see any huge concerns thus far!
I am in for a few years unless there is a takeover in which case is nothing I can do about it.
I haven't sold a single share and kept adding and I am ready for Monday to.
This is just a debate for me.
I guess we will find out on Monday.It will be nice to actually see some official numbers instead of "it might be this or it might be that". We haven't had them in a while.
I think the guidance will matter more here and if the managements rhetoric is the same like last time then down we go.
I have watched the 1 hour long video 3 times in case I missed something and there was a complete disregard to shareholders or share price by that matter and should have picked on it then and move away for a while.
All I can do is learn from it for future.
This is no time to be nervous ... you are either in for the medium term ..or not at all .... everything isnt going to be resolved in the next Update... it is an ongoing process... and you are either in it until at least H2 end ..or not at all
That is how I see it
If you umm and ahh about whether to be in or not...best to leave ....IMO
"....which accounts for just 3% of EBIT. "
I am afraid a Ā£70m provision adjustment made on the 2023 Account ( Ā£25m for 2022)will have more of an impact than some notion of "just 3% of EBIT"
Fish, don't forget it had gone back up quite quickly from 54 to 92. The drop back was confirmation of the earlier profit warning.
Depends on the individual outlook i suppose. On this bb there's a mixture of day/short term traders & those with a long term 5 years + outlook. A lot of people are deep in the red here (i'm one of them) so are feeling a bit jittery most probably sitting on paper losses of 50% or more. I'm not overly concerned myself. Have been in on much riskier stock than this one. Confident this will play out well over the longer term but i understand why a lot of nervous investors here!
No one is getting hysterical about anything.
Please read the whole thing "As noted above, at this late stage of the audit process a number of judgemental items remain to be agreed between the Group and its auditors which could affect the final outcomes for FY2023 (including the existence and extent of any prior year adjustment). In particular, the Group needs to fully assess and understand the impact of the revised indices on the financial results."
The results might be affected however not in a major way.
Right after this MINOR trading upgrade which only has a MINOR impact in the final EBIT number the sp drops from 92p sp 57p.
Now I know the market can overreact but still........
I do not understand why everyone is getting so hysterical about the upcoming results. We know what they are going to be because the trading statement on March 25 was very detailed. The delay relates to the group's German division which accounts for just 3% of EBIT. Although it is a tiny part of the overall company, the auditors will not sign off on the results until the German accounting issue is cleared up.
For the FY 2023, Mobico will have generated around Ā£135m of free cash flow before interest. After interest on debt (which will be around Ā£60m) cash flow remaining to pay down debt should be around Ā£75m.
Why all the hysteria?
The delay in itself is not a concern if the reason they have stated (i.e Germany stuff) is the true reason. Germany represents less than 10% of group revenues. If after making the delay statement they then present more bad news in the presentation it will be time for the clowns to leave the circus!
An offer can be made at any time. I think you're referring to them going over the level where they are compelled to make an offer. Cosmen is a board member at MCG. He can't make a bid during results. Insider trading etc!
They arenāt at the percentage yet to make an offer as far as Iām aware? There is a reason there has been a huge delay, from my experience itās never a good sign.. I think some are getting a bit too ahead of themselves on here and becoming emotionally involved..,
Would be in a closed period atm!