Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Thanks neil
As we saw on MEAL it can be exciting!
All of of the "surplus funds" are mentioned in the circular itself in black and white under section 4
And on the accounts there are £40-60mln in the last accounts (total assets+ liability)
Currently PCF is £2mln and is probably why the largest holder wants theor large slice of a pie
Bid moved up again someone wants these
Sounds too good to be true Laura but if it turns out to be the case then that's brilliant and I wish you luck
There aren't any sellers as 85% of the shares are held by two funds
It would be fair to suggest there should at least be £10mln to distribute to holders before or after the meeting
Recession has started and covid-related government support has ended (higher delinquencies/impairments).
Exit costs like software, goodwill/intangibles license, etc. all's worth nothing, rental agreements, redundancies, termination of other contracts and so on... (not to mention recent stance by FCA at lenders about treatment of consumers in these difficult times).
Deposit outflow on a winding-down/market-exit news (bank-run) and the need to refinance it (at higher rate).
Loans were issued under much lower interest rate than current market.
You can't dispose portfolio at fair value, there will inevitably be winding-down discount.
How much did they have on loanbook in interims? 320.5 £m ?
IMV we can mark it down by at least 10%-15% (aggressive approach), while it still potentially does leave a distributable excess of equity above current m-cap - it is a substantial risk, while retail does have some stake here - it's relatively small but given practically no liquidity (only 18 trades so far - all below £1K) + huge 40% spread and potential exit for ISA-alike accounts (ISAs are not allowed to hold non-listed companies) - for small retail trader it's possibly not a gamble worth taking.
I’d say last chance to get in at this price today, after the company is wound down and loan book sold we could be looking at a distribution of 10 mill plus
This will move upwards very soon imo
Take a look at sale prices & dummy trades
How did you come to that conclusion?
With every sell, looks like a background buyer imo
Exactly - I'm holding even if they delist
Hi Jeni
It certainly looks that way, there must be a lot of the £40-50mln left even after restructuring costs
I'm hanging on to my shares - there could be a nice payout here one day imo.
In section 4 of the document on their website is says
"Shareholders may in due course receive a distribution arising from the company having surplus funds at the end of the wind down process "
Having looked at the last accounts this looks to be £40 to £60mln
The wind down costs will surely not be all of that,so there could be a large pay out given that the current PCF market value is only £2mln
Equity Subscription
The Company announced a proposed capital subscription on 31 May 2022, the completion of which was announced by the Company on 7 June 2022. The announcement on 31 May 2022 also confirmed that the Company's majority shareholder, Somers Ltd ("Somers") indicated its willingness to support a further equity subscription of circa £1.5 million.
The directors of PCF are pleased to confirm that an agreement has been signed by the Company and Somers whereby Somers will subscribe for 27,940,000 new ordinary shares at a subscription price of 5 pence per share
In the information on the website today is still says that they are considering a potential return to shareholders.
It's not as clear cut as MEAL but looks interesting for the next three weeks
It's a real tough one to get involved in.
I looked at it when it was 0.42p to buy and didn't then it shot to nearly a 1p and about 0.87p to sell.
I wasn't too gutted as the spread made it a complete gamble and there was no sign it would shoot up.
A few trades today but at 0.79p to buy and 0.63p to sell your 20% down before you even begin
It seems like a few are having a punt here today, I'll keep an eye on this one, only.
Spread is again ridiculous though so this needs a big pump to make any gamble worth it
50k max at 0.74p.
"banking license worth" card being played to naive "investors" on many collapsing bank segment shares,
but reality is - there are plenty (hundreds) of banking licenses out there and new being issued without much of an effort.
it's all available on BoE statistics pages.
As for another share you mentioned - they are planning to delist, their equity is multiple times below market capitalization and amount of annual loss hugely exceed whatever they have in equity left.
(by the way - loss is consistent across 5 years in a row, they couldn't make profits even before covid and now it's even worse, each time they about to collapse - they just print new shares to raise equity)
Generally there's enormous risk of full capital wipeout without much of an intrinsic business prospects for profits.
MEAL has gone from 1.25p to almost 6p now. How much is the banking licence worth?
150k max or £1k. Shows the illiquidity here.
It would be nice if there was. I'm down so much it's not worth selling - book value on Stockopedia is 16.5pps so I'm just going to hang on in here. Institutional investors own over 95% of stock so hardly any shares in market any more.
Is there a MEAL situation here? Just asking.
Yes if you had the balls to buy at 0.40p and sold exactly at the highest point.
Easy in hindsight saying it now.
The spread was about 80% lol.
If you had bought even at 0.70p it looks like you're stuck now. Spread at 50% too
I can live wirh missing this one as I had no intention of going for it. Fascinating watching though