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Interesting to see it at this price after a reasonable open. suspect there is some room for traders here!
Could just as easily be back at 0.65 in 30 mins... or 0.3.
A price that the shareholders arent likely to see any value of, because the debts need repaying!
Best case is the sale of the sub and remain listed as an AIM cash shell, which in the current environment as about as useful as a chocolate teapot.
AIMHO, DYOR
A very low one!
Nm
At this price its worth a gamble. thinking of buying this until a buyer steps forward. Do they still have assets of £60m (liabilities of £40m)?
I couldn't really advise what they should or shouldn't do, but it's not necessarily a straight loss yet with the shares still trading they can still get something back simply by selling, albeit at a loss. If it goes to administration that would mean shareholder wipeout. I can say that as investments go right now it's as risky as they come.
Ah ok, so the shares i believe were purchased at the 2p rate. Obviously since then, i know they have dropped down to the 1p rate. DO you reckon it will be a straight loss or, is there maybe some hope to this? I was also going to invest in some shares but now i'm grateful i didnt!
There is one hope for shareholders here. As they're talking about offloading the underlying operating companies it could potentially leave the shell. It's only AIM so not as valuable as main market so nothing to get too excited about.
That scenario happening requires both their brokers to be clever about it and that the subsidiary companies are at least sold for breakeven or neutral enterprise value - as in not leaving any creditor deficit.
Am fairly optimistic this will be the next target for a rampy pump. just have to make sure you get off in good time (but judging that will be tough. who'd have thought ENET would jump 900%!
Hi, i'm fairly new to this so dont really know how it all works but am following quite closely. A family member recently purchased shares thinking it would be a good investment - will this now be a loss for them do you think?
I'm still in at 1.19p Latino so I hope you are correct but I think its only going 1 way unfortunately.
We definitely need an ITS type miracle to happen.
How thees companies get themselves into so much trouble from the highs they were once in always baffles me.
Of course there are outside circumstances like Covid that is out of their control BUT other companies survive without these debts and need for drastic action.
The whole DIY / home improvement sector flourished during lock down we were told, so how was SFE so badly managed by the board of this company.
I'm still in at 1.19p Latino so I hope you are correct but I think its only going 1 way unfortunately.
We definitely need an ITS type miracle to happen.
How thees companies get themselves into so much trouble from the highs they were once in always baffles me.
Of course there are outside circumstancesike Covid that is out of their control but other companies survive the whole DIY/ home improvement sector flourished during lock down so how was this so badly managed by the board of this company.
See some positives in that RNS, firstly no discounted placing but straight sale now. Secondly, they are not talking to one but a number of parties but a short list so this could easily end up a bidding war….dyor just my thoughts like always maybe wrong (many times as you know!)
This is now one of those stocks that's not so much an investment more a game of russian roulette
What a sad way for it to end for what was once a prosperous outfit
I think they'll be 2-3 mil positive so probably go for between 1 and 2p but that's my take on it.
Exactly mr magorium. The assets in current market are worth between £10m and £15m depending on how you value them. They generated losses of 7m in the first 6 months of year and september and october have been worst on record in industry so likely approaching £9m loss now november will likely be quiet due to low comsumer confidence and december is always dead so by january they would likely be at £11m to £12m loss this year alone. On top of existing debt... those assets are gone.
Come on Latino you have been around these shares and RNS releases long enough to know how this will go
Does not mean no return does it! At this stage they can’t be certain.
Sums it up simply and correctly MrMagorium
Spread 40% so it is dropping for a trade
People keep thinking a balance sheet is one sided, with the "it has assets worth millions" comments.
It does, but it also has debts too. A lot of them, and it is continuing to dip into it's RCF whilst generating significant losses. It clearly stated in a previous RNS it was not sustainable and would end up breaching its covenants.
So now, it's going to sell those assets worth millions to repay its debts worth millions. But not in excess of the debts, hence they are saying liklihood of zero return to shareholders.
I meant the spread and the RNS releases has been like Purple Bricks.
Re read the words
"there can also be no certainty on the timings or level of return, if any, to shareholders"
It maybe worth a trade as the spread had dropped but its over as a company for PIs
Added another 300k let’s see
It's definitely no Purple Bricks. Safestyle have tangible assets worth millions.