Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
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Blame the courts: there's a process to follow.
The longer they leave it the less it's worth to us.
Does a company earn interest on many in escrow? (not that it would be much.)
Correct. The process took about 3 months last time: its in the hands of the courts, not the company.
I just emailed wtg investor relations and they wrote back confirming WTG havent stated a repayment date yet so quite soon could still be as late as the end of June.
Received letter from HSBC today confirming payment of £1.10 per share quite soon
6 trades today all sells no buys and price goes up 2.5p ?? Explain ?
Similar story last week with several days of large sells far exceeding any buys and price went up on those days. Go figure.
In further support of my suggestion of ongoing cash burn, if we take the total cash as at 30th June 2019 (per the report) of £41.1m and we add to that the £39m from the escrow account we arrive at £ 80.1M total cash. Yet the cash reported at end December 2019 was only £71.6m meaning that in the last 6 months there was an effective cash burn of £8.5m just in running the business. So we can reasonably conclude that in the forthcoming period before first distribution there will continue to be some cash burn which will reduce the final amount that would be payable to shareholders. That's why the share price isn't really reacting. And of course there's still the SFO matter unresolved despite years of waiting.
Sorry both my calculator and my "Facts" were both off key in my earlier post. There are in fact 46m shares currently. What I'm not clear about is whether the £90m cash following sale of healthcare division already includes the agreed £39m released from the escrow account. If so then as has been pointed out the current cash position if all returned to shareholders would realise around 195p per share. HOWEVER there is bound to be some cash burn between now and the first distribution, to support the ongoing Ingenie business (and line the pockets of the directors). Plus there should be costs associated with the winding up of the business (lawyers and accountants always get a huge chunk), so I'm trying to be realistic and suggest that we probably won't get all of the current asset value by the time the business comes to a close.
@Malbright01: I thought the RNS did a better job at providing cash value.
Cash and term deposits on 31 December 2019 (excluding cash within businesses classified as held for sale) totalled £71.6m. Total cash following completion of the sale of the Healthcare Services division, is approximately £90m representing approximately 195 pence per share.
Might I suggest new batteries for your calculator?
With around 41 m shares in operation and a net cash of £90m if every single penny was distributed to shareholders this would result in a payout of $ 1.74 per share. After which there would be nothing left in the company other than Ingenie which is loss making so I would expect the SP to tank immediately after the first payout reflecting a very small company with probably ongoing small losses. Best hope if for them to sell Ingenie if anyone would be interested then it would be a clean out of the lot. There are bound to be other claims yet from the cash so it's unlikely that we are going to get more than around £ 1.54 per share which is precisely what we have now. Just my thoughts as someone who's been invested here for years and lost an absolute packet.
Its good news but what happens to the SP after the return of capital ?
Capital Return
Watchstone will now proceed with plans for a further Court approved, capital repayment to shareholders and further details will be announced in due course. Subject to shareholder approval, completion of the necessary working capital and creditor analysis (including contingent creditors) and the Court timetable, the current plan is to return at least £50m (representing at least 110p per share) before the end of June 2020. The timetable is anticipated to be slightly longer than usual given the need to complete the audit in advance of the return.
Evil now rates it a screaming buy, target ca 225pps
https://masterinvestor.co.uk/evil-diaries/evil-knievil-south-american-history-repeats-itself/?utm_source=Daily+Bulletin&utm_campaign=19d09c9983-Daily_Bulletin_2020203&utm_medium=email&utm_term=0_25eff0bb7f-19d09c9983-37354589
Damn, I had forgotten about that!! You are absolutely right havegun, that is the last fly in the ointment, surely it should now be closed and everyone move on (wishful thinking I expect!). Fingers crossed for a quick resolution after all the waiting over the last 6 years! GLA
waiting for the result of SFO investigation before anything can happen I suppose.
As a LTH it looks like we might be nearing the end (well I hope so!). By my estimations we now have just over £80m in cash (£37m from Escrow, £19m from Canadian sale and say £35m as reported at half year stage less all costs say max £10m) against the market cap of say £66m. I would hope that once the Canadian sales has gone through this Friday (7th Feb) we will quickly (next week?!) hear about a return to shareholders. I would be very disappointed if this was not more than the current share price, making these a good short term buy in my opinion. Anyone see this any differently? Thanks
Yes, I understand, just as they used to say in Victorian times (which is when I first bought this...) "venting my spleen".
I am optimistic that we WILL (eventually) get the due reward but going by the recent history of this company, I am not expecting anything too quickly, to be honest.....
Nice rise today.
AE - I also qualify for sainthood on that basis, response was actually dealing just with the last two and half months from mid nov from the high then to where we are today not the sorry saga of the last few years.
Impatient? That's a joke, Shirley?
Anybody who has been "patient" here deserves an effing sainthood.
As for a transfer of wealth, yeah, in a pig's eye, the wealth is FIRMLY locked up.
A transfer of wealth from the impatient to the patient ..... par for the course for the City some would say
What’s driving this?