Member Info for bigsmoke

Arrived on the Metro scene 17.12.19 when SP at 207.40...........................
he blessed us with "Im averaging £8.36/ share here, a long climb to breakeven." ... "Plan here now is to ride this out.."
Now - 20.02.20, when SP at 207.40...........................
"run for the hills".

hmmmmmmmmmmmmmmmmmmmmmmmmmmmmm

scarcity of bread...

"The computer it says......"

recalculating?

"George Bear" posts on the 21.02.20 listing ENA as over 3% when by that point they had reduced. Nothing like getting the doom story out before it starts to unwind...

of course the fact that IG are offering traders to go long and, especially, short ... has nothing to do with it...............

seems like a bear trap to me.

"Rumours have been circulating since last year, after its reporting miscalculation, that Metro Bank was considered as a takeover target for several large private equity firms. The Financial Times reported at least six takeover firms contemplated whether it would make economic sense to buyout the bank.2 One analyst at Metro’s Q3 results posed this question directly to the leadership team to which they didn’t give anything away but did outline 'should something occur, we will treat it with the right respect because that's the fiduciary duty of the board'. An update on plans to balance growth and cost efficiency will be communicated during its full year results on the 25th February 2020."

"The market is not optimistic that the challenger bank can turn its fortunes around. "

by George "Bear" ................. lol

It started off with a vision to revolutionise British banking, intent on disrupting the stagnant high street banking industry by enhancing service levels and investing in state-of-the art IT software. But now Metro Bank (MTRO) is in turmoil.

https://www.ig.com/uk/investments/news/share-dealing/2020/02/21/metro-bank--mtro--share-price--can-you-bank-in-on-metros-results

Not only have five of the challenger bank’s founding directors left within the last year but the firm also pulled a £250 million bond sale citing ‘poor market conditions’, despite offering a yield of 7.5%. As a result, Metro Bank’s share price has tumbled -90% since floating at 2000 pence per share in 2016.

The table below shows that Metro Bank’s share price has been the fifth most volatile amongst shares in the FTSE All-Share Index, which captures 98% of the UK’s market capitalisation.

If at first you don't succeed, try, try again

Failing to secure funding in September last year was a huge blow to Metro Bank as it needed to raise finance to meet the Minimum Requirements for own funds and Eligible Liabilities (MREL) regulation by January 2020. MREL intends to ensure firms have the capacity to take on losses so that they can fail safely, removing the need for public funding. The bank went back to the market in October with an enhanced offer: that they would remove Vernon Hill, the chairman of Metro Bank, and a higher coupon of 9.5%.

Metro Bank managed to secure the £350 million it required, but at a large cost. An accounting scandal revealed in January last year was another reason why bond investors demanded such a yield. Analysts have since raised their concerns about the constraints the business faces due to the bond terms at their third quarter results, to which David Arden, chief financial officer (CFO), responded: 'I fully accept that the cost was somewhat elevated, but I think it was the right thing to do for the long term of the bank.'
A recipe for disaster: rising costs and subdued growth

Whilst Metro Bank has satisfied MREL regulations, for now, there are still difficult times ahead with rising operating expenses, potential fines by two regulators and, as outlined previously, substantial costs to finance their recent debt issue.

The lender is still under investigation from the Financial Conduct Authority (FCA) over its reporting scandal in January last year whereby it miscalculated loans in risk terms, consequently overstating its capital ratios. As a result, investors have been warned that Metro Bank could potentially face financial penalties which could well be 'significant'. Adding to this, the bank is also being scrutinised by the Prudential Regulation Authority (PRA) in a separate investigation.

Operating costs that are higher than average in the industry is part and parcel of Metro’s business model. The bank’s core mission is to 'change the way Britain banks' by offering customers access to its branches (now 70 in total) seven days a week.

"Fire up the ovens.. Lets get baking.."

... and here's the soundtrack........

https://www.youtube.com/watch?v=ZJvxHDcO92g

no comment, panderman.

10 short MTRO
20 go to 10
30 run

lol - Voleon . the jury is out on that one.

or Watson?

Ernie or Aladin?

... coz we have less dough.

altogether now........ ENA Investment Capital LLP is an "event" driven fund. The fact that they reduced 10% on 19.02.20 tends to suggest a swelling possibility of a good event.

..... which currently places JCB and Spruce in the cross-hairs.

IF a JV / investment - at fair value - is a possibility then that package might also refin the MREL. taking a chunk of Metro at these prices and refin the coupon from 9.5 say, to 7.5 would (signal confidence), allow the noteholders still a good gain, and filip the profit thus boost the SP and add marked gains to the equity stake.

overall - i expect poor results. but i am interested in what oor Dan has done since sept, sufficient to justify the statement by Sir Synder that he has had an impact. The projected "LOSS" is a small one. It is not impossible for it to switch to a "PROFIT" even a small one. which should allow the press to pivot.

can make you dizzy.