Member Info for candidinvestor

One thing which I would like to know, which I think is very important..what is the present tonnage capacity of the whole fleet , and how does this compare with what the tonnage capacity was prior to the Grinrod acquisition ...this isn't easy to ascertain after all of the asset sales that have taken place

But in essence , has the combination of both the acquisition , but subsequent disposals increased revenue earning capacity or reduced it ? If it reduced it then why on earth did they acquire it. Grinrod debt is I believe far higher on a look through basis that TMIP was prior to acquisition .

I am just trying to understand the strategic aim behind the acquisition . Being an ex Finance Director I am generally wary of acquisitions , they increase debt , rarely achieve the synergies assumed , and very often just pander to the vanities of the Board ..well it's very exciting buying things isn't it , when these things are company acquisitions , then that makes excellent conversations at dinner parties , to impress your guests doesn't it .. yes I jest, but don't dismiss it .

Thanks Krusty ..useful information and that makes sense ...you are right though Mike regarding volumes of transaction ..share transactions in the American listing (TMI) are far higher that in TMIP ,

Yep...I have my Sipp with AJ Bell, and their reaction to claiming back tax on dividends is identical to HL

Huge disadvantage. If I had realised this before i invested I would not have invested . I lost £950 this morning which is increasing

This news was passed on to other shareholders , since there has been a steady fall in the share price for the past week

. Deceit and stupidity by Kenmare board is both staggering and disappointing ..it was only at interim they INCREASED dividend with positive outlook

Now they drop a dividend bombshell , which should make them hang their heads in shame !

Refinancing interest rate rises not their fault , but the stupidity of share buy backs for a company in growth mode, is incompetence beyond belief

As an ex Finance Director let me state. SHARE BUY BACKS ARE NEVER IN BEST INTEREST OF SHAREHOLDERS OF GROWING COMPANIES..

THEY SHOULD ONLY BE USED I REPEAT ONLY BE USED FOR COMPANIES WINDING DOWN OPERATIONS.

IF THEY WERE IN THE BEST INTERESTS OF SHAREHOLDER'S THEN DIVIDENDS WOULD RISE NOT FALL

If they are flagging that dividends will fall , then read between the lines of a company with their recent track record and what they are saying is that they will disappear ! That bad news won't be released until next year

Company Directors have lost all credibility and the company is now uninvestible.

SELL , and cut your losses

Thanks for your comments Mike , and I think we are broadly on the same page, apart from relative confidences of the future dividend ..I would have liked to see some form of dividend commitment for next year ..but that was missing ..yes I did read about the long term progressive dividend intent , but most companies would say that, and it does remain in doubt..

But yes you are absolutely right about not wanting to shout bad news from the rooftops because by doing so that would affect share price recovery , which again wouldn't be in the shareholders best short term interests....to be honest , I don't know what to think ..what I do know though is that some positive momentum has begun, which is usually a good sign

Incidentally can you answer my question regarding the difference between TMIP and TMI

Thanks

Just a couple of observations ..good and bad

On the good side , yes charter rates have picked up incredibly and so all indicators bode well for the second half ..

..likewise there is a definite positive momentum in the share price .. lots of heavy buys and few sells

...debt reducing very nicely and firm intent to reduce further

..debts are in US$. At the moment exchange rates are 1.26 to £ so debt interest will fall in sterling terms , likewise income though too

Two bad points to note

..that was a large drop in value $120 million and there isn't really anyway of hiding that ...

..even allowing for this fall in value which didn't affect cash , there wasn't any cash profit either , so dividends were totally unfunded from operations..only by asset sales which isn't a healthy sign ....as an aside I think they will drop the dividend substantially in the new year and argue that its in the best long term interests to reduce the debt...any drop in dividend though will hammer the share price , which wouldn't be in our short term interests

One final thing to note...the executive summary was excellent and extremely positive and it made me feel very optimistic about the future ...it completely failed though to report that the company had actually lost $120 million in the first half , I had to go onto their website and read the interim report and accounts myself to pick up on that .

Have to be honest , that kind of behaviour doesn't go down well with me at all ...

All company reporting should be balanced and complete .Their release was neither

MYOMU

As an aside , can anyone tell me why there is also TMI company which is valued in dollars ? It's just that there were buys of over £1 million in this company today , whereas less than £100k went through the TMIP company

Hi yes I am here ...I have looked at the interims..a mixed bag , on the positive side , the charter rates have gone up considerably since the half year end , so we should be in for a bumper second half year

The really bad news is that the value of the shipping fleet decreased by a huge amount , hence the size of the loss in the consolidated income statement

To answer your question , the capital costs DONT go through profit and loss they go through the Balance Sheet , if over the 6 months period though the value attributed to the size of the fleet falls ( just like if the value of your house falls ) then the reduction in value DOES go through the income statement as a loss on revaluation

Given that shipping charter rates have since increased substantially since the half year end , the value of the fleet should now increase in value , and that increase will show up as profit in the year end consolidated income statement .

I hope that makes sense

Candid

I agree Silver Knight ..but I think a lot will hang on the Emirates decision on what they do , once the leases on our aircraft expire

Agreed Kilman

If you want to know when share buy backs are appropriate and in the shareholders interests , take a look at AA4, Airbus leasing company , majority of their leases expire in 3 years , hence finite income with illiquid asset at termination ,..The board keep making compulsory buy backs at 50% premium to current share price .

In other words AA4 is a shrinking company and its trying to maximise value for its shareholders before company contracts terminate

Of course Emirates need A380's air craft beyond expiry of lease , so any extensions will be a bumper bonus for current shareholders ..this isn't a ramp up for AA4 shares more a demonstration of when share buy backs are a good idea

Spirent on the other hand are a growing company ..they might have to take on debt to grow further, then the folly of the buyback will be exposed .

Good Luck and DYOR..

Members of the board please note

Cash reserves are used to GROW a company at an exponential rate , not SHRINK it !

That is NOT , I repeat NOT in the shareholders interest. Maybe you should step aside .

Sold my holdings .. DYOR

Which word of that's just stupid don't they understand .

They have committed to reduced the equity base by $70 million ( nearly 18 % ) and their cash reserves by the same ( 35 % !!!!!) reducing their share holder base by just 3 %

How on earth can a reckless transaction like that be in the best interests of shareholders for a supposed growth company going forward !!!!!!

Hello all ...I have been following this share for a long time and lost money on it twice ...but steering well clear , despite numerous opportunities to " apparently " get in at a lower entry price.

This share reminds me of Carillon , ( do you remember them ) it continuously flatter only to deceive and in my view is dying slowly, unless the directors make another disastrous decision to try and rectify their earlier one, in which case it will die quickly

1. Too much debt

2. Too much competition

3. Too much share dilution

4. Incompetent management

5. Aimless product direction

DYOR ...

Take your point Mike , but selling your assets does suggest a company which is not only not growing , but is one which is dying slowly ...as revenue falls , the company will die more quickly .

I have already lost 16% on this share , and with each same the share price seems to sink lower

Just an observation

wow...mr o £60k and fairly solvent £50k is horrendous when you think of what else you could have done with that money ..granted it's only a paper loss at present , but holding on isn't a guarantee it wont get worse

wigwammer...you haven't done ..(albeit relatively speaking ), too badly ..

gmhk ..just a word of caution ...chasing your losses is a highly dangerous strategy ..such a thing as spending good money ,trying to correct previous bad decisions ..

if it's any consolation , i lost £20k ish about a year ago , by swallowing the same bull**** as everyone else. by the time i saw for it was , and them for what they are, it was too late . made a great decision in hindsight to cut my losses , ( always difficult to do ) otherwise i would have lost another £20k...

i genuinely thought this was a recovery share ...in fact there are times when i still think it is , but once bitten twice shy i think .

i don't know if this applies to everyone , but there are some shares that i invest in and sell at a loss and repeat the process several times with the same result. .i call them my ' bogey ' shares ..these also include molten ventures , liontrust and direct line...likewise though, i have had some shares where i always seem to time it just right , by buying and selling at the right time , like jupiter , nrr and tesla .. i never ever buy and hold ...if you doubt my wisdom , just look and see how many shares in the ftse 100, have made sizeable gains over the past 5 years . very few...

the ftse 350 is now heavily populated by investment trusts with sophisticated sounding long names, all of whom have lost 50% or greater of their clients money . many of them have holdings in other trusts shares !

it's the names they give to the trusts that amuses or angers me the most ...just one example " keystone positive change investment trust " what the hell is that about ? anyway it's lost 50% of its value in past 3 years like the vast majority of other meaningless named investment trusts ..

i think the ftse is now a spent force as a stock market, and it's far better to look abroad for higher returns ..

as a bench mark , i think that investing in the the msci world index is as good as any investment, certainly over the longer term ..

Sadly, destroying virtually all the wealth of shareholders of good faith , is not a crime providing it's only down to the total incompetence of the board .

Nicnic...that sounds horrendous...doesn't quite fit into the rhetoric this morning where the directors speak about the company's resilience in the face of global headwinds !

If these directors were nurses they would have had their licence to practice removed and face possible criminal charges ..

I am curious to know, how much loss ( in percentage terms ) those who were holding shares on the day before the rights issue actually took place, assuming you didn't take up your rights and received the sales proceeds of your rights, and assuming you haven't bought any more shares since....in other words if you did nothing..how much of your wealth has been wiped out since the rights issue took place..based on today's share price

Also is anyone prepared to be honest enough to say how much money they have lost in total as a result of trusting the directors and investing in this company

I am just curious..

Mike et al My concern is that they are selling off vessels to pay off debt. Can't keep selling the family silver to pay for dividends and bring down debt

The elephant in the room is that when the leases end in 3-4 years time , and if the market for the second hand planes remains illiquid , then the banks will seize the planes to repay their loans leaving no return of capital to shareholders ...or am I missing something

Hi Josey ..if I was you , I would put your money in Jupiter instead

In old money this share price is 15 pence. With a complex slight of hand they got extra cash out of you to arrive at this figure

In new money it's at a new money low

Share fit only for scavengers circling around trying to make a 50% gain on any unexplained or random bounce .