RE: The error of selling in desperation27 May 2022 19:29
"Under AIM rules if the shares were so diluted as you / Devon say, this would also apply to Phoenix's holding"
As the expert in the AIM rules, I wonder if you could provide a link to the rule that stops a defaulting company Directors coming to agreement with it's Creditors and stops those Creditors form converting their debt to equity in a New Co. As you know, or should, in a default positions the Directors of a Company have to act in the interest of it's Creditors, not it's shareholders. The Companies act, it takes seniority over any listing rules. As SGI made clear in it's Interim Report:
"In view of all of the above, the Directors believe there is a material uncertainty relating to the Group's position as a going concern. " BUT:
"they continue to adopt the going concern basis in the preparation of the accounts." with the support of their main creditor.
As Carp has pointed out, if Phoenix want out, they can easily force a transfer from shareholders, and take complete control through their debt instrument.
" the company trading in the black again? " the company isn't in the black, as they make clear in the same Interim Report, they are in DEFAULT and "the Directors believe there is a material uncertainty relating to the Group's position as a going concern. "
"I expect both to pick up as interest grows in the company. The ten year graph indicates that when the turnaround starts happening here it could be very sudden. Just look at the ten year graph if you don't believe me. I suppose the first thing will be the emergence of some big buyers.........how far away can that be?" As you've said over and over again...and the equity just goes down in value. You said the same last year...and you are just down another 50% a year later. The 10 year chart, give it a rest...LOL...it's a desperate approach to valuing a company.
The company may recover, but as Carp says, it might find it impossible to trade out of it's present dire situation. There remains a significant risk that Phoenix could thrown in the towel and in one way or another wipe out exiting shareholders, but retain full value of the company. if you doubt me, see what the Directors say "there is a material uncertainty relating to the Group's position as a going concern."
There's no guarantee that debt payments don't swallow up any improvement, the debt that appear to be growing at 5% per year, and never falls into earnings. All the above means the shares is uninvestable ..in my opinion only the goodwill have any value, and that's probably only worth a couple of million, a generous 0.5 per share.
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