Member Info for Flanks

It has certainly calmed the market somewhat.

Current climate of debt ceiling reached, reduced testing expectations and need for debt waivers. Scenario 1. They manage to gain waivers and achieve 2.5 mil profit. This would exceed current market expectation. If target P/E ratio is around 12, then market cap of 30mil would see a modest price bounce to 17-18pence per share. Scenario 2. Best case scenario from most recent statement, waivers and 1 - 1.5 mil profit. Target P/E of 12, market cap range of 12 to 18mil, would mean share price range of 8p-12p per share. So a moderate to heavy decline from even these ranges. Scenario 3. 1-1.5mil profit, but no waivers. At this point going concern status would be questioned and administration or at least suspension of shares from trading. Either way, the chances of current share holders retaining any value at all starts to completely disappear.

No point in bidding for the name unless it is detached from debt and possible pension liabilities etc. Hence the need for prepack administration so that a buyer can save some jobs at least. Clearly something is going bad, another month before trading statement is due, will the company survive that long?

Not worth any punt unless they can avoid administration.

I can see Prepack administration saving the name, writing off all share holder value. This is the most likely outcome in my opinion, because I simply can't see the market being willing to finance a bail out. There is a profitable company somewhere here, but would require the administration to detach it from the rest!

I would expect a statement on waivers before results. The long silence after declaring borrowing was going to hit the limit is causing a lot of harm. I don't see equity raising as viable, market has already been stung by that one!

My pleasure :) it is also the source of the infamous '1 code' which so many like to conspiracy theorise over.

Yes you are. It is not a 61 share trade, it is part of another trade which required more than one market maker to complete. For example if the trade was for 1061 shares: one market Maker at the best price had 1000 shares available, therefore the remaining 61 were completed at a different price from another maker.

Yup, completely wrong by me. That is a good set of results, far better than expected.

Sell on news, full results due tomorrow.

In current climate, I would translate any large buy as a closing short position. When a company says it is nearly out of cash and needs creditors to give waivers, people don't habitually load up!

Is really wide, normally suggests a large trade being processed through. If so, which institution is selling this time?

To full year results.

Even if they gain a waiver on borrowing. Even if they come in at 1m profit. I don't see how the company would retain a market capitalisation of even �30m. P/E of 30 with no scope for borrowing and declining sales means that almost whatever the results price has a lot further to fall. Only way out is if underlying sales are seen to be rising in next results, alongside some waivers on debts. I doubt market will allow another fund raising after the last one, institutions won't come in for such a small market cap. Only fund raise will be a death spiral style. Best case scenario now is a buy out, probably at a discount or nominal value due to debt and pension deficit, which will at least preserve jobs but not shareholder value.

I was half expecting a dead cat bounce today.

Sorry, forgot the sarcasm tag.

There you go, quality RNS that! Short version: We expect to reach the limit of our borrowing and hopefully our income will be close enough to expectations that we won't go bust this quarter. Jesus, they won't be able to afford anyone to actually turn the lights off at this rate.

Legal and general got out. Someone else will have to turn off the lights.

I meant no special dividend, teach me to type before 9am ><

It isn't rocket science. Price this week has risen sharply anticipating a stronger set of results. However, bookings to Spain are under pressure, which is the main holiday destination, margins are squeezed, and no return to dividend. These were all expected by a majority of analysts, so this is simply a correction to the previous trend, not in and of itself a negative reaction to the results. In other words, so far this week some people have speculated on a better than expected set of results pushing up the price. However, the results were as expected so the price is correcting to the previous trend.