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Plethorus. They will probably do nothing until the full report is disclosed and suspect their opening offer will be much lower. These organisations are not known for their charitable status and will only pay what they need to. It need multiple interested parties to secure any kind of decent price.
FTSEmajor Are you including the £1.6m of intangible assets in your tangible assets because these probably have little realisable value and your price predictions for today are looking as accurate as those you made last week. Ie not remotely accurate.
Not on this scale there wouldn’t be and certainly not involving Board Members. It is shocking corporate governance from individuals who have responsibility for it.
Steeplejack. Agree with you. Without the bid RNS, that devastating declaration of bad governance would probably have taken at least 30% off the share price. Could go either way and fluctuate violently.
At least the bid interest should put a floor under what would otherwise be a hugely damaging (and share price destroying) release on share holdings.
Dana, beware thinking their is a floor. Many years ago I lost more than I could afford buying more and more shares in Marconi, a giant compared to NMC which at its peak was valued at £35bn with £2bn in the bank. It’s collapse was fast and dramatic and is well documented. It was too big to go under and had too many valuable assets and government contracts. All wrong! Any new investor thinking a FTSE company cannot collapse should read this case.
Long term, agree with you on the last point. Fortunately my point of entry was low and I did think that someone else may emerge from the shadows with a higher bid but as time goes by this looks less and less likely. I think what happened at Interserve is a lesson in what happens when a deal is voted down.
That is different as they have liabilities due thereafter and may not have funds to meet them. I am merely giving my perspective on what they will be being told by the Insolvency practitioner they will already have engaged based on 20 years as a CFO and having done pre-pack deals on 3 businesses in all of which shareholders were wiped out. You may take a different view.
I fear a no vote will result in administration within hours, if not immediately. If the Anglo American deal is voted down and the directors have no other deal well advanced and their cash flow forecasts show they can not meet future liabilities as they fall due, they have no option other than to call in an administrator immediately.
Aqua Do not disagree with you at all about Deb or T/C but when that was pointed out, the rampers dismissed you and pointed to the hugely valuable airline, potential bidders and Mike Ashley not writing off his previous investment. There are always big risks where huge price falls are not currently explained by the accounts. At least one of those rampers at T/C and Debenhams is doing the same here.
Very dangerous game. Your decision but there could be something behind the fall that we do not know. Did it myself to a limited extent with FTSE250, Afren and that went badly wrong. There were many doing it on both Debenhams and Thomas Cook because “neither would go under”.
Chilting. That is a very good point about local suppliers. It is highly likely that ordinary creditors will get almost nothing in an administration and it may well push some of them under.
Danny. No they are not and neither are they Interserve, or Carillion or Flybe. However, in each of these people were posting about how there were no similarities and why they would recover, and some of those predicting recovery are on this board. However, whilst no market similarities, there are financial similarities in that they all have massive liabilities and doubts over their ability to meet these.
Long term. If this goes into administration, it is a near 100% certainty that ordinary shareholders will be completely wiped out. Suspect most ordinary creditors will lose most of their debt as well. The administrators work for the benefit of the creditors, not shareholders.
Were you not watching your screen during the financial crash? That was real carnage.
Same as they always do, hide behind the directors letter of representation.
NMH, and why would that necessarily be a plus other than giving us information? The last updates have been disasterous for the share price.
All of your options are based on there being nothing behind the fall. It is conceivable that there is some major issue being investigated. The shear scale of the price drop suggests something is amiss.
Or a major accounting error both of which have occurred in major organisations in the recent past. Given the Board’s RNS following the drop to £10 last week, they have remained very silent on this recent bigger fall.
So says the person who predicted Burford getting back to £12 to £13 next month in a post last August and a couple of months earlier predicted Thomas Cook rising to 16p. Beware anyone making such statement, always do your own research.