Member Info for Franalex

Probably confirms that, in line with a lot of research, most acquisitions do not add value.

Yes put it with my other delisted stock which has been there for 10 years. No dividends and pretty well no information other than the published accounts, if either produce any value it will be like winning on the lottery. Suspect all those on this site who seemed to be looking forward to the delisting will realise that the grass is not greener.

Deos, yes just staggering that a business that went through the diligence required for an IPO, got into the FTSE100 on the back of huge demand for shares which rocketed, had almost no corporate governance. I think I recall the fraud being c7bn. It was only covid that kept what should have been a major story off the front pages. Fortunately my losses were painful but nothing like yours.

Sadly yes. It was FTSE100 quoted NMC a couple of years ago. Share price plunged then occasional recoveries as people bought or averaged down, until eventually suspended, I think at C£6.

Problem is the price they could get the rights issue away at. It would have to be heavily discounted and suspect it would be around £5. The position of the on-line only retailers is looking precarious at present with significant increases in wage and delivery costs plus people cutting discretionary spend. Was not surprised to see the comment about returns as my daughters and their friends return at least 80% of what they order, nothing to do with the economy and everything to do with using it as a changing room facility without the inconvenience and cost of going to the local town, 10 miles away.

Adamsk, The comparison rely questions the validity of the recommendation. Same company making the recommendation therefore perfectly reasonable comparison, why have they got it right on this just because it suits your view. Not so many years ago Barclays had a 12000 target price on ASOS.

Adamsk, from what perspective? They kept giving buy recommendations and identifying significant upside potential on Thomas Cook.

Poker chips, that “few years” is now actually 18. Similar with Renewi (former Shanks), turned down bid from Carlyle in 2009 because it undervalued the business at a price it has never seen since, currently at about 50% of the bid even after a recent recovery.

Fortunately I stopped averaging down at 3500 otherwise my quite considerable losses would be huge.

Roharps. People were saying that when it fell below 4000. This has been falling knife territory for a long time now. Difficult to see what will change the direction. My daughters and their friends continue to order a lot and return over 80%. Is the business model sustainable?

“Following the FTSE100” - I wish.

All of those you mentioned looked grossly overpriced at IPO. Based on the figures available, I put £2.00 as the fair value of THG and unfortunately bought at that level.

Revenue is vanity, profit is sanity cash is reality. How is it doing on these last two more important measures? It may have revenue but unless it can convert that into cash generation the share price will go nowhere. With distribution and wage costs increasing plus a squeeze on spending, when will it do that?

Struggle to see why there would be a spike. I would have thought more likely to see people selling rather than being left with shares with no market place to sell, no dividends and very little information required to be produced for a private company. I am only hanging on because not worth selling at current price. Institutions may be forced sellers if they are not allowed to hold unquoted equities.

All I can tell you is another holding I have, delisted about 10 years ago. I have the same number of shares in a private company. Unfortunately since that time the is no market to sell the shares and they have paid no dividends. There is no price available. My only chance of being able to realise any value is either a takeover, or re-listing on an exchange. I have no knowledge about the likelihood of either and published information is much less.

Difficult to see a positive outcome. If it delists we will be left with shares with no market, potentially for many years, if vote is against delisting then high risk of administration and complete wipe out for shareholders. With current price so low just hanging on in case something I can not foresee happens but mentally have written off the value.

Delisting is not good news. I have some in my pension plan that were delisted almost 10 years ago. Since then there is no vehicle to sell and they have paid no dividends. They pretty well have zero value and will remain that way unless the business is sold and a price is put on them.

Some of the comments on the Board remind me of the Monty Python, Dead Parrot sketch. The business that was listed is no more. The administrators are now following a prescribed process under which they will identify and quantify all creditors of the business and their priority of claim against the proceeds of the sale of the businesses assets. Only when they are all paid in full will shareholders get anything. Since it is normal for there to be a significant shortfall for even ordinary creditors, existing holders can assume that the PLC is pushing up daisies.

Share hopes, the shops will probably continue, The Isaa brothers may well buy it from the Administrator but until all creditors are paid in full the shareholders get nothing and as ordinary creditors are unlikely to recover their debts in full the chance of shareholders getting anything is pretty well zero. Anybody who thinks otherwise is very likely to be extremely disappointed.

Shareholders hoping for any kind of return are clutching at the same straws that the shareholders of NMC, Thomas Cook and Debenhams were, to name just 3. People posted expectations that as the brands continued having been brought from the administrators then the shareholders might get something. They didn’t.