Member Info for Franalex

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.

Cool kid. Have a read of the Patisserie Valerie report and accounts issued before its collapse. Even more positive than this. Increased cash, EBITDA increased, dividend up 20% etc. Fact is that if there is something untoward, the accounts mean nothing. More recently, Ted Baker tanked on overstatement of stock. Treat all headline statements with caution, key is cash generation from trading.

Hope this is more accurate than your “should close above £11 today” posted yesterday!

Not saying you are wrong in this case, but shorters do not always get it right. Billions have been lost shorting Tesla. I can see why they did it but to quote a financial guru “markets can generally stay irrational longer than you can stay solvent”.

It is nothing out of the ordinary for this share which is very volatile. For anyone thinking of investing I suggest they look at the share price chart over the last decade.

Yes, just need to dump UK listing which will be costing at least a couple of million pounds a year which would substantially improve the bottom line and cash-flow.

I think it is highly likely that blocking the deal will mean zero return, but those doing this will be responsible for this 5.5p loss. However, IIs do not usually vote emotionally, unlike private investors, and will probably have enough voting power to see it through.

Pop pop

AA has always been very volatile, only a few years ago (I think 2015) I bought some at under £5 and thought I was wise selling at about £9, should have hung on but just shows how sentiments change in this sector.

15lives
Administration is an insolvency event, but is different to a liquidation. The administrator is appointed by the court and operates to strict rules to look after the interests of creditors. Shareholders only receive a distribution once all other creditors are paid in full and the administrators fees, which in this case will be several hundreds of thousands are paid first. In addition most contracts with the business will have an insolvency clause which allows them to terminate the contract if they wish, and administration is an insolvency event. I have bought several businesses out of insolvency and in every case there has been a shortfall to ordinary creditors who receive a few pence in the pound, and nothing for the shareholders. In theory shareholders can get something but in practice it is very rare.

15lives. Suggest you read up on insolvency (administration is an insolvency event) and distribution priority. Shareholders are at the end of the queue. It is almost certain they will get nothing if Siri go into administration, they act for the creditors not shareholders.