Member Info for Franalex

Very grateful I took my long-standing £5 buy order off the table last week when I realised it was impossible to predict a floor. Still think there is an opportunity at some price but no idea where and consequently far too risky.

I think private investors should write to the head of the Remuneration Committee asking what they plan to do about rebasing basic salaries to reflect the massively smaller market cap and shareholder value destruction. It might at least get feelings over as the Institutional Investors just continue to wave through absurd remuneration packages for failure.

Looks totally uninvestable and I would have thought it would benefit from the weaker pound. Currently difficult to see what will stop the fall.

Cut! Why do I not think that Directors salaries will be “re-based” by the same percentage to reflect the much lower size and market cap of the business?

Mean external not thermal advice but it may be hot

Paul,

Sorry but suggest you read up on directors roles and responsibilities They have a fiduciary duty to act in the best interest of shareholders to the point where, based on cash flow projections, there is reason to believe they may not be able to meet liabilities as they fall due. At that point there duty is to act in the best interest of creditors which may be detrimental to shareholders. There is always a grey area when they will act with caution taking e thermal advice. We do not know what their forecasts are showing but it is quite likely that they show a position where they can not meet liabilities. Consequently it is highly likely that banks/bond holders are in control, as was the case with Debenhams,

If you have not seen it, read Mike Ashley’s report in the SD accounts. An absolute classic the like of which I have never seen before. Beginning to wonder if the delay to the accounts was due to lawyers having concerns over what he has committed to print. Accuses MPs of lying, suggests drugs tests for CEO/CFO of listed businesses and lays into the Board of Debenhams and advisors unmercifully.

It was around 2010, they initially bid 130p but reduced to 120p after due diligence. Board rejected the bid and it has never seen those figures since.

I have been a long term holder in this. I believe it is a decent business that has been badly run for about 8 years. It has massively under-performed sector competitors in both quoted and privately owned businesses. I remain in hope that an activist investor may force a major management shake-up rather than tolerating continued value destruction going back to when the Board rejected a bid from Carlyle Group at 120p a share because it failed to reflect the value of the business.

Try telling that to shareholders in Debenhams, Interserve, Carillion Afren and so many others who may have held on for the recovery to take place.

Just impossible to say. I have taken my long-standing £5 buy order off the table as have no idea how to call the bottom of the market or indeed if it can survive as a stand-alone business.

Not sure how they did this as remember saying to a colleague at the time it was the most valued IPO I had seen from some time. I have had a target buy price of £5 for some time and would not take much more bad news to get there but now beginning to wonder that even at this level if I am being seduced by the cars, not the investment.

I am beginning to wonder if this is a longer term issue. My two daughters are in the middle of the ASOS target demographic and 2/3 years ago got almost all of their online clothing purchases from ASOS. There are now so many alternatives that I suspect ASOS get less than a third of what they buy and they tell me that most of their friends have done the same. Perhaps there is a need for some consolidation as there is very little brand loyalty amongst this age group.

Just had a quick look back on posts yesterday. The blind optimism was staggering. Just to pick one, Fastjet saying share is going to blast through 20p, so many saying the same.

And how close to the mid 20s you were predicting a few weeks ago?

If you are going to rubbish comments made by individuals when they give an opposite view to you, which you do, do not be surprised when they say told you so. The experience of 15 years+ as a CFO of large businesses was why I judged that either a rights issue or debt for equity was on the cards. You told me I was behind the times and wrong.

It is just a gamble and whilst some on this board are predicting 1p, others have been predicting totally absurd high prices. As with Debenhams I just hope that some inexperienced investors have not been seduced by some of the nonsense written on here about making money quickly. It is seldom the case with troubled businesses and some of those predicting rocketing prices were doing the same on Debenhams just a few weeks before shareholder wipeout.

You will recall that on 5 July, you said I was behind the times when I predicted a balance sheet re-structure. I replied that time will tell and time had told, perhaps slightly quicker than I thought.. Just hope that dilution impact is not too great on shareholders or that long term there may be upside.

The Board will be taking very expensive advice from a range of external advisors and go against this advice at their personal peril. We also do not have a clue what numbers (cash flow in particular) that they are looking at which will influence how they react and what they can say.

Not defending the Debenhams board at all but we do not know what cashflow information they were looking at and once these show that there is a risk that they are unable to meet liabilities as they fall due, their responsibility is to the creditors not the shareholders. These cash flows will be looking at the next 12 months as a minimum, not just short term. If their had been a case you could be sure Ashley would have pursued it.