Member Info for JamesOxford

CEO and BODs of Wood Group advise all Wood Group shareholders to 'hold'. There is a reason for this.

Meanwhile, shorts think Wood Group will refuse offer, as Sidara expected to offer less than before. Therefore, shorts think deal is 50-50 at best, and if offer is refused, then Wood Group's share price will nose-dive. Shorts always need to bet on the pessimistic side. Shorts can never be optimistic. Period.

However, shorts are now aware of the most up-to-date recent events, which show that:

John Mirshekari - who is the Founder and Managing Partner of M Partners Capital LLC - has on behalf of M Parters Capital LLC invested and now owns 3.21% of Wood Group as of Friday 28 February.

John Mirshekari was Portfolio Manager at Fidelity Group for over 19 years (until quite recently).

Fidelity Group currently owns over 10% of Wood Group.

Connect the dots, follow the money.

IMO of course.

Talks between Sidara and Wood Group continued yesterday (Saturday).

A few hurdles remain.

From the Sidara side, Wood Group would be an asset to their porfolio of companies. However, Wood Group is not the same company it was first time round with clear challenges and headwinds ahead. Sidara now fully aware of these and potential affects contained therein. If Sidara cannot buy Wood Group for a realistic commercial price, they will walk.

From the Wood Group side:

Substantial engagement with shareholders currently in play.

Wood Group's institutional investors have a clear appetite for a deal, however, price needs to be acceptable to all institutional shareholders.

If deal not made, Wood Group faces considerable headwinds. EG. Needs to sell assets in 2025 circa USD150-200 million to offset negative free cash outflow in 2025 and maintain debt circa 2024 levels; Refinance of debt; Deloittes review not finalised. Cost savings needed; Employee morale down due to cancelled bonuses etc.

Institutional Investors blind-sided and annoyed with Wood Group recent financial update - especially on negative cash flow update.

As a comparison, now vs last time Saidara walked away with £2.30 on table in 2024:

Published by Wood Group on 5 August 2024: 'The Board remains confident in Wood's strategic direction and fundamental prospects. As set out in the HY24 trading update on 11 July, the growth strategy continues to deliver, with further growth in EBITDA, margins and order book in the first half. As we look ahead, we remain focused on delivering our potential, including generating significant free cash flow next year. We are pleased to reconfirm our outlooks for both this year and 2025.'

Of special note (from above paragraph): '...including generating significant free cash flow next year.'

To say institutional investors are 'annoyed' at Wood Group CEO and BODs on recent update vs 5 August 2024 is an understatement to say the least.

Overall, probability of deal currently hovers at 60-40 in favour.

Expect Wood Group share price to climb AM Monday.

All IMO, of course.

@Bigw77. The sad reality is that the CEO and BOD are out of their depth in terms of management of Wood Group. The appointment of the CEO was bad, very bad. The CEO is a simple case of deer in headlights. It will not improve if the Sidara deal is not made.

@Shewillkillme Agreed. Not only off-topic, but irrelevant and dumb. You must be an ex-employee of Tesla or a Musk hater. Take your pick. Either way, you ought to stand on a soapbox outside the Houses of Parliment with a megaphone and make your 'political speeches' there. Enough said.

As I mentioned on 26 February (below). Nothing has changed since then to now:

'No other parties have expressed interest up to now.

It would have to be a very confident party who would step up to the plate now. If there were such a party, they would probably wait until Sidara had finished their due diligence and negotiations, then step in.

Better to remain grounded in reality, not fantasy.

Sidara is Wood Group's natural buyer. Sidara knows it. Wood Group knows it. Institutional Investors know it. Sharks (Wood Group's lenders) know it. Everyone knows it... except maybe a few private investors. Lol'

Will look at this discussion board later today. In the meantime…

If you want a punt, best to do it before markets close this afternoon Friday in order to cover all bases.

IMO

@IceCool '🥕🥕 You’re truly clueless! You shouldn’t be anywhere near the London Stock Exchange. I wouldn’t even trust you to handle the 2p coin pushers at the arcade.'

That's a bit harsh IceCool. Personally I think Carrot is better than that. I would trust Carrot to run the £1 coin machine at his local laundromat. All that washing, all those powder cubes... Yes Carrot can do that...rince, repeat, rince, repeat.

As previously mentioned the institutional investors have 'suggested' the appointment of the external interim CFO (aka their man)...as a result:

Talks between Sidara and Wood Group have moved on to the 'constructive stage' far sooner than expected.

The interim CFO is pretty much in charge of the show from the Wood Group side and has the full support of institutional investors. The CFO is a safe pair of hands, highly experienced, and keeps a level head under pressure.

Goldman Sachs have moved into the ball park - invested and ready to play.

Shorts are worried. Quite rightly so.

A few hurdles to overcome, not too serious,. Time frame to close deal still within 14 days from first announcement.

Still no other interest from other parties in Wood Group at this stage.

Probability to close the deal now 65-35 in favour.

As predicted very early on, Wood Group share price to continue to hover at 40p and pause for thought. Will most likely only break out upon confirmation of RNS. At that point it may be too late for retail investors to invest and ride the wave.

If you fancy a 'punt' - now is the time to enter. Break out could come sooner than most think. You snooze you lose.

All IMO of course. Lol!

Did I read that right, one of the shorts is called ‘Teachers Retirement Systems Texas’?! What the…!

@IceCool You still don't get my sense of humour? JO is surprised. Lol

Further to my post just after 2pm today...

I topped up at .3345p at 2.15pm today.

Given the current situation, it was far too low to ignore. JO is never one to dismiss a bargain! Lol

External interim CFO appointed. CEO and BOD advise hold.

Market thinks no deal so share price down.

Quite tempted to add a few more at this level…

Hmmm… who first attacked who? Who misread, misinterpreted and misquoted and then came to their own conclusions…and then tried to gaslight the original poster? Then try to throw another stick! You couldn’t make it up! Hmmm… indeed. Lol

@Hmmm… Throw your sticks as much as you like…,but please do not try put your words in my mouth, and then try to gaslight me!

You obviously do not understand how institutional investors think and in which circumstances they act. Do you really think institution investors do not occasionally ‘step in’ with a suggestion or two when the need arises. For example, to suggest an appoint an external CFO as an interim measure?

I find you rude and frankly foolish.

Like I said maybe you ought to take up golf. You may pick up a trick or two.

Until then, take your own advice - and do not engage with me again.

@Sarkus All par for the course. No need for concern.

@Hmmmm… Back again? You made it clear you would not engage with me further. Ho hum… or should I I say Hmmm… Lol

You are trying to put words in my mouth.

I never said ‘rapid exit of institutional shareholders’. You did.

In your typical style you mis-interpret and ms-understand and then create your own conclusions.

You are obviously incapable of connecting the dots.

Never mind…I think you should filter me instead.

Oh I forgot… IMO Lol

Ask yourself how much confidence do institutional investors have in the CEO and BODs of Wood Group (prior to the interim CFO appointment)…?

The answer obvious - the rapid exit immediately after the RNS financials on 14 February.

Hence the external appointment of the interim CFO who is well connected and highly professional. Despite the market reaction (market thinks a deal is less likely) Wood Group is in a far stronger position now due to this appointment,

In terms of a deal….’it ain’t over till the fat lady sings’

This is why I remain invested.

@Hmmm…. Thanks for the feedback I think! Lol

I agree no need to engage. Better that you filter me. It means every time I post, you won’t have to read it and think to yourself ‘Hmmmm…’. Lol

BTW if you took offence at my above remark, I suppose you don’t understand my sense of humour as yet.

The fact is certain institutional investors want an interim CFO with experience in key areas - a safe pair of hands etc . Hence the appointment. Typically interim CFOs are appointed internally, i.e. within the company as an interim measure. External interim CFOs are rarely appointed and do not pop up out of thin air. Connect the dots…

At the end of the day, the CFO is an excellent appointment and will serve the board of Wood Group and institutional investors very well. That is what is imperative during negotiations, as well as imminent headwinds - pending Deloitte review, current cash flow and debt issues, and with a view towards the future.

You ought to take up golf. Lol

IMO

Hmmm... Correct. No games played.

Day traders on way out yesterday and today on RNS on interim CFO appointment. Shorts happier today than they were yesterday. May change on a dime.

Wood Group is a fun stock to hold. Off to meetings now for rest of day.

GLA

@acotyyyyy 'Obviously Sidara's offer is not yet acceptable at this time, hence the message in the RNS about refinance etc. In other words it's business as usual at Wood Group.'

Just to add, Wood Group have sent this message above not only to the markets, but to Sidara themselves. Next move is up to Sidara.

@Hmmm... Look at the interim's CFO credentials and experience. It's obvious. No Oil and Gas experience. What sector does he specialise in? Connect the dots.

All IMO of course...should have said that last time! All my opinions are IMO. Lol