Member Info for jollyspeculator

the cash drain is bleeding em dry, no? ...They need to focus on FCF ...and accept the previous management team made an understandable (given the spike in gold prices) mistake getting into goldie exploration imv

you are clearly better at this than me..so v grateful for your help ...I'd greatly appreciate your input here (for me and others, I guess) if you could set out the 2H performance (incl revs, gross profits, op profits, FCF)... ...I have struggled with this essential research cos the interims were drawn up on one basis and now the finals on another... ...also why the change in handling the figures for the business that temporarily became part of Linx (from the drawing up of interims to finals?)

may well be in debt death spiral atm (opinion only)...some rescheduling...debt for equity deal??

cashflow is negative because so much spend is capitalised... ..the op profit is flattered (imv) by reducing R&D expensed and capitalising it instead... ...perfectly legit...but worrying...esp if shorters sniff this out

spiffing

agreed...they need to bite the proverbial bullet imv

slowly sinking in...endless relief rallies to look forward to ...read the last rns... & pause to think, digest ...ASOS did v v well...a dynamic well positioned company... BUT with mounting competition & management a little behind the curve...AND ridiculous (late 1990s) style multiples ..opinion only, of couse

Go Fyne oil

the CF is poor here...so shorters may take a liking ...I like the prospects

AEY interesting as well?

so in fact they sold a few percent in 2 months...only 3-4 years (or more) for overhang to clear, then?

..

With Ghana "temporarily" whatever it is...but not working properly...my concern is cash: .."The cash position decreased marginally from £634,000 as at 31 December 2013 to £568,000 as at 31 March 2014, however the Company is confident that its cash position has and will continue to improve in Q4 FY2014 as the South African and Ghanaian operations profitability continues to strengthen in line with management's expectations. " ...and that was in a gangbuster quarter.. ...now Ghana is a cash drain perhaps...and Kenya remains one... ....these guys (the management team/bod / whoever) don't seem to be able to generate free cashflow... ....and that can mean a few things ....but most obviously...a placement

I am irritated by the linx deal lol ...look at profits from discontinued ops...what is that? From ops that redt sold to linx, no? and then compare with cash paid in instalments for redt's share of linx...I haven't got the figures to hand...but roughly 1.5-2* growing profits is being paid...I'd have expected 5-7*...and in instalments to boot...so effectively paid out from future cash generated by linx ...or at least, that is what it seems...the details/notes are shoddy ...I therefore have to be conservative...and see the remaining business slowly sharply ...down 10-15% on rev and op profit 1H to 2H ...so run rate EBIT of £0.7-0.8m...valued at low 5* plus cash..perhaps an sp of 14-15p would tempt me

..

shd be looked at by any of the bigger investors here (never me, and certainly not now after by sales)...a decent slice of op profits sold at v v low multiple...is the sales process transparent enough? Are there conflicts of interest?

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The brokers caught up with reality on the way down...the challenge for investors is: has that long process of disappointment played itself out?..and will investors drive the sp higher on expectation of profits/growth from here? ...With a low EV (cos cash is high) and the other 2Ms not in dispute, how severe is the downside? (we probably agree that the downside is not severe) ..So perhaps where we differ is why now for upside (your point about catalyst)? And I agree, it may take time for the market to buy into the improving story 9if that is what it is)...and you may even get the benefit of drift back to 32p while you wait and see

...so is this a decent holding position: 7.5?

the linx sale aint helped...lost plenty of op profit for £270k in instalmants..must do better, BoD