Member Info for joseywales

When it comes to the facts and not the details behind them, I won't dispute. Said all along that this business is suited to a lifestyle business structure. It overstretched with ambitious plans which simply do not work in secondary consumer products. (Different in B2B). This could comfortably be turned to a 100m company generating £5m net over a 18-24 month period. It's could do better on the bottom line with time.

Certainly opportunities in different asset classes they could easily integrate with a partnership for what's collected, thereby minimising cost.

They need to park that trading idea ... it generates no value to the business itself and at best manages to flatter the profit line until you end up the wrong side of the trade and price attrition bites you.

HH2, you can follow the narrative but lack any business acumen in your statements. It's a lot easier to navigate a company out of difficulty when your issues are below the EBITDA line generally. What management failed to do in their presentation was to properly review and discuss what happened below the line.

First you breach covenants before banks/lenders want their money back ... that has simply not happened.

You are exceptional at repeating a narrative my 13 year old son could work out having done his first year of business studies.

If you run through the worst that can happen considering they are operating within covenants:

1. A placing to add cash - not sure how much they could issue without shareholder vote. Cash would only reduce net debt since they are not planning more investment, more setting the business straight.

2. A delisting ... for which they need 75% of votes. Too much is probably in retail hands after Cannacord's exit and some of the larger funds holding won't be allowed to have their money allocated to private investment.

So it's a case of load up and sit tight. I doubt it goes below 7 to buy as too many of us are waiting for that to happen...lets see.

Come on HH2 you can do better than that can't you ... it's like amateur hour. Surely the four horsemen are on the brow of the hill and the plains are on fire?

Yes, once over 1% you have to report any movement whilst the takeover period is in play. The thing is, any play for the business needs Steve Oliver and one or two others involved. It's not entirely a functioning business without them. I very much imagine that was one of the issues BT and Aurelius had.

Agreed Tylo. What's going on now is white noise. A lot of sellers who may have expected better results for a quick win and a few retail shorts. There's probably 20% here to be made in the very short term forgetting any news on the process etc.

I'd let them play Hedge. It must be conceded now that the big 50m valuations and the like are pipe dreams and £17-20m on a debt free basis might be more appropriate.

They are also not that good at what they do really as they have used no terms like share consolidation and dilution yet. Maybe if we can feed tips to them they can use it in their playbook ... they should go take a look at something like the PFC board to learn a little more from the pros!

The way I see it is there will be a loss reported based upon non- cash impairments (including the provision) and maybe some re-structuring one offs. Underlying the loss will be cash generation which if positive would give cause for a minor re-rate. Outlook for 2024 will be the key driver on results and how much they disclose around forecasts and pipeline.

However, if net debt climbs in any kind of substantive way, then we are in for yet another kicking.

I do feel shareholders should be made aware of approaches made to the company ... I imagine the Cosmens hold all those off. Just look at what happened at 888 when they mentioned the offer they batted away.

Well I've added and will buy more on further drops ... hate the spread as only got 20K at 7.59. Robswire and his team can keep plugging away ... borrow some more please!

They’d said net debt was in 13m region so it was clear what was coming if you could be bothered to compare to 2022.

What did you open your short at Robswire?

Hi WT,

Like I said I sold some SYNT late yesterday (50% of what I had) and regretted it when the SP hit 215 this morning. I still think it will pullback. That kind of rapid rise on nothing particularly new will get some short attention as the fanfare quietens. I kind of wish I had the conviction to sell all I have ... but I don't!

VANQ is real short term for me. Looking at the trading its being sold off by someone so hopefully an RNS in coming days will confirm that. Doubt it will get to £1 like some hope, but 70-80p seems a realistic expectation.

I still have a chunk in FCH (again 50% of what I held into results)...that buyback can only drive the price higher and that's before any announcement on value around the US business.

Added yet more to MCG holding today .... so expect that one to drop from 71p to 65 tomorrow!! Maybe I should have gone your way and bought 888.

There is a legal way to manage it. Frankly I think it's stupid play to bring the product back here. They should just create the model which allows them to push the product back into the ITAD traders/Asia brokers etc.

Nice to see some retail short action. Plan to top up if they can get it sub 8. Also plays nicely into the MBO narrative ... only a week or so for those trailing averages to plummet.

Well just look at PCS Wireless, phoenix and the activity of umpteen others. Lots of post auction gam comes in from USA.

Surprised your not aware of that.

I've added here the last two days. Having seen what SYNT just did on what I considered to be 'expected' news, I think MCG could do the same and even better if they show progress on the US side. The downside could be in the 50s but the upside could be a quick shift to the 120s.

My only frustration is this management team would lose races with sloths.

I think you've hit the nail on the head ViciousHippo. If you can't see growth but net debt increases ... that cash is just funding status quo revenues and ergo, margin improvement is a wash with cash costs. They need to work out a solution for both profitability and cash generation which is not simply absorbed to keep the business in 'stasis'.

Nothing worse than expected. Cash is king and all that though. £6m more debt against which incremental revenue needs to be attributed … or it’s the bad kind of debt that becomes a black hole. Personally I think they will get the ship pointing in the right direction again.

Hopefully we will hear about the process by Easter.

I've sold some. Will take the chance that this is sustained but just seems too extreme on 1m shares or so traded. Betting on that pullback happening in a week or sooner.

A delist needs 75% shareholder approval. Doubt they could get that. MBO/Equity house lead exit is the real option. Trailing averages will be in their favour imminently for that to become quite a nice solution for them.

Yes, I agree with you GMHK but I'd be more than happy if this got to the 250-300 in coming months. But then I'm also one of those that got out of RR. too early!

It's a very pleasant surprise that's for sure. Hope it is sustainable and we see continued traction over coming weeks/months.

WT - you looked at VANQ ... stayed away from it yesterday but just bought in having read the RNS umpteen times. Seems like another market over-reaction. Certainly not a keeper but an interesting punt.