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I think there will be a D4E albeit not as much as markets expect! The forward pipeline is very strong and will be even stronger in the next 9 months. Cash creates more cash and sadly a d4e will happen but not on the level people are anticipating. PFC have poorly managed their finances over many years.... Often pricing contracts is challenging for businesses because short minded employees within think only about their bonuses because they take their bonus and move on and bonuses are rarely tied to cash but instead to profit and we all know profit is a matter of opinion, cash is a matter of fact. My guess is internally they are addressing past failures. Being an auditor I've learnt that many companies don't understand pricing in detail or what are the key drivers to modeling those into profit and ultimately cash when taking on big contracts!
zero debt but uncertainty. this is a ****tail for patience. gkp are positioned to be a cash cow! takeover and everything else that comes with it. yes it is frustrating but the lth that can see through this will benefit massively. if and when this is resolved the dividends will kick in and stay in place because i can't see any further use of fcf in this region after this episode. takeover is very much on the cards after that and that will be offered on a very healthy multiplier by any buyer.
It's a recurring theme with Petrofac. I bet insiders are letting out while retail is taking the hit. It must STOP. Wait for it 7am tomorrow morning. I predicted this would happen the last time it happened and hey presto 7am next morning out popped an RNS. The FCA and SFCO simply do not investigate this enough in the UK.
The US once online should drive this up.
Is it being oversold?
This is the problem with this forum people post a lot of sh&t. Talisman has disappeared and was living in his own world! Somehow he thought that the FCA had nothing better to do with their 100 resources but to investigate shorting on Petrofac! Imagine 100 resources at £55k a year £5.5M to investigate market manipulation!!! People like him should be banned from this forum - fictitious investigation that never took place, just in his mind!!
I hope this not true, but i think a dilution is on the cards! Insider trading is where it began and Helicon et al are in the know - it's sad writing this. Shorters knew this months ago yet management never revealed this. Sad times tbh! A company that has already been diluted gets diluted again!
What is becoming more obvious especially with the Schroeder exit is: there is bad news to come. Shorters got sniff of it first that is evident (insider knowledge clearly). Yes the pipeline is strong but over a number of years Petrofac has been poorly managed. The backlog needs to generate cash (not profit). Cash is a matter of fact, profit is an estimate.
I can't see anything other than a dilution. Not necessarily a bad thing in the very long term. Rolls Royce has one very recently and they have managed to turn it around. Petrofacs order book was scr ewed when the bribery allegations took place, the uncertainty this caused was where the problem started