The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
The issue is the lead times for fulfilling contracts. Other issue is BT is offering this solution already.
I think the valuations are possibly about right if not on the low end. Petrofac need to secure new business and return to profit. Which sure enough with time will happen. When we go back to when the SP started its dive the SFO investigation triggered much of fall. That has now gone away and with the ability to pick up new contract the SP will go beyond these valuations.
Why do they need to raise capital - i would get it if the fine was £400M this is peanuts. City banks will make a facility available and repayment over 10 years. Debt is cheap and that is the way this will fizzle out.
Lufkin was a 'backbone'....after he got huge bonuses for dodgy dealings. Agree that Petrofac had internal control issues to have not questioned these transactions. That said in the Corp world when Senior Management tell you to do things you do it.... I cannot see Lufkin alone was rogue and former Senior Management were well aware i should imagine.
https://www.thelawpages.com/court-hearings-lists/Southwark-Crown-Court.php
Buyout looms for Cineworld. As cash burn sets in and recovery take its toll. I can see this being acquired at £1.50. Still a profitable business in the long term - but being cash strapped and creditors looming will force BoD to taken an offer.
This SP is temporary. The fundamentals at RR are market drive - which cannot last forever. There are people manipulating the market to drop SP and re-buy. I can't see how this is not at least 200p buy end of they year. They are also restructuring the business internally and have undergone/ seen many downturns.