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Couldn’t find this channel but I hardly
Use Discord. You can contact me on kevin@nonstopgroup.co.uk. To add my name / shares.
Cheers
Wolf - I am afraid that i disagree. I am not a serious investor however I am a business man. Shareholders are owners that appoint a board of directors. The idea a board of directors with a shareholding manage to negotiate a deal where they retain their shareholding yet eliminate all other shareholders isn’t in the keeping with their role- or the law. The question here really is this - Is there a legal case to be brought here or not. It’s not for a message board rant or aggression or superior knowledge. It’s simply a question for lawyers. Is there a case. Yes or no. No stress no frustrations. No name callings. Just ask the lawyers. I feel there is the possibility of a case. It is probably Les than 50 percent. But it’s worth asking. I would also like to point out that silencing shareholders is a huge huge benefit for Mooky and creditors…. Therefore we can sadly imagine that people detracting from taking legal advice are not what they seem. No one should ever deter someone from taking legal advice. Ever
Quiggers that’s a fair point. It’s questionable if they acted
In the best interest of the shareholders, also I would imagine they have duties to the shareholders and creditors during an insolvency too. But I take the point. Personally it’s worth asking a lawyer to see if there is a case to be made - and see what happens. But obviously everyone that invested here should have been aware of the risks so none of us can cry about it if it comes to nothing :)
Yes he is a crook. I also think that they have been attempting to scare the shareholders to reduce the price. But let’s see what the lawyers say.
The board of directors selling a business and being given shares in the business and cutting out the existing owners - does seem quite scandalous ??????.
Let’s see what the lawyers say. If there is a case I am sure they will jump on it and rally the shareholders. That’s how they get paid after all. Frankly I don’t care about the money but there is a principal at stake here
Thanks Patience.
Dreaming or not dreaming. I have always seen Cine as being a high risk investment , I don’t really care about the loss. However it seems borderline criminal that the BoD can retain shareholding in NewCo in a deal that cuts out the other shareholders. I agree it’s highly unlikely that there will be much recourse. However that’s something to discuss with a Lawyer. Not on this board.
It does seem that a lawyer specialising in these cases would be interested , potentially raising media attention would be useful. Regards fees for lawyers if there is a strong enough case I am sure they would be able to get sufficient fees from
The shareholders as a group.
It’s worth asking the lawyers you mentioned. It costs nothing to ask.
An emergency injunction to stop any transaction happening pending a court hearing would make sense
I agree. If the board of directors agree to eliminate the shareholders and then get shares this simply is collusion - the directors job is to represent the shareholders and they are legally required to do so. Selling the business and getting shares in NewCo and eliminating the shareholders probably is against UK law and this is a UK company
Thanks Stanley. Presumably the shareholders could remove the BofD in a vote and then put a negotiator in place to secure the shareholders some percentage in NewCo or something for their shares. But as it is the BofD are in cahoots with the lenders to wipe out the shareholders presumably with a backfire deal for Mooky. The issue seems to be that the shareholders are completely uncoordinated and have no representation? Even with the AA there was some payout
Thanks. I understand the concept of a limited liability company as I own one , if there are debts against the company I own , then I walk away without any responsibilities if it fails - unless I have debts and in those debts there are clauses which mean I personally underwrite those debts then there is no comeback. I presume that the debts in a PLC can’t have those clauses against the shareholders so they instead have a clause for a debt for equity swap thus the current situation.
Ok. Interesting. And they go to a Texas court for a UK owned company ? I guess it’s how the loans were agreed with that as a clause. Anyway let’s see what happens
Thanks for the reply
If the shareholders own the company - then surely the majority of shareholders must agree any form of debt for equity deal - given that it is said that this will wipe out all the shareholders I am a bit confused. Who decides this deal - how come it seems
The company carries on anyway without any shareholder vote and how does Mooky stay on as CEO.
A share for equity deal paying the shareholder a nominal value could be voted on and agreed but the concept that you can have the owners of the business just removed without them agreeing it seems
A bit odd to me. Sorry for my naivety and please go light on the scathing remarks
Some points about dividends - they are not paid out as a percentage of the share value as some indicate - especially as it’s so volatile - I think they will be paid out in accordance with a prudent percentage of profits that are surplus. Therefore the question is about what that number could be.
Secondly there is no doubt that the share price will spike again if capita continue down this course.
I think here as the share is so so undervalued a reasonable dividend will dictate the price of this volatile share , not the share price will dictate the dividend.
So the recent rise and then collapse of the share price is interesting. This stock is if we consider normal metrics very undervalued but it has a stigma and it should have shot to 50 p but didn’t. But this is fascinating. This company is being managed in a way to get it debt free. After that milestone it can only pay out dividends. This is good business. Only pay out when you don’t pay interest. I own a reasonable side business and I would do the same with capita , So here is the thing. When they pay dividends the stigma is replaced by greed. If they pay a 10 pence dividend the price will rocket. A 1 pence dividend it will slump. What’s your take on the dividend that is inevitably coming and the influence on share price. ???
For me the big test is going to be the 50 - 55 p barrier. But this stock has been heavily shorted, and the business seemed to be selling lots of divisions with no real reduction in net debt , the city was tired of the never ending stories of a
Turn around. But the turn around has come
Good the debt is practically negligible and the vital signs are strong. The only barrier I can see
Is the shortest wreaking havoc with the stock, but I think it has to be worth 1.50 if the turn around continues but I can see it crashing at 55 p again. When dividends get paid out and the pre ifrs debt is 0 then I think it can’t be held below that level. 1.50 is a fair price for this business on the open market.
Sure that it will still be volatile but I think they have done a good job in the turnaround and that holding back dividends until they are really in a debt free
Position is just good management so in the longer term is a good sign. My 4mn shares finally broke into a profit after a very long time. Think it’s time for a beer ??
It seems to me that as the post below indicates the pre ifrs debt is now below 100 mn. That the valuation / share price of this business is very low. We all know that certainly in the short term the market doesn’t respond to real value, but I think in the mid term we will see 50 p and in the longer term 1 pound. I have been holding a lot of shares in Capita for years, so the wait is frustrating but I think it’s slowly coming good, and there will be excellent returns. Eventually
Revenue - Costs = profit Therefore high revenue means nothing.
Revenue for vanity. Profit for sanity.
Issue is trying to unpick the accounts of CPI to get to the real numbers is virtually impossible.
This is replying to the large revenue = large profit comment
I got a buy order in at 2 p ??????. Frankly it’s all a game for me so why not.