Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
the strings attached to aid (carbon emissions, halt on dividends, exec pay, equity issued to state) that the company will want to avoid if possible. If they need aid - and get it - then it means they're in even bigger trouble and the sp will, at that point, be a fraction of 200p
spbhoy - you asked where I got the $1 BILLION per month cash burn figure - well it's in the first quarter results RNS. I quote -
"We estimate our liquidity requirements, which include our ongoing ship and administrative operating costs, cash refunds of customer deposits, debt maturities and interest, expected capital improvements, and new ship growth capital not addressed by committed export credit facilities, to be approximately, on average, $1.0 billion per month."
I don't make this stuff up. It's there in black and white if you read the RNS carefully.
A lot of fantasists and thickos on here. Carnival is in trouble. That trouble worsens by the day, every day, until the virus is overcome. Carnival themselves state in their results that they have no clue what the future holds because they have never faced such a situation where their entire fleet is grounded indefinitely.
In ordinary times this is a great business, throwing off a ton of cash. But we're not in ordinary times. They've taken on a shed load of high risk debt which may or may not give them breathing space to survive. The bondholders may end up owning the ships and the shareholders owning eff all this time next year. Equally this could be worth $20 a share if at least some cruises are up an running in the next 6 months.
As it stands today - with the fleet grounded indefinitely - this is a punt not an investment. That's a FACT. Not my fault if you're too stupid to work it out.
I'm a buyer, but not at this level. If it gets a lot cheaper then I'm in for a gamble. Better still, if there is some visibility on when the ships will sail, I'm in as an investment. I don't mind paying a premium to current sp if I'm making an investment based on FACTS as to when their business will be back in business.
yanks rioting and shooting each other - and someone recommends that post.
what a load of balls
had a nibble at these levels. still above 52 week lows but banks and market took a beating again this week. betting on a reversal next week. wont be hanging about if this gets back to a quid.
gla
i'm in just under 28 for the ride back up to low 30's.
GLA
but customers wont defer the credits forever. at some point if they don't sail they'll need to refund. the airlines are now being mandated to return cash not credits to passengers in the us.
directors are usually forced to buy in to placings to give the placing credibility. while the amount is impressive, i'd be willing to bet it's a fraction of said directors net worth.
I was genuinely shocked at the cash burn and the amount of money they're holding in deposits for cruises not taken. on top of the cash burn, you can see why the money was raised at such an eye watering rate and has junk status.
Yikes. Reads like a Stephen King horror story. Burning through at least 1 billion a month. Probably enough to see them though this year, but that's only if they don't have to repay customer deposits. They're holding 4.7 billion in deposits. If they don't get cruising soon and folk start asking for their money back, then it's game over.
Not sure this is more than a penny stock gamble until free movement recommences. If/when they start sailing, then this becomes and investment and not a gamble. Until then its a gamble/trade betting the cash will last longer than the lockdown.
hopefully that turd fraser will follow. he's lucky uk is on shutdown. indoors or oz is probably his best bet long term for his health
Clinging on to 200p at the end of the week. Next week starts the leg down.
A load of health care speculation and balls talked on here today. Hopefully we'll get back to investment chat next week. 62.5M shares will be issued on Monday/ I expect another dip below $8, then a gradual rise above ten in the months to come, at which point some convertible holders will offload for a quick 15% profit either by converting or opening short positions
225M shares changed hands today (so far) and only 680M in issue (pending dilution). Extraordinary volume.
triumph you plank the clue is in the name - convertibles. the debt can convert into equity at the option of the holder at a price of $10 per share. the convertibles can only be redeemed in 2023 so if the share price is above $10 between now and then the convertible bondholders can cash in their bond for equity and are guaranteed to make the margin between sp and $10 no risk. there is 2 billion in convertible bonds. that's 200m shares.
so you should stop misleading pal. or maybe you are a bit thick and just don't understand.
typically when there's a large amount of convertible bonds the bond holders will also short the sh@t out of the share as a hedge. so expect to see the short position in this stock go up.
not scaremongering, facts.
Sounds very expensive - no cap on salary. Unions got the best of management on that deal
Danny, even without a drop due to stoppage, there would be a massive drop due to dilution. They are issuing hundreds of millions of new shares. You do understand the effect of issuing new equity and convertible bonds?
Traderguru, you're not much of a guru. Your numbers do not take account of the 40-50% dilution that's coming with new equity and convertibles.
this will probably be propped up above $8 to make sure the placing gets away next Monday. Then I expect it will dip below $8 by 10-20%. So low 600's or high 5's in pence is probably a good entry
Fraser - yorks will never forget...……..Turd
load of balls shrewd chump
this is still above 200p. just a matter of time before it drops like its peers across the globe. IAG are well capitalized to survive but how much capital they'll burn through before free movement resumes in any meaningful/profitable volume, its anybody's guess, but it wont be anytime soon.
Carnival pays high price for $6.25bn rescue fundraising
Thu, 2nd Apr 2020 09:05
(Sharecast News) - Carnival has raised $6.25bn (£5bn) to stay afloat during the coronavirus crisis but the world's largest cruise operator is paying a high price for the funds.
The FTSE 100 company is borrowing $4bn from investors paying 11.5% interest a year. The amount of the bond offering was increased from $3bn due to high demand despite doubts about the future of cruise holidays. Carnival had to use its ships as collateral to attract investors to the bond sale.
Carnival also issued $1.75bn of convertible notes at 5.75% interest a year and raise $500m in equity at $8 a share, reduced from an earlier target of $1.25bn. Buyers of Carnival's bonds, due in 2023, were largely investors in junk-grade debt, Reuters reported.
The company's shares fell 7% to 724.92p at 09:48 BST. The shares were priced at more than £36 at the start of 2020.
Carnival has shelved all cruise holidays during the coronavirus crisis after governments imposed strict restrictions on travel and interaction between individuals. Several passengers have died on Carnival ships and some of its vessels remain at sea unable to disembark passengers.
Russ Mould, investment director at AJ Bell, said: "Under normal circumstances, you wouldn't expect one of the largest leisure companies in the world to issue debt at such high interest rates, but it goes to show how desperate Carnival now is."
Mould said with costs of $1bn a month Carnival could need more money in late 2020 if conditions do not return to normal by the autumn. "Investors brave enough to back the fundraising might think they are getting a bargain, yet Carnival is ploughing through cash at a high rate," he said.
Announcing the fundraising the company, whose brands include P&O, Princess and Cunard, said it could not predict its future prospects after an unprecedented shutdown of its business. People aged over 70, who are most at risk from Covid-19, make up a large proportion of passengers on cruise ships, which can act as incubators for a range of viruses.
The company announced the emergency actions, which also included scrapping its dividend and share buybacks, on Monday. It said the fundraising and other measures would keep it within its debt covenants for the next 12 months.