Member Info for Lottie123

https://www.businesstimes.com.sg/transport/germany-pumps-in-millions-to-keep-asian-owned-shipbuilder-afloat

Don't get excited until the touch widens. At this low level, a tight spread indicates that one or more MMs has a large seller.

It is now six months since this was signed. The company stated end June to finalise details. This contract would be transformative for INFA. I have added again at this level and believe the companies continued optimism of adding new employees is a sign they are confident for the future. I accept the risk of losing (my) money should they fail to capture any meaningful business. We all know that technology is where the hot money is. I would rather be part of the effort to rejuvenate a very important part of our industrial heritage. Falling populations in the three super ship builders, China, Japan and S.Korea may help with the shift back to stronger regional shipbuilding. The government's of the developed world need to reverse the transfer of industrial jobs to the far east.

Agree Nobby31. Life, as we know, is all about timing. I read daily about massive investment plans in shipping and green technology. The UK is becoming a hotbed of wind generated investment. INFA are placed nicely but as you say, chicken and egg. They bought the assets at knockdown prices. With a fair wind, excuse the pun, they will survive on the crumbs from ship repairs and push onto the sunlit uplands of major, long term contracts. As shareholders, we should expect ebbs and flows in a companies fortunes (and SP). I still believe the company has a good strategy, its just in the lap of the gods, if I and the other shareholders, see a return.

Having planned to raise £13.5m in the 2 tranche placing, the company should really explain how the £8.5m raised will sit with their plans. Is the shortfall a big problem? I guess the share price suggests this question needs to be answered.

The government are committed to reigniting the nations shipbuilding capability. It knows the building block of the industry will need help in re-establishing in capability.

I presumed, it will take 2 years to build NOT 2 years to make a decision as it says. Mind you, given how long these f ck wits have taken so far with the ML and this contract, I would not put it past them.

https://www.mirror.co.uk/news/politics/competition-launched-build-warships-restock-24150547.amp

Nobby31. I agree with your thought on a major short in the stock. If I was that short, I would pressure the stock below 30p ahead of this Friday decision (placing) deadline. If enough shareholded shun the issue, it would help the short cause and put the company in an awkward position. I have taken up my allocation and applied for more.

When will this never ending supply of stock cease? Plenty of demand but someone is hell bent on keeping the stock down. Hey ho, only time will tell.

A report due today by The Levelling Up Taskforce (40 Tory MPs ) is likely to put more pressure on the government to push greater tax incentives to bolster investment in deprived areas. I am becoming more positive about the prospects for INFA business plan with its significant nationwide fabrication footprint.

BIG NEWS. UK could follow.
https://splash247.com/japans-parliament-passes-package-of-shipbuilding-measures/

The big two, Korea and China, have order books bulging at the seems. Prices are rising and delivery dates lengthening dramatically. It could well be the demand will filter down the food chain to little old H & W.
https://www.tradewindsnews.com/shipyards/vlcc-prices-breach-100m-mark-on-steel-plate-rises-and-shipyard-berth-dearth/2-1-1009882

https://www.thetimes.co.uk/article/offshore-wind-farm-developers-told-to-use-uk-manufacturers-3qgk00jv5

China's 77 major shipbuilding yards have released first quarter turn over $8.2bn. The total profit was only $17m. This is the reason the world's shipbuilders, outside China, have suffered. With nearly 50% of all builds, the government backed yards are killing commercial yards. The rest of the world needs to look at the anti commercial practices which are aided by the Chinese holding down their currencies value.

Razorshultz.
Maiden revenues have been insignificant which is why we find ourselves, yet again, cap in hand. As for billions in potential orders, please, that is just business speak. Anyone can look at demand pipelines and state they are in the running. Getting ships which mostly operate out of your home port to agree to service contracts is not earth shattering. We need a major contract.
You think that the competitors ability to under cut is of no importance because we have a big yard. That is exactly why INFA bought these assets out of liquidation in the first place. The EU may well help the large shipbuilding sector, that will not help.
The BOD stated back in September, half way into Covid that the ML was only weeks away so they had every knowledge of the situation.
I am a realist. The cash burn was high when I bought into INFA. Since then, they have continued to spend shareholders money without a solid contract. Yes, covid has not helped but I can assure you other European and Asian yards have announced billions of dollars of new build contracts.

To answer two questions.
1) £700K is par for the course. Rightly or wrongly but Investment Banking is a very expensive business to run. London rules the waves and long may it continue.

2) Why would I be looking at July as my time frame. By then, we should know the outcome of the LOI which, if successful, would be transformative. If it does not happen, it would imply H and W may never be a commercial shipbuilder again, especially as German yards are calling on the EU to aid yards suffering against the highly government backed builders in the Far East. Additionally, if the ML is not agreed by then, in my opinion, it never will.
The main reason to invest was a belief that the BOD were competent. Having stated several times that the ML was only weeks away, they have by their incorrect appraisal, drained my confidence.
Yes, they have used shareholders money to buy bankrupt businesses, something a four year old could do. To justify £1m payouts, turning those worthless assets into going concerns is the real test. As yet, they have, maybe due to covid, failed. The Saipem order was already negotiated with the previous owners so not a new contract. They still have not delivered one decent contract.
So by July, I will have my answer. Either I will be selling at 12p or happy at £1....

I completely understand your argument for a fully fledged Rights Issue to raise the extra cash. Having been a jobber on the old Stock Exchange floor during many such issues, I can tell you they are a very complex and expensive operation. Yes, it would protect existing shareholders from dilution as they could either participate or, in the event of the shares trading at a premium to the Rights offering, sell the Rights. The shares would need to be traded, for a short period, in Cum and Ex format as well as the underlying shares. Believe me, it is awkward and costly for the company (INFA)
Once again, I agree with your frustration but this is really the only way. If you went for a deep discounted placing issue, solely for existing shareholders, the chances are it would immediately trade below that price and many would be scared off taking up the offer. This would then require a subsequent placing, invariably at a discount to the original price.
Let's all grin and bear it one more time. If nothing is forthcoming by July, my 18 month journey will come to an end, probably in loss but that is the risk we take.

Please let me settle this once and for all. The ONLY date that matters is the EX date. In this case it is close of business today. If you bought or own shares by the close today, you have a RIGHT to the offer. The settlement date means absolutely nothing. Tomorrow morning the shares will be trading ex entitlement to the 1 for 6 offer at 30p. Withbthe offer, you can accept and pay for your allocation. Do nothing and forfeit the offer...or accept the alloted allocation and apply for any un-allocated shares from forfeiture.

My real bug bear with this is the huge seller(s) over last two months, even when good news was released. It smacks of building a large short position into this issue. I guess I should not be surprised. The extent of the selling was such that this issue will fly. I don't want to be seen as sticking my head I the sand, ignoring the deplorable abuse by management considering remuneration but this issue was always on the cards when so few ships were docking for bread and butter cash flow work. We only have ourselves to blame in viewing through rose tinted glasses. Once out of the way, I believe the supply demand curve will alter dramatically, for a time at least, with a move back to 38p. If the LOI fails or ML not granted or worse still, both...by July this thing could go bust.