RE: Indebted Companies28 Feb 2018 21:45
Interserve used to be a profitable company, a couple of mistakes drag it into very critical situation. with the debt, many bet the company will go down. however, maybe bank, government and bod don't think so. after Carillion went burst, Interserve will benefit in some way. with total revenue around 4 billion, from long term, it will make more than 50m net profit a year in average. you can calculate what the share price will be. the problem is its debt when it is not performing like this year. it need bank support. if bank support, debt is not a problem. i have so many friends borrow money from bank to buy property in London and Aberdeen and make millions. brave company borrow money from bank to expand their business. we know debt is a two sided sword. hopefully, interserve will get bank support and survive and get stronger. as a investor, half of them buy the share and half of them sell the share. at this level, more people buy than sell. you look like a gambler. if you believe the company will burst, you can short the share using CFD with all your assets. i bought �10k at 58p on monday and sold at 64p yesterday because i see the selling pressure but bought back at 57p today. i do think 50p is definitely a rare opportunity to buy if you can afford to lose. if it get the bank support, it will fly to 120p quickly. i will buy more shares as i don't want to see UK good companies to die.