Member Info for MrMagorium

People keep thinking a balance sheet is one sided, with the "it has assets worth millions" comments.

It does, but it also has debts too. A lot of them, and it is continuing to dip into it's RCF whilst generating significant losses. It clearly stated in a previous RNS it was not sustainable and would end up breaching its covenants.

So now, it's going to sell those assets worth millions to repay its debts worth millions. But not in excess of the debts, hence they are saying liklihood of zero return to shareholders.

Jamrock, The reason it's going up is due to the Zak Mirs article and his followers buying in IMO.

Unfortunately, he's also tipping a price, so expect there to be bumps in the road ahead, as people bank gains, but fundamentally this does looks sound, and if sales are as strong as people are alluding to, this could further strengthen their current position.

IMO, with the amount of cash it's holding, relative to Market Cap, it could end up being a TO target.

This one has been taking its time Lazy.

I did think listing by September would be very optimistic given the DD surrounding an overseas business. I wonder what's holding it up.

Good week on MHC, hopefully get back to 20p where it should at least be IMO. Then it can move towards a more fair value!

as i was saying at 9.5p, this looks seriously undervalued to me and still does. unhappy investors complaining about jv, may have taken the opportunity to bring their average down at this level, much more efficient than ****ging him of on an anonymous bb imho!

gla, dyor!

If you paid 14p over 6 years ago and then continued to hold when this, when it went up to 25p earlier this year, you must have some sort of underpinning belief that this is worth at least 2.5x the current share price.

I may be missing something of course.

I can understand if you bought in during the 20's why you would be annoyed with SP performance, but in reality, it is probably worth thinking about considering opportunities like this to bring your average down if you did get in at that SP. You can buy double the shares at this price!

DYOR, GLA, AIMHO

Sorry Bear, I meant Ghosthunter. Too many hunters.

Yvellkan, you Bearhunter and Sanstef look like you could be the same person, or closely affiliated IMO. Just calling it out now, so we can watch you talk to yourself a bit more.

Ghost, I don't think an employment status will exempt you from Market Abuse regulations. You should probably have a read up on Insider Dealing.

Hands up for a vote that Sanstef and Ghosthunter are the same person lol.

If things are a rosey as you are alluding to, why would there have been any need to spook the market with the stakeholder update indicating a pretty dire forecast? As I read this, they forecast to breach their covenants in November.

I quote...

"As previously updated, the Group expects its year-end net debt to be between £(5.5)m and £(6.5)m. At this point and into early January 2024, the full revolving credit facility with the Group's bank (the "RCF") will be required to support the working capital and liquidity requirements of the business.

At this time, the Group remains compliant with the covenants of its £7.5m borrowing facility. However, if the losses forecast for the remainder of the year materialise, this would generate a material shortfall versus the existing covenants of the RCF in November. Therefore, under the current facility terms, access to the RCF at that time could be fully restricted. "

Agree on the random placing and he did clarify why he did it, and whether or not people buy that reason is another story.

Still todays SP is circa 50% of the placing price, so looks like he did a good deal for any shareholders buying in now.

He probably foresaw the decline in Market Cap coming himself lol...

Ghost, You are discarding the businesses liabilities in your analysis, and simply referring to their assets.

You also aren't referring to the fact the sales they are generating aren't enough to cover their overheads, hence why they are making pretty heavy losses and forecast to make more.

See RNS about them being deep into their RCF and looking likely to breach covenants. This is as they enter their quietest time of the year.

Suggesting they won't enter administration is a massive prediction on your behalf.

There are articles everywhere on this topic, which argue it both ways Jamrock. An example is one from the BBC yesterday. Where a so called "infectionary diseases expert" claims that:

"Covid is "well on the way" to becoming seasonal, Prof Hunter says, with flu likely to cause more deaths from now on. And eventually, Covid will become "just another cause of the common cold", like the other coronaviruses that circulate."

https://www.bbc.co.uk/news/health-66994137

This is an opinion, that I am more aligned to.

I don't recall claiming that Long Covid isn't real. I claimed a Lateral Flow isn't going to stop it.

As an example, If a person already has Covid, they may still be affected by the symptoms of the condition coined as 'Long Covid'. A LF test result will not change that.

My main point is that this company can not survive on the Covid revenue forever and should therefore take opportunities like this to start to diversify away from this revenue stream, in order to benefit in the medium to long term.

Jamrock, I think the fact your have shared a highly opinionated piece of political propaganda, written to scaremonger, is testament that Covid is indeed the danger you are alluding to.

Interesting though that the author has likely never had to use the NHS, let alone experience something as ghastly as a crowded doctors surgery.

Feels a bit harsh on JV Shaz. I'm sure he'll be doing one of his video updates on latest NAV once he's come back from his quarterly holiday.

The reason the SP is tanking is simply because there is a distressed seller. It doesn't take a lot of shares to move this one and the MM know that and will drop the offer accordingly.

Cash covers >50% of their Market Cap, let alone the underlying values of their investments.

This drop looks to me like someone has bought too much and they are now trying to get out at any cost.

The MM will of course do their best to make sure those disposing get back as little as possible for their shares unfortunately.

Would be nice to see JV consider doing a buyback at this level...if the underlying assets really hold the value he claims, and the SP is really 1/3 of the real value of the company!

GLA, AIMHO, DYOR

Topping up here...

Huge discount to NAV, big seller looking for their exit.

There's another big red flag to add to the hundreds of others. Institutions dumping, which would explain the periodic dumps at 1.5p last week.

Still someone has a bucket catching the turds.