Member Info for NickRubens

"Just like the majority of UK companies, they are unloved and out of favour."

I would say that many of UK companies have been living from increasing debt over the years and now rolling the debt over is in itself is a major problem for many of them, as profits (if any) have been dwindling. The debts themselves look like they will never be paid unless shareholders are called upon, which they will eventually. Placings,Open offers, Rights Issues etc etc Dilutions! Add to that defined benefits pension liabilities.

That's a great reason to be unloved on a macro level.

However in NWG's case I don't know what is in their balance sheet? Hopefully they don't have UK government debt which looks set to be on course for defaulting eventually IMO. The UK is in a shocking financial state and there is no magic to solve it. It's been irresponsibly sleepwalked into over the last 25 years. £2.5 trillion government debt (see ONS stats) and high inflation/interest rates now.

"Much more relevant for banks is potential defaulting on loans they've made"

Add to my list of concerns. Yes. This de-banking scandal is not going away either as we have a powerful man now who's going to make sure any whitewash attempts won't stand.

My concern over Natwest is, are their any legal issues festering for compensation with legal action for closing peoples bank accounts? What about business accounts as well as personal accounts?

Hope it doesn't turn into another of those PPI scandals.

On a side note, we have a country that's close to a Sovereign Debt default and has been resorting to money printing to fund exuberant government expenditures presented to us as emergencies.

The real problem is 'Great British Companies' are not great anymore. They have been ruined by ridiculous leadership and cancel culture.

This Natwest debanking scandal shows how stupid British companies are being run.

Sounds like just some accounting shuffling of numbers from what I can see searching accountancy online.

The more important thing is current trading holding up in the years ahead. Share price seems weak again and hoping it's just general market blues setting in.

Despite the analysts, the market is pricing in doubt as the UK economy, it's inflation, it's not high enough interest rates and it's public sector expenditure and debt now likely out of control will impact the economy and peoples pockets in the years ahead.

The UK Ponzi of the last couple of decades is coming to it's climax.

Yes, update a bit uninspiring. It's going to take a very long time to prosper from decreasing revenues and increasing debt servicing costs. It's going to need some serious entrepreneurial qualities/skills at the top to turn this around and especially as inflation remains high and interest rates remain higher, (though still not high enough).

Bear market doesn't help either. Everything I buy goes down so not bothering for a while.

Compensation/awards judgement yet to come for Harry's claim against hacking?

Nervous market anyway so price has been volatile like many others.

Are there any forecasts for this current year? In the last financial year it was the second half which saw massive improvement to get back to an operating profit from the huge loss prior.

This financial year should be the best yet of the last few difficult years. The debt is a concern though with higher interest rates which will take a bigger chunk of money to service and that's without reducing it.

Higher Interest Rates will cause some corporate havoc among companies with excessive borrowings and I can't see a way out except to ask shareholders eventually for money to reduce debt. I missed the main spike here as I sold at 93p. Continually rolling over the debt will take a big chunk of money from potential profits.

For me this will be a 'gambling' stock trying to guess market behavior and sentiment as it's debt pile is a slight concern for it to be a complete bargain.

High Debts, excessive salaries everywhere, shareholders seen as mug punters who will carry the liabilities.

The government is running the economy the same way, Highs debts, excessive salaries in the public sector and mug punter Gilt Investors who will carry the liabilities including a potential sovereign debt default.

Welcome to Ponzi Britain.

I used to own this a decade ago and nothing much has changed except a few placings and a new low for the SP? Same can be said for many of my junior resource stocks.

Most resource stocks I've owned or followed, just seem to do an IPO listing and then proceed with endless placings stretching decades, then share consolidations when the SP hits new sub penny lows, then placings again and again until investors (or perhaps mug punters) get fed up or are simply broke.

Anyone optimistic Phulbari will ever get the go ahead and while it's still a listed PLC?

We are now at 35p, though we are seemingly in a bear market for all shares. Interest rates are said to be remaining at this level or slightly higher for possibly up to 5 years. This means MCB's debts will be costing the shareholders for several years despite gaining market share and some price inflation.

The market has lost interest as I thought prior and I may have also reading my own comments. Are there any company shares out there that have any earnings growth to deliver for shareholders?

Pension Deficit still an issue. This is from todays update.

"The funding valuation of the MGN scheme at 31 December 2022 showed a deficit of £219.0m. This deficit is expected to be removed via a schedule of contributions that includes annual payments of £46.0m pa from January 2023 until January 2028. "

Well, it's reduced debt by selling shareholder assets and not from earnings. Yes it was surplus but still shareholder value has been depleted. A bit of a share price fall today.

If the forward PE's are to be trusted then maybe it's too early to be gloomy. Needs some significant order wins, still has nearly £2m debt as well.

Does anyone know which banks are holding any potential liability with long term gilts ? Are they owned as shareholder assets or owned as depositors assets? Or owned as asset management on behalf of managed funds, for pensions etc?

Cheers NR

Seems to me PEN is struggling for profitability. Recently sold off a building to pay off debt if I recall correctly. That's not a sign of a company doing ok to me.

I would say the SP value implies hope of some big orders to come in, though not sure there are any indications of such.

I've been out a while awaiting some news of order intake growth and not just hope.

Affecting most shares, but with rising Interest rates, heavily indebted companies will be rolling over debt at a much higher cost and if earnings are struggling ( ie profitability) then it's increasingly risky and could lead to major fundraising/dilution to reduce debts as seen in SYNT.

888 interims today suggesting the flutter/gambling market is not so sprightly as the cost of living perhaps takes punters cash away from enjoying a flutter?

The gambling Industry has a big competitor taking punters money from them, it's called the UK government.