Member Info for notrac

@Maverick7
I don't think so. Institutions report daily their positions during a takeover.

Robust defence which leaves the two parties miles apart.

Can DNO buy in the market at the current price even though their offer is 152p?

@crompton 21
Absolutely. Raising debt finance though offering slots as security is quite common. They could still do it in which case the company could stay independent.

Airlines always get it wrong when it comes to the price of oil. Draconian restrictions put in place by major IATA carriers in 2008 just as the price of oil was falling. Now Flybe quote the price of oil as a reason for reviewing strategic options (i.e. putting themselves up for sale). BA share price has risen since late October, and Easyjet looked to have bottomed out. All that will come out of this is that Flybe is likely to be snapped up cheaply because they have panicked at the wrong time. Must be worth more than the current market cap.

Not even an acknowledgement in the RNS for his services. Possible that the ex CFO is singing already, and that May was the other signatory on the unrecorded bank account.

Surely the time to make a bid is when the oil price is down and the company has just drilled a dud.

LO reduce their holding held on behalf of discretionary clients!

Can anyone please explain why this morning until around 9.20am the price for buying the stock went down after every trade shown on Level 2 (they were shown as sells but they were for the most part clearly buys).
Is this due to short closing or failure of market participants to disclose up all the trades in a timely fashion?

All the sells are in fact buys.

So long as LO hold on to them.

THE RNS issued on June 13th informed shareholders that the company had a strong balance sheet. The commitment and the costs for a stage III trial was known at that stage, and management were obviously looking for a partner. However, in the event that they did not find a partner, and decided not to commercialise the CSD 500, the funds were not there and the statement was a misrepresentation, in fact meaningless, and gave a false impression unless the company were confident of securing a deal. On June 13th the share price was around 34p. A placing could have been done then at 28p/30p by the issuance of 20 to 25 million shares. Instead massive share price destruction through disappointing news and disastrous interview with the press in September, foloowed by steady price decline results in a placing at 7p through the issuance of over 70 million shares. I'm holding these shares in an account for my adolesecent son. Maybe the product will see the light of day before he needs to use it. Woeful!

Why didn't they do the placing in the summer, as a backstop? They could have got it away at 25p. Heads must roll.

Strangely this company was in my thoughts this afternoon. With the funds they have in place, I expected them to get further down the track before the placing. Clearly there was no institutional support. This has been appalingly managed. As I have said before, convinced that the former FD left because he didn't want to go down this route.

Per the company's website, there is an audit committee.
I would be surprised if they have internal auditors. They are not mentioned anywhere.
Lack of separation of duties is clearly a big problem. Looks as though Marsh was not only making the payments but also passing the accounting entries.
One of the risks mentioned in the annual report was the risk of reliance on key personnel!
Say no more.

I did raise the possibility of undisclosed overdrafts yesterday. Chris Marsh would have had to forge another officer's signature to open the account. Key question now is what was the account used for, and whether funds from the ordinary bank account were transferred into it. Auditors should get confirmation from the bank on year-end balances but they can only write to the banks they know about. The existence of the undisclosed accounts at least gives the investigators a timeline on when that kind of subterfuge started.

@lignumvitae
Why are debtors in the accounts representing two months' sales? (There will of course be the quarterly prepayment for rent but that doesn't explain it.) Has the FD been booking cash withdrawals to receivables? If there is fraud (cash withdrawals), are they insured? I agree that it's more likely that creditors/expenses have been recorded late and that the profits have been overstated for several years. The business is viable but at a different level of profitability.

The Company's shares remain suspended from trading on AIM. At present, the Directors do not expect that suspension to be lifted at least until (a) there is there is greater clarity disclosed to the market around the financial position of the Group and (b) they are satisfied that the Company's financial reporting function is appropriate for a quoted company.

That's why investing on Monday is a very risky proposition.

They will be looking into those other companies in which he was director to see if there any related party transactions. The difficulty at the moment that we do not know whether this was straight forward defalcations in which case the underlying business is profitable or there has been persistent understatement of expenses /or overstatement of revenues in which case the valuation will be seriously reduced.