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Excellent news,
Aged like fine wine.
Aged like fine wine.
Revenue isnt the problem
many high volume sales hospitality locations are being closed up and down the country.
Why? No profit.
I foresee a decade of failure for smaller / medium sized companies in the hospitality sector with only the very biggest with economies of scale surviving, and even they are in really trouble, they are running out of options to save costs.
many businesses are now have to restructure reletively senior retail management roles into minimum wage positions. its desperate stuff, and the hospotaslity sector is running out of ways to cut costs.
Macroaxis: 42% chance of bankruptcy.
Worth a punt with total loss of investment 4.2 times out of ten?
Loads of contract wins.
But if they don't pay enough in time creditors taking the company the the company. Aka fair share price valuation of 0 pence or less. what clear comments from the company have their been on this. None.
Great company, terrible stock to hold. Don't get the 2 mixed up.
Is it worth a punt at 15p?
For me there a 55% chance of fair value at 0p and a 45% chance of value at 100p so I would have to say no.
If there was adequate operating cash for 3-5 years and the pipeline of contracts were growing and profitable the share price would be up to 5 times present.
presently the business is priced to go bust as the market views it is more likely than not that it will or that there is substantially dimished net value in the company.
if it were more likely to preserve its going concern status under the current capital structure the share price would be higher.
the market does not share the view the business will survive in its present form.
this seems to be a fair and accurate view.
talk of robust pipelines ignoring operating cashflows is fanciful.
A business can either meet the terms or it can't
The problem is refinancing and it can be solved by the creditors taking the company and it future earnings as a means to repay debt. shareholders may well be wiped out in this situation.
See Cineworld. lots of future earnings, precarious finance, company taken. shareholders wiped out.
The business will go on to do very well though.
I hate to say it but this is looking like it will be sold out of administraion, and starting to look like a McColls situation where the business raised case to enhance the business so it was more like to be purchased out of administration. in McColls case share holders money was used to rebrand into a higher revenue shop format and pay debt. the business got purchased of admin after the business used shareholder money to help make it happen. here debt has been used to buy Peach as a carrot to a failing estate which at this stage looks like it will fail and got scooped up for peanuts of of admin. if the Directors play their cards right them may even get to keep their jobs, but retail investors would very likely get wiped out in such a situation. hence the share price. time is ticking this the new minimum wage hits the P&L.
The shorts didnt close at 15p they increased ...
https://www.youtube.com/watch?v=9aJ9muso9VM
In the know
Big money exiting
city short continue to increased even as low at 15p.
Feels like this is going to 0.
Https://www.youtube.com/watch?v=zxyaULwF9xM
people are getting out whilst them can
Well at 15p the disclosed shorts went up
so exit at 0p?
Mmmm yes I see what you are saying doiung just fine sitting on losses anywhere between some to nearly of of there holding, and no being able to see straight. good stuff sounds good. even those who just beought in are still down lol.
PFC have been publicly reported as evaluating sale of assets or an equity stake to provide liquity.
looks like LTH are still in the first stage of grief.
The pipeline isnt fixed until legacy contract payments address liquidity in disclosued results.
that hasnt happened and may be years away from happening.
hence the need for raising cash.
my goodness the level of desperation here to take a win from a loss is quite something.