Member Info for Paddyboy1

Jonlon, do you think the other 75% of shareholders would be happy?

Yes, I understand & share that frustration but it’s just one of the pitfalls to this game. Personally I think the new management have been as upfront & open as they can be & seem to have the right approach. To be fair they are rebuilding4 years of tomfoolery at the top. They need to get Iglesias confirmed as CEO as well!

JG, yes, I’m underwater here for a huge amount & it is unsettling but I still have confidence that this can turn around. I’ve been in lots of shares & seen many highs & lows. Reasonably decent companies usually pull through in the end. You sound in panic mode to me!

I don’t think the market is insinuating a need for cash. I think a need for a Germany update & appointment of a new auditor is what the market want.

If an individual has large sums of cash in their bank they don’t bother with a personal loan from the bank do they? So why any different for MCG?

JG, why are you obsessed with the idea that they are going to do a cash call imminently? There is nothing whatsoever to suggest that.

John, the debt was ‘uncomfortably large’ when the SP was £4.50. They had positive earnings then though.

Yes, lots of uncertainty. The shorts love that. At the moment there is no reason for people to invest here. The SP is a sitting duck to be chipped away until any news is forthcoming. That does not mean they are doing a RI 3 months after saying they are good for liquidity for next 2 years at least!

Well the current debt is costing @£80m pa to service. So if you pay off half the debt you still pay £40m pa in interest. People here are just seeing low SP=CR/RI. Read the RNS

John, if you were CEO here & you just raised 400m. What do you do with it?

IMO, the reason this is getting battered is not the debt pile per se. It is the market sees a business which will never turn profitable earnings while they are beholden to these onerous German contracts as has been evident in the last 2 FY results.

Histororically RIs are hugely discounted. RR did a 10 for 3 @30p when SP was £1. IAG did a 3for 2 @ 88p when SP was @180. Placing are usually less generous, more immediate & usually only offered to select few.

£300m for a business adding a peppercorn to MCGs earnings wasn’t a bad deal at all!

The NASB sale price wasn’t shocking. What was shocking was the stupid valuations some analysts were quoting.

OK, on a 3 for 1 RI at today’s price they wouldn’t raise more than 10p per new share. More pertinently, the crux of my question is this. If they did raise say £400m. How does that change the trajectory here?

I’d imagine the German trade unions hate having MCG on their turf which doesn’t help!

JG or John, let’s assume they did a CR of some description today & raised say £200m. Explain to me what difference that would make to the company in the longer term.

They’ve just had £300m from an asset sale. People obsessed with dilution here. Germany is the issue. Resolve that & the company can operate normally. Recovery will take time. It’s not an overnight fix!

WT, I agree with your comments. The company has been wrecked by the 2 clowns who were allowed to remain far too long. It’s been a shambles & a very bad investment! At this level though it looks way overdone to me. The company has stated they have liquidity for at least the next 2 years so there should be no imminent need to raise funds. Yes, the debt is high but it always is in this type of business. The issue is getting earnings on track to comfortably service that debt & that is being scuppered by the German onerous contract. A resolution there should hopefully start a turnaround here. Personally I’m up to my eyes in this one but am happy to add more when the German stuff is resolved.

£1 will turn out to be a bargain for lths. i remember sad *******s on rolls royce board back in covid talking down those invested & goading people. sad cretin!