Member Info for Paddyboy1

Bought a good lump of these sub 50 today. This drop looks crazy. I've been in on this one a few times before & done quite well on it. God knows whether this is another Petrofac. I'll take a punt at these prices!

This is all about Risk v Reward. Of course there is risk here & that is evidenced by the lowly SP. As far as i can see this company has just been destroyed by a completely inept & incompetent management. The brand is unique & iconic & will always be in demand.The financials & fundamentals here while not the best don't really indicate any huge distress for me. There is a new CEO coming in here so hopefully they can turn this around. Time will tell but at these prices the upside potential surely outweighs the downside risk!

It makes sense to buy when a SP is on it's knees & the SP doesn't reflect the underlying value but that is all very much a value judgment to call. RR is now well over £5 & most analysts predicting it to go much higher. there were people on the RR chat board in 2020 saying it was a basket case no value, all the problems etc... Point is that if you want a share with everything going well high profits; dividends & all the rest you will pay a much higher price for that share. Personally i believe the drops have been overdone here but no doubt the short sellers will be all over it. I'll buy more on further weaknesses. This is a decent long term bet IMO.

I remember Rolls Royce being labelled as a value trap when it was around 50p!

I think there's a few days grace allowed for a PDMR RNS so should see something early next week. I'd imagine just a fairly standard RNS. How do they know there's a seller? Well, because 70m shares changed hands for 57p!

Just bought a tranche of these @51.3. Been following this one for ages but never pulled the trigger till today. Endless downtrend here so not sure if it's a great buy but i'll take a punt!

Been away for a few months off this forum as it had just degenerated into rather pointless negativity over the Summer months. Had been adding here right down to the sub 50 levels & have accumulated a really silly amount of these shares over the last 2 years. The trading update here seems to have been a bit of a gamechanger. Was so impressed personally with the new CFO & i think that is the key here. The City now has confidence again which i don't think was ever there with Stamp. I can see this rerating very quickly now & it's a great relief to see Wace bailing out as that shower always seem to be very successful in their shorting antics. Anyway i'm hoping to be in the green here in the next week or so if things continue. Well done to those who have weathered the storm thus far. It's been very stressful!

Volume is high due to short activity

Carrington, can you explain your strategy here. As i recall you were a buyer of these shares regularly in the 130s/120s & maybe higher but now you seem to be buying & selling on 1-2p movements. Either some huge losses crystallised along the way or well timed entry & exits!

Well, refinancing at 11% is fine if the revenues & margins are increasing. Just going to tae time . That is all IMO!

Assuming no more impairments & stuff i'd be expecting the company to be back in profit on the HY statement!

Well, the company have not issued any statement that they are in any form of distress. Yes we all know the debt finance is an issue but i think a lot of folk are simply overthinking things here. Worst case is a CR but that if it happens is not the end!

JG weren't you one who bailed from RR at B/E? Learn from that one!

As far as i'm concerned & it's worst case stuff, they need enough funding to satisfy the banking covenants that is all!

JG, why do they need £600m? They've got quite a few mill sat in the bank!

John, using a crude example a RI today on a 2 for 1 basis with a rights price of 25p would raise them circa £300m with no loss of assets. The TERP of the diluted shares would then probably be in the 30-35p range. I think if there are no buyers for NA then it might be road to go down but i think it's a way away yet!

See how many trolls comment here when the short squeeze happens!

Remembering that also makes me unconcerned about this over the long term. RR was hit due to large debt pile & lack of income due to covid etc. If there was a need for a CR here the SP would likely recover strongly after the initial dilution pain as there is very little other reason for the shorts marauding this other than the debt level!

I remember that period well. Watched it get shorted from 250 to 99p in space of a few weeks. The bb the was the same as you have here. trolls saying bankruptcy etc

Jamrock, I wonder how many people held their RR shares bought during the RI in 2020? 15 bagger as it stands. MCG has the potential to do the same. Get some new management on board. A change in the macro. Pay your money take your chances. Don't cry over spilt milk saying 'i nearly bought those in 2024, look at them now!'