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It is a contract within Asset Solutions which is arguably the strongest part of the company ....and ... if the company itself were to get to severe financial situation ...the Asset Solutions business could relatively easily , and quickly, be sold as a separate business and continue as normal
so... a $70m a year contract (...that doesnt necessarily run 5 years if circumstances changed things ) .... within Asset Solutions isnt as such an issue as it would be if it was a E&C contract
Tuan6
the CEO of any company DOES NOT spend his/her time looking at the trading of the share and decide when to release any RNS based around that.....
The CEO is running the business and has a huge amount of responsibilities around doing so....
They release an RNS when they think it is appropriate ...
" the CEO let shorters" ......
the CEO has not the time to dance around the trading activities of shorters, bulls, bears or anyone else .... he
" I think worst case here is no buyers for NA business"
I think it is important to realise the timescale and steps that need to be taken in order to sell a business
You cannot sell a business without first producing a proper document advising exactly what is for sale
... and that is what the "preparations for sale" tends to involve ... and it becomes a legal document ..and as such takes time to prepare in the detail required
Second step, tends to involve inviting potential buyers to view the document describing the business for sale and invite them to visit the business for sale
That also takes time
There then comes a time when having invited all potential parties ...you provide a time line for anyone to get serious and decide whether or not to bid for the business for sale, and provide evidence that they have the finances in place to buy the business if their bid wins
The whole process takes months .... and ..months
so..I would not be too concerned , if the process is not as far down the line as anyone might wish for....
This kind of business does not come up for sale, that often..... so.. there will be interested parties.... and I doubt they will try and buy for silly low prices ...
" Have you ever come across the announcements along the lines of - the offer / discount price is x times, x % of the share price on dd.mm.yy"
yes, but you need to understand that the share price will adjust to the demands of those working in the background, whether it be the City, lenders or whoever ..who are working on a fund raise or D4E etc
.... those in the background don't fall in line to the demands of the share price and anyone trading it
There are often leaks with regard to the likely price of fund raises or D4E prices and as such the market often adjusts to the leak or rumour
The RNS here last week "could" have been as a result of the need to stop leaks or rumours spreading .... so they made sure the market had as much information with regards a possible D4E as anyone else who might have become aware of such negotiations
" These questions are putting people off buying at this price."
It is comical that some of you seem to want to be spoon fed all "the answers" and yet still have a very low share price with which to buy the shares
Fantasy thinking in full swing this morning
"Suppressing the share price so that PFC can be bought/ taken over on the cheap ? "
dont be ridiculous
You dont value a company based on some traders moving a share price up and down ...
there is some fantasy thinking going on here ....
" We have no idea what the NAV is "
well if so, then you haven't been following the data given....
"The BOD have a duty to shareholders"
You need to understand that the BOD has a duty to STAKEHOLDERS , of which the shareholders are but one ...
and..the shareholders are currently at the bottom of the list in terms of having any stake in the business right now....
the NAV is next to nothing ... all the lenders have priority in terms of receiving anything from asset sales or in terms of resolving the issues regarding repayment of debt or payment of interest/coupon..
Any D4E is a form of debt default which Fitch referred to and as such downgraded the risk as such , as appropriate in such circumstances ...any future lenders being aware of the company debt history if such a debt default were to occur
There is some notion here that shareholders ( esp PI) should somehow be spoon fed above that of bondholders, bank lenders, business creditors, employees or anyone else
All this talk of " wanting the share price down" is utter nonsense ...... any D4E share price base will be given to the BOD ..it will not be for the BOD to go around expecting some price or other ...
Hedge against further inflation and geo-politics.....i suspect
There is little chance of a H1 dividend , so it really depends on strong H2 with the summer, and a start of interest rate reductions, with any Bus sale potential to bring in Fund Managers
There is no point expecting too much too soon..IMO....the main thing..is to be making positive progress with the things that a BOD do, and accepting the external affects that are in other people's hands....
Polishcap
Yes...i do see some unsolicited bids popping up which are not firm offers, but do aim to cause the shorters to get in a tizz, and cover some positions .....firm offers dont necessary follow through
But...all part of the game , though ....
RealityBites,
I am not sure Walter Mitty has a clue what will or wont happen,..but given the RNS has given some clarity from the March Update with regards to the lenders and the direction of discussion towards a D4E then I dont think it can be dismissed..
I sense some holders somehow think the debt will just disappear or that shareholders should somehow have no part to play in its solution
There still seems to be some lack of understanding with regards the fact that shareholders are at the bottom of the food chain, with minimum Equity value in the business (probably zero by year end) ...and that rightly... right now the lenders have a greater priority .
.. if the lenders like the banks demand their money back then it is quite possibly goodbye Asset Solutions....although one of the ideas could well be for investors or even the banks to take a stake in Asset Solutions, which would be ring fenced from E&C
I suspect that if there was ever an EGM to vote on a vote of confidence the motion would soon be withdrawn once reasoned understanding of the extent of the background work was known
IMO
"I still think the timing of the RNS was terrible as it suggested D4E negotiations have been going on for a while "
Every Option would have been going on for a while, of which a D4E would be one of the Options..... and I suspect..as other Options become less plausible, D4E becomes a more plausible Option ..
The BOD will release any RNS at a time that they think is appropriate... it is not their business or concern as to how anyone buys and sells shares ,moving prices up and down
" Looks like they are copying and pasting responses....... "
what did you really expect ?... I would have done the same
An advert disguised as an article
https://www.theguardian.com/travel/2024/apr/16/coach-service-offers-journeys-across-the-uk-for-knockdown-price-of-2-each-way
"Pokerchips and wealthtransfer have been keeping me relatively sane on particularly bad days. "
what about you JG68...
How about you keeping everyone else sane , by giving it a rest with all your moaning about the BOD ..
You are vomiting on the page at times ..give it a rest ..for your and everyone´s sake !!
They are trying to sell a product in their main US market that their customers cannot afford , or are not willing to afford at current prices......or..worse case scenario .....no longer want
The "new Supply and Demand Planning system and Customer Data Platform" cant come soon enough
Will say a lot if Hargreaves Hale completely sell out ...
https://www.hargreaveaimvcts.co.uk/
"Bond price still worries me"
The initial bondholders have probably sold out a long time ago.... or bought back much lower...plus shorting.... the current bondholders probably didnt pay much more than 30p-40p , knowing that they had a cushion of a forthcoming coupon against near term loss.....
They probably knew full well that the bonds would be very difficult to pay back.... 10% coupon is near junk bond levels
I suspect the dilution is pretty much baked in at this price .... although holders would need to buy into it to keep their % holding of the company
but...even if they don't...... better to have a small holding in a better financed company, than a larger holding in a very weak financial one
I would pay 20p a share just for Asset Solutions ....shame there is the E&C mess along with it !!!
"The numbers are worst case"
yes..but they cannot afford to be in that situation....as they need every £ to invest in the phase2 completion and phase 3 kit out and working capital .....any fall back will put the timetable behind IMO
The current contracts means they really cant afford any timetable slip ups , and any loss of time on phase 3 opening will hinder new contracts beyond the current ones