The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
WoW yep.
see page 79 of AR 2021
Share capital and control
The Company has only one class of share capital formed of ordinary shares. All shares forming part of the ordinary share capital have the same rights and each carries one vote.
Many mining/metals stocks have low PE - see THS at 3, SSW at 5.7 , FXPO at 4, RIO at 6.
The stand out is JLP at 11.
I see RH is up slightly today after being flat for a week - now at around the $14k mark.
I`m happy to take a dividend and look forward to the presentation next week.
It (probably) indicates they have closed their positions having got what they wanted.
LTHs may wish to read this:
https://www.sec.gov/reportspubs/investor-publications/investorpubsbankrupthtm.html
GLA
I accept and agree that Covid and historical earnings are relevant to future performance if market has not changed materially. But that assumption is highly questionable and such macros enable a skipping over of the balance sheet being geared to breaking point.
(Dick Fuld of Lehman Bros did the same: extreme risk-taking without margin-of-safety.)
it is like my mate Bob he asks me to lend him a fiver pay me back in a week. A week later he comes knocking and instead of repaying his debt he asks for a further tenner. A week later instead of paying me back 15, he wants a twenty and another month to pay. When he sees me looking a bit doubtful he replies he is holding all the cards because if I refuse I get nothing. I ask him how he got here. He tells me on his £10 bike. I say to him he will be walking back cos now that bike is mine. I flog it for a tenner and cut my losses. The idea that he has me over a barrel, he must be smoking something if he think I will be stupid enough to advance him even more credit lol
Tegop: Lastly, the execs do not have fiduciary duty to the shareholders. That is a fallacy. They only need to listen to the smaller shareholders but do not need to heed them.
see section 172 Companies Act 2006
"members" means shareholders
172 Duty to promote the success of the company
(1)A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to—
(a)the likely consequences of any decision in the long term,
(b)the interests of the company's employees,
(c)the need to foster the company's business relationships with suppliers, customers and others,
(d)the impact of the company's operations on the community and the environment,
(e)the desirability of the company maintaining a reputation for high standards of business conduct, and
(f)the need to act fairly as between members of the company.
(2)Where or to the extent that the purposes of the company consist of or include purposes other than the benefit of its members, subsection (1) has effect as if the reference to promoting the success of the company for the benefit of its members were to achieving those purposes.
(3)The duty imposed by this section has effect subject to any enactment or rule of law requiring directors, in certain circumstances, to consider or act in the interests of CREDITORS OF THE company.
(my emphasis)
Whilst it is true that directors have duty to act in shareholders` best interests, that assumption lies in respect of a solvent company and changes when the pendulum swings towards insolvency... at which point, the directors must consider the interests of creditors too. Here in UK the equivalent position is administration. Interestingly there is a case before the UKSC on this very point and has been for the last 15 months. The decision has still not been handed down.
I read the missed payment due - $170m - as a fact, as that is what is stated.
FT, WSJ are respected. These aren't redtops after all.
My guess is a new company will rise phoenix -like from the ashes. I hope all who are LTHs get something from the proceeds of the disposals.
Best of luck to all.
"Who "controls" the company then? What are the steps?"
Any creditor past a threshold amount of debt can issue a winding-up petition by application to Court ( and upon court order, an insolvency practitioner is then appointed to take control of the company`s affairs. Assets put up for sale, debts restructured etc.
This really does look like the end-game for CINE.
interest cover in 2019 was 4.2x.
24 months later it has dropped to 2.4x
2019 2021
interest paid 147 227
cash from ops 632 555
4.299319728 2.444933921
GL to LTHs
That £500 would be the equivalent of the profit on a 50% return on a £1,000 outlay. (Excluding charges.)
You have not put in 1k
It is doubtful that this will climb 50% but if it does you make £250. That potential return is off set by the risk that it doesnt move in your direction. On this news and with this momentum which of the two directions make most sense: North or South?
I`d set a stop loss if I were you.
Another 3,000 top up .
Gift.
Gap up!
Big, Huge respect to the members of this BB; the humanity shown here is admirable, and all in the context of each post members losses most probably, but yet you all display genuine warmth and concern to what appears to be, a troubled soul.
I salute you all (and hope of course the OP is okay)
Q
Kicks in when "due diligence" begins and all those involved are obliged to sign anti - insider trading docs (and that can take months especially at this time of year.)
GLA.
Hah Ha I never said that !!!!! I`m not moaning. Just pointed out that to talk of the next deal when this one is not completed is a bit premature but hey look I`m happy - more than happy... to be wrong!! :)
Great to see IC buy in so fingers crossed!!
Common 30....you can do it.
They have not completed on this one yet!
Capital projects - north - have been on the books for 10 years! How do you propose they grow?
This management is not in the growth business. They are content doing what they have always done and done very well. Growth? Nope. Not gonna happen. No ambition. They are happy with status quo and that`s okay with me.
John
When the cash flow statement turns positive, then that is the time to consider (for me).
I`m not interested in Jam tomorrow.
If it is as gr8 as you claim , then no doubt, there will be plenty of upside....
As of right now, last 7 years according to Trading View show negative FCF.
https://www.tradingview.com/chart/XMFkDvSh/
That is a million miles away from AET.
But I will add to watch list and thanks for the heads-up. Appreciated :)
Spare a thought for CINE LTHs - 50% down to day on RNS which talks of "very significant dilution". I held at one point: 11/8/20 exited a few days later for a quick 14% win but on trifle capital. Was never gonna stick up a lump in there.
I`m happy in AET. The faith is strong. May the Force be with you!
GLA
Looking at a price of 27.3 pence gives a Mcap of £60.18m or $72.75m.
In the admission document, the net assets (pro forma) ie value of equity is $56,853,785. That is a delta of $15.8m
Again, in the admission document, the delta between the opening cash: $37,726,913 and closing cash : $21,906,200 is also (drum roll please...) $15.8m
Coincidence?....hmmm. Interesting though
GLA