Member Info for Rachel2

Still looks an expensive stock to me. Trading above 20x next years forecast. Do not think organic revenue growth justifies current price. Great company, brand and product. Been following company since late 80's. They have done a great job building brand.

What assumptions have you made re £22 f/c. Earning for current year falling to say £2.50 share or PE ratios falling in this sector. Based on current earnings forecasts then PE would be approx 5.5 at £22 per share and market cap approx. £30Bn. Looks a little pessimistic to me unless large further drop in commodity prices. I am a buyer around £28 as I think dividend is pretty safe if I have to hold.

Actual loss on trading by my calculation. Surprised the dividend is held. Way under water now, dividend only reason to hold.

Hope you are right, I averaged down the same day of the EChem announcement. Within an hour I did not feel too good. Never averaged down on a share before or after. Lesson.

I expect Dividend payments to be halted, they need to fight the case with EuroChem with the very best law team. The board are looking at a total loss to investors if they lose. How do we get a feel of how good the claim by Eurochem is? It would be great if the company could give us a legal opinion, ie losses capped by the contract etc!! Only had one total loss before and that was in 1988.

Sould I bail out, down 50% following my foolish increase in holding hours before the EuroChem announcement. I understand that this is now a long term recover but trying to workout the risk of a complete loss.

Did I average down this morning. I am usually very cautious when showing losses. Just got back in and was shocked at the fall!

I do not usually increase shareholding in a share where I am showing losses. But I have this time, hope I do not live to regret it.

My alert triggered at less than 90p.

Made a couple of purchases over the last few days. In for the medium term. Like the sas model they appear to be selling.

The mgmt were way too optimistic in my opinion. The contract wins are a very good sign that the product is viable. My guess is the contract values are less than £250k a pop. So they will need funding to survive. Hope they do.

What are the value of the contracts? This company will have approached a number of health companies, they require funds urgently! The mgmt have handled this very poorly.

A real gamble this one. Needs a fund raising to continue its development programme. Complicated further by having an aggressive revenue recognition policy making cash flow projections by outside investors hard to forecast. Hope they survive.

B/E in 3 months then :)

Very happy to see him buy so many. Perhaps I might get to break even within 6 mths :)

Work for a competitor actually.

Cash will only burn away if losses persist! With the reduction in staff numbers (sorry for those that lose their jobs) and other costs (leases etc). The sale of loss making businesses (there was too many) and a new mgmt with focus on recurring revenues I can see a positive outcome. I admit that RM will be a lot smaller, with revenues below £200m pa again, but if they can deliver a £10m quality EBIT then the downside should be limited.

I agree that the management had a very poor strategy. However, don't you think that the new team can rescue some value out of the mess. Although turnover is going to fall rapidly over the next few years, cash flow is going to be strong. At the end of the BSF project a market for educational systems / support will still be there. With an enterprise value of circa £60m @ say 69p / share there could be some value.

Did not spot this. Too much of a gamble for me.

To justify the current share price by my simple calculation. Unless a substantial part of the debt is contract financing and will wind down as the contracts get implemented. Does anyone know?