Member Info for reddevils

GozoMike - I think about 8 quid is right - they need to take some hefty write downs / pay their fines - and then the share price will no longer be at a discount to NAV.

Looking at all the press on Samin Tan and Borneo, the credit approval process at this bank must be a complete joke. They lent $1bn to a nobody company mining 2 million tonnes of coal a year - thats >5x revenues!!! Presumably there were ten/perhaps hundreds of loans of this type issued - taking big fees in the process - paying large bonuses, only for it all to come crashing down later on. This bank looks like it is heading the same way as the big UK banks - we all see the revenue fall and the costs go up as the bad loans come back to bite. This one will crater......

Captain and crew asleep as the ferry ran aground ? This board appears to be as in touch as Tesco's management.

This company stopped growing organically about 2 years ago. The margins have peaked and the operating cash flow is back to 2010 levels (as orders fall so do customer advances). Then add on top an expensive acquisition and a high level of debt......... Any cracks will show in the half year results - this is trading at 16x EBIT and could easily derate significantly.

UK listed engineers beating expectations - asian manufacturing on the up again stimulated by western consumer demand. Hopefully this performance with be repeated by other UK listed engineers such as volex

The management appear to be playing down recovery. I suspect this is because of the history. The management team have all been buying shares which is a very good sign. This is one to add.

The outlook statement in the results is actually pretty good - this is a business that should see a nice recovery in profits if they can get the sales back up....... Encouraging progress has been made with the VTP which is delivering revenue growth and is expected to deliver additional cost savings in FY2015. This has been evidenced by: · Revenue in the first two months of the new financial year is 13 per cent higher than the same period in the previous year; · Factory loading for the first quarter indicates that revenue for the quarter will be 10 per cent ahead of prior year and 4 per cent ahead of the previous quarter; and · Gross margins in the first month of the new financial year are better than expected and the order intake in the higher margin product areas provides confidence that this will continue, especially as volumes increase and factory utilisation improves. The Group expects to be cash generative in the current year after interest, tax and exceptional costs.

Commenting on this agreement, Nick von Schirnding, CEO of Bumi, said, "The signing of these heads of terms demonstrates tangible progress towards the execution of the separation from the Bakrie Group and Bumi Resources. The core financial terms of this transaction, which is significantly value-accretive for Bumi shareholders, are now fixed. The US$50m deposit incentivises the Bakrie Group to secure the necessary cash to complete the deal. Reaching this milestone yet again highlights the fact that under the current Board the separation from the Bakrie Group can be achieved but if Nat Rothschild's resolutions are passed it cannot." IT SEEMS THAT THE BOARD HAS FAILED - LOOKING FORWARD TO ANOTHER EGM SOON

The company has failed to get a circular out to shareholders by the end of October as promised. Given the financial situation on the Bakries I doubt whether there will be a "substantial cash return"

Any update on the separation and cash return? I thought this was supposed to have been sorted by now?

The are 241m shares including the non voting shares - so a $500m return of cash would be £1.30 per share Berau should do $300m of operating profits - put that on a modest multiple and adjust for its debt and fact that Bumi owns 85%, and the 85% stake in Berau is therefore worth £2 to £2.50. So it looks cheap - but all depends how the vote goes (and if transaction ever materialises)