Member Info for redwineday

Im not a holder here and wouldn't be.

My tuppence FWIW is I can't see a bid. 850m debt, market cap still over a 1bn, now losing money and with some un-understandable stuff going on the accounts and more debt to come by the sounds of it. Car industry globally is in the pooh so who would need or want to spend this type of money at this time when the other investment needs for regulatory reasons are enormous. Sure its a cool brand but maybe you can wait and possibly get it for the debt and fixed assets. That said its an industry with many egos - so maybe I'm wrong.

The other thing is CAPEX requirement going forward to stay in the game is also huge. Needs deep pockets. This is the wood in the trees (same story for TSX).

Really something is very wrong when banks can flog this off and management can take millions out all with no comeback. II's were stitched up. For PI's its situation normal. System is corrupt.

Wondering. Why DNO wouldn't bid for GENL?

Until the debt is no longer existential on an oil pice collapse the depth of the register will the lack the type of II's you mentioned and PMO need. Why would and II buy this share with the volatility leveraged by the state of the balance sheet. Paying down the debt also saves 7% pa.

He is still talking about buying stuff with money he doesn't have. I give up...

Anyone know Chris Hohn or someone similars phone number!

The tide will turn when the no users masquerading as board directors take their responsibilities to shareholders seriously and take action. Unfortunately there is zero sign of this happening. What we need is some activist investor to jump on the shareholder register and point out to them that they are all going to be on the pavement unless they get their finger out of their you know what and fire TD, sell assets, get the debt down and start talking about dividends.

The tide will turn when the no users masquerading as board directors take their responsibilities to shareholders seriously and take action. Unfortunately there is zero sign of this happening. What we need is some activist investor to jump on the shareholder register and point out to them that they are all going to be on the pavement unless they get their finger out of their you know what and fire TD, sell assets, get the debt down and start talking about dividends.

Correct. He should have been fired for the value destruction he caused. Board are incompetent. This is why this share will remain the flea on the tail of old volatility until both the CEO and chairman are shown the door or at least do something to earn their respective titles.

CashFerret

100% agree. A change of CEO or at least a change of direction clearly communicated by the BOD (infers the same thing) would see the share rise, but since we seem to have a BOD asleep at the wheel or just happy to collect for turning up then its unlikely. What we need is an activist investor to pitch up on the register. This company needs shaken up!

II’s will not touch this share with a barge pole. Beta is just to great. Manipulation is probably the right word but IMHO the management of this company are presumably comfortable with it. It must suit them in some way. There is no other explanation. Otherwise they would be shouting through a bullhorn that their primary aim is to return to div’s once the debt is at 1.5bn. Instead of this TD is on you tube blowing about digging more holes literally and figuratively . What’s the point of this to an investor (not trader) when he has no visibility of income or even believes management is committed to this.

BOD need to wake up and start managing in the interests of investors rather than what the CEO wants and start communicating what investors expect. I believe in the untapped assets PMO has (Zama at least) but to get the oil out of the ground you need a deep shareholder base with a belief that they are well represented by the BOD. Today the door is left open by the BOD fir the daily pantomime that this share is.

This is the only way to attract ii’s and shake out all the nonsense that’ happens with this share. Any fund manager would run a mile from this company. He can lose his pants and his tracking performance in a day on this for nowt.

https://www.ft.com/content/1428bad6-6b72-11e9-a9a5-351eeaef6d84?segmentId=786c7e0e-fcc5-282a-7c0e-74ecfe4825a7

Hawkey,, Its a great post and the reason that I am in PMO. But 1 point is missing in my view, We need the management of this company to start communicating in a way that conveys confidence that cash will start coming back to shareholders. CFO speaks vey well on debt reduction and so on but until CEO and Chairman start speaking the same way days like this are a given.

;-))

Dodger

If PMO were the landlord then no, I wouldn't, at least not now. PMO's problem is the level of borrowing. Prospective shareholders are not comfortable investing at the current level, hence the SP is reacting only to POO and not future potential. Investors are ignoring cashflow and will only start to be interested when they can see the cashflow coming to them rather than the banks.

The bank may indeed decide to lend me the money because it much better for them that it is for me. They will get their money either by me spending all my salary on the mortgage payment or selling my asset when the market tanks and I can't pay.

As a shareholder in todays conditions I would much rather have reasonable assets with reasonable debts than more assets with higher debts or less equity.

Anyway enough already of my doubtful analogy....

AlfaMale

Problem for PMO is that they may buy something with generates cash but the other assets they have need a lot more cash to develop. Marginal impact of the extra profit still does not trump the potential exposure to the POO vs the size of the debts. IIRC the reason PMO have this debt mountain was gearing up at the wrong time. To raise more capital by any means today I think amplifies that volatility risk.

Dodger

Don't disagree there are assets in the market worth having but to be a successful buyer (shareholder value creating, i.e. sustainably rising share price and sustainable dividend policy) then you need to have a reasonable balance sheet. The market, rightly in my view, does not see this today with PMO. Balance sheet health and lower debt needs to come first. If I own a home with little equity and a big mortgage and another house comes that is a good buy at the price that bank are still going to tell me to take a walk when I ask them for a mortgage based on it being a good deal!

Value will be created in this company when the CEO stops thinking of acquiring assets independently of overall shareholder returns including a return to divi's. When I hear him talking of value he expresses value in assets rather than shareholder returns. Point is surely assets at what price and in comparison to what value can be created through simply reducing the debt. BOD are derelict in even considering spending more money at the current time when PMO exposure to debt is still spooking investors.

First post

Key issue and therefore price driver in my POV is market doesn't believe TD when he says debt pay down is the priority. Market sees him as wanting to do deals such as Chevron assets or other capex expensive projects (Sealion) rather than get the debt down, thereby prolonging PMO exposure to POO volatility. This give GS and others an opportunity to trade on short term POO movements. The current travails have happened since PMO comments on North Sea consolidation.

Until the BOD either issue a statement on debt prioritisation and taking advantage of the POO to accelerate debt pay down or hire a CEO with a different (better?) shareholder value driven agenda, the SP is going nowhere and will likely sink on inevitable POO reductions.

Since the BOD directors show no sign of doing either then all of us, me included, waiting on the breakout are like to be disappointed.