Member Info for Roharps

ESL has debt of 150 million quid. We really can’t ignore this factor and that makes this share risky if demand is not strong… but EDSL also has some other stuff going for it and risk is priced in to the current SP I think. MCAP 33 million.
Some stuff I have noted…

Firm could be taken over or bought into by new big player?
Company was trading over a quid 12 months ago (50p diluted), if it’s not taken over this means big upside if DBAY can do the turnaround

Evidence of people happy to place cash in if needed…

Wincanton apparently showed some interest in buying Eddie Stobart, but couldn’t do the due dil because of the ongoing accounting review. It is now cheaper than when they were sniffing around

Andrew Tinkler who is a form CEO of ESL was maybe looking to inject 80 million for a stake via TVFB before DBAY came in.
Share looks oversold given DBAY injected £70 million that valued the company at the time at 32p. DBAY have a controlling stake of 51%.

It still has big customers such as coca cola, Amazon, Tesco.. Tesco currently subject to some panic buying, though unclear if that will have a positive effect on EDSL..

Results to 31 May 2019 show a 26% revenue rise to £421.3 million, representing 6.4% underlying growth. New customers have been won such as Tilda, Metsa and Lallemand, while contracts have been extended with Tesco, Aldi and Mayborn.

Quite often when a company has had accounting problems, it pays more attention to accounting and becomes better.

Interim results showed increase in revenues but the business is expected to declare an EBIT loss and had to make a write down of 169 million.

These shares were trading as high as 14 p quite recently.

Also talk of lower oil price being of benefit, though again not clear how much exactly that will help.

All in all it’s a good gamble to take, lose all or multibag many many times. I’m in… lets hope it all works out.

It will be very risky now for any company to take on Tullow with the debt they have.... Surely.

Couldn't buy on the rebound. So annoying.

When oil prices drop, Russia suffers greatly. Oil and gas are responsible for more than 60% of Russia's exports and provide more than 30% of the country's GDP.

Russia have obviously lost their memory over the dreadful shock to the Russian Ruble.

Surely they will cave in eventually and agree to drops in production

This is unreal. Massive one day slide. Hope next week is better

Do you know what companies produce Tallow, I may give it a shot

It makes sense... then can wait for oil to recover and sell reserves at higher price

When was the application for FDA approval made. Isn't it taking a long time. Thought it was supposed to be emergency?

The problem is not massively income, some of the portfolio is still doing really well operationally - its margin calls on the property which has been falling in value.

Any rise in SP is almost completely dependent on the price of oil going up. I am hoping

It is ripe for a takeover from a high risk taker who wants to see what value they can extract.

This is way oversold wow.

It is the 'several other options' being considered which is of note. Obviously we don't know what the options are but one would hope the options give the company a chance.

You are right - and too many questions to assume this will make £50 million to repay the valuation of the company the shareholders have given. So basically it is a high risk punt. so you are in or out.

Does the testing work on mutated forms of the virus? I have read reports there are two strains.

Fair play for predicting this. All looked so good at the start of the day. Another retrace in SP and oil price falling again.

I'm off to sit in a dark room for a bit.

We are definitely not in recession. China is getting back on its feet and cancellation of flights/transport is temporary whilst the speed of the virus spread can be slowed until warmer temperatures kick in. Spring and summer will slow the virus probably, then there will be a vaccine at some point, possibly next year.

There will be volatility in the market as things become clearer, but oil will only be hit temporarily I think. Governments will pump money in if things get too bad and OPEC will cut production.

Where did you hear the rumour of CNOOC being interested and when?

Also Spring and Summer in the northern hemisphere should slow the virus I am told, though I am not an expert.

I would be very surprised if this not finish in double percentage rise today. Brent is up 2.7% as I comment and as far as I can see, Europe and the United States are not restricting travel because of the Corona Virus. China is getting back on line. My personal view is that oil will rise a bit more.