The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
partially agree with you, the reason why i am confident is because the technology business since bought, has been growing, plus its been in profit, and a company that makes profit is a valuable asset, so going to admin i cant see it, happening, when the sale occurs they will have paid the bank and then will turn into a investment vehicle meaning selling other businesses giving em cash investors gave a clear reason why they didnt invest more was because of market conditions not the company, also the are making like 15 sales of something like this goes could leave a gap, on results news watch this fly last year they made 500k profit,
they have stated in rns tha news will be released early june, it could come tomorrow but by the end of this week, a rns stating increase in sales and profits will shoot this up and a rns about interested parties in the technology biz will send this flying back to 10p
im not aware of any buyers, but the process is that when they go into admin, the company assets are used to pay off, any debts the company owes, then if there is anything left we get it, it depends of there is more than one interested party this will not go into administration and we will see this rise, remember, last year second 2 made a profit og 400k, if they were to be valued 6 times the profit which usually is the principle it will be sold for 2.4million, enough clear debt, etc, they paid 1.8million three years ago and has grown ever since, and in profit, so if it was 1.8m three years ago, i think 2.4million will be an understatement it would be 4million, and once sold it will be a investment company,, meaning they will have cash, and cash is valued and what it is, expect an update next week, if they say we have buyer, you will smiling if you took the risk, and with only 46'% shares available your gonna have to fight hard to get the shares, becayse 5p minimum, and im not make the same mistake, when i never held until 9p how can they value a company 2m, when they have 1.3million profit from all their business, alot of stuff happening behind closed doors
i was in here from jan, bought at .7 but sold out at 3p, just to see it go up to 9p, was waiting for the retrace and bought back in. company has only one option now, they have to sell the technology business, as far as i know it in profit and has been growing every year and has grown by 12% last year, they need the sale to pay the bank, if they dont get the sale, then its admin, many buyers may want to be clever and wait for it go in admin, and get them cheap, but if there a multiple buyers, that wont happen and there will be a bidding war and as its is growng and in profit, i doubt buyers will wait for that. two possible rns they can release, 1. lloyds tsb extended payment date 2. interested parties in the business this will shoot it up but i will not mention sp, but it could be coming next week, if the figures show growth profit, this will go mental, the only reason why it has fallen is because the threat of admin, once thats off the company boom
this might be a realistic valuation on how much the company may sell the technology division for as everyone knows business valuation is 10 times the profit it makes, last year second2 made 400k profit so if it were to sell asking price would be £4m. but second2 was bought by adventis group six times the profit it had in 2008, so calculating it six times the profit know will give you 2.4m just to be safe the second biz is bchannels they made profit 400k too, so it would be the same amount as second2, but asking price will be 4m, assuming they sell both the companies for 8m, 3m goes to bank and were left with 5m, giving share price of 10p plus, or if sold at 4.8m for both after bank debt weere left with 1.8m giving share price of 4.2p so from here, ots a win win, on results news this should come good all we need is a buyer
been looking more into it, adventis has one business called second2 which they aim to sell, it was bought for 1.8m 3 years ago, so the selling of that company alone will clear leaving behind the other company bchannels, which if sold shoulld leave them with more cash than what the mkt cap is worth
you could be right about the no reason for rise rns, but it mayeb just rising, back to the levels at where it should be, because they are most likely wont release no reason rns, as there is no material reason, its just getting back to releastic levels, 25th may it was 3p and it fell for no reason, it was panic selling, buying was restricted all day, but look at sells above the bid, not normal for a company going in admin, which it aint, this well worth a punt, as last time this rose to 8p and at 10p it would only still value then at 4.7m,
thats could be true, but a company thats goes admin, has debt that their asssets cannot cover and no support from bank and private investors, but the previous rns, states everything, it says lloyds tsb are supportive showing they have seen something in the company, private investors didnt want to invest because of market conditions and not because of the company, debt is 2m, and they have said that they may sell one of the two biz of and they have said in the own words hat it significantly worth more than debt, so they will have cash left over, they made 500k and are valued only at 420k that is just a joke, 1 15m sales, asessts worth 20m+, this will come good, but expect a move short term,
you will get a rns early june, but theese are less risky levels, as the selling only begins when hit one 1p anything underneath nothing, also, the people selling now are the guys who just made 10% once theyve gone, its north from there
ive just made my final top up, this can hit 10p easily but short term i reckon 3 times what you put in, its all in the rns, i think the reason why it fell was because of debt issue, but the bank are supportive and if need to be they can sell one of the assets which they have said is worth way more than the debt, so if sold, its cash lying around, this is gonna e lovely, il try and get valuations of the assets but it defiantly worth digging into
ive just been doing some more reading, in the latest rns, it states,that they were unable to secure funding fro significant investors due to the market conditions not becuase of the business but however, with the lloyds tsb they have been supportive with the business and and loan, they say that if an agreement does not come on the loan, they will sell some of the assets being more specific a technology business they have, they stated when the sale happens it would be way more than what the debt is with the bank and vendors, as the debt is 2m, and they say it will be more, with net assets worth 20m, it could get sold for 5-10m, and with a market cap of only 420k at the moment, need i say what could happen here, regardless if the funding is secured or not it is a win win situation you could easily make like 10times your investment, if this reaches 10p it still only has a market cap of 4.7million it has sales of 15m, and is in profit of 500k, this is a no brainer, really,, this is going to be explosive, guys apprieciate any feedback on my comments, just see the latest rns its all in there and they releasing end of year results next month, the bank is supportive what else does the company wanna hear