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Canaccord note out, cut to 246p. Speculative buy.
I was going through the Pillar III stuff and found the presentation.
https://cabpayments.com/site/assets/files/4145/cab_payments_h1_23_results_presentation_final.pdf
Go to the final page. Some people here are conflating customer deposits with CABP's own cash.
That's the number from the H1 23 results presentation. Lower growth now but I decided it was worth a punt at this level.
If you check the disclosures mentioned in this RNS https://www.ticker.app/lse/CABP/rns/2023-09-29/HY-2023-Pillar-3-Disclosures/2342O is shows net equity is only £122m
I've seen people saying this morning: too much debt, nothing happening with Island Magee, directors doing a webinar as they are scared to meet people face-to-face.
Too much debt - they are building up huge shipyards to become the UKs major shipbuilder. This is a massive undertaking that costs money. They have consistently stated they can break even next year and seem to be underpromising, if anything.
Island Magee - this can now be sold very easily and wipe out most of the debt. Hopefully that's what they do rather than messing around with getting funding for it.
Hiding from investors - they are now putting out many more RNS updates, and at the most recent face-to-face event they put on only about six of us turned up. I don't blame them at all for moving it online.
Just started to add, used to have a 6.5p average but now quite a bit higher as I think this has derisked the business completely. It will be sold off and pay off half the debt or farmed out and provide a decent income for years to come.
Looks like they are fully out now
Similar to you Chris I’m going to start adding 10,000 shares a day to get a nice average rather than guess where the bottom is. There’s usually support at a round number like 10p and I don’t want to chase it up, having made that mistake before.
People keep asking what has been achieved for the money spent so far, but the guys have bought up and built up multiple shipyards, convinced the government to give them a £750m contract, and now convinced UKEF to underwrite a £200m finance package. Some people here can't see the wood for the trees.
I bought my original lot at something silly like 6p and traded in and out a few times since. Firmly back in the buy zone for me now.
The RNS stated:
- financing pretty much sorted
- cashflows mean no rush to refinance anyway
- lots of contracts that are very close.
My favourite indicator is when all the idiots on Twitter come out trying to scare people, which they duly did over the weekend. Got a couple of non-movers in the portfolio which will be getting the chop this week to build up a nice HARL position again.
Bought at 1.8