Member Info for Serendipidity

Dean - don’t worry I have thick skin, 80% of posts on LSE are garbage, so you just have to ignore people like HH and converse with the 20% who actually want to discuss things sensibly

xel - can you explain what you mean by AMGO putting the highest figure to the provisions?

Totally agree

I hold shares, sold, then bought back when all the JB nonsense ended.

The company is very profitable with low overheads, and if it comes out of the complaints issue with c.20m in the bank it will be in a good position to start lending again, which will substantially increase its MC.

But the reason the SP is where it is is not a coincidence. There is risk and some on here are very ignorant of the true financial position.

xel123 - just a suggestion, stop deflecting, read others comments as constructive rather than a cause for argument

you made a daft rampy comment, regarding something AMGO is legally required to do, and is needed to get accounts signed off by an auditor so its not clever. that should be useful information for you!

"Thank you for your expert observation!! :) :)"

xel123 - I have been in wealth mgt for 20 years, and an accountant for 25, care to share your expertise?

I also hold 150k shares

skeet - correct, provisions are estimates. But there is not much difference between a cash compensation and "loan balance amendment" which is a part write off of debt. The former reduces cash now, the latter reduces cash later.

One thing is for sure, once complaints are resolved the cash would be a hell of a lot closer to 12 than 160!

The fact people invest their savings here and think its a bargain because MC is £44M and they have 4 times that in cash is frightening.

It's not clever, its what accountants have to do, prudence is a fundamental concept of accounting. The provision can only be an estimate but it has to look forward, as you need to match the potential cost against revenues being received. The "matching concept".

Given people are invested here and the biggest risk is complaints, people should understand how cash v provisions work.

You need to understand balance sheets better. Look at page 18 of the statement

There is £160M of cash (134 cash plus tax rebate due) to set against £148M of provisions (outstanding complaints and loan write offs). If the provisioning is accurate Amigo has £12M of net cash

So glad I got out last week,

GLA

Can I check my understanding of the situation please:

March 2020 - balance sheet shows £64M in cash and £106M of provisions, the original £115M less £9M of comp paid.

Q1 RNS - paid out another £8M in comp

Q2 RVS - cash is now £140M (probably as the closed out profitable loans), add another £85M to comp provisions, they paid out £47M in Q2.

I make that £200M provisions (115 plus additional 85), of which 64M has been paid out (9+8+47), implying 136 to go if provision is accurate, about equal to their 145 cash.

Q3 tomorrow - cash probably grew as loans continued to close, further comp paid

But if they need all 200 of the provision that will clear out all cash except what is added in Q3

Is that about right?

Thanks

OK not rot, just a slight sign of mould

In the mean time all my EV shares, that need lithium are going crazy, so not sure why this has stopped rising.

Do we think a Czech listing will have any impact? I don’t see why it would but I guess it would be EUR denominated, want surely the US is where a frenzy will happen?

True Jambo, plus the best execution surveillance and audits that any big banks/brokers are subject to

Sparticus - not sure why you are calling me "a frank idiot" (or what one of those is actually!) but there is no need. Believe it or not, some people have different opinions, and different investments aims and opportunities.

As I said GLA to all who remain, with the notable exception of Sparticus who can get franked

thanks Skelly

could do with some positive news flow to stop the rot

I have to trade via the crap SETSqx auction system for some AIM stocks (use Interactive Brokers which is good at other things), sold some at 8.8 also, 9 was a flash in the pan! 120,000 shares to sell

Buy mine please, been trying to ditch them all day for a half decent price (ie 8.5) and there is little demand

Sold up yesterday and today, given up on waiting for this to do anything, when everything is rising strongly the opportunity cost is too high

GLA to those that remain in

Nonsense numbers and DLP might have a senior and a couple of juniors max working on a contract and DD, they don’t seem to be producing much yet either!

Skelly - where are you getting “in next few weeks” from please?

An interesting debate, though don't condone the personal attacks.

I lost 45% on UFO and it stung, my fault for buying on some hype and timing it wrong. I am still watching it with interest and might well jump back in when I see a better risk reward balance.
There are too many opportunities elsewhere to not assess your positions regularly. I only lost the 45% when I crystallised the loss by selling - true but I made my loss x2 in a couple of days on BLNK.

Lessons learned, ignore posters who only post postive points and ignore risk (UFO is an AIM miner and they are all higher risk).
Ignore posters who think QE, weak dollar, US stimulus have any effect on tiny MC miners (it impacts BHP, GLEN and Shell).

UFO and the rest are about what they have in the ground, how easy it is to get out, and how well the BOD run it, finance it and JV/sell it on. Add in a sprinkling of random geo-politivcal /corruption risk.