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Management seems to be out of depth, they raised 10 millions not so long ago and have burnt through that.Product is there,demand is there but incompetent management has ruined it.Right now you would want to hold these to get shafted by management when they announce placement.
He should have stated cash position and that would have clarified the situation to certain extent.Witholding that information only means one thing and that is "placing".Market adjusted placing price to 5p but there is a seller in background.Even if they were to place new shares today it has to be carried out at a discount to current price.
Lol, looks like you have taken position way too early,should have waited for placing!
Who is dumping these shares you reckon?What other options do these lot have apart from placing?
Way it is going it looks like it will run out of money soon.Placing on the way.
Problem is lenders are protected,if it was to go into administration they will get most of their money back.Shareholders wont get anything.Right now liabilities exceed assets by 41 millions but do think brand has some value.Hillco specialises in buying companies out of administration.Current cash-burn is 1.5 millions per week and revenue is falling.
Ultimate target is zero, but look at cheekiness of JD he wants to raise money before delisting it.Brand has some value and so does stock, so lenders are not in a bad position.JD wants to buy it out of administration while average jo has lost everything.
He found success in different era and thought he can revive it, while time has changed.I do think he tried his best but could not revive it.He should have brought in someone new to turn things around.Traditional stores were struggling and he went on to open more stores.
A word of caution for new investors if everyone is "averaging down" and share price keeps on falling that there is good chance that some factors beyond private investor's control are dictating the price and that is what is happening here.It is being shorted and private investors do not have enough purchasing power to reverse that trend.
I lost heavily in Debenhams, it was frustating to see that share price was not moving and kept on falling.Debenhams did have massive unsold stock and a chain of stores in Denmark as well but it could not survive as there buisness model was not working and they were not willing to change it.Same thing is happening here retail investors have very low chance of getting out with a profit and every day new punters are being trapoed.
There are two routes realistically he can underwrite equity raise and then have it delisted but that would mean that he will need to take on debt and liabilities as well as HMRC bill, second option is buy it out of administration off lenders, leave loss-making stores with administrators and take rest of company without debt.He is most likely to go for second option,cash burn and debt level is unsustainable at this level.Company will run out of money in three months at this rate.
Problem with these brands is they found success in different era and things have changedcsince then.They were late or shy to adapt to new retail world and top management was too arrogant to adapt to new changes.As someone mentioned there is no creativity here , their stuff is good but they have been selling same sort of stuff for 20 or 30 years.