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Boyo
Your first post was today at 09:45
You’re not helping anyone by lying and attempting to have a knowledge. Hindsight is easy.
The fundamentals stand up, the price is low because AXA bailed. There’s only an -8% float so it will be volatile, could just as easily hit 5p or 75p next week
John389
No real concern over debt as equity outstrips debt by over £300m. Most businesses carry debt.
Ultimately, they make a profit and have assets.
Appears AXA selling out has caused the drop, yesterday’s rise certainly put them on the map for a few.
Historical volume has been very low and that won’t help. Current volatility will make it an interesting bet for many, some will be consolidating losses today and may escape a further fall but for me the fundamentals stack up until told otherwise.
Ivor
There is always nonsense posted on chat boards, but there is Lao some genuine thoughts, feelings and information shared.
As for who is in control of Pfc. The BOD have taken as global service provider to the brink of bankruptcy, they have stated they are unable to pay the interest due on the bonds in May. They have however secured money for some performance guarantees which is very interesting. At what cost though, how much equity? Will they dilute to raise the interest payment, delay the interest payment, be forced into administration etc,etc.
Whilst the later is in nobody’s interest apart from shorts, it is a possibility.
We should find out tonight how many shorts bailed and that may shed light on their expectations.
This has been too much of a gamble recently, to often in these situations, the worst scenario materializes.
Good luck to the brave who held.
There’s no denying that this has been managed appallingly by the BOD to go from £17 to 10p but it is what it is and the question now is will it remain a going concern?
They’ve somehow secured $300m funding for performance guarantees which will enable cash flow to appear. Can they make a profit? I’m guessing the new lenders think they can.
With bond holders and shareholders facing a possible wipeout and the business facing administration, D4E is starting to make perfect sense.
Bond holders may accept say half in shares, so $125m at 10p that would put approximately 1.67B shares into the market in total. Halve the bond, accept a delayed final payment and the $300m of new debt that they’ve secured will enable performance guarantees to be payed and funds released. It could climb out of the grave rather than self destruct
Clearly not as last week it was fairly settled around 25p.
Anything could happen but what will happen is suspension tomorrow! Mad gamble right now, there are simply too many factors in play. Why suspend? Why are lenders putting up $300m for a business that appears on the verge of bankruptcy? Hostile takeover perhaps or de-list and take it private Asfari could do a julian Dunkerton.
Paul
Whilst I agree with you to some extent, why did the SP open at 15p then rise to 19p? Some will say “shorts exiting”, why would they exit now given your scenario which would put the shares around the 4p mark.
I’m holding very nominal amount as I diluted heavily some time ago now. I’ve said recently that if the business can put a lid on the debt, clear the loss making legacy contracts and move onto profitability then it can secure a future. The last couple of years have been torrid and full of empty promises hence the current situation. I will keep my nominal holding as a marker or a lesson, we shall see
Apothecary
Are you actually being serious?
Kicking ourselves for not holding when the SP hits 10p on Tuesday?
If you’re happy to loose over 50% then so be it, I’m not!
Knowbody knows for sure but a lot know what’s most likely hence 10% shorts and the SP in the toilet. If news is good the SP will fly but it’s one hell of a gamble from here and I’m not prepared to take that chance.
Thomas
Administration Is the one possibility that hasn’t really been considered yet as whilst the debt requires urgent attention and the loss making contracts need finishing, if they can manage to control the debt and make a profit from the contracts awarded in the last 18months or so then the business has a future. Although administration would create an easy way out of debt and allow someone to pick off the valuable parts of the business on the cheap and continue with the business under a different guise. It’s all to common recently. ESKEN and SDRY spring to mind. I really hope the update is satisfactory and shows a clear recovery path without destroying shareholders but am expecting the worst.
Paul
You may well be correct.
Personally, I’m as good as completely out. However will jump back in after the big day as long as it paves the way forward for the business. If 4p is reached it won’t be for long as the shorts will be fighting for the exit.