The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I understand tipped in IC today too.
Oi! Can we stop using a thread where Tone seems to be calling me an idiot!
Tone - And get my name (or the part of it you half remember) out of your mouth!
CL, I think that bust is not what worries most of the existing holders. It’s being diluted in to oblivion if there’s no other avenues to solve this. Although I guess in that situation, we are back to your long road hold scenario.
Great post and agree with this. They say no crisis should go to waste and this potentially gives the business an opportunity to truly transform. I also agree that PFC should rebrand for obvious reason and then probably look to move. It would be devastating if the UK market couldn’t nurture a potential key player in the development of new energy infrastructure but the LSE simply looks bereft of liquidity.
Did I not say that the boards responsibility is to predict that interest rate rises might coincide with tighter credit conditions. Are you claiming the PFC board were unaware of general credit conditions or their own balance sheet?
I also don’t see a similar performance from (for example) WG or are they somehow magically shielded from this?
The board should have been well aware of their financial position and the market dynamics and seen this coming as a fundamental with their pipeline planning. They should have had balance sheet repair plans in place before the share price and bonds were absolutely trashed.
This is not industry specific but management specific.
I don’t know we keep posting the same contract wins. The reason we are in this mess is the CEO / CFO etc failed to manage a balance sheet to provide financial guarantees for this type of winning bid. I expect there’s still the chance these get pulled if they don’t sort this mess out (see Aramco / McDermott). Goodwill doesn't last forever so they need to get moving on resolving this.
Actually I don't mind the asset sale if it leads to a refocus on new energy and E&C. That's the future. It's a shame they seem to be getting there like a corporate version of the Keystone Cops.
Is the CFO a work experience kid!?? Just HOW can you get yourselves in to this position. Honestly!
So, that's what a regulator that actually regulates looks like!
The short position has been baffling me since that RNS detailing their current balance sheet position. In surely any normal situation, you would have closed at that point. To continue to add - if you assume no insider knowledge - seems a massive massive risk when you assume the outcomes is pretty much unknowable without have quite detailing understanding of the PFC management and counterparty intentions and thoughts.
I still scratch my head as to why they didn’t raise when TenneT announced or did they really get so recently blindsided by lack of credit availability and neither the CFO or CEO saw that any delay in advance payments would be catastrophic. From the last update to this situation is almost unbelievable.
I don’t think you’ll ever see another example of a company issuing such a consistent string of positive RNS releases for large scale contract awards with such a corresponding collapse in share price. It’s quite something to have seen this in real time!
I don't think PFC are worth much in admin. Not like a retailer where you can buy the brand or the stock. Pretty sure PFC survive, that's not the issue. The issue is who will own them post raise / balance sheet restructuring.
Astaris' actions are the ones that would concern. They seem to have had amazing foresight since PFC's woes started.
It certainly feels like gambling at the moment. Absolutely impossible to value this without an idea on how they sort out their financial position. The short position continuing to build implies someone knows how this plays out as you’d be surely be managing risk and closing by now if you had any doubts. Astaris Capital Management LLP must be blessed to have such exceptionally good analysts as they seem to have made the right calls all the way through this.
To my mind it’s a combination of lack of liquidity in London coupled with shorting that’s killing the LSE. Hindsight though says that the board made a massive error not sorting this when the TenneT announcement dropped. Basically, they left it too late, allowed the problems to leak and failed to secure investment to kill the short attack.
I do find it somewhat amazing no one thought to sort the financials at the time of the contract awards dropping!
One of the most damning thing I can say now is I’m more confident I’ll get a good handle on the negotiations by watching the shorting activity rather than waiting for any subsequent RNS.
Where do you get that total short number from?
LSE rule is actually day after to electronically submit.
You should send your positions by 3.30pm on the trading day after the day the position was reached. All calculations should be made as at midnight on the trading day the position was reached.