Member Info for Straycat

Couldn't agree more quercusrobor.
I well remember an informed contributor to these boards, Hepseal, who took an absolute bath when he lost faith in the Company.
I hope he's okay now.
For my own part I'm loading up.....for better or for worse.

n1shares points to the Directors best interests being served by a subdued sp at the end of the month, this due to the fact that they're currently being paid in shares.
And that's a point well made.
However, what's happening right now is there's a great divide opening up.
Between those who just want out, those who've simply suffered enough and see an exit point.
And those of us who genuinely believe in the future of this business and are prepared to stay the course and/or make new investments to find out if we're right.
The current sp simply reflects those sentiments imo.
The traders will always do their thing in those circumstances, but soon they'll find the going getting much harder.

Given his earlier attempts at news management and the resultant runaway hyperbole, I was one of those who questioned PH's fitness for purpose.
But lately he seems to have learned his lesson; his news management and language is much more measured, a little less 'schoolkid handing out the sweeties to anyone who'll listen'.
Either way, this is all one way at the moment.
Good luck to everyone who's been brave enough to catch this ride and stick with it.

For those of us who've stuck with this share, this is one hell of a vindication!!

Plenty of room here yet.

Read the letter.
It's not my opinion you fool.
It's all there in black and white.
If I could be bothered I'd continue your education, but you're not worth it.

You and surreyscott will have to try harder.

Jaap Huijskes wrote to the shareholders on 23/5/2018 asking for authority to buy back shares into Treasury.
His reason was quite explicit, unambiguous, not open to any other interpretation than in his own definitive words.
It was:-
‘to satisfy staff share options.’

We were never told how many were needed (and despite our best efforts no one, including me, could work it out from available information); we were never told which staff members would benefit; we weren’t even told when they would fall due.
Just that they were needed, I repeat;
‘to satisfy share options.’

Soon after the AGM approvals, the buyback began, with 99.9% shareholder backing.
$50m dollars later we were proud possessors of some 20m treasury shares.
Only then did we find we’d bought far too many; 19m of them (ca. 95%) were unnecessary, and would be cancelled. Even though purchase for cancellation was never the stated intention.

Jaap Huijskes initiated and oversaw this whole ugly lesson in how to completely mismanage a Balance sheet.
Right from the moment he penned his Chairman’s letter.
And this negligence to any basic tenets of management/shareholder duty is almost criminal imo.
A cursory glance at the 2020 Interims lay the consequences of his incompetence bare for all to see.
All of it.
$49.8m in treasury shares have been written out of the net assets of the Company.
Largely as a consequence, GKP is worth 61m less now than a year ago.

That’s what Jaap Huijskes’ special style of management gets you……incompetence on a biblical scale.

JAAP HUIJSKES MUST GO.

By the way, note 11 to the Interims makes the following reference:-
‘Since the timing of the past due receivables and the Shaikan due revenues arrears………. is uncertain, these amount were classified as non current assets.’

UNCERTAIN, eh.

Well that’s another $70+m Huijskes should explain…….but he hasn’t.

JAAP HUIJSKES MUST GO.

IMO.

George,
I'm with you on this one, ramper or not.
Currently building my position post rights issue (what a magnificent rights issue price that was by the way!!!).
And will continue to do so.
All good and still so cheap from February highs.
No worries about this sat in my portfolio.

Hi C0ckeye,
Been a bit distracted.
Two debut novels; two publishing contracts each with a different publisher; both currently in production.
Nearly used the pen name Straycat!
But couldn’t stand the abuse.
Anyway, it’s kept me off the bbs, but don’t worry, my GKP shares are still with me, suffering in silence.
Hope you’re well and nice to know you’ve missed me.
When I’ve got something to say on GKP I’ll be back.
For now I amuse myself by reading PUTUP’s ill informed drivel. Got to love that boy.
By the way, why is that Grand Master of Disaster, Jaap Huijskes, still in post? Better no Chairman than that train wreck of a mismanager. His record speaks for itself.
But he’ll be an integral part of the recruitment selection process for the new CEO. And his lack of integrity will inevitably spill over into the choice of Ferrier’s successor.

We’re all doomed I tell ya!!

Qalbabbass.
As krok says one more possible appeal layer available. If they've not lodged one by now, likely they aren't going to bother. But who knows?
krok.
Good to see you still thriving in adversity.

Good post bitcoinbuyer.

I reckon the only reason the sp response is so muted is the possibility that Ukrnafta will appeal to the Supreme Court.
And since there's no mention of that in the RNS, Enwell clearly don't know.
One of the many problems with Ukrainian civil law is that it's codified, so there isn't as much case law precedent.
Hence there are more appeals on interpretation.

And so endeth my dissertation on the legal constitution of the Ukraine and its impact on disputed commercial activity.

But I'm with bitcoin; if you can stand the corruption and double dealing this is a share that might have real future value.

I’ve just been catching up on bb posts for the last few days, and I came across this little gem under the thread ‘SUDDEN SPIKE’:-
‘You don’t think the company is quietly working the approved buyback at VWAP with a limit to not push the stock into triple digits? I’d bet money that this is the only reason the stock isn’t below 90p.’

Genius.

Presumably the LSE has relaxed its rules so as to enable undercover buybacks by GKP without the Board having to announce their commencement intention. And without the need to inform either the Company’s shareholders or the Market more generally as and when those buybacks take place.
Unbelievable. You couldn’t make it up.

It's our own fault; unless we challenge these morons they'll keep posting complete BS undeterred.

Oh yes.
And if you want to know who this enlightened poster is (without cheating), the clue is in the appalling misuse of our beautiful English language by this Newbie heathen.

PUTUP,

‘A Company can increase share count with the stroke of a pen. Issue 50m shares into treasury. Done. It doesn’t increase equity value.’
Of course it doesn’t. But these shares weren’t issued, they were bought on the open market at a range of prices over an extended period. And because they were purchased to satisfy the vesting of employee options they clearly have an immediate impact, reducing the net assets of GKP as demonstrated in the 2019 accounts.

‘5) And howsoever you calculate that loss, wherever you put it in the accounts, one way or another the net worth of GKP is reduced by that decision to cancel.’
Of course the decision to cancel, in and of itself, has no relevance to the Balance Sheet, that goes without saying. But ACTING on that resolution has a major effect and will create further equity write downs on top of those in the 2019 accounts if and when the Board act.

However, I agree with your assessment that further buybacks will follow, and according to the AGM Resolution these will be bought back into Treasury, as last time.
I contend when they’re bought back they should be cancelled, and they won’t be, as last time.
And what a wasted opportunity, as last time.

PUTUP,
If you understand accounts, just turn to p113 of the full year accounts and you’ll find the net assets have reduced from $553m down to $520m in 2019.
Look further and you’ll see Treasury shares as a negative figure of $29.7.m, the major contributor to this reduction.
I’m not discussing who benefited from the buyback, and I never was. Rather I’m pointing out what the effect of cancellation will be to GKP’s Balance Sheet…..I’m starting to get the feeling you don’t understand.
And I’m not here to teach you.

PUTUP,
I can’t tell whether you’re obfuscating, or whether you’ve genuinely missed my point. I'm going to give you the benefit of the doubt.
Nobody is discussing shares held in Treasury.
I am wholly uninterested in shares bought back and then held in Treasury.
The discussion is around the real and accounting cost of CANCELLING those Treasury shares. They were bought from Common stock in the market, at market prices. $50m was paid for them, and now the Board has resolved to cancel them. If they do, then those shares which we paid $50m for will no longer exist and there will be 10% fewer shares as a consequence. But equally, our $50m is gone too.
And the Balance Sheet will necessarily reflect that as a reduction in net assets.
In fact the treasury shares bought in 2019 already show as a reduction in shareholders funds or equity in the 2019 full year accounts of ($29,749,000) (p113).
That $29.7m is simply the accounting treatment for the reduction in the bank balance following the 2019 market purchases. Those purchases are deemed necessary for the vesting of staff share options, and will vest as they become due, at no cost to the employees.
But at significant cost to GKP if they all vest.
The accounting treatment is no different for cancelled shares….they will be written out of shareholders equity in the same way, but for very different reasons.
I hope this clarifies matters.

IMO. DYOR.

Hello ****eye,
And welcome back.
No Volte-face I’m afraid, in fact I’m still banging the same old drum.
The fact that I have no confidence in Ferrier or Huijskes has been a matter of record for quite a while now. If you remember, I was calling for bb opinion on JF’s suitability for office well over a year ago. That infamous ‘straw poll’. Well it’s finally happened and he’s on his way. Just Huijskes to go now.
As for the buyback initiative, I had no issues with it so long as it was accompanied by cancellation of the shares once acquired. I still maintain that should have been done at the outset, and immediately, to maximise the impact of such a reduction in the share base.
Instead the Board have only just resolved to clear the stock out of treasury by cancellation, nearly a year after the buyback initiative commenced…..and only then after recognising they only needed 1m of the 19m!
It’s probably too late for cancellation to have much of an impact now, so much other stuff has gone on in the intervening period.
Finally, I thought it was worth pointing out the financial implications of such a course of action if taken by the Board.
But no about face…..not yet!
And I know you'll be watching!

Inv,

Hence the shareholder revolt at the AGM.

Hi slings,
I wish.
If the board cancels those 18m shares then the share base will be 211m. Since year end net assets were c.£420m, each share will be worth c.£2 according to book valuations.
But the market only values GKP @ c.£212m right now, or .92p.
So on that basis we are clearly and massively undervalued as we all know.

BD,
I don’t know why you think I’m angry. I’m not.
And I have no problems with either the dividend or the buyback in principle.
I do have a problem with PUTUP’s complete ignorance of what happens to the net worth of the Company when you cancel those treasury shares.
The Board have resolved to cancel c.18m treasury shares, so here’s what happens when they do that:-
1) They’ve used an asset ($50m cash) to buy another asset (common shares, some 19m of them).
2) As long as those shares remain in treasury there is no change to the net assets of the Company apart from the valuations placed on those treasury shares at year end, which will result in either a profit or a loss on those shares dependent on sp performance.
3) As soon as they issue any of them (under employee nil cost option schemes for example) then the net assets of the Company are reduced accordingly because GKP have given awarded an asset at nil cost to the employee, namely treasury shares.
4) Similarly, if the Board decides to cancel 18m treasury shares, their value is lost to the Balance Sheet forever. They no longer have any value because they are no more. In this case I estimate that cancellation cost/loss at c.$45m. i.e. the Company has made investments in an asset (common shares) which no longer exist, no longer have any value.
5) And howsoever you calculate that loss, wherever you put it in the accounts, one way or another the net worth of GKP is reduced by that decision to cancel.

That’s all BD.

IMO. DYOR.

PUTUP,

You really don’t know what you’re talking about do you?
My posts rely on facts for their impact. And that clearly rattles you.
Please name one assertion I made in my recent post ‘Was It Worth It?’ that you wish to challenge.
Otherwise PUTUP, please shut up.
As for my 'agenda' it's simple. I have a secret desire to make money on my not inconsiderable investment in GKP.
And my lack of faith in the lightweights at the top of the Company is a matter of record.
I have no problem with the Company strategy, only the people employed to action it.
Specifically I refer to Ferrier who thankfully is soon to be no more, and his his partner in crime Huijskes who will undoubtedly follow after a decent period of time when the dust has settled on JF's ignominious 'retirement' announcement.
If you've got a problem with either the content or the tone of my posts, then I will happily discuss them with you.
Unfortunately you have yet to make a cogent,or even sensible argument concerning either.

h1970,
Insanity. That's one word to describe what's going on here.
But I could think of some less charitable ones.
As a LTH, where do you think this Company is headed over the next few years?