Member Info for Temple_of_Doom

Quite … never fall in love with a share … she will break your heart … . When interest rates fall so too will bank profits … ;)

The "market" presumably doesn't like the £80 m of the RCF left lying around - while it will also be trying to wash out the people that bought below 20p. Selling costs for Verne were expensive so DGI needs to get rid of another £100m or so of assets to be debt free so two of the smaller holdings or aqua comms leaving it cash positive.

There is what ... 50p a share locked up in Aquiva say 40p with a fire sale and a few add ons so 50p a share seems reasonable.

I’m very trigger happy … but not even I was prepared to sell at 25p this morning.

Around 10p a share earn out if Verne hits its targets … was my understanding. It’ll pay management fees if nothing else going forwards. Was always in the small print.

Filled my boots at 23-23.5p this morning.

Sold!

Has Verne just been signed?

252000 just got taken out on level II

Hotting up …

Maybe take a peak at the sector ….. before lambasting individual stocks.

There always comes a point, when a "renter" looks at the market and decides it's better to buy - it's common sense.

"Rents are driven by the supply and demand for rental properties, not property prices."

To repeat:

"If I buy a property commercial or not for less, I can afford to rent it out for less undercutting the current “market”, obviously."

No need to apologise.

"an investor buys a property on the cheap, and then cuts the rent"

Well yes - it's how I made money on B2L in the 1980s .. nothing worse than having debt, and an empty property to rent out.

“Yes if there were no outflows due to Metro going bust they may have turned a profit‘

I’ve yet to forgive Robert Peston for the run on Northern Rock or his leaking of insider information on the takeover of HBOS - where the fears incurred costs.

Don’t have much in so didn't pay attention to the sell off last year but steadily got the average down from 70p to 43p as a bit of day trading fun post December.

Curiously enough, I find my levels of concentration proportional to the amount invested.

Losses that average £10m a month in Q4 …. Explained in the results from the shenanigans last year …. I’m still bemused at METRO booking a profit for 2023 that is presumably taxable or at least offsets losses from previous years .,.. only about 10% of firms historically post statutory profit ahead of underlying profit so I found out late this morning and I’m annoyed I didn’t dig further earlier … but such is life, one takes it on the chin and moves on.

Meanwhile, think about demanding accuracy whilst being sloppy about stating Q4 losses … these were due to one off factors … namely the need to stop outflows from last year.

If I buy a property commercial or not for less, I can afford to rent it out for less undercutting the current “market”, obviously.

Look I have a tiny long position here …. took the 21-24p rise, bought back 23p ish took the divi, bailed at 21p seeing mid 18s looking for a re-trace leaving a small amount in …

There is a 3 million buy on level II holding the price up. Will it get pulled or sold into? Dunno … but I’m not impressed with yesterday’s RNS and neither is any other long, while the stock market is unforgiving.

"rental income is significantly above the interest charges and the dividend combined"

For now. As property values decrease, renters will expect a reduction in rents and the company itself risks the equivalent of negative equity - difficult to get loans under these circumstances.

I've been pretty lucky here in that I sold 90% at 21p on the spike before this recent news looking to get back in at 19p ... but I've seen all this before with debt and high interest rates. The problem lies with the value of equity compared with the loan required and overall debt.

It seems bizarre that a company would put such effort into hedge the bulk of its debt leaving the August 2024 call so late and for so relatively little. I can only presume that it was thought to be a trivial matter and as such overlooked.

Yesterday's RNS strongly pointed to a big problem. A reminder from last September:

" The Directors believe that should financing be required at the bond maturity date then appropriate borrowings will be in-place in adequate time."

Something is not going to plan, obviously.

From the results tucked away:

"and the gain recognised in relation to the haircut on the Tier 2 debt instrument in the debt refinancing, marginally offset by costs associated with restructuring."

Unusual to report a statutory profit ahead of underlying earnings ... didn't occur to me that would be an uplift.

Thanks.

So a £100m one off cost not taken into account in H1 reports. So prey tell us all how a one off cost in 2023 feeds into 2024.

According to the Appendix page 26 in the presentation given today, a £100 million outgoing was booked to capital raise and refinancing impact the underlying profit compared to statutory profit, with £2.4 million to net C&I costs whatever these are - I have not bothered to decode.

Seems strange to add what I assume are one off costs to underlying share reports going forwards, but there it is - but someone has done well in the refinancing department of some company somewhere so it seems.

Assume the above are one off costs, and the results posted today seem pretty good for a bank in the trouble it was last September.

"Nothing has really changed"

Press speculation is one thing, this another.

"The Company confirms that significant preparatory work has been undertaken to date in respect of both the debt and equity options, which remain under active consideration."

Reads to me as though a third party has just walked away from whatever deal was being prepared forcing the directors to notify the market .... Divide £75 million by 5p to see how many more shares are likely to be produced at current valuations then ask whom is going to stump up the money - will there end up beoing a D4E? If so, shareholders will effectively wiped out IMO.

Glad I've only got a few quid in here after this morning.

I recollect this share going down to 12p on the back of its banking woes a few years back ... I'd bailed at 55p ... thought about getting back in and missed the boat back up to £3.00. Too volatile for me but still on the watch list.