Member Info for Theanalyzer

Ironic Quoting AFPO as a company forced off the market by de rampers what a poor example. Lol. So it’s constant spin by CEO followed by disappointment, continual losses and minimal revenue had nothing to with it. Let’s wait until next results then we can see how good Yu is as an investment. As you say it is better placed than many AIM companies.

Ironic You seem to me obessed by derampers causing companies to fail. FRR was booted off AIM because no one wanted to be a NOMAD for it. It had made years of continual losses by ever more dilutive fund raises all the fault of management. However you think that alleged derampers caused its collapse.

Ironic I think we agree that companies with poor prospects and a history of poor cashflow get diluted but where we differ is that it is management’s fault not the market. The market can get in wrong in short term but in long term if a company doesn’t generate positive cashflow and has to keep raising new money to stay in business then dilution is the result. Based on last RNS Yu appears to be generating cashflow so I agree that it is a much better bet than many AIM stocks given no debt and probably cash flow positive and with original founder at helm with big stake. Good luck with your investment

Moronic Your are a conspiracy nut job spotting shorters at every turn. I doubt if there are many if any shorters in Yu now as share price was already down 90% at one stage and shorters if there were any would have exited at that point. You do know that if you short a company your downside is massive and much greater potentially than your initial stake. Long term if a company is good it gets reflected in share price. Lots of small AIM stocks punters cite shorters for poor share performance when the reality is a poor company. Anyway I will let you get back to your rampathon fighting the global shorting conspiracy. Here are some more rampy phrases for you to use. I wouldn’t want to be out of this stock over the weekend Buy now at these low prices This will multi bag from here The train is about to leave the station Buy now before the herd arrives

Moronic markets don’t hold companies back. If they did how did this company raise £ 10 million in a placing. Markets don’t like uncertainty like not realizing that company was overstating margins massively. The new CFO spotted and called out the problem which is great but business is much lower margin business than was thought at time of IPO and placing. Doesnt mean it won’t be a success but business can’t command same rating as historically.

Ironic

Companies are valued on future net positive cash flows not future gross cash flows like turnover. Yes Yu is winning clients from others but nobody in public domain knows at what margins and how it is winning is it better service, cheaper prices?

I am pleased for you that shares are up a long way for you but your 20 times current market cap comment is ramptastic.

Ironic
Cash generation is what matters. If you generate strong cash flow you can service debt and enhance your ROCE. Many AIM companies burn cash which is why you get constant dilution. Yu has cash at present mostly from placing. The real question is can it generate free cash flow from operations? If yes it will get re rated.

Market opening is likely to see a rush for the exit imho.

Er the CFO has been arrested already

I attended investor presentation tonight and talked briefly with CEO and CTO.

Changed my view on prospects for the company given they have now developed some money generating proven solutions which lots of scope for growth which they can explain business benefits for clearly and simply.

Likely to need more cash in short term but 6 fold increase in sales and halving cost burn is a serious start to reducing the cash burn.

I suspect the KPMG team are from restructuring as opposed to forensic accountants Their job will be to tell banks how it looks so they can decide whether to pull plug or not My guess is that administrators will be appointed because there are plenty of other coffee shops and how do you persuade people to back a business with an unreliable track record Sad for employees and shareholders. Hope I am wrong and shareholders get chance to get back some of their cash.

The requirement to meet highest price in last 12 months is if that was the price paid the bidder not any other punter. If this wasn’t the case then directors or rivals could simply could ramp up takeover offers buying a few shares way over market price. Look at FLYB for an illustration of similar logic.

Another thought why would a cake business be receiving deposits for millions of pounds. I know it’s not a cheap shop but...

The auditors should be checking that material uncleared deposits at balance sheet date on the bank statement were clearing post balance sheet.

I suspect cheques payments were not reflected in the accounts and the amounts deposited on cheques which subsequently bounced filled in the hole between recorded cash and true bank position. An easy way to boost bank statement balances provided your auditors don’t check uncleared deposits on the bank statements. Perhaps he kept rolling the position to confuse the auditors.

Donotpanic Have you probability weighted your outcomes? I suspect 1p outcome has a far bigger probability than any other which possibilities Ignoring spread and fees If you buy a 1,000 share at 1.6 your profit at 3p is £1,400 and your loss at 1p is £600 If there is a 90% chance of 1p then weighted probability is loss of £400 which is why big traders won’t bother.

There are a number of problems like how far back in time does the fraud extend. It sounds pretty pervasive and was created by an accountant who knew how to hide it from fellow directors and analysts and auditors so won’t be pick easy to unpick even with the benefit of hindsight.

Unravelling all the wrong entries and trying to build the correct picture of finances for last three balance sheets periods and then considering whether any different accounting decisions should have been taken at that time will be very time consuming and expensive.

I suspect the revised profitability which is now emerging on current trading probably paints a far less rosy picture which is why KPMG are involved to try and help management navigate through the ongoing challenges of which stores should be shut etc.

Terrible outcome for shareholders.

If you are so interested in TW articles perhaps you should stump up for the subscription fee?

Hargreaves don’t own shares other than in a nominee capacity.

The 4% is just loads of pis via ISA, Pensions and General Savings

Yes because they are not taking on liabilities of company including ongoing losses etc

The interim results cited fundamental uncertainty over going concern and highlighted concern over leasing upcoming aircraft leasing commitment. They also had huge cash outflow from operating activity as well so not exactly hidden that they well struggling. Doesn’t lame it less painful for shareholders though