Member Info for tony99999

Possibly done just so he can say he was buying at this time too, for an exit speech...

One of the biggest problems may be a cash squeeze from creditors who now may be unwilling to extend any terms at all, and any cash flow forecast on the old conditions will need completely reworking. If there is no credible financing alternative then the directors will need to very carefully consider whether the business is not trading whilst insolvent (unable to meet its commitments for the foreseeable future). Penalties are pretty severe. Can’t see why the share wouldn’t be suspended.

Good projects are not funded by junk bonds,

Gosh what an amazing petition. Can somebody please rewrite it and correct the awful spelling and grammar. It hardly shows the petitioners in a good light. Why The Times bothered to report on it today is beyond me. Must be a wind up.

Three reasons as to why I’m not at all hopeful and so staying out after 16p sell. Firstly a company’s value is reflected in its share price through some present value of sustainable operating cash flows (EBITDA) less net debt. So whether the fundraising is debt or equity is not so important; if it is all debt then this anyway reduces the share price accordingly. In most situations I hold that investor sentiment has quite a low impact on share prices compared to the valuation metrics. Secondly I don’t believe good propositions are funded by junk bonds. Creditors are humans and so will find a multitude of ways to steal our money. Thirdly this project is so capital intensive that it could massively overrun with huge negative consequences for value.

Wishing everyone good luck, but I’m out at 16p after a small speculative bet at 22p as the structure supporting the old valuation has changed quite significantly. I don’t believe from where I sit that there is any upside at all.

Newboy be very careful. You are effectively investing for the first time and holding only one share is crazy high risk. You should consider selling and investing in a much broader range, perhaps a blend of funds and cash depending upon your needs. There is not too much cost involved in doing this and you would sleep far better at night. You risk losing hugely and feeling terrible. I’m surprised the speculators here haven’t at least suggested you consider that (except the IFA point).