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Have to assume Jupiter are in deep sheet if they need to liquidate their holding here at such a massive loss. I agree delaying sign off of the accounts ain't a good look, but the real reason why the sp got so incredibly low was Jupiter's massive dump. They might be out completely this week - good riddance.
Actually shaml89 it is highly unlikely that the auditors might not be able to finish. The issues outlined in the recent RNS are: "a number of potential adjustments including stock and bad debt provisioning and revenue recognition". These are all matters of accounting policy, which can be set at the discretion of the company. It is almost certain that the auditors think they should be more prudent. If you've ever had dealings with auditors, you'll know that this is far from uncommon. So all that is involved is a bit of haggling between company and auditors about an acceptable level of prudence. If the CFO isn't all over this, they deserve to be sacked.
Incidentally, I will be following with interest the legal challenge Graham Phillips has issued. He is the pro-Putin journalist who has been individually sanctioned by the Government, and had his assets frozen. While his views might be repugnant, under freedom of speech they can be legitimately expressed, and the sanctions are an extra-judicial punishment fir nit expressing government condoned views. If the Government's actions are struck down as illegal (as happens frequently when they, fir example, attempt to deport illegal immigrants) that could have great implications for UK Evraz shareholders who are also suffering extra-judicial penalties.
Justthisonce. The RNS said "As at 31 July 2022, the Group had net debt of £21.2m driven by an increase in stock, working capital and capex requirements. ". It also said "We expect buying strategies to normalise as we move into the second half." and "As we approach the seasonally stronger second half, and actively manage costs across the business, we will benefit from leveraging our overhead base in line with previous years."
In other words, the cash burn has resulted in a larger than forecast inventory, which the company are hoping will be sold, resulting in a larger than forecast cash inflow in the second half. You have simply extrapolated the unusual cash burn forward on an assumption that management will ignore all the underlying issues and continue to build up stock hugely. Even though they've told us they're not doing this.
I think the critical factor behind the crash is the following bit in yesterday's RNS:
"The Company will now report its final results for the year ended 28 February 2022 ("FY22") on 30 August 2022. This is due to additional time required to complete the Company's audit. Management is not aware of any material issues that have been raised by the auditors during the audit process to date."
I imagine the senior desk trader at Jupiter is away on holiday, and the junior trader now responsible decided to ignore the final sentence, and offload. Any clarifying RNS from the Company reaffirming that final sentence and giving a mundane reason for the delay would have this back up to 50p in an instant.
Not necessarily overstretched, but wrong footed by events in common with most companies and Governments in the West, I'd say, Shearclass. They are predicting a positive but reduced EBITDA for full year, so its already a miss from their previous guidance, but not a loss.
I'm in.
Plato, I come from a farming family. Our folk memory of the 1930s is of the bank repossessing the farm, and it taking another 15 years to save up the deposit to get another one. Poachers? You are so middle class you just have to be a parody.
Clearly the price is not rising as we here all hoped it would be cause there are still big sellers, and the herd has not arrived to buy them. But at some point they will have cleared, and then the sp will rerate. Basher is right that nothing is ever certain, but there is value here is we're prepared to wait.