Member Info for WolfofWarks

Hi poor chapter 11 would only work 1) if there is a viable business to come out of it and also 2) creditors who are willing to be participants on the other side.

I’m not so sure Argo can meet either of those criteria at the moment but to the inability to mine btc at a profit.

'It's disingenuous to argue that Texas, that the Helios facility is worth nothing, that's not true. It can certainly be argued that it's not worth what Argo paid for it but it won't be a million miles off what it's marked down as in the accounts..

I don't think anyone is suggesting it's worth nothing. It's hard to judge what value could be recouped relative to what's on the books as its dependant on the location, spec of the build, it's adaptability and whatever a willing buyer would want to do with it.

I've seem a HQ building constructed, and highly specced to that company's needs - offices/boardroom/data centre inside on a £15m project only to be then revalued professionally for £8m.

"Hi Wolf, boatman are shorters, I wouldn’t go by anything they say."

The professional shorters carry out far more research than any of your bull analysts imo. Only a fool would dismiss them.. In the case of Boohoo, ASOS and Cineworld they were bang on.

The reason Helios cost so much from what I recall is because it was purchased as an oven ready project and construction could start straight away without having to go through all the planning, red tape, etc.

It's the debt that has put them in the COVID predicament though. Empire building all built on tick with no contingency planning for the rainy day that came. I think a large corporate structure where two brothers carry our both the CEO and CFO roles probably made them a formidable force to try and take on.

Until recently I held 888 shares for a reasonable amount of time. They've recently bought the European William Hill business with debt and thanks to the increasing interest rates the share price has been decimated.

Hi Poor - I'm not too sure what they paid for it but I remember that Boatman report was suggesting it was vastly too much. In light of what's gone on since I suspect they might well have been closely to the mark than we gave them credit for.

One thing is whatever they have paid or spent on it historically will be largely irrelevant to any willing purchaser. Especially if a lot of the internal might be ripped out by the machine creditors.

You raised a good point about the assets, etc, in the financials. It will be interesting to see what they actually have.

HI Bullbears - it's an interesting point. There also the counter that the insider control and lack of accountability and scrutiny are what got Cine into this mess in the first place.

it's no coincidence how many failing companies have poor/weak governance structures.

I'd be amazed if they could pull off a sale and leaseback transaction for Helios in this market. That kind of deal us dead in the water with the current macro even for a cash cow without offering a ridiculous yield,

That's even before you factor in that they probably wouldn't want ARB is a tenant.

Harchris - I remember when the sun was shining and I mentioned that Argo should probably think about selling a decent check every month.

it went down like a fart in a lift.

I remember the first one all the fuss over the 3D glasses and it was one of the first films I watch at home in HD. I also remember my wife watching it in our early days which would never happen now.

Hi wellington - look at the early dockets relating to the priming facility. The restrictions around that particular tranche of covid funding made it certain that the debt couldn’t be refinanced and was why the DIP was so large in order to repay it.

Even I’m planning to see Avatar ….

Hi poor - the first I was was quoting HC, the second I was responding to your point.

I would never knowingly lie mate. I probably should have addressed you both individually. Apologies.

‘ No there's a major difference PI I'm afraid - NYDIG will be given first dibs over all the assets by the administrators... ’

I don’t think that’s strictly true mate. From what I recall don’t they have security over some of the machines and electrical items. I had a quick look through the accounts yesterday and they are some mortgages fixed against the owned data centres in Canada by the looks of things. I’d assume them to have pretty decent security as well.

‘ Those chapter 11 judges are really funny, they like to look after the workforce and small loan companies also.’

I think this is a misconception from some of the dross posted over on CINE. The judge simply insures that all claims are heard. The outcome though will be decided by who has the biggest teeth by virtue of their voting % in terms of determining the outcome.

So it’s not the judges being funny, but just carrying out their role as trustee. The ultimate aim is to save the business, their has to be a viable business to save though. My worry would be even if they saved this now their is no visible road map to profitability and too many of their critical success factors are outside of their control determined nearly exclusively by market forces ie. Btc price, energy price, network difficulty, borrowing rates, etc, etc.

Poor - the poorest always get hit the hardest often by the smallest change in the economic condition. We had a slight bump from the Truss budget but the economic shock hasn't really happened yet, and it's not completely clear whether it will happen at all. I work voluntary in a food bank and night shelter and we have seen an increase in demand but also a drop in some of the donations - which I am convinced are quite often given by folk who aren't all that well off to make them.

You mother couldn't have been waiting for 16 hours for an MRI before all this talk of strikes happened., the NHS is largely unaffordable due to the prolonged life expectancy and how may elderly people we now have as a % of the total population. I've seen the good, the bad and the ugly of the NHS.

I have an extensive financial education but do like to supplement my knowledge with the odd magazine here and there. maybe you should try my friend :)

I thought this was a strange reaction. The only thing that stands out to me was the drop in free cash flow but I thought this was well explained but the increase of inventory and if I recall a tax timing difference or something to that affect.

The company and Sp is heading in a great direction here and this is a brilliant long term play in my view.

I think you have to look at what this company fundamentally now is. It's basically a data centre with machines for sale on an expensive electricity contract. What is actually left to save and what is the catalyst for any kind of recovery in the share price?

I’ve got to say Poor I think you’re having a shocker here mate.

‘Chaebol, energy prices and btc price are the reason arb and other miners are in trouble.’

This where you need to learn about your macro economics. Inflation and interest rate hikes are the primary driver behind btc dropping along with all the speculative jam tomorrow growth stocks.

Even if Argo had hedged their electrify the SP would have still been hammered.

‘Franky, what think world are you living in??That evil bas turd Putin is crazy, he is about to freeze 40 million Ukrainians. We will get millions of refugees coming across, our economy is in big trouble, NHS, trains, roads, school meals, companies are going bust.’

Most of this strife is public sector related. Figures yesterday showed the economy grew in October after contracting in September, most likely due to the impact of the Queen’s funeral and subsequent Xmas style shut down around the funeral. When I go out to shops, restaurants, etc, I’m not seeing much evidence of this cost of living crisis. Unemployment is at rock bottom, trying to recruit people is becoming near impossible across a lot of sectors without paying extremely high wages demands. The news paints a gloomy picture but most folk are just getting now with it.

"the BOD is hiding that court case already in public knowledge, quite well IMO, for some unknown reason?

perhaps they don't want the SP to go on a run just yet, until they are fully loaded"

I very much doubt directors are allowed to buy at the moment.

Is that not transparency on the part of the proceedings though so that all affected or interested parties can see in black and white what is being proposed giving them their chance to question, object, etc

I was reading one of the dockets the other day and the $1bn cleared down interest and fees as well so the actual debt cleared down was less.