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I never understand why people object to large companies using available business relief when they aren't immune from extra costs incurred due to the pandemic. I guess it's all about the bad PR more than just plain common sense. It'll be interesting to see if Sainsbury follows suit and caves in or says nothing by letting it blow over.
Not the worst results in the world considering the circumstances. I'm happy with the reinstated Divi which is around 5% yield at current SP value. Not to mention only a loss for this period due to Argos closes otherwise would have been a good profit of around £300m.
Coming up to the best period of the year for them too with Xmas. And with new lockdown restrictions meaning continued push to online shopping. Lease debt down massively which should help with cost savings in the long term.
Although not surprised about the drop in SP today with the media attention straight to the job cuts as a headline grabber. Ignoring all the jobs Sainsburys created this year and reinstatement of the dividends. But instead focus on the negative as it creates the most clicks and a much stronger emotional response.
Well this is a kick to the nuts. I was invested from the beginning and held all the way until end of sept and then sold out at a sizable loss as it seemed like there wasn't going to be any news. Then few weeks later get an associated company update and the sp takes off.
Q3 results end of this month I think will decide if the SP will start to stabilize and then increase. For most of Q3, the price of oil has been around $38-$40p/b which is about 30%-40% higher than what BP got in Q2. (that was around $25-$29)
Hopefully with more time (can kicking) it'll mean they could maybe raise more equity when it comes to that point.
I'm assuming the loss shown on fair valuation is because the market cap is lower than it was when unsuspended in Feb.
What does that value actual mean as well? Normally market cap would be how much a trading business is worth. But with this been a cash shell I'm guessing that's not the case.
I'm guessing because the deadline for needing to convert to an aim investment was pushed by to 9th Dec 2020 then maybe the deadline for the PIK notes got pushed back to similar timescale. As it's conditional on shareholders agreeing to convert to an investment company in order to take part in it.
Find out on Mon/Tues what they decide. I'm thinking they might try issuing new shares to raise capital. If that's the case then how much and what price. Usually less than what the current share price is so be looking at issuing 100,000,000+ new shares. Obviously just a thought but who knows.
We will get information regarding the meeting on Tuesday morning?
Figured it would be same as the AGM which was posted the day after the meeting.
Well, I think Q3 results will be much better than Q2. Simply because the price of oil has recovered substantially from the crash in mid-April. For most of Q3, the price of oil has been around $39-$40p/b which is about 30%-40% higher than what BP got in Q2. (that was around $25-$29)
But until then I think the SP will be under some more constant pressure.
I think it's due to low volumes and a few large buy trades with big total values pushing the SP up. I wouldn't expect too much from the rise and a few big sells will bring it right back down again.
I am eagerly waiting on the general meeting at the end of this month (Monday 28th). Which should lay out what Dbay plans are, plus regarding the PIK notes as we still haven't heard anything yet regarding if we get to take part or not. Deadline passed on the 9th on participation.
Same. Maybe it'll be something they'll announce at the general meeting later this month? If we don't hear anything tomoz or next week.
I had a little look over and believe you're correct on the PIK notes deadline. Do you think we will hear something tomorrow regarding this?
Would of thought some kind of decision would have been made on taking part or not before the deadline.
I'm aware of the time limit. Moment of truth is almost here.
Well no surprise on the herd moving on. Not much has been happening here for a while until solid news.
Well we are getting news by the end of this month. What it'll consist of will be the interesting part. Hopefully it'll be a big announcement in regards to their plans going forward and not just fluff that kicks the can further down the road till end of the year.
Doesn't Wincanton have a contract with Morrisons for transport operation out of Sittingbourne and Latimer? Strange as they only just extended their contract with each other this year (18 June 2020) for another 3 years. Or is this the extra work?
Even if it's "nothing" as you say. It's still an option most would take if given to them. The main thing is the clarification on what decision Dbay intends to make in regards to ESL. Everything right now is just everyone speculating on what they could do. But until they come out with something then that's all we got.
Some options:
#1. Raise additional capital from shareholders. (£6m min +)
#2. Raise additional capital from Private institutions. (£6m min +)
#3. Trading business is bought out by another company. (exp Wincanton or whoever)
#4. Abandons aim listing and trading business is taken private. (not sure what that would mean for people invested here)
Probably a few more options which I have not thought of right now.
So basically it's still a sight tight and waiting game. Nothing else we do but that clock is slowly ticking down for something needing to happen.
So we will find out in more detail how well the main trading company is doing late Sept. Plus hopefully more information from Dbay with what they plan on doing as the PIK notes deadline approaches in mid Sept.
I think there is a little bit of confusion around what was posted on the 4th by alliance news:
https://www.lse.co.uk/news/ESL/uk-earnings-trading-statements-calendar-next-7-days-k6creajsvuruyey.html
Noting that there was going to be a trading statement today. But then we got a "Trading Update of Associate Company" two days later on Thursday.
I did ask last week regarding if we would still get one today. My thought was that we would get a statement from DBay sharing more information on their plan going forward or if anything has changed. But I guess if still nothing by EOD then we won't hear anything else till just before PIK notes deadline in September.
I'm guessing with it been a statement that it can be posted at any point throughout the day? Unlike a results update?
I'm hoping we get some more details on Dbays next move going forward. We still don't know if they plan on an RTO with needing to raise £6m in cash or something else.
Maybe we get some clarification on this statement from 7th May:
"The Board is continuing to explore opportunities to raise additional funds to permit the Company to become an 'investing company' and remain quoted on AIM. The Board is exploring a range of alternative structures and investment strategies and is taking advice on the priorities of potential investors, and it is expected that, as indicated in the Circular, DBAY would act as the Company's investment manager following a successful fundraising.
DBAY has confirmed the extension of the Company's right, referred to in the Circular, to acquire up to 49 per cent of the outstanding Loan Notes (or an equivalent economic interest) to 9 September 2020. This will align the economic interests of DBAY and the Company's shareholders such that the Company and its shareholders can participate in the interest accruing on the Loan Notes.
The existing shareholders will be given the opportunity to vote on any conversion to an 'investing company' and participate in any fundraising."
We are only 1 month away from the Loan notes deadline (9th Sept) of the company's rights to acquire up to 49% of the outstanding loan notes. Are they planning on doing that? What kind of benefit will we see? Use it to help with an RTO?