Bglobal Share Discussion Threads

[vatteton] 24/7/2014 08:03

LONDON-- Gas metering services company Energy Assets Group PLC (EAS.LN) Wednesday announced an agreement with British Gas's business division to install advanced meters for about half of BGB's industrial and commercial customers across the U.K..
By March 31 Energy Assets had invested 78 million pounds ($133 million) in a gas metering portfolio of circa 101,000 assets which generated 63% of its total recurring revenue for the year then ended of GBP16.9 million, it said.
Energy Assets' peer Smart Metering Systems PLC (SMS.LN) made a similar announcement Wednesday, saying it has been awarded a new contract to install and maintain around 50% of BGB's portfolio of gas meter points.
-Energy Assets shares at 0717 GMT, up 22 pence, or 6.3%, at 380 pence valuing the company at GBP103.7 million.

[weatherman] 18/7/2014 11:59

you get 11p in next few months and another 4-5p in c.12 months after delisting.

[themattbarnes] 18/7/2014 11:03

Newbie here but i have shares in these guys, bought at 6p, now worth 12p but i really dont understand what will happen going forward.

Do you get 11p and then the share is worthless as they delist? Or is there a period between 11p payback and delist?

I dont understand why a share is sat at 12p when the company are saying you will get 11p for them.

sorry if this is a stupid question

[hpcg] 10/7/2014 23:42

I haven't worked out the numbers yet with an appropriate risk discount. This is one situation where you are on your own. You have the same information as I do; I don't have any inside knowledge. In my opinion the current directors are acting honestly to return as much capital as possible to holders as outlined by the plan to minimise cost. That is not the same as investing on the assumption that the entire remnant will be be paid out.

[vatteton] 10/7/2014 20:33

Septimus Quaid
19 Jun'14 - 06:26 - 1047 of 1054
This post really sums it..

[vatteton] 10/7/2014 20:11

hpcg.
Do you believe we will see a 5p final in due course ??

[hpcg] 10/7/2014 19:37

Well you have your answer on the record dates and the action plan seems pretty clear to me.

[vatteton] 10/7/2014 18:54

Anyway guy's has anybody any comments on the two earlier Rns's ??

[vatteton] 10/7/2014 18:17

hpcg
I'm not trying to tell you what or what not to do.. (Mi Amigo)
There will be an official registrar date to which the stock payback entitlement is made.
All I am saying is stock bought after the announcement may not qualify..
Caveat Emptor

[hpcg] 19/6/2014 16:08

Sorry, my confusing words, I'm talking about the shares I purchased at under 11p. Once I have had 11p returned for those I have already made some coin and the remainder is a free ride. If I buy more now then the the break even price *on those alone* is still what I paid for them. What I run the risk of is pay over 11p for more and making a loss on some. If a person has bought assorted tranches above and below the guaranteed distribution then their break even figure as a whole has to be individually calculated.

[vatteton] 19/6/2014 09:32

hpcg
If you decide to go in for more, your looking at 13p to break even..

[hpcg] 19/6/2014 09:02

The de-listing and the winding up should be coincident. Not that I'm bothered about being locked in as right now as I'll make a profit on my purchases at 11p. I'd only want explicit confirmation of my first sentence if I purchase more.

[septimus quaid] 19/6/2014 06:26

Yes, to risk 1p for a year to gain 5p seems like a bargain.

From RNS "Additionally, it is the Board's intention, in due course, to cancel the admission of the Company's Ordinary Shares to trading on AIM".

So, if you were to hang on, then at some point you will be locked into that decision until the remainder of the company is unwound.

From the outside, it is difficult to understand the terms of the sale and how much "risk" there is in the deal.

Without the delisting, I presume there would be a gradual convergence between the 1p and 5p?

[hpcg] 19/6/2014 02:45

The company is winding up but it cannot do so until its contractual obligations are satisfied. These are guarantees for the buyers of the entities which have been sold off that they weren't mislead in the sales process. The remaining monies should be rotated through low risk money market funds because the retention of principal is the important thing.
The risk of paying over 11p is that the guarantees may be called in and there is less than premium one has paid will be returned. On the other hand buying for 12p now is committing 1p for a year or so with the prospect of 5p being returned. That is pretty good odds.
Because this all seems so obvious to me you've got me a tiny bit worried I've missed something.

[vatteton] 18/6/2014 17:50

What concerns me, as mentioned earlier is the 5.1mll retention,whether it is used in full/part, if invested in a slush fund it should make 100k maximum..
Egual to 1p per share...

The Board expects that surplus monies will be returned to Shareholders once the extent of these liabilities, if any, has been determined...
Have i missed something or am completley on a wrong track...
Allways a pessimist that's me...

[septimus quaid] 18/6/2014 16:01

Cheers,

Just opening the debate,

If we will receive 11pps, with a current share price of 12p, does that mean that the remaining "rump" is only worth 1p?

Seems a bit low, how is the stock-market pricing this?

Or is this just a round the houses way of dissolving the company?

[hpcg] 18/6/2014 15:25

No, return of capital is a capital not income distribution.

[septimus quaid] 18/6/2014 15:14

From the link below:

"a return of capital of equal to up to 11 pence per Ordinary Share"

Although described as "a return of capital", from a personal tax perspective, does anybody know if this is treated as income?

[vatteton] 10/6/2014 12:12

Well that's the 23% hurdle gone and positive.. June 18th should only be a formality now..

[vatteton] 04/6/2014 06:24

flyfisher
i just believe the 5.1ml figure to be exceptional..
How much could it earn over the warranty period ?
We will see...

[flyfisher] 03/6/2014 19:03

Vatteton, what makes you suspicious?

[badtime] 03/6/2014 17:59

Closed at a high..though

[vatteton] 03/6/2014 16:17

Reading through the disposal document.
i am suspicious of the 5.1ml retention..
EAS could easily swallowed the lot for 18ml
Anyhow i've voted in favour,
Not happy, i wonder what PK has up his sleeve..
Time to move on !!

[vatteton] 03/6/2014 09:32

weatherman
We should get an accurate financial position
with the prelims on 23rd July..assuming the date is held..
The cash shell has to be worth more than 16p...

[weatherman] 03/6/2014 07:48

The warranties seem to last for 12 months, so we may get next tranche after that. From the notice yesterday it suggests a property will be transferred to the company. What will be left of the shell once Utilisoft is gone?