Csf Group Share Discussion Threads

[orange1] 06/1/2014 13:32

I would ask your friend. If your friend can´t give you an answer then their info is worthless.

[playgirl666] 06/1/2014 09:35

Does anyone know the deal here? a friend has said that in the next few days its going back up??

[monkeymagic3] 02/1/2014 18:27

Why would you choose a landlord who, without your lease agreement, looks to be on the brink of a financial precipice?

It would take somebody with broad shoulders to take that decision.

[123will] 02/1/2014 18:01

I agree that if nothing is done to turn around the business then it will be certainly insolvent due to the lease agreements and operating costs. However the cash position is important for the valuation as it represents the time that the management have, and further cash receipts will obviously extend this..Given that the current market valuation is assuming the worst, the upside here is significant. If there is an update announcing a new significant customer to CX5/ CX2 reducing the burden or offsetting the lease costs then the company changes from one that may be insolvent within the year to one that could be making several £m in profit in a couple of years time and one that is perceived to be growing strongly. I am not saying that this is not a punt but the value at stake compared to the potential and not unrealistic upside makes it worth the risk IMO.

[j1mst3r] 02/1/2014 13:59

KNIGEL,

Their cash held (RM45m) is of little consequence as their current minimum lease commitments would consume it entirely. In the longer term, they are practically insolvent unless they are able to succeed turning around their fortunes.

I believe this was what the auditors were referring to when they cited insufficient disclosure of material uncertainty. Assuming their ongoing business does not generate sufficient cash, and they are not able to secure these contractual CX5 cash receipts, it will not be very pleasant to say the least.

I have been looking at CSF for some time now. Unfortunately I have not been able to find a compelling reason to buy.

[bozzy_s] 27/12/2013 20:03

Problem is they are burning through about £0.5m per month. They had £8.3m on 30-Sept, so approx £6.8m now. Normally a company will state with results it's current cash balance. Can't see that here - which is quite odd being 3 months after balance sheet date - and the only reason for not doing that is cash burn has been as bad / worse than before.

Agree with El1te - a valuation below cash is probably justified here - as it will be spent on salaries / operating costs rather than dividends or returns of capital.

[knigel] 27/12/2013 16:57

One plus is that the cash held is similar to market value - perhaps in the short term there is little downside?

[mattjos] 27/12/2013 16:52

the auditors seem to telling the management that they are being too optimistic in their forward assumptions .. if management persist in their beliefs, there seems a good chance the auditors might retire themselves.
Some drastic changes, such as management changes and salary cuts look a necessity if the BOD is to retain the confidence of the auditors.
Yet another foreign domiciled company that has used the liquidity of an AIM flotation for the smart money to cash-out and leave the PI holding the worthless paper.
Emergency placing or pre-pack admin seems to beckon.

[stegrego] 27/12/2013 13:43

Nick9013 - 3 posts ever, joined less than a month ago.....

Corse we believe ya guv!

[nick9013] 27/12/2013 13:33

I have a friend who is very involved and all I'm saying is there is a good chance it could quadruple or more very soon. I'm in :p

[varies] 27/12/2013 13:02

There are so many uncertainties here that this stock is now suitable only for punters; if anything comes right in the next few months, the price could treble.
My loss must be over 90% and I am not feeling brave add to add any chips to the table.

[2vdm] 27/12/2013 12:41

Nick9013 what news?

[divinausa1] 27/12/2013 12:11

This disappointing performance is mainly attributed to the loss of two key tenants in Block A of CX5 and CX2 as previously announced.

bad news was already known not sure why the huge drop this am

[el1te] 27/12/2013 11:56

There is only a slight difference in the replacement results. Right at the end, the previously 'Qualified Conclusion' has been subdivided into 'Basis for Qualified Conclusion' and 'Qualified Conclusion'

[el1te] 27/12/2013 11:56

double post

[nick9013] 27/12/2013 11:47

I have just heard some interesting news about this company. This time tomorrow ^^^ £££ :D

[el1te] 27/12/2013 09:50

I scanned over this company roughly 3 months ago, and i have to say that I was less than impressed. These results seem to confirm that

Unfortunately I would be inclined to trust Deloitte over the management here, who have only really succeeded in destroying shareholder value. I would not at all be surprised if the market cap falls below the cash level here. Justified in this case, I reckon.

El1te

[dylanl2] 27/12/2013 09:49

Anyone care to predict the next steps?!

[salpara111] 27/12/2013 09:32

It would appear that my analysis was correct.
Like the auditors I don't see a future for the business.

[knigel] 27/12/2013 09:20

Can't recall last time I saw a company disagreeing with the auditors report

[2vdm] 27/12/2013 08:45

and an RNS on a day when most people won't be watching. What a disaster.

[pimsim] 27/12/2013 08:12

Note the Auditor's qualification on the accounts