Essenden Share Discussion Threads

[cockneyrebel] 24/10/2012 19:01

Britisb:

"i.e. ESS have to save and save and save to try to pay back the notes in 2020. Meantime, I'm struggling to see how there will be any dividends, any meaningful reinvestment of profits in the business etc.

They have £23m in property, plant and equipment. What stops them selling all that property and leasing it back to pay off their financial liabilities in full?


The property and plant value nets off nearly all the liabilites so for £4.5m you get roughly no assets and no liabilites net, quite possibly making well over £1m pbt per annum, perhaps a fair bit more and £25m of sales.


I'm not sure it's the 'wrist-slitter' you portray when the mkt cap is just £4.5m.


CR

[exbroker] 24/10/2012 17:40

Hi guys how do I find a price for the Zero Perps now that Plus Markets has been soaked up inside ICAP please?

[battlebus2] 08/10/2012 17:37

Love the manner you put forward your case BB. Of course u are correct it did stop me from investing at 10p and it's 20p now so who's the fool :))

[chrisis33] 08/10/2012 12:11

Same question as usual for any company with debt obligations of any kind.
But genuine thanks for highlighting this BB, it's important that folks understand this stuff.

[britishb] 08/10/2012 11:10

I see the utterly clueless (bordering on criminal, some may say!) "quote a low P/E" brigade are all here....


ESS have in the region of £15m in outstanding loan notes.

From the AR.

"The carrying value of these loan notes was reduced by £3.3m during the year after the carrying value was recalculated taking into account the revised redemption period which was extended to October 2020 when there is likely to be sufficient cash surpluses to redeem the loan notes."

i.e. ESS have to save and save and save to try to pay back the notes in 2020. Meantime, I'm struggling to see how there will be any dividends, any meaningful reinvestment of profits in the business etc.

So stuff your low P/E where the sun shines.

As ever there may be enough under-educated punters to push this higher. You "let's post and post and post about the low P/E and hope the morons don't notice the loan notes" crowd will not, however, get away with it without a rebuff from me that makes the situation clear.

Shame on you! You are a disgrace IMVHO.

Unless of course you can show some valuation metrics that include the repayment of those loan notes (from post tax profits!) and still leave some upside value for holders of the ordinaries... I wish Mr Ladbroke would offer odds on anyone doing that....

[stluke] 08/10/2012 09:42

If they can hit 5.5p EPS for full year then the P/E is looking very appealing, with the somewhat damp summer it should play into hands for a strong start to the second half of the year.

[chrisis33] 08/10/2012 09:37

Quite agree. 2.5p EPS in H1. If the turnaround continues this could go far. Looks undervalued to me at present.

[stluke] 08/10/2012 09:32

I have picked up a few since results, if they can maintain the turnaround then this could be seriously cheap at £4.5m market cap.

[chrisis33] 08/10/2012 09:28

hehe - yes indeed. Noticed this has been ticking up on its own merry way with little comment. Wondering if the share price will strike triple figures, or whether it will turn out to be a turkey ;)

[cockneyrebel] 08/10/2012 09:21

Bowling along chrisis33 :-)

CR

[chrisis33] 05/10/2012 09:41

Little tick up on no visible trades, mid price to sell.

[chrisis33] 26/9/2012 15:35

These look very cheap - am I missing something?

[cockneyrebel] 21/9/2012 17:56

Well 2.5p eps in H1 then 5p for the year must be a possibility.

Mkt cap £3.4m, sales of £50m. With sales like that they need only get margins up a smidge for profits to soar.

The potential must be huge. But then it's AIM and it needs to prove itself. I've stuck 10K away that I got into my pension. Who knows, they might be worth £1 in the next 12 months if things go very well and if they fell over I won't lose much.

All the risk and research caveats apply - aim, illiquid etc.

CR

[s34icknote] 21/9/2012 09:12

Me too but paid 18/19p in the end.
EPS 5p but if they pay down debt you could double eps to 10/12p!

[royaloak] 21/9/2012 08:44

Agree CR, a bottom draw stock, speculative, but worth the risk to me, bought a small amount.

[cockneyrebel] 21/9/2012 08:13

2.5p eps approx in H1 ?

That's a PE of 6 just on the first 5 months earnings. If recovery is under way the PE might be half that for the year?

All imo.dyor etc, illiquid AIM.

CR

[andrbea] 31/3/2011 10:46

(quite a result)

- Turnaround from loss to profitability

- Profit before tax of GBP93,000 (2009: loss GBP11.9m)

[envirovision] 31/3/2011 10:00

comments ?

[parvez] 14/9/2010 08:52

just run the slide rule over this and I think undervalued massively considering that directors bought at 37p in June !!

[mallorca 9] 12/2/2010 20:25

Oh dear !

not a good day then lol

dear oh dear

[andrbea] 12/2/2010 13:38

this has gone from 33p to 20p this year

sell-off looks a bit overdone to me...

last update said:

results 'broadly in line' and less full year bet in 2009 than 2008

nia dyor