Gen. Cap Share Discussion Threads

[grlz] 20/8/2008 15:27

andrbea – problem is GENC really threw their lot in to "venture" lending and that gamble has gone spectacularly wrong.

Basically they advanced funds to companies to bulk up their operations prior to seeking an IPO - on paper it looked great as GENC would enter at the start, money lent had some tangible and recognisable effect and GENC could reap a plentiful harvest when the customer listed - all achieving a better margin than plain vanilla lending...... The one problem - customers had to list at a decent multiple in order for GENC to exit the position. The trashed market conditions have essentially ruined the party and now the architects of GENCs strategy are jumping ship.

The "impairments" are not merely technical balance sheet losses as you suggest as basically GENC borrowed "cash money" from it's panel banks to advance to "venture" customers who now have a limited ability to repay - worse the value of the positions is questionable as the customers themselves probably projected an IPO as a way to raise additional funds to progress forwards.

Property lending isn't exactly a hot market and if you look at the book GENC runs, its nominal in size.

Asset lending looks stronger but imho not enough to bail out the entire group

Looks like it needs to recapitalise the balance sheet with a placing/issue or sell off assets/divisions to raise funds

Risky punt imho

[andrbea] 20/8/2008 10:31

trying to recap:

so the Venture Finance division has been put on ice since the Finals (end of June)
so the haemorraging should have stopped?


... by that I mean this figure of 8m:

"However the impairment provision as at 31 December 2007 in the Venture finance division has been reviewed and increased since the year end to recognise the difficulties some of the clients in that portfolio are facing both with their business trading and in their ability to refinance to settle our loans. The actual charge for the year was £8.0m compared to £1.3m for the previous year"

other developemtns
new FD from October onwards
interims to come ca 21 Sept (if like 2007)


the 2 divisions that are still going:

.... continue to develop and grow the Commercial Asset finance and Property divisions each of which continues to trade profitably and to expectations

So is all the bad news priced in?

[wooly62] 05/8/2008 17:01

"Bottom line though is that his will fly on Monday" - this looks less like an aeroplane and more like a submarine to me! 2 director's resignations doesn't bode well.

[andrbea] 18/7/2008 11:29

letters of waiver RNS

Great..

up 20%



this whole (dreary) cycle of 'you've breached a banking covenant' and then, later on, 'here's a letter of waiver' just about sums up today's jittery financial world

meanwhile, companies like this get their share price eroded, and for what...

the banks should put a stop to this covenants rigmarole and let normal business continue, with a minimum of interference.

rant over

[8trader] 01/7/2008 15:41

lol

7566 sale !

Yet another loss william, why do you bother to trade shares
when you wont wait for a profit !

lol

[1snake] 01/7/2008 15:31

smell the coffee way oversold and massively undervalued.

[1snake] 01/7/2008 14:22

wake up guys

[1snake] 01/7/2008 13:38

crazy a nav of 60-70p.

[1snake] 01/7/2008 13:00

1v1.mms 7.5/8.5/10p.

[1snake] 01/7/2008 12:52

MM,S MARKED THIS DOWN ON NO SALES.PRICED TOO GO BUST.AND THAT AINT HAPPENING.READ THE RNS.

[1snake] 01/7/2008 12:48

BANKING FACILITIES SECURED AND 2 BUSINESS,S ARE PROFITABLE.DYOR

[8trader] 01/7/2008 12:44

Strange comment to make william seeing as you started multiple
threads on Panr on two different bb's, if i was pumping Panr
i would have sold out above 32p, i'm in for drill results.

[1snake] 01/7/2008 12:44

ALL BIG BUYS IN THE LAST WEEK SAYS IT ALL REALLY.

[1snake] 01/7/2008 12:43

PROOF IS IN THE RNS.GO BACK TOO PUMPING PANR.

[1snake] 01/7/2008 12:40

READ THE RNS MKT CAP 1.8 MILL .NAV 8.5 HIGHER 14 MILL.DYOR

[1snake] 01/7/2008 12:38

FELL FROM HIGHS OF 240P.DYOR

[8trader] 01/7/2008 12:36

LOL !

Are we back on that old line again william, pretending to hold other
people trades again, watch out for the 7566 dump when you lose patience
again !

[1snake] 01/7/2008 12:35

100k last week at 6.5p and 285k last nite.holding 385k.10p shortly and onwards and upwards too 70p.directors buying at this level and above.dyor.tightly held no dumpers and banking facilities intact.have not breached covenants fall from 50p plus was on the back off bank fears watch it FLYYYYYYYYYYYYYYYY.

[1snake] 01/7/2008 12:32

7.4 TOO BUY

[8trader] 01/7/2008 12:30

You certainly have a IQ level of lower than 10 william, firstly
you dont realise that spamming threads pumping and dumping stocks
only deters buyers.

Secondly you have no patience and quickly dump before you make a
profit to move into the next pump and dump, had you kept your original
stake here you would now be in a profit but you are so impatient the
only person that wins from you is selftrade.

You are absolutely clueless and a shameless ramper to boot !

[1snake] 01/7/2008 12:26

NAV IS 8.5 CURRENT MKT CAP.70P+.DYOR