|Global Energy Development
||EPS - Basic
||Market Cap (m)
|Oil & Gas Producers
Global Energy Development Share Discussion Threads
Showing 6701 to 6723 of 6725 messages
|The cash should have been returned to shareholders 2 years ago. To perpetuate their existence the directors originated a loan to a related party that has been physically settled via non productive assets. The share price does not seem to interest directors of this company.|
|The issue novice62 is that the vessels have been bought from companies related to the GED directors.
My reading is that, best case, these vessels are old, laid up, and will simply drain cash unless the oil price, and therefore offshore dev't, picks up a fair bit further. It looks like a great transfer of risk from related parties companies to GED. If the ships never get used profitably again GED's cash pile will gradually disappear as loans (for the vessels) are paid back to the related parties.
I guess it might work out OK if these vessels can be put to work in the future but I really really struggle to think that this was the best use of GED's cash pile...|
|How do we know the vessels are "rust buckets"? If you were a director would you buy vessels that are not fit for purpose?|
|Well, I have tried to spend a bit of time working out whether at 4.5million MC this is worth a punt on a bounce.
I know the approval meeting is tomorrow so the recent fall might be in advance of that.
But putting aside the fact this company have purchased a load of rust buckets, what is left over in terms of cash and the value of the assets it has.
Is this share price fall an over reaction? Be aware I am more of a trader rather than an investor.
In and out rather than investing in junk management.|
|Anangf, Agree that those who sold out immediately the money was loaned got it completely right but it does not have to be a 100% loss from here. For me the terms did not look too bad because worst case GED would earn some decent interest and take on a couple of boats. As it turns out they've taken on a whole fleet of rust-buckets.|
|I have written this off. 100% loss. The only value is what I have learned.|
|Moment to sell has passed unfortunately. The wise sold out as soon as they read the rns. The very wise when the loan was originally made.
And some on here were lauding the double digit IRR on the loan as a good thing.|
|I assume the spot price of rust is continuing to drop!|
|Sadly this one probably is.
Amazing isn't it? Some companies short of money manage to multibag in share price.
This one, supposedly which has stacks of cash manages to be the first company I am aware of priced at a 80% discount to cash.
How does that work? Must mean the management are thick - or corrupt?
I guess most folk must be feeling that their cash is being used to buy out the bankrupt assets of a large shareholder.
Even for AIM - a scandalous sequence of events.|
Everyone wang chung tonight
Heading to 5p|
|I should have sold out last week..oh well..|
|I sold out immediately on Monday's annoucement.
Either the board are just doing whatever deals they can to keep the company staggering along or some might think, given the presentation of this deal, they are seeking to scare off the small shareholders. Either way I did not consider that this is a company I wanted to have my money in any longer. My real concern is that they de-list (why would a company with a £6m cap want a listing?) which will really hammer the share price and get rid of more shareholders.
I lost 70% but sometimes you've just got to take the hit and move on.|
|But there is no recourse for small shareholders.|
|Board should be investigated IMO.
Total destruction of shareholder value.|
|Management are maximising the pv of their income streams.|
|Wow - not popped in here for a while.
It certainly says something when this company has got muliples of cash to the MC and the share price falls to this level. Tells me that the acquisition of assets was about the worst possible deal ever on this market.
Either that or the deal has been misunderstood. I won't be reinvesting/trading in this - at least until things become clearer or the share price falls to a trading opportunity scenario. Looks terrible and almost as if the management are trying to wreck any value.|
|Want to make some dosh?
|this company doesnt look right!
Check out family Values post on this, he has some interesting info on the people involved.|
|My concern with this deal is that yes, oil will bounce but for long?
As soon as GED get a charter they will have to invest significant amount getting the vessel back into service. Bound to be problems/unforeseen costs. How long the charter?
To what extent will it cover these costs? I suspect these are short term charters. If they can charter out for 10 yrs then good deal!!!
Then at the mercy of any oil price fall which will result in a pile of useless junk.
Assume everyone voting against FWIW. The related parties have over 50% of total shares so should easily get 75% of actual vote.
Also have you emailed GED? I have fwiw!|
|Dead cat bounce.What price do they want oil to recover to?|
|The average age of the transaction B vessels is 36 years.
The Company is incurring non-recurring costs associated with the Transactions and the Admission process.
The Directors are firm in their view that the Company will not take on uneconomic work in order to have its vessels in service. Accordingly, it is likely that the vessels will remain inactive for a considerable period until the oil price recovers and exploration and production operations return in the shallow water areas of the Gulf of Mexico. The Company will continue to incur maintenance and docking costs which may not be covered by its earnings while the vessels remain inactive. The Company's strong cash balance will enable it to adopt such an approach for the foreseeable future. Upon a recovery in the market, Global will determine in what order it will put its vessels into service (if at all).
The Company has not to date paid any dividends and has no current plans to do so. Under the terms of the Convertible B Loan Notes and the Convertible C Loan Notes while any of such notes remaining outstanding the Company shall not declare or pay any cash or share dividends to be paid to its shareholders for three years following the issuance date of those Notes.
RELATED PARTY TRANSACTIONS
Everest and Everest Vessel Holdings are affiliated companies of the Quasha family trusts which also have an interest in Lyford, an existing shareholder in Global. Alan Quasha, the proposed seller of Everest Vessel Holdings is a principal beneficiary of the Quasha family trusts. Alan Quasha is a director of HKN, the Company's principal shareholder. In addition, Alan Quasha's brother, Wayne Quasha, controls Everest which itself controls Lyford. HKN, Lyford and the parties acting in concert with it are interested in 22,553,406 Ordinary Shares, representing 62.45 per cent. of the issued share capital of the Company. By virtue of these holdings, the entry into the Transaction Agreements with Everest and Alan Quasha and the amendments to the Everest Loan Note and issuance to Everest and Alan Quasha of Convertible Loan Notes constitute related party transactions in accordance with AIM Rule 13.|
|The average age of the transaction A vessels is 40 years
"The Transaction A Vessels, are currently in laid up status and can be placed in service in mid to shallow waters following dry docking and improvement works. Global will assess current and future market conditions along with costs of improvement works, expected return on investment and related timing for dry dock improvements to these vessels in order to determine the proper time to put the Transaction A Vessels back into service to operate profitably."|
|GED: Number of shares issued:
36m + 33m = 69m x $0.204 (price per share) = $14,076,000
Cash in the bank 21m + new loan (just say 21m for now).
So, 21m in the bank minus 14,076,000 it gives a difference of $6,924,000m.
Meaning that right now the company is valued at $7,000,000 less that if has in cash, lol. Which is 33%. No bad for a discount.
Also, millions of $ will be added to this valuation (loan) when the deal is done...
If the 35% holder was to buy any more shares (1%) it will able to make an offer.
Won't be a bad deal wouldn't it?|