|Global Energy Development
||EPS - Basic
||Market Cap (m)
|Oil & Gas Producers
Global Energy Development News
|anangf: 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.|
|loverat: 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.|
|alanrussell: 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.|
|loverat: 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.|
|hugepants: Good question. Someone posted a link to the 2 ships a while back. Anyone have it? I don't think they are rust-buckets per-se. And I'm not sure acquiring a couple of boats is going to do any harm to the share price given where its at just now.|
|anangf: Returning cash to shareholders would be a massive boost for the share price (div or buy back stock). If I wanted to invest in a leveraged loan vehicle I would not have bought GED...and don't go on about the 12% coupon, why is the borrower paying that if it is not the market rate for the credit risk.|
|anangf: Who knows what will happen to the share price if the loan defaults. I don't and nor do you.
The best use for the cash is to give it back to shareholders. Any loan priced at 12 percent is risky|
|anangf: The attractiveness of the deal is enhanced because we trade at such a low ptb, blame the board. I have done the maths, it is a bit of an anomaly that if they default and the shares are cancelled the share price COULD go up, but nothing to say price to book wont go even lower.
I don't like related party trades. Give the cash back to shareholders.|
|hugepants: Its notable the share price hasn't adjusted here for the strong dollar. Even allowing for some ongoing admin costs this mutt should still have 50p of cash and net working capital of over 60p. And if the $8M loan is repaid on schedule in september there will be well over 60p net cash. Current share price only 24p. Burn rate about 5p per annum?|
|pavey ark: Bought a few of these recently for what seems the rather silly price of 29.5p (famous last words).
I did look back at the previous posts and spent some time researching the company as I felt there must be a catch but couldn't find any (again,famous last words).
GED came to my notice in the IC but I didn't pay much attention but the share price just kept on falling so I had a look.
I was a bit worried that the management would "splash the cash" but Simon Thompson in the IC pointed out that we have a concert party here holding 69% of the shares and any deal would have to be cleared by them.
I suspect that these holders are quite happy to see the share price fall and then use some of the cash to buy out the remaining 30% and take the company private.
Provided the offer is at a good enough level they should do OK .
An open offer to buy the shares back for 50p, obviously for a limited time, would do the trick.
Buying in 10m shares at 50p would leave a lot of cash and the remaining oil assets.
The senior management are certainly getting on and it looks like a time for a change.
Its only been nine months since the asset sale and the oil market is in turmoil but it will be interesting to see what the H1 results bring.
It certainly doesn't help the share price that the company is called Global Energy Development so in the current climate they may act soon if they are going to take it private.
Take it private , take the remaining cash and wait for any uptick in the oil price then flog off the rest of the assets.
Nice work if you can get it.|
Global Energy Development share price data is direct from the London Stock Exchange