Snacktime Share Discussion Threads

[treacle32] 27/1/2014 18:10

Just dinking round with the bid price and will maintain offer price high.

[lord sutch] 27/1/2014 11:36

MMs trying to spook PIs. Sit tight. The only two prices you should be concerned about are the price you buy and the price you sell. Anything that happens in between isn't important.

[siday2580] 27/1/2014 11:33

Why is this red with take over talks

[abcd1234] 27/1/2014 07:27

good post knigel

[123trev] 26/1/2014 17:17

Kn how long have you been in this stock and I imagine that an all cash offer would redeem all loans,have you converted to stock though?

[123trev] 26/1/2014 17:10

006trader I can see your point and cost savings have been made that will start to show up this year and if your right will have impact on any offer I guess all we can do now is wait and see what the bid brings,talking about f/y 2014 may after all be irrelevant.gl ps lets hope!

[knigel] 26/1/2014 15:04

Some shareholders will have the convertible loans (10p convertible price) so another factor is how any bid takes this "debt" into account

[006trader] 26/1/2014 13:37

The debt has largely increased on the implementation of the internal restructuring, and one off costs, that has fundamentally been done now, so we shouldn't see much in the way of further high one off costs going through the accounts. Although high, the debt is manageable, and Snak are not even close to not meeting their obligations.
I am of the opinion that this quarter's results should have reward for the cost savings etc, to slowly start turning things around.
As a business model, this is current, and not something that has been superceded, it has excellent market presence, and have introduced changing model concepts to keep upto speed with changes in the market.

[123trev] 26/1/2014 11:33

Hi I'm not a treacle fan and have seen your posts and think your pretty level headed but disagree the debt has grown considerably and can't see snak turning a corner here don't know what's gone so badly wrong but it has and don't see this changing anytime soon,there will be know return to profit this quarter if you look at ebitda in last results unlikely.The survival of this company depends on getting rid of debt and going private which is what I believe is taking place.the market it seldom wrong and we trade at these levels because of the uncertainty of the bid.gl

[006trader] 26/1/2014 11:11

Agreed debt is an issue, but isn't it for most companies?

The company have instigated major internal restructuring over the last year or 2, and have managed to weather the storm of the downturn in the market - With new infrastructure in place, and growth return to the economy, and a miserable, wet winter, I for one would be surprised if we didn't see a return to profit this quarter
So regardless of bid etc, I believe measures are in place to see this company strengthen in the coming months/years
I'm surprised we are not currently trading around mid 20's whilst waiting, but think this looks a very good price to buy in at. GLA

[006trader] 26/1/2014 11:02

Marcoos - You seem to present a post without any substance - Congratulations!!!

I can tell you why this bid WILL come through, and that is the joint ownership of stock by Boris and Blair Jenkins is now over 10% of the company, all bought upto 18.5p per share.
Even at 30P per share, that will only capitalise the company at around 4.5-5 million pounds, which represents just over a 50% discount to current NAV

We may see MM's testing Pi's this week with lows around 15, whilst we wait for the 28 day period of assessment to take place, that is just over 3 weeks now.

Not long to wait - GLA

[123trev] 26/1/2014 09:57

Kn I'm in profit at this point and happy to hold my down side risk is minimal I believe even a poor bid would not be a blow but 30p would be a very good return as isaid with the debt just can't see much more.Its also worth remembering that when snak floated from plus,we don't know what Rathbones etc paid and how much they made selling at the top,might not be underwater at all far from it.the bid I think is quite certain now,they moved very quick on just Internet rumour

[knigel] 26/1/2014 09:35

123Trev, if you don't mind me asking - are you now at breakeven or need a bid of at least 30p to be in profit? To be fair, I am sure there will be shareholders (including the 29.9% shareholder) under water and happy to exit. There is usually a trading update in February so maybe there will be a clue then on how well the group is trading and what will be a decent price to take over the company. I'm hopeful for an offer in the 30-40p range but you are right - it is still a risk and no guarantee an offer will be made (although I would be very surprised if no offer is made - depends on whether the company will accept it)

[123trev] 26/1/2014 09:23

Stockonomist has a valid point and one I have always agreed with the debt here is a major problem and the stock is still a gamble the prices being quoted are speculative based on rumour although part of that is true the offer is being discussed.I do believe that after this amount of time,regardless of what mr Jenkins said in his release the price has been set and the deal will go ahead.The price though that's the big question?if you look at the debt I think max 30p a share but this depends on how desperate Borris is to start his venture and whether he has had any luck gaining any other assets and indeed snaks survival prospects in all reality the price could be a lot less.I know people argue that certain holders would not take less than X but the financial position of the company may force them to,so why did I take the gamble!Borris can pay the debt take the company private and with the debt costs gone and restructuring make a very good return here and my average makes it a gamble now worth taking

[spottedlurcher] 25/1/2014 17:55

excellent post Knigel! I have no idea why there has not been more action on this share this week plus aint it great to not be talking about a crummy mining share for once! hahahahaha ATB

[lord sutch] 25/1/2014 17:04

The debt isn't an issue, the cash flow is servicing the debt nicely. IMO the companies position is set to strengthen through increased sales.

[knigel] 25/1/2014 16:36

..except of course Boris who wants a UK based vending company alongside the ex director who hold 11.1% of the company between them!

[stockonomist] 25/1/2014 16:32

Well done.

I don't think any bidder will pay up for this Company because the debt is simply too great.

[123trev] 25/1/2014 14:46

Your all going to laugh at this but when snak dropped to low teens the investment case,for this stock became appealing so I bought and have also bought more since and now have a substantial holding indeed my last top up was behind you mr Sutch lol but at 19.50.I don't buy the nabisco story not sure it would suit Kraft but anything possible!would be happy with 30p would again double my money with my average,remember I never said the takeover wouldn't happen I argued about the price still don't believe anywhere near treacles 60p target but if it does I will start a fund for a bronze statue of him to be placed in lse I'm sure you would all contribute and if it does you can send me cheques made out to cash lol

[lord sutch] 25/1/2014 12:37

I couldn't disagree with marcoos more.

[knigel] 25/1/2014 10:24

I think it's a "I missed this opportunity to buy in at 10p" post...

[treacle32] 25/1/2014 03:18

They will buy SNAK out imo, just a case of waiting for more big gains.