||ORD 1P (UNRES)
||EPS - Basic
||Market Cap (m)
Real-Time news about Turbotec Unres (London Stock Exchange): 0 recent articles
|gustavfenk: What are the chances of the de-lising getting approved? AIM rules mean that they need 75% in favour to de-list but it seems that only 60% of shares are in the hands of big players. Or maybe this is just a cynical ploy to lower the share price so that Execuzen can grab a bigger slice of the company when then loan is converted? Either way something dodgy is going on and I'm becoming more and more wary of investing in any AIM-listed shares.
I'll be voting against the de-listing but the worry is that this is just "Round one" and another attempt will be made to de-list once the big players have increased their total holdings above 75% on the cheap. I still feel that Turbotec is a good business but, as is all too common on AIM, seems to run for the benefit of its directors and their chums, at the expense of small-shareholders.|
|charlie: Sharesoc advises members to vote against the delisting
Posted by ShareSoc at 09:19, March 24 2013.
Turbotec Products delisting
Turbotec Products (TRBO) is an AIM listed manufacturer of heat exchangers, mainly for residential heating systems, air conditioning, and domestic swimming pools. The company has factories in Connecticut and North Carolina, and the majority of the directors are based in the US. Activity is dependent on US house-building, so business has been tough in recent years. Turbotec has nevertheless been profitable in every year since listing in 2006, although profits fell substantially last year. The latest accounts to 31 March 2012 show earnings of only 1c, but tangible assets of around 90c (60p per share).
Prior to the announcement of the delisting proposal, the share price had been static at around 20p for the past six months. After the announcement on the 22nd March the share price halved within minutes.
The announcement does not outline any strategy for future returns to shareholders by way of dividend or trade sale of the company. Nor does it offer any reassurance about future governance arrangements. The reasons given for delisting are that:
- there is limited liquidity in the shares;
- the company's market capitalisation has become disassociated from its inherent value;
- a stagnant or falling share price has a demotivating effect on the business and its employees and a potentially adverse effect on customer and supplier perception.
None of these reasons seems compelling to minority shareholders in a business which has been resilient through the recession, and is now expected to recover towards its former profit levels in line with the resurgence of US house-building.
The company states in the delisting announcement that a key point "is the lack of demand for its shares and, in practical terms, a small free float, which further reduces demand. Given the lack of liquidity in the shares, in practice minority shareholders have not been able easily to trade their shares". It is certainly true that recently there has been poor liquidity with no trading on many days. However that is true of many AIM company shares.
Turbotec's parent company prior to Admission to AIM in 2006 was the US-based Thermodynetics Inc, which retains a 13% shareholding. The two other largest shareholders are non-executive director Joseph DeSana (24%) and Execuzen Ltd a company controlled by Adrian Ezra (18%). Both these shareholders appear to have acquired the majority of their shareholdings from Thermodynetics in April 2010. According to the 2012 accounts, L'Espoire Trust has a 6% shareholding. No other current shareholdings above 3% have been disclosed. This leaves around 40% of the shares held by smaller shareholders.
A particularly unattractive feature of the proposed delisting is the possible conversion at a very low price of a recent convertible loan of $200,000 from major shareholder Execuzen Ltd. The loan was made in January 2013, only two months before the delisting proposal. The terms of the loan provide for conversion into shares at 0.25p above the average share price on AIM in the 5 business days prior to conversion. Following the delisting announcement - which has predictably halved the share price as shareholders who cannot or will not hold unlisted shares rush for the exit - Execuzen now appears able to convert its loan at an artificially low price. The terms of the loan were agreed as fair and reasonable for shareholders by the independent directors in late January, after consultation with the Nominated Adviser Seymour Pierce (now Cantor Fitzgerald).
Some Sharesoc members who hold shares in the company do not agree that it is fair and reasonable to set loan conversion terms referenced to the share price on AIM, shortly followed by a delisting proposal which predictably halves the share price on AIM.
Shareholder Guy Thomas said: "There are two aspects of this delisting proposal which are particularly galling for shareholders. First, Turbotec is a consistently profitable company with no immediate financial distress which necessitates delisting. Second, the convertible loan issued at a time when delisting was probably already under consideration will dilute shareholders at a very low price."
This case highlights that investors on AIM face not only the trading risks inherent in a company's business, but also governance risks arising from the ability of profitable companies to delist at the whim of directors and a handful of major shareholders.
ShareSoc advises shareholders in Turbotec to vote against the delisting.|
|venture traveller: That article just reiterates what I think, that this is a company to watch. The share price appears to be depressed at the moment by a consistent small batch seller. Once he is finished, then the price should recover.
These shares will not drop below 25p, and it appears there is a great opportunity to top up here.|
|a1jbg: I would like to repeat the advice I gave in post No.9 dated 28th August 2007, when the share price was circa 90p,"If you are out, stay out. If you are in, get out ASAP"!|
|ponderer: spoke to some investors who simply struggled to sell anything at a loss and held onto losers in the hope that "They will go back up sometime.."
One chap had bought RBOS at 400p, 300p, and 200p and now said it was a "Long-term investment".
As we older traders know.. long-term investments are short-term investments gone wrong!
If he's had say a 10% stop loss he'd have been out of the first trade at 360p.
My personal view is that stop losses for investors in this market are very important - otherwise capital disappears.
A lot of brokers are now offering "trailing stop losses". I think these are a good idea because they rise behind the share price and so also lock in profits.|
|borchardt: very brief trading statement issued on this today which was nearly lost in the notice of results statement - full year results are to be ahead of expectations - usually a surefire sign of a subsequent strong share price performance.
Results date is 26th June - expecting some movement leading up to figures|
Turbotec Products share price data is direct from the London Stock Exchange