600 Investors - SIXH

600 Investors - SIXH

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Stock Name Stock Symbol Market Stock Type
600 Group Plc SIXH London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
-0.10 -0.69% 14.40 16:35:00
Open Price Low Price High Price Close Price Previous Close
14.50 14.00 14.85 14.40 14.50
more quote information »
Industry Sector

Top Investor Posts

ny boy: All one can do is add copiously on the dips, sooner or later investors will twig that this one is incredibly good value imo Patience before we finally get motoring GL
cjohn: At any price, it's less risky to hold the debt. Which means if they do convert, it's likely to be followed by an immediate sale of their new shares; ie profit-taking to eliminate risk of shares falling back. (Otherwise, they could merely go on holding the debt.) That having been said, investors often follow sub-optimal strategies.
kazoom: I'm not invested here currently (have been in the past), but I'm happy for holders that this 'news' (really actually not much new to be honest) has been positive for the shareprice. As I have indicated in the past, personally I think the pension buyout was a very short termist view from a company desperate for cash - you don't have to go back too far to see that they were in danger of running out of cash and had sold pretty much all of the family silver. It seemed very brave to me when they reinstated the dividend and now they are said to be planning to spend some of this "windfall" on acquisitions. Again that seems quite brave to me, it is probably the right way to go in terms of building value, but investors should be aware that if they spend this cash then they remain one bad year away from disaster. It might sound odd, but I would really like this company to do well, and therefore I hope shareholders prosper, but whilst I will continue to watch with interest, for me it is just too risky at this juncture.
buywell3: You said much the same when I said buywell3 - 01 Sep 2017 - 07:22:16 - 667 of 794 The conditions are perfect for the contrarian investor - SIXH SIXH took 7.25p for their ProPhotonix shares ... they traded at 20p earlier in 2017 Many here have made much of the SIXH stake in that company Now SIXH have sold it for a £1M profit to pay down debt To me that says SIXH view debt as a problem that needs urgent attention Why? ma's see this as a negative
kazoom: With today's price rise adding c. £1.4m to the market cap, "the market" sees this pension disposal as good news. It was always on the cards, but I see it as bad news for shareholders. As I drone on about in the past, the more patient they were able to be and the longer that put this off, the bigger the benefit to be realised. As it stands following completion the company stands to receive between £3-4m, that's paltry compared against the c. £30m that is disappearing from the balance sheet. Even compared against the much more conservative "technical provisions" valuation surplus of £12.2m (£7.9m after tax) it is not a great return. They have probably got a decent enough deal under the circumstances, but my concern is that they had to do it now and not for a higher return at some point in the future. The deal meets the companies TWO (I think there are two missing) key cirteria : 1. to better secure the benefits to be paid to the pensioners 2. to relieve the Company of the disproportionate liability of such a large scheme. The two criteria that I believe to be missing are : 3. [What should have been an objective] to maximise the return to shareholders. and 4. [The real reason] to get our hands on some cash ASAP. (Maybe Wonga turned them down?) In the last year I think the burnt through c. £1m of cash so this deal does give them some headroom, but it is very much last chance saloon - they have no more "family silver" to dispose of so need to become cashflow positive very soon indeed. Based on the half year results with the pension disposal overlaid I think that TNAV is now £11m made up of : PPE 3 Working Capital 16 Defered Tax 4 Net Debt -9 ============================== 14 ============================== This compares with a market cap of £20m after today's rise. Underlying PBT for the last two years has been below £1m each year and there is (obviously) no dividend, so in no sense whatever do I think this can now be considered "value". As a quality British manufacturer I would really like to see them succeed, but I can honestly now see nothing that would make me want to invest here. In this case, I would love to be wrong, I have no position here other than having been a past investor from time to time. Anyone got some good news? CJohn - I know you don't do "hyperbole", but is there something I have missed in this dour assessment?
varies: MRF Just a dismal market, I believe. Similar losses are afflicting most of my portfolio. In many cases the falls may be caused by investors realising their losses for CGT relief before the new tax year but I doubt if this applies here.
my retirement fund: It should be funding an expanding order book from its profits and increased help from its main bankers, first and foremost invoice discounting facilities and if it's really pushed, short term loans.It's just recieved a huge wodge of cash so we the he'll does it need to turn to it's last resort it's equity base and raise more at a nasty and painful discount.Something does not smell at all right here and I think serious investors really need to be now taking a close look at the top and asking themselves what an earth the problems could be here and why is there such gaping ravine of credibility that's clearly so starkly ,missing.
garbetklb: Does anyone know when the AGMis? On their website, all it says is September - I've emailed, but had no reply. Pretty poor investor relations.....
kazoom: Oh and just one point re rburtn's point : The rule about pension funding are deliberately (and imho rightly so) skewed in favour of the pensioners. Any projected shortfall must be addressed via a plan to make it back which has to be agreed with the trustees (who do as I understand it have quite a bit of power in the event of a dispute). On the other hand it is actually now very hard to recover any surplus (as we've discussed earlier here). Whilst somewhat frustrating to investors this seems to me to be entirely appropriate. The principle reason that many funds are now in deficit is because back when ridiculously optimistic investment return assumptions were being made (see the endowment mortgage scandal) many companies took sustained "pension holidays", which when reality struck resulted in the big deficits we are now looking at in most cases. I'd even go so far as to say that without that episode Defined Benefit pensions may well still be considered the norm - but that's a rant for another time and place ;-)
buywell3: From the latest yearly report '' Chairman’s statement Financial Overview At the end of the financial year, group net indebtedness stood at £13.89m (2015: £10.80m), and gearing was 34%, (2015: 31%)'' Net Debt A measure of a company's ability to repay all debt if it were called immediately. It is calculated by adding short-term and long-term debt and subtracting all cash and cash equivalents. Many investors use net debt in making investment decisions, as it gives them an idea of a company's financial health and its level of leverage compared to liquid assets. Some industries may have more net debt than others; therefore, investors often compare a company's net debt to others in the same business. thus:- In the case of SIXH , Net Debt is growing which implies that its financial health is getting worse. Hence the poor long term 10 year chart , PPIX is helping it of late , but as to the rest .... not doing it Try putting this one in the header if you dare http://uk.advfn.com/cmn/chrt/chrt_wrap.php?epic=LSE%3ASIXH&name=&type=1&sprd=0&size=2&period=13&freq=4&date1_day=27&date1_month=10&date1_year=2006&date2_day=23&date2_month=05&date2_year=2017&ind_type1=0&ind1_1=&ind2_1=&ind_type2=0&ind1_2=&ind2_2=&ind_type3=0&ind1_3=&ind2_3=
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