Aa Share Discussion Threads

[badger60] 26/2/2018 18:54

Looks like the last lot that Woodford bought, about 1.2% or 7+mio shares was on 26 Sept 2017 at circa155pps (ouch)........and they already owned 13% of the company before that purchase........

[essentialinvestor] 26/2/2018 18:48

What is he selling to meet the redemptions?.

[ltcm1] 26/2/2018 18:29

Woody will have to buy more in the morning. If he was right to buy last week on the dip then he HAS to buy more tomorrow. It would be rude not to!

[badger60] 26/2/2018 18:20

Fill yer boots!! Stupid not to.........just ask Neil.............

[minerve] 26/2/2018 17:34

I'll be your huckleberry.

I bought a second tranche today.

I will probably buy a further tranche before the results, one afterwards, and another after a trading update after that.

[badger60] 26/2/2018 17:14

Unfortunately for Woodford, he is also wearing another couple of large horror story investments with Capita and Provident Financial....with which he is apparently sticking with and .Imo he is being totally irresponsible by increasing his exposure to AA. Seemingly he has already had £2bn+ investor funds withdrawn, and I should imagine there will be alot more to follow.

[pbutterworth1] 26/2/2018 17:10

I am out of this today having lost material money in under two weeks as a recent joiner. What did I learn? Neil W is a shadow of his former self and appears to be spending too much time riding horses instead of making rational investment decisions b) avoid debt saddled flotations. c) avoid companies previously management by private equity. d) don't assume you know a company because of the brand (biggest mistake). Initially attracted by the short interest (shorttracker) I thought it couldn't get worse. It did. I actually would not be surprised to see this go all the way down. Markets can be very cruel.

[cathuk] 26/2/2018 16:49

If this goes to the wall what will it do for Woodford? !!!

[cashandcard] 26/2/2018 16:21

srpactive,


Well, cutting the divi was necessary, but only added to the woes, I would not be surprised if they pay that a visit again. Mr Woodford still backs this, so there has got to be some real value to the story and a flicker of potential into the future.


Cash

[cashandcard] 26/2/2018 16:17

Minerve,


"There is still wiggle room in the straight jacket"


Priceless!



Cash

[bc4] 26/2/2018 16:13

Look this is a small company with a massive debt mountain attached to it

[minerve] 26/2/2018 16:12

cashandcard

Equity IS currently getting hit, of course. Normally, equity would get wiped out in a rights issue capital call, but that is extremely unlikely here given the onerous terms on clearing debt.

So, if you believe the turnaround is possible - I accept that is a big IF - then with the safety of the rights issue being out of the way - it is a good opportunity to buy. There is still wiggle room in the straight jacket!

[srpactive] 26/2/2018 16:08

Somebody needs to phone for a recovery vehicle for the share
price, I was hoping 80p would have held.

[minerve] 26/2/2018 16:07

bookbroker

Correct.

[cashandcard] 26/2/2018 16:07

Minerve,


But the shareholders are still getting wiped out in the process. Is it time we rationalise and look at companies that have huge debt burdens in a different way? It is more beneficial holding onto the bonds than it is holding the equity under the weight of all that debt, in challenging markets.



Cash

[bookbroker] 26/2/2018 16:06

This company was raped by the previous owners, they milked the company for what it was worth and saddled it with large debts! It’s called Private Equity having their own feeding frenzy, once gorged they belch and leave!

[minerve] 26/2/2018 16:05

Some of you need to be familiar with the WBS structure.

[minerve] 26/2/2018 16:04

badger60

This company will not follow the usual procedures on default. That is what makes it attractive to bond holders. The covenants are extremely loose and are unlikely to be challenged anytime soon IMO.

[cashandcard] 26/2/2018 16:02

A sad tale indeed badger. Why is it so many high profile companies in this country are allowed to fail and shareholders act so late in the game? AA's decline seems to be moving with its own momentum now.


Cash

[badger60] 26/2/2018 15:45

Not looking good. Sub 70pps is a distinct possibility before the end of the week. Unfortunately, with such a huge debt burden, the figures do not stack up going forward whichever way that you juggle the management's proposals to revamp the company. I don't know what the insurance business is worth, but 3000 used breakdown vehicles probably account for a meaningful % of assets for lenders to liquidate in the event that this company goes the same way as CLLN.

[minerve] 26/2/2018 14:10

Essential

Yes, the brand doesn't mean anything to younger generations.

Of course there is risk here, but as a small part of my portfolio, I am happy to take it. Rights issues to clear debt are out of the question here so equity dilution isn't a risk at the moment.

Normalised cash flow yields about a fifth of market cap.

[toonmag50] 26/2/2018 13:58

This monkey has terminal share price diarrhea