Accrol Share Discussion Threads

[vatpaul] 25/11/2017 08:46

business buys large bog roll and cuts it up into small bog roll before flushing

done the same to shareholders wealth. awaiting flush now and 0p

[kamitora] 22/11/2017 07:16

Questor says sell today:

"the outlook statement is so laced with ifs, buts and maybes relating to volumes, pricing and currency movements that the safest course of action is probably to take a reluctant loss on the position and walk away. The combination of high financial gearing (£22 million in net debt) and high operational gearing (how small movements in price or volume can lead to big moves in profit) also means that the shares remain extremely high risk. This leads us to two valuable lessons. First, pricing power is everything and companies that do not have it are likely to be poor investments in the long run. Second, individually selected small caps should be kept to a modest percentage of any portfolio, owing to the risks involved. The safest plan unfortunately is to swallow the loss from our tip in September and move on. Questor says “Sell”.

(my highlight as that's what bothered me about this when Questor first tipped it - good piece anyway).

[dan_the_epic] 21/11/2017 23:01

It's the high yielding floats in that bunch I'm wary of. Many of them, this included, did and do not have a sustainable moat IMO, and operate on thin operating margins with op gearing

Of course, new floats are typically done at the peak of their cycle to extract maximum valuation!

Entu and Epwin spring to mind, both from Z

[destinybagoshite] 21/11/2017 22:03

might just fold

[yasx] 21/11/2017 21:57

Doubtless to say, Zeus will now try to support the proposed placing (at 50p) which, if approved by holders, will result in the new shares being admitted shortly (the 11th of Dec). Thus, there must be a reasonable prospect of seeing a quick 20% and more gain here if institutional investors are to take this up.

Note: This placing is not underwritten. If this does not proceed, well, what options do they have other than raising the same at a lower price. I reckon they will get this placing done and have therefore taken a short term punt at 40p.

[gopher] 21/11/2017 18:47

Thanks Stuffee

I would infer that new holders would have been offered a discount to fair value, so this price is a bargain, however lots of stale bulls here

[forsh] 21/11/2017 14:15

.................and another one on the launchpad - this time SPS Group - 7% yield !!

[horndean eagle] 21/11/2017 10:02

Zeus is a mixed bag. They have had some big winners in amongst other dross. BOO, SFE and Strix. Just have to be wary.

[vatpaul] 21/11/2017 09:26

Mental note avoid Zeus floats

Something gone terrible here

[dan_the_epic] 21/11/2017 08:12

GYG warning today.. Guess who floated

[dan_the_epic] 20/11/2017 20:36

Beware Zeus capital floats offering big dividend yields... quite a few have imploded a bit

[horndean eagle] 20/11/2017 20:15

barely breakeven through to 2019. Not sure why anyone would want to hang on that long. Its all a bit fishy. If it really is down to commodity price moves then if those were to reverse it would surely be back to where it was. Me thinks a lot more going on that meets the eye.

[stuffee] 20/11/2017 19:47

Gopher

Accrol is not in fact making a rights issue as there is no right given to existing sharehoders to subscribe. It is placing 36m new shares directly with institutional investors. The issue has not been underwritten as all the new shares have been issued directly.

The lack of any pre-emptive offer to existing holders to subscribe is controversial, but based on present prices, existing holders may not be missing much. However, if Accrol can survive for the next 18 months, the 50p issue price might end up a steal.

[gopher] 20/11/2017 18:33

Is the rights issue underwritten by Zeus?

[r ball] 20/11/2017 17:38

Curse of zeus

[salpara111] 20/11/2017 15:15

What I dont get is why they need £18M, a major health and safety fine would be in the order of £500K in the event of a death.
Clearly the last market update was not telling the truth but equally look at what has happened to Carilion, the business did not just collapse overnight but the previous management continued to issue "business as usual" market updates right up until it all went to hell in a handbasket and you can bet your life that none of the directors will get so much as a slap on the wrist.

[hjrose] 20/11/2017 13:00

I think a class action needs to start

[grahamwales] 20/11/2017 12:27

larva has no idea he's only a boy playing a mans game :-)

[glenkaz] 20/11/2017 10:38

Rising now 🤡👌

[larva] 20/11/2017 10:15

yes debt for equity swap with HSBC taking ownership imho thats the risk

[larva] 20/11/2017 09:54

starting to blink up