AEA Technology Share Discussion Threads

[psavvides] 19/7/2012 07:24

diku

The RNS is badly worded and I think people may have reacted too quickly (to quote Bob Diamond, "I felt physically sick when I read it".

There were a lot of buyers as well as sellers 600 million shares were traded!

FoxHill on the LSE board is contacting them again today to see if they can explain the meanings behind the words.

Maybe we have all lost the plot as well as our money!!!

Clutching at straws? It is not over till the fat lady sings :)

[diku] 18/7/2012 23:10

PSavvides

If I have understood that paragraph correctly.....they want to realise value but in the same paragraph they say no value.....

I have lost the plot here....

[isis] 18/7/2012 21:26

I wouldn't blame the Government of the day - nearly all the Privatisations have done well just look at them.
The Pension rules have changed over the years making Companies hold more in reserve and they have simply become unsustainable as they were both in the Private and Public Sectors.
Also the Stock Market is 20% lower than it was in 1999.

This Company has been run badly and once they went on the Green route they were doomed.

[dorsetlad] 18/7/2012 21:21

AEAT sold off all the good stuff years ago. When AEAT was floated the Company share hit £10/share would you believe. Sad to see (what was a good)Company go to the wall; I still have another 10 years to go before I get my deferred pension; I doubt it will be worth much now :-( The cynic in me says the Government of the day got what they wanted - dumping a massive amount of public sector pension and redundancy liability under the guise of a floatation.

[hdenandy] 18/7/2012 20:48

6 pence ?????

[blackdown2] 18/7/2012 17:31

It's effectively bust.

[psavvides] 18/7/2012 17:24

I don't post very often so excuse me if I am suggesting something completely off the wall

The English language is very rich and I wonder if this is what the RNS meant.

"As a result, the company has decided to consider all strategic options to realise value, however, it does not envisage there will be offers for the share capital of the company and the board expects that such options will result in little or no value for shareholders."

They are looking to sell assets to support debt/pension.

They are not looking to sell shares still on their books.

The value of assets released will be used to pay debt/pension and therefore will not raise the value of shares i.e. value to current shareholders.

What do you think???

[loverat] 18/7/2012 17:18

What's that - not to be too airy fairy?

[buywell2] 18/7/2012 17:09

There is a lesson there

[isis] 18/7/2012 17:04

They seem to be involved in a lot of airey, fairy Green stuff much of which has no economic basis and are whims of politicians - this appears to be their downfall and of course terrible management and huge pension deficit.
They should have stuck to what they knew.

[tradermania] 18/7/2012 17:02

I've not seen this company for ages.. saw some volume and thought I'll take a look.. What happened here? Use to be 30p or worse still £1.20, not nearly nothing 3 years later. What happened?

[cyberbub] 18/7/2012 16:48

just seen this news. i had 4m at .24p, took the decision to reduce risk last week and sold out at .23, glad i did!commiserations to remaining holders, the previous management have driven into the ground and i think the new management have not been able to turn it round (at least not for shareholders).i guess now there is a likelihood that the pension fund will take control of the company...

[loverat] 18/7/2012 15:17

diku

This has not been bad for traders. I remember the fall from 2p to 0.17p probably best part of a year back. The share price recovered briefly to .85p when the funding news was released.

Since then it has been stuck around 0.20p except for that bounce to .40p which I assume is the one you mean a few months back and was very short lived.

The trading today would look like there is little further scope for traders too but I suspect there might be a few 50% swings here when the dust has settled again and before the management finally put this out of its misery.

[diku] 18/7/2012 15:11

PI's got well and truly stiched up here!....When it first went down to 0.18p and then bounced to around 0.40p PI's pilled in....it then drifted back down to 0.20p again and PI's thought they could repeat the same trick again!!....sadly the market has a habit of taking your profits back and more!....

[skinny] 18/7/2012 15:05

I traded these back in their heyday, and recently bought 100,000 for the price of a return train ticket to London.

Just over half a billion shares traded today so far (about a third of the total in issue).

[skyracer] 18/7/2012 13:15

Have never owned this, but knew some people who worked for AEA. Thing is, they were a bunch of clever people, but they needed to be commercially managed and working on marketable products that used their strengths. Internal recruitment of CEO's rarely works and leads to masking of the management weaknesses. You only have to look at Judges (JDG) to see what can be done with the right management in charge. The other thing is defined benefit pension stakeholders have to see when they are bleeding the company dry and must compromise drastically, otherwise they end up with 100% of nothing. Too bad, too late now.

[buywell2] 18/7/2012 11:49

Just about wiped out now

Just when the UK Government decide to spend £ BILLIONS on the Railways

Administration within days I would have thought

[isis] 18/7/2012 11:47

AEA plummets after admitting shares are effectively worthless
10:05 am by Jamie Nimmo AEA has struggled to find a long-term cure for the current levels of debt and pension costs.
Shares in AEA Technology (LON:AAT) plummeted after the climate change consultancy revealed there will be "little or no value for shareholders" as it turns to "strategic options" to fix debt woes.
The company, which was spun out of the Atomic Energy Authority in the 1990s, said that it had struggled to find a long-term cure for the current levels of debt and pension costs.
"Despite constructive discussions with the Bank and [pension] Trustee, the board has been unable to achieve a long term solution to the existing levels of net debt and the significant on-going funding costs of the group's retirement benefit obligations," said AEA in a statement.
"As a result, with the support of the Trustee and the Bank, including short term financial support, the board has decided to consider all strategic options to realise value.
"However, the board does not envisage there will be offers for the share capital of the company and the board expects that such options will result in little or no value for shareholders."
It added that the new strategy, which was put together with Lloyds Banking Group (LON:LLOY) and the trustee of the group's defined benefit pension scheme, sets out a "positive way forward" for AEA and its employees, while the new plan has already started to improve its operational efficiency.
Shares nosedived on the news, tumbling 75 per cent to 0.055 pence per share, giving it a market value of just £727,000.
Back in November, AEA shares shed 85 per cent after it issued its second profit warning in seven months and chief executive Andrew McCree left the firm.

[velvetide] 18/7/2012 10:27

they've converted 1 million at the highs into about 40 quid, would buy one enough fuel to drive to Beachy Head

[loverat] 18/7/2012 09:52

I remember buying these at £1 - must be eight or nine years ago.

Well, what does that work out at - a loss of 99.8%. That is shareholder destruction for you.

[isis] 18/7/2012 09:38

I do make a point now of not investing in Companies where I do not understand what they are doing.
When these floated they were Train Engineers and did Nuclear Safety stuff, then they suddenly went all Greenie and I could not fathom what the Hell they were upto.

Luckily I sold in the 300p's some years ago - seriously.

I still don't have a clue what they are doing, but they are obviously doing it wrong!

[empirestate] 18/7/2012 09:28

what a bunch of *ankers these lot are. glad i got rid at 16p after taking a 50% hair cut.