Aero Inventory Share Discussion Threads

[staverly] 08/10/2009 18:19

MDJD, of course they needed the money, the BS as at 31Dec09 shows that their only credit facility (asset based) was pushing against the ceiling: USDm 467/500, they had

[staverly] 08/10/2009 18:18

MDJ8, I have seen it and I gather that Charles Stanley issued a "strong buy" note this July ... but unusually I struggled for sight of it. Look, I don't know what's going on here but I certainly cannot view it positively.

[mdj8] 08/10/2009 17:50

Staverly, have a look at the broker research on the AI. web-site - Edison, whoever they are. The research is as of May 2009 but says the fact that no new biz has been acquired (maybe that was planned)in 2009 and that existing contracts are becoming more and more cash generative the company is benefitting. I can't argue with that.

[staverly] 08/10/2009 17:40

MDJD, cont..., they had

[matt123d] 08/10/2009 17:20

Looking over extended to the downside now.

Definite support here from the previous 240p resistance, the newly formed upward trendline and more importantly the 20wma which will bring in fresh demand.

RSI is also extremely low and back down to buying levels.

Will be looking to take a position here tomorrow with a 300p short term target on run up to results on the 28th.

[mdj8] 08/10/2009 16:43

Staverly, at that time they had a spare $100- million credit but it was not enough or was not anticipated to be enough to pull off the supposedly big deal they were negotiating. To quickly raise cash to put towards the deal they offloaded some inventory to Air Canada. The deal didn't come off and we don't know what has happened in the interim. As such unless anyone here is an insider, since the deal was called off and the Bill of Exchange details were made public we have no further info, apart from the planned full listing - if there is any more info lets see it. This being the case we are all in the dark and any comments from anyone incuding myself about their current situation is purely speculation.

[richardbroughton] 08/10/2009 16:31

Nope, skids under this one!

[zadtoob] 08/10/2009 16:18

Could this just be a shakeout?

[staverly] 08/10/2009 15:13

MDJD, of course they needed the money, the BS as at 31Dec09 shows that their only credit facility (asset based) was pushing against the ceiling: USDm 467/500, they had

[staverly] 08/10/2009 15:07

MDJD, of course they needed the money, the BS as at 31Dec09 shows that their only credit facility (asset based) was pushing against the ceiling: USDm 467/500, they had

[boll] 08/10/2009 13:14

I have been looking at this company with a view to buying shares in it however it has never generated cash and as there has been a continual rise in borrowings. I would have thought that operationally if the contracts etc had increased we would have expected the inventory turnover to increase as economies of scale kick in and more contracts ( customers could be supported from the same inventory. This clearly hasn't happened. Additionally it seems that there was pressure to raise cash through the sale of Air Canada inventory and also the potential bid discussions that were started about 18 months ago ended fairly quickly.

The valuation of inventory isn't easy but if its not moving then question marks must remain around its valuation and therefore the security for the borrowings which are large. I think there is considerable risk around this share therefore won't be investing

[milacs] 08/10/2009 13:04

MDJ8

My opinion only.

The fact that the share price is plunging in a positive market leads to believe I am correct.

M

[mdj8] 08/10/2009 12:51

Milacs, is that a statement of fact, or are you postulating?

[milacs] 08/10/2009 12:08

Something has leaked.

Perhaps we are going to be hit with a dreaded rights offering.

If so wonder at what price will it be issued.

M

[staverly] 08/10/2009 02:08

Puzzler2, I don't have any skin in the game but this company has baffled me for years and so I was waiting expectantly for their results. RL may have negotiated the 100m loan note in lieu of stock but to the best of my knowledge we don't know how much stock was given up; I suspect a disproportionate amount taking account of their desperate liquidity situation at the time. Frankly as a shareholder you should be deeply alarmed at RL's remuneration package (I suspect it's easily the most generous on AIM. Makes poor old Richard Trevaillon, ex Meldex CEO, look hard done by on a paltry £650 pa.) Paying any dividend, as AI. has for years, was hubrism on stilts, let alone increasing it year after year while Rome burnt.
I suspect something serious has got to give and I do not believe a move to the Main Market awaits.

Just as an afterthought if Lewin (& McCorkell) do step down perhaps that will give the share price a fillip. Good luck

[fr4dge] 07/10/2009 10:33

That's a bit more like it.

[richardbroughton] 07/10/2009 08:33

Puzz/Merc, You are bang on provided there is no bad news anywhere.

[mercury123] 07/10/2009 07:56

You are right in my opinion and I was buying heavily all the way down to 2.495 yetserday. I think we'll see at least 25% upside once this moves to the main index and the trackers get involved. It's as close to a no brainer as any share I own

[fr4dge] 06/10/2009 15:11

Me & my big mouth.

[fr4dge] 06/10/2009 13:55

Now positive!

I think my post kick-started it all.

[mdj8] 06/10/2009 12:46

Fr4dge, agree they would be rather daft to do as described in your first para - more than likely the second part - bit of a rollercoaster ride today - hopefully this will stop when there's more liquidity, I'm fed up with seeing a 5% move based on someone selling a few shares first thing....