Aero Inventory Share Discussion Threads

[boll] 31/10/2009 13:07

The buck really does stop at the top

[boll] 31/10/2009 13:07

TDay

Yes they may have done - the problem with these guys is generally that they look forward and focus on the next deal - when the crunch comes its too late!

[tday] 31/10/2009 10:39

boll, presumably these intelligent guys employed people to be hands on?

[dawsonpaul] 30/10/2009 20:25

Game Over.

[boll] 30/10/2009 14:25

Thje reason the supposedly intelligent guys don't pick this up is that they are strategically driving the business forward and aren't hands on.

As i have said in my previous posts the company has consistently relied upon bank borrowings and never it seems have generated serious amounts of cash or improved the stock turn ratios

[tday] 30/10/2009 10:47

I am still staggered how supposedly intelligent guys (let's not forget earning in excess of £500,000 a year), can fail to see that stock can have a limited shelf life. Then there is the foreign exchange risk, not to mention the credit crunch when presumably, customers can drive a hard bargain on purchasing spare parts.

I can't see the banks allowing all the existing directors to remain, once the covenant issues are sorted out.

[pucpucpuc] 29/10/2009 20:45

what to say, just a mess, let hope it is not totally bad, keep finger crossed.

[redips2] 28/10/2009 19:43

no good when there everyone is away--pasty hey ho

[pastyman3851] 28/10/2009 08:00

are the results still coming out today?

[ianguerin] 28/10/2009 06:33

The RNS said there will be a breach of non-financial covenants. It says nothing about financial covenants.
The bank is likely to have included a covenant that the stock remains at a minimum multiple of the bank facility (either drawn or available) so there's some hard talking to be done on that issue.

Once again the banks & so-called professional big firm auditors mess things up by not doing their job properly

[redips2] 27/10/2009 15:50

only have £3k in here so no sweat--just forget it and move on

[tday] 27/10/2009 13:46

The AGM, when the date is announced, should be worth attending, except for the directors.

[typo56] 27/10/2009 13:32

For me the warning sign was the poorly explained significant stock sale to Air Canada back in February. I immediately sold and haven't touched since. Something didn't smell right then and still doesn't IMO.

[hvs] 27/10/2009 10:23

Not flying any more I see. F.T. today says issued shares no less than SIX TIMES.

Looks like another bunch of INCOMPETENT MISMANAGERS.

Stock muct be going DOWN IN VALUE EVERYDAY while DEBT GOING UP.

Cant see much left for shareholders here. PITY.

[jr hartley] 27/10/2009 10:18

Drastic would have been to issue the same RNS without suspending the shares leading to mass panic/freefall. Better IMO to suspend and clarify the situation in time, thereby giving investors time to look at the facts and better prepare everyone for rational action.

[richardbroughton] 27/10/2009 10:11

Mc900.

If suspension isn't drastic plz. tell me what is. There is nothing worse than suspension for 'clarification of the companys financial position' which may mean restating previous results.
rgds
Richard

[mcdermott900] 27/10/2009 09:12

I agree with MDJ8 - there is far too much negativity here.

For sure, I'd have thought the price is going to take a bit of a hammering when it comes out of suspension, no doubt, but I'd be surprised if it was 'game over' as some are saying here.

If I get the chance to, I will almost certainly bail out - but only because I suspect it will get hit hard, whether justifiably or not. Otherwise, I'll just hold; see if there is an over-reaction and possibly even buy more!

Lets just wait and see what happens. Personally, I didn't think it sounded like it was too drastic, though of course, with the market still completely overflowing with 'doom and gloom' merchants, the price is likely to go down badly, whatever the outcome of the investigation.

Regards and good luck to us all . . .

mac900

[qs9] 27/10/2009 07:27

Technical breach of covenants they talk of not a financial one, a whole world of difference (if true!). Let's see.

[cockerhoop] 27/10/2009 04:15

I've sniffed around AI and kicked the tyres number of times in the last few years and the thing that has always put me off investing is the lack of improvement in stock turn as new contracts are taken on. It has stayed at approx 75% of inventory and each new contract involved the purchase of additional stock above that obtained from the Airline.

As we are talking about consumable parts here I believe the stock turn should be much much better suggesting some of the inventory may be obsolete or at best there wasn't any efficiency gains from new contracts which surely there should be if the inventory was well managed.

This is not meant to be a told you so post as I haven't posted on the company before and i've certainly been caught myself with plenty of shocks in the last couple of years in other companies but felt it may help to raise issues that made me personally cautious about AI.

[mdj8] 27/10/2009 00:34

Staverly, nobody forsaw there would be a problem like this, let alone one with inventory. Good luck with IGP.

[boll] 27/10/2009 00:13

My own view is that there will be some value left in the shares and that there will also be a change of management with the company being run for cash with inventory managed downwards. Existing shareholders may have to stump up more funds as a prerequisite for the banks continued funding.

[40kj] 26/10/2009 20:35

Current assets less all liabilities were £4.55 per share last accounts (£4.08 2007 assuming same number of shares in issue). Clearly nobody believed that. The rigour involved in current process is overdue and is one of the benefits of main market entry.

[staverly] 26/10/2009 20:17

MDJ8 - these are not silly comments its reality. As I have said previously I had nothing to gain from todays news and having been there before I feel for PIs in this situation. I tried to warn you and other shareholders about three weeks ago. Unfortunately AI. is a write off but if you are still of sound mind to speculate you might want too take a look at IGP, (I am a shareholder). I think its prospects and valuation are attractive and most importantly (having met)found the management way above the normal levels of probity found in the shadowy sewers. The main issue is liquidity but as I consider it a 2-4 bagger over the next 2 years that problem can be forgiven. Good luck