African Battery Metals Share Discussion Threads

[acta_topup] 02/10/2013 16:38

very sad destruction of a profitable company

[spob] 02/10/2013 16:36

the cunning plan is prob to continue trading after wiping out shareholders

[the troll] 02/10/2013 16:34

market cap = c. 16m, last reported net assets = c. £81m ?? discount 80 % ?? my word; classic 'spiv' stock, 6 bag or BUST.

[spob] 02/10/2013 16:32

BOOM and BUST

[spob] 02/10/2013 16:31

wow look at that long term chart

[mubz] 02/10/2013 16:24

looks like this just cant get it up!! lol

[quepassa] 02/10/2013 16:23

Why would anyone pay 50p for something, when - who knows- they may or may not be able to buy the same thing at a later date for, let's say, 15p??

That potentially looks like an easy option to me. Or who knows, maybe or maybe not, potentially an EZ option?

ALL IMO. DYOR.

QP

[mubz] 02/10/2013 16:15

dont look like it!! lol

[falia] 02/10/2013 16:11

ABM BOUNCE COMING

[castleford tiger] 02/10/2013 15:23

Market cap now less than profit in last two years.

Madness. In auction probably close sub 30p.

Tiger

[madandy60] 02/10/2013 15:18

Ezcorp don't want to buy shares in a failing company when they can buy the lot for next to nothing from the receivers at the end of the month.

[ihollins] 02/10/2013 15:15

edullyjoe - fjp73 on markets live & a mate of mine predicted it - was short for 9mths - it was all there - the company leveraged (bet) on the price of gold - or as fraser would say - "didn't understand the social model of finance that they traded in" to quote his email - LSE: HAT will be next.

[edsullyjoe] 02/10/2013 14:48

Could anyone have predicted this problem based on the fundamentals in the public domain?

Looking at the figures today it doesn't look bad value! Net gearing of 48% is not that bad. They have a positive cash flow, rising turn over, decent yield covered twice and a 20% Operating Margin and ROE.

The company had come up on my value scans a number of times, the only reason I never considered buying them was because of the business they were in.

[dewtrader] 02/10/2013 14:45

is this going into administration?

[par555] 02/10/2013 14:38

Could the Chief Restructuring Officer be code for a bank nomineee appointment to make sure they are doing what they are told ?

[bench2] 02/10/2013 12:01

Chief Receivership Officer more appropriate . This is Comet with HAT as Dixons . But old pawnbroking model in a mess as too many new entrants both online and offline . Sterling price of spot gold approaching end June low point of £790 per oz .... Indian buyers restricted by fall in Rupee ...very little new drivers to boost gold price ... so a dire outlook for all pawnbrokers .

[bookbroker] 02/10/2013 11:58

Talk of NAV., what was the spot price of gold at the end of 2012, and what is it now, this co. sits on a lot of gold that is well below cost!

[quepassa] 02/10/2013 11:43

Remember that today's announcement also details a new and imminent Board Appointment of a new role of Chief Restructuring Officer.

Restructuring of what?? The Company itself, the debt, or the equity base of the company or all of that, or a combination of those and/or other things?

In these circumstances, and in my personal market experience, someone (usually shareholders) may or may not end up getting hit big time.

ALL IMO. DYOR.

QP

[bobsidian] 02/10/2013 11:18

The attitude of banks toward the retail sector in all its forms has hardly been a source of comfort and confidence to shareholders over the last couple of years. Only the leanest and most flexible retail entities have been able to garner continuing support from their financiers.

After failing to obtain support for a rights issue from the main shareholder, the intended and forced appointment of a Chief Restructuring Officer to primarily represent the interests of lenders could be construed as an ominous sign.

Unusually the management of ABM have identified the extent of the capital need to allow the business to operate within its current covenants. Having done so, clarification may be required on just why there is such a level of need given that it accounts for around 70% of its net indebtedness.

[c1d] 02/10/2013 11:18

Salpara11,
I'm not trying to pick a fight, but I am a qualified accountant with an audit background.
The auditors would only give a qualified audit report if the directors hadn't prepared the accounts correctly. If the accounts included a statement detailing the uncertainties about whether the company is a 'going concern' and any other adjustments to assets & liabilities that result from this uncertainty e.g asset writedowns, then the auditors would not issue a qualified audit report although they would reference the uncertainty regarding going concern. A perhaps technical but important distinction as a qualified report is the auditors saying they believe the accounts are wrong and the figures should not be relied upon.
This is not meant as a plug for ABM which is clearly in a critical state. However, not all businesses in difficulties fail and there can be profit from finding those that are likely to ultimately recover one way or another. Time will tell which camp ABM will fall in.

[quepassa] 02/10/2013 10:53

In my opinion only, I see the share price heading much lower.

ALL IMO. DYOR.

QP

[salpara111] 02/10/2013 10:47

I am still surprised by the number of posters who feel that the NAV of a company provides some reassurance.
The costs associated in liquidating the business outside of bankruptcy normally far exceed the NAV of most companies.
A business like this is valued on cash flow, profitability and income stream (divis).
If the auditor had to report on this business tomorrow they would give it a "qualified audit report" (if you don't know what that means you shouldn't be investing in individual stocks)
I hold no position but am merely warning the optimists.

[still waiting] 02/10/2013 10:39

it's the property leases and staff wages that are the killer here, think HMV.