African Battery Metals Share Discussion Threads

[tpinvest] 03/10/2013 08:35

C1D

Fuuny you should mention Ashtead - a long time ago!!!!
I should have known better because I was in the Plant Hire business myself.
I had an order on the server for 1M shares at 2.75p and had to go and sit down in the loo.

When I came back I had decided that I couldn't afford to lose this so resisted the temptation, to my lifelong regret of course

[grahamite2] 03/10/2013 08:32

Previous accounts have made reference to gold price hedging gains and losses, so that shouldn't be the issue. Redundancy costs on the 33 (?) closed shops were probably quite high as there won't be much natural wastage in this employment climate, but that's in the past and shouldn't worry lenders too much. Probably the key issue is - have customers just stopped redeeming pledges?

[narindg] 03/10/2013 08:32

amazing the co could be suspended and people are buying

[p@] 03/10/2013 08:18

We shall see,like I said it's worth a punt at this price for a pawnbroker!

[quepassa] 03/10/2013 08:16

Confirmation needed in my view that incoming new Chief Exec will still take up his post in view of rapid corporate events since announcement.

ALL IMO. DYOR.

QP

[bookbroker] 03/10/2013 08:15

More like good chance of administration, and shares being suspended!

[p@] 03/10/2013 08:11

Good punt at this price!!!

Good chance of takeover.

[dewtrader] 03/10/2013 08:11

"financial clarification" needed

[c1d] 03/10/2013 08:07

Erogenous Jones,
Time will tell if I am brave or just plain foolish!
I've got no illusions about the risks - one slip and the company could easily slide into administration, but if it is handled skilfully the ultimate outcome might be very profitable. My memory is hazy about the details but I remember Ashtead peering into the abyss a few years ago (after a badly timed huge acquisition in the US as I recall) and it is going great guns today.

[metier9] 03/10/2013 07:59

*Fingers crossed for a blue cross gold sale*

[c1d] 03/10/2013 07:55

My bet (I bought in yesterday) is that the bank will use the covenant issue to turn the screw on the company and negotiate much tighter and more expensive terms. I think the required appointment of a Restructuring Officer is part of this process. I think that the company can avoid administration but the priorities of the bank will have to be put first, second, and third.
I see the company being run for cash to pay down the debt: shrink its store numbers where-ever possible, cut staff hours etc.
I see the situation as serious but not necessarily fatal. Whatever happens, pre-pack or turnaround I'm sure the business will be considerably smaller in a few years time as leases are exited.

[harrogate] 03/10/2013 07:54

Thee things are always easy to sort out but not a a public company and with shareholders not getting wiped out. The leases will need to be dropped as part of the prepack as usually happens with retail casualties.

[grahamite2] 03/10/2013 07:46

Exactly. Forget about goodwill obviously, even forget about property and stock in trade - just nine months ago cash and receivables alone were enough to cover debt.

If there really is a critical situation the board have a lot of explaining to do.

[castleford tiger] 03/10/2013 07:35

With 60 odd million owing to them...........just taking in repayments and not lending for a month would ease cash flow.

Poster who said administration to me a few ago ref profits last year........I tend to agree.
I was just making a point that market cap was sub last years profits.

My money is on a pre-pack. wipe out shareholders inc the 29% stake.

Watch them come in then for a rescue package along with a bank or private equity and take 50% each.

I can turn this round in 12 months but some expenses need stripping out first.
Cash flow is king as ever.
My biggest concern is that the BOD did not see this coming 6 months ago and have a 1/3 rights to bring in 30 million and sort the balance sheet out.
Very poor management.

Tiger

[grahamite2] 02/10/2013 20:00

Not true killieboy. Dreadful as it might be qua newspaper, the city pages are pretty good, especially on small caps. They have perfected the technique of hinting that a company is run by a bunch of crooks without falling foul of the libel laws.

[killieboy] 02/10/2013 19:45

m.j.g Anyone who takes any notice of what the Daily Mail says about investing deserves to lose their money!

[hvs] 02/10/2013 19:13

What a mess.

hvs 26 Apr'13 - 13:35 - 600 of 667 edit

I see sub a £ here

[bobsidian] 02/10/2013 19:04

Quite a fearsome share price collapse over the last 3 trading sessions to take the share price all the way back to 2001 levels.

Muted though it may be, you could imagine there to be a technical bounce of sorts in the share price.

But the problem is the shocking nature and sequence of the news flow. The absence of any positivity over the coming days could easily consign ABM to penny share status.

[swong21118] 02/10/2013 18:44

Can someone enlighten me please? The google finance indicated the price of 45p, but the 100,000 trade was in the morning.... so what is the current price 28 or 45? Am bit confusedx

[m.j.g] 02/10/2013 18:31

I remember a good few years back extensively recommended by Sunday papers as a buy daily mail especially over a number of years recession therefore pawn brokers will benefit. I thought straight away too good to be true but had to watch as share price zoomed up but in the end good companies win eg weir group and not companies over hyped by the Sunday press

[cnx] 02/10/2013 17:52

why would ABM or HAT hold gold?
surely they know spot is 100 so they by at 70 and immediately (within 24 hours ) sell at 100?
its the lack of cash profits and high overheads (rents and salaries ) that have done for this. simple really!

[empirestate] 02/10/2013 17:36

shocking fall here, should be a decent trade at some point though.

[bookbroker] 02/10/2013 16:40

Basically a pre-packaged admin. job, let a private equity concern take the debt of the banks hand and cut and dice the tangible assets whilst sitting on the gold!

[spob] 02/10/2013 16:39

live by the debt

die by the debt