African Battery Metals Share Discussion Threads

[enfranglais] 20/10/2013 08:45

T34 - only imagine that if you are living in la la land i'm afraid!!
The new CEO will be concentrating on survival & re-negotiating with the Banks & expect no dividends at all for 2014. I expect he would have liked all that divi. paid in 2013 back in the Companies bank account right now!!

[t 34] 19/10/2013 21:09

Huge divi yield is showing;imagine they will pay the same divi as last year.

[simon templar qc] 18/10/2013 20:02

Good article.

Its the rapid expansion and high debt which has contributed to the problem.

[enfranglais] 18/10/2013 19:56

QC - a much more reasoned post & i accept there is a risk involved & the management expanded, when market conditions were going against them.
However, the Banks want their money back & an ordered restructuring SHOULD produce better results than receivership or administration, where the fees gobble up so much of the assets.
So my bet (and there has been quite strong insti. buying since the share price turned at 26.5), is that we will get a price nearer my 90p break up value & i want 69p for the latest batch of shares (1st purchase 27.5k at 32 - sold at 49.1 & now 20k at 41.5 - wanting 69). Not too much to ask eh?

[spob] 18/10/2013 17:59

As i said I am sure shareholders here are already aware of that

[simon templar qc] 18/10/2013 17:52

Don't get me wrong there is a market for pawnbrokers and I agree there will always be the need for a pawnbroker but the market is far more competitive than its ever been even the company accept that.

The problem here is they have expanded too fast and gotten too much debt. They are in a hole big time and its going to be difficult to get out of it.

I hope for shareholders sake they do but if things deteriorate further then shareholders risk administration.

[spob] 18/10/2013 17:36

In an era where unregulated energy companies are gouging out the eyes of their customers .... Where rents are hitting all time highs .... Where wage growth is negative in real and nominal terms for many... To say there is no future for pawn brokers is almost laughable


In regard to ABM no one can say that the risk of collapse is not priced in. Anyone who buys here is no doubt already aware of such risk and is prepared to take such risk on as part of a fully diversified portfolio.

They don't really need to be told this could collapse every 5 mins. They are already aware of the risks.

[simon templar qc] 18/10/2013 16:23

enfrangalais,

You have my word I am not short. You need to be careful and keep watch as its getting ever nearer the end of the month. At the moment it looks like investors are getting very nervous there is no suggestion of a quick remedy.

China came out with good figures today the economy seems to be picking up. If that happens there will be less reliance on pawnbrokers. Its a stock that tends to do well in a downturn and less well in an upturn.

[enfranglais] 18/10/2013 13:26

Sooty Simon - GET OUT OF YER SHORT SOON M8TEY? AS YER WILL NOT LIKE DE BOUNCE!!!

[simon templar qc] 18/10/2013 08:56

More selling pressure this morning.

[enfranglais] 17/10/2013 17:02

Same, as, same as - it's not the Pet Shop Boys - it's the Boiler Shop Boys!!
Caught short from 26p were you?
The share price has already collapsed & the action is now being taken to secure the future of the Company. The REAL question, is what is the Company now worth & is it below or above the current share price!!!
That depends on the Banks & if the Company receives a t/o offer!!
Happy to wait & see & hope the majority will see through Simple Simons de-ramping & burnt fingers!!!!

[simon templar qc] 17/10/2013 16:51

Case Study by Value Walk..

"Sometimes seemingly sound stocks collapse. On occasion the causes could not have been foreseen, but on others perhaps they should have been anticipated. Arguably the case of UK pawn broker Albemarle & Bond falls into the latter category?"


hxxp://www.valuewalk.com/2013/10/albemarle-bond-case-study-avoiding-collapse/

[quepassa] 17/10/2013 15:28

Please don't draw me into any aggro between you and another poster.

I respect ST's views. And agree with some and disagree with others. That's the value of a good bulletin board. As far as ST is concerned, he is always very polite in his posts and that is a quality to be admired and perhaps emulated by everyone.

I think his point about gold price is indeed a very valid one. If not the main reason for ABM now finding itself in such straitened circumstances.

There is a clear correlation between peak gold price at $1850 and the peak share price of ABM. As gold has fallen, so has the share price of ABM who expanded like topsy on the back of this ephemeral boom by opening too many (gold-buying) shops which are expensive to run.

ABM expanded their business on the back of the gold-buying boom as people rushed to cash in old gold at sky-high prices. Now that gold has slumped so much, the supply of old gold has dried up and this has smashed ABM's profits, especially at the new shops which hadn't yet built up a reliable/sustainable traditional pawn-broking business and partly because of too much new competition. I think there is a vast difference to the fortunes of ABM if gold is at $2000 or $1000.

Bloomberg is a highly respected source. If gold is predicted to fall much further and down to $1000 that is potentially disastrous for ABM's prospects.

ALL IMO. DYOR.

QP

[simon templar qc] 17/10/2013 15:05

Of course gold has a relevance without it there would be less reliance on a pawnbroker and more reliance on a pay day loan outlet.

[enfranglais] 17/10/2013 14:46

QuePassa - the only ceraintly is that Simon Templar in Quality Control is no Saint & the Qualty of his posts are tainted by the soot of a Boiler Shop operation.
Own up to being short & stop posting irrelevant posts - Gold could be 2,000 or 1,000 & that would now not have a major influence on the survival of the Company!!!!

[simon templar qc] 17/10/2013 12:26

Price of gold forecast to fall 10% next year...

[quepassa] 17/10/2013 11:29

Let's hope for everyone's sake that the banks show the leniency you are suggesting. But that cannot by any means be taken as a certainty.

ALL IMO. DYOR.

QP

[enfranglais] 17/10/2013 10:52

Saint - not good news for wonga then - if silly Mllliband gets in that is!!!
Are you sure you're not short - ie dwarfish???
More likely is extension of Bank loans & ABM given some more time to sort out the Company!!!

[quepassa] 17/10/2013 09:11

Re 825. Agreed. Highly unlikely for Rights Issue. But you do not need a Rights Issue to create new equity.

Re 826. As an active investor, that's precisely what I do. Try to second guess the market. All the time. Actively. In respect of ABM, posts beginning 509 at 220p refer.

Re 828 "will have to pay some price for some iffy management decisions.". yes but that price may be a very steep one. With a bank nominated Restructurer on The Board, failed discussions on a Rights Issue, earnings which have fallen precipitously, intedeterminately delayed Annual Results, and a new covenant Test date falling due in just a fortnight, the Banks are potentially in a position, in my opinion only, to demand a high price of ABM if ABM cannot meet the forthcoming Test.

ALL IMO. DYOR.

QP