African Battery Metals Share Discussion Threads

[enfranglais] 23/10/2013 16:47

hvs - you standin in front of yer mirror again m8?

[enfranglais] 23/10/2013 14:12

QC - the other side of the argument s that ABM have been too succesfull & have now had to cut back on lending until new covenants have been arranged with the banks? They have been very profitable & the more they lend at those sort of interest rates, the more profit they will make (as insolvencies decline etc)?
Perhaps this is all about cash flow - a new line of credit & away we go again on the money spinning machine?
Just a thought now - not for widows & orphans but at these prices, not a bad bet in my humble opinion (until my target of 68 - 70p anyway)!!!

[simon templar qc] 23/10/2013 13:45

Have looked at the cash window myself and I just get the feeling the reason for this is company cannot afford to do an online loan due to restrictions on bank borrowings.

Its a different matter with pawn broking side as they take goods as collateral.

Be careful as if I am right they will lose more money on loss of online loan business.

AB has an awful lot to do to sort this matter out and time is not on their side.

This is what the company said on facilities..

"The deferral agreement will also lead to the appointment of a Chief Restructuring Officer to the Board by 10 October 2013. As at 30 September 2013, net indebtedness was circa GBP51 million. The terms of the deferral agreement cancel undrawn commitments under the Company's lending facility, reducing the facility from GBP65 million to GBP53.5 million. "

All it gives them is £2.5 million headroom if the company is losing money and or cash outflow the headroom will soon be breached.

[simon templar qc] 23/10/2013 12:40

QuePassa 23 Oct'13 - 08:10 - 875 of 879 0 0


Re 871. But one must ask oneself why would they temporarily shut down new lending at their online loans subsidiary a time when ABM need all the income they can get?

ALL IMO. DYOR.

QP
............

Company had to reduce its overdraft facilities which was mentioned in company RNS.

How can the company continue loaning money if they are on limit of borrowing facility?

Answer looks simple to me!

[c1d] 23/10/2013 09:18

QuePassa,
I agree with your reasoning but maybe draw a different conclusion?
The current share price is well below the last reported value of current assets less total liabilities. A profitable business with a future would almost certainly be valued in excess of net assets, usually by a considerable margin.
If they can hunker down, concentrate on getting the core business right, and most importantly keep the bank onside, then in my opinion the share price has every chance of increasing significantly overtime.
This might well mean sacrificing opportunities like on line loans but expansion of historically non-core activities is not something that I believe they can afford to pursue for probably quite some time. For the time being cash flow should be the key focus.

[quepassa] 23/10/2013 09:03

On-line loans is a new big and growing market. Hence Wonga. It's cheap to run because you have no shops and fewer overheads. It's a good business.

ABM have never said they had problems with online loans but with some of the new shops. They wanted to expand online loans

In my guess, they want/need to repatriate cash. So by stopping new loans and collecting on the outstanding short-term loans at Cash Window, they will generate cash which can be used for HO purposes. But this is in my opinion only an ongoing sign that their access to funding remains very tight.

ALL IMO. DYOR.

QP

[hvs] 23/10/2013 08:40

lol ¬!!!!!

With losses everywhere.

[c1d] 23/10/2013 08:37

Maybe they need to reduce their debt more than they need the income from online loans? Generating income from online loans means lending money to people (who probably don't have much in the way of any real assets) in the hope that they will repay it in the future so growth in that part of the business will lead to increased rather than reduced debt.
With the traditional pawnbroking business the customer gives ABM an asset that should be worth at least the value of the loan advance so if ABM need to re-allocate capital to control/reduce their debt levels I would be v happy for them to move capital away from online loans to supporting the pawnbroking business.
Not offering loans through the Cash Window website might be a worrying sign or on the other hand it might not. As always you make a choice and take a chance - that's what makes the stock market so interesting IMHO.
I think it is clear that ABM expanded too fast when times were good. Retrenching and concentrating on core activities would be no bad thing IMV.

[quepassa] 23/10/2013 08:10

Re 871. But one must ask oneself why would they temporarily shut down new lending at their online loans subsidiary a time when ABM need all the income they can get?

ALL IMO. DYOR.

QP

[t 34] 22/10/2013 19:00

Anyway,it does not mean they shut down the business,revamping the range of loan is simple making business better - restructuring and re-organization is on the way.

[quepassa] 22/10/2013 18:55

Cash Window is a proper website.

ABM have one website for the shops. And another website for their online loans subsidiary, Cash Window.

QP

[t 34] 22/10/2013 18:44

Slightly different here , on proper website :
hxxp://www.albemarlebond.co.uk/Home

[quepassa] 22/10/2013 17:41

By way of doing hands-on research into ABM, late last week I telephoned ABM's subsidiary for on-line loans, Cash Window ( formerly called Early Payday Loans ) and they confirmed that they were still processing applications for new loans.

Today, matters seem to be different:-



For whatever reason, if they are currently no longer processing applications for any new on-line loans, this is - in my view only- deeply concerning.

Shutting your doors to new business ( whether this is temporary or otherwise) may or may not be indicative of significant corporate turmoil at ABM.

ALL IMO. DYOR.

QP

[enfranglais] 22/10/2013 16:58

Phoenix - have a go then & we can all celebrate 'the rise of the phoenix'!!! lol
Nice rise today, as you say, with very little turnover of stock. Wonder what will happen when extension of banking covenants are announced - 65-68p here we come?

[phoenix equity] 22/10/2013 15:37

Interesting developments here. Not much stock available here to buy a position without shifting the price up significantly.

[enfranglais] 22/10/2013 14:44

Are we due -LIFT OFF!!!

[hvs] 22/10/2013 08:19

lol!!!!!!

U does need them assistants

[c1d] 22/10/2013 07:54

Zendik,
Hopefully these are all replacement rather than new jobs as cash preservation should be their top priority. In this instance, high staff turnover would be a good thing as it would enable the company to cut costs by not replacing people where-ever possible without incurring redundancy costs.
It would be very surprising if they were recruiting if they believed that they were on the point of going under so it is hopefully a good sign.

[zendik] 21/10/2013 20:04

Also more new jobs for A&B

They seem to be recruiting assistant branch managers over a few stores.

hxxp://www.jobisjob.co.uk/albemarle/jobs

[t 34] 20/10/2013 16:08

Several bids ????
Only Norges Bank emerged itself through rns holding more then 3% ,hope the rest of bidders will make an assault soon.

[hvs] 20/10/2013 14:57

Yup very nice divi and sevral bids coming.

Wonder what the Board of Diorectors will PAWN to BORROW ? After all whatever it is will not be theirs.