African Battery Metals Share Discussion Threads

[quepassa] 31/10/2013 10:45

Yesterday's RNS did not state what conditions if any were attached to the second deferral of the Test by the Banks. Was it a 100% "free-ride" until February given by the Banks? In my personal experience, that may or may not be unlikely.

The banks did not waive the Covenant Test or extend the maturity of the loan but deferred it for a second time. So in my opinion it is not right to conclude that the banks are yet fully comfortable with the loan but have again just given ABM a little more breathing space to examine all options.

We have already seen ABM shut Cash Window to new business and they are likely not pumping out as much money as before through the stores given the reduction in debt.


It is however really concerning in my view that ABM are again delaying the release of the Annual Report. The figures should almost certainly be available by now, so why do they need to do that?

Last year's figures have little to do with the current situation.


But with £49.9million of net debt which would likely now be classified as CURRENT debt( if memory serves me correctly), ongoing talks with the Banks, a second deferral of a Covenant Test, one can but wonder to oneself, in my view only, what sort of Opinion the Auditors would or would not give to ABM's accounts if they were released today.


ALL IMO. DYOR.

QP

[simon templar qc] 30/10/2013 21:58

I don't think the market has fully pencilled in the confidence the banks have in management in extending the covenant tests.


"Analysts at Shore Capital stockbrokers said: 'The immediate danger that the banks might pull the plug on Albemarle & Bond has passed, we think, and is clearly shown by their willingness to defer the covenant tests until February 2014."

edit 7.s7 am

Another 300,000 went through last night after close.

[enfranglais] 30/10/2013 20:23

Quality control on the ball!!
Will have to call the insti. Mr 300K - promising for tomorrow?

[simon templar qc] 30/10/2013 17:16

300,000 after close at about 49 pence.

[enfranglais] 30/10/2013 17:07

That's the advantage of being in Quality Control - you found the Quality part in the end - lol
Prefer to see inti's coming back in gradually & a nice steady share price rise, to a more reasonable 65/68.
Chart wise, resistance at 52 but if it breaks that, next resistance is 69p & that would close the gap left on the last drop!!
52 may be tough to break, as it has bounced off there twice now but with Gold climbing & a fair wind, it may well do that soon!!

[simon templar qc] 30/10/2013 16:52

I'm known for being honest. Have changed my view since considering the extension to the company covenant testing and a slight reduction in borrowings. I expected borrowings to be higher not lower and if they can continue to eat away at borrowings shares look cheap. With broker reiterating a buy today as well I am inclined to feel a bounce is due.

[enfranglais] 30/10/2013 16:45

QC - balance, nice to see m8tey!!
Also nice to see 300k buy at 48.8 this pm - will there be a few more out of hours buys to be reported later?

[simon templar qc] 30/10/2013 16:32

Buy rating reiterated today...

hxxp://zolmax.com/investing/n1-singer-reiterates-buy-rating-for-albemarle-bond-holding-abm/139009/

Borrowing slightly lower that at previous level could suggest a bounce.

300,000 went through at just under 49 pence which I think was a buy.

[enfranglais] 30/10/2013 16:19

ssunn - yup, purely a speculative play, as don't see EOG moving in the near term (still have 100k there)!! Already took 55% on the bounce from low & got back in at 41.75 ave & long at 42.87, so could have taken 8pips on the long & 20% this morning but looking a bit longer term for 65/68p!!
They made more than yesterdays m.cap last year & even if profit goes down 75%, it would still support a price higher than 42p!!!
We will have to see what 'Mr Market' really thinks & if the insti's come back in later today/tonight/before the weekend, will give me some indication whether to stick this out!!!
If you are interested, have traded EOG 12 times (2 pots 6 times actually) now & it has been a great cash cow & would be back in between 7.5 & 8p, if i gets back there

[simon templar qc] 30/10/2013 16:11

Shore Capital indicates a rights issue the way forward but they cannot do this at anything like the current price without massive dilution.

[ssunn] 30/10/2013 15:35

enfranglais

I thought I'd take a look here after your post on the EOG bb. ABM has been a substantial business, but what worries me is the cashflow outgoings of rents/exs etc. (230 stores),wages (1000 employees), central o/hds, 51 mio debt servicing and default possibility, and EZCORP International's refusal to underwrite a sorely needed equity fundraiser.
ABM by its own admission says that the weak POG along with generally difficult trading conditions will materially affect profit forecasts into 2014.
I can't see where the support needed to turn this company around is going to come from.

[dewtrader] 30/10/2013 13:39

Managed a quick scalp as didnt like it after i did my research

[enfranglais] 30/10/2013 13:37

There u go again dewey - so yer did'nt buy in after all!!!
Froth taken off & some of the earlier big buys coming through as late trades - all those insti's are buying just to loose their funds eh m8!!!
Noticeable absence of the day traders flooding in this morning, so perhaps we can look forward to a slower but more sustained growth in share price up to my target of 65/68p - gap fill area is 69p!!
Still sitting on nice profits but could have taken more at 52p & bought back in later but hindsight a wonderful thing!!!

[dewtrader] 30/10/2013 11:45

five for one at 15p would only raise a small amount against the debts of c.30m???? Anyone fancy a slice?

[quepassa] 30/10/2013 11:45

Another High Street name, Blockbuster video, on the verge of going into administration for the second time this year.

The High Street is a cruel place and only the fittest survive.

ALL IMO. DYOR.

QP

[simon templar qc] 30/10/2013 11:40

I reckon they will do their best to see if they can improve their current debt position further and try and instil more confidence in shareholders to improve the share price. If they manage that and at the same time increase the share price they might get another opportunity at a rights issue. The problem is the largest holder doesn't want on. Its a tightrope and that rope could break.

[megabear] 30/10/2013 09:56

Anyone think they'll have another go at a rights issue? Or no chance?

[zendik] 30/10/2013 09:25

"Colin Whipp and I are also considering turnaround actions to improve trading performance. I am encouraged by the quality of our stores, our offering and our people and am confident that there is a sustainable and competitive future for the business."

hxxp://www.insidermedia.com/insider/south-east/101675-

[dewtrader] 30/10/2013 09:04

QuePassa 30 Oct'13 - 08:37 - 911 of 914 0 0

Looks like they would have failed the earnings-based covenant Test again for a second time, otherwise why would they have needed another deferral?

Still no date for release of annual report. That's not good.



Maybe they have run out of red ink

[simon templar qc] 30/10/2013 08:58

A bit of a lifeline Express was right but too early to say if they can turn it around. Christmas will be make or break imo.

[enfranglais] 30/10/2013 08:40

Look at it another way - Xmas is coming & to fund it, will the pawnshops be doing good business, especially as Gold prices have firmed somewhat.
Goota get the latest toys for the kids dad, pawn me ring & get it back in the new year whydon'tyer!!!
Plus, the first gap to fill on the chart takes us up to 69p ish - fill that gap with a Cadbury's snack all you day traders!!! lol

[quepassa] 30/10/2013 08:37

Looks like they would have failed the earnings-based covenant Test again for a second time, otherwise why would they have needed another deferral?

Still no date for release of annual report. That's not good.

Cash Window still closed to new business and no explanation offered.

" trading in the Company's markets CONTINUES to be challenging in line with the trading patterns referred to in our announcement of 30 September 2013." ( my capitals).

Some optimistic sounding words from the new Chief Exec but nothing concrete and the tone of the RNS throws a veil over the apparent second inability to meet the Covenant Test.

Exploring all options can mean anything. The fact that you need to explore all options is not necessarily a positive sign for shareholders.



ALL IMO. DYOR.

QP