African Battery Metals Share Discussion Threads

[chrisis33] 27/11/2013 07:34

At least they're being straightforward and transparent. Not looking good here.

[bobsidian] 27/11/2013 07:27

"Partly as a result of the Group having not yet reported results for the year ended 30 June 2013, market expectations for the current financial year have not taken account of the trading trends described above, and in previous announcements. As a result the Board believes that market expectations are significantly more optimistic than its own."

Hmm.

It will be interesting to see the market reaction to that comment.

[ammons] 27/11/2013 07:26

".....market expectations are significantly more optimistic than its own...."

[kingsize] 27/11/2013 07:16

That's what we like to see - lovely 8% drop in share price the day before a negative trading update. No dodgy deals here then.

[simon templar qc] 21/11/2013 12:52

Directors will not be able to buy shares at the moment due to closed period and price sensitive information.

[simon templar qc] 20/11/2013 09:57

Trend reversal bullish trend.

[simon templar qc] 19/11/2013 19:44

Chart says buy..

[simon templar qc] 19/11/2013 18:40

Market taking a fresh look at pawnbrokers growth...

hxxp://www.prweb.com/releases/Apex-Insight/Pawnbroking-report/prweb11341842.htm

[enfranglais] 08/11/2013 15:53

How about the parable of the stockbroker, who having lost all in the crash, throws himself off the roof of his office tower block. As he passes each floor, he say's to himself, so far, so good, until he reaches the ground & much to his surprise, he finds his friendly banker, has placed a large trampoline to cushion his fall & he bounces at least a third of the way back up the tower block & in through an open window!!!!!!!!!
Just hope we are on that upward trajectory & when the new banking covenants are signed, sealed & delivered, we can fall though the window about 1/3 of the way back up again - i do like happy endings - don't you??????
Have a good weekend children & sleep well!!! lol

[c1d] 08/11/2013 12:49

QuePassa
The accounts would not need to be qualified but they would need to reference an uncertainty regarding going concern - in accounting these are different situations. This might seem a technical distinction but could be important nonetheless (as you say the bank facilities might require an unqualified audit report).

I think that the accounts are delayed because they want to announce the results and refinancing at the same time. This is just my opinion though. They will have to give the bank all the information they ask for so the bank will already have the figures and they have probably been audited although I'm sure the auditors will be withholding their signature until the future is clearer.

I agree that the value of current assets may be lower today but from memory I calculated a figure for current assets less total liabilities of 60p per share based on the last reported results so there is room for a reduction before it drops below the current share price or a level that I would expect the bank to pull the plug.

This was the basis of my investment decision. I calculated the chance of successful refinancing x the potential recovery of the share price to be significantly greater than the share price I bought at.

[quepassa] 08/11/2013 12:03

We would appear to agree that any Accounts released now may have to be qualified as to whether ABM was a going concern at this point in time.

The bank facilities may or may not also have covenants saying that Annual Report and Accounts need an unqualified Auditors' opinion.

Why do you think the accounts are delayed?

There is no certainty that the value of the last reported Current Assets figure still have the same value today given falls in gold prices.


ALL IMO. DYOR.

QP

[c1d] 08/11/2013 11:16

QuePassa,
The auditors and directors would have to include a paragraph saying that there is an uncertainty regarding going concern because until new facilities/covenants are agreed the company is almost certainly in breach of the current arrangements and the bank can ask for its money back at any time. This is how the accounting rules work.
IMV the key question is whether new facilities can be agreed or not - everything else is secondary. If new facilities are agreed then IMHO the current share price is too low as it is significantly less than the last reported value of current assets less total liabilities. But if new financing is not agreed then the company cannot continue to trade and administration will be the only option.
I don't see a good reason why the bank will not give the new CEO a chance to see if he can turn things around (after all the business has traded well historically) but I'm sure will charge a high fee and margin. I am holding as I think the odds are favourable that new arrangements will be agreed - but because of the risks only an amount of money I can afford to lose.

[quepassa] 08/11/2013 10:33

Cash Window still closed to new business.

Annual Reports still mysteriously delayed compared to previous years. Now around six weeks late. Highly respected KPMG are the auditors. What is going on? Why the further delay?

Given the parlous state of ABM's financings with a twice deferred Covenant Test by the Banks and a Chief Restructuring Officer appointed to the Board, I continue to wonder to myself in my view only whether or not the Directors and/or the auditors would or would not be in a position to give a clean/unqualified sign-off on the business/accounts as a "Going Concern" and whether or not this is the fundamental cause of delay for last year's accounts.

ALL IMO. DYOR.

QP

[enfranglais] 01/11/2013 13:59

Breaking News:

Roll up, roll up ABM has just received Quality Control Approval!!!!!!

[simon templar qc] 01/11/2013 12:16

Institution taking a position confirms to me confidence in new management imo.

[alphahunter] 01/11/2013 11:19

@Simon

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


The banks would shoot themselves in the foot if their were pulling the plug ahead of what is the most profitable quarter for pawnbrokers/Jewellers. I don't read anything beyond that.

[enfranglais] 01/11/2013 10:24

QP - no jibes, just post as i see it m8 (if you don't agree, you have that right but don't make it personal - it just is'nt)!!
I was not in the share at that time, so could not comment & if you saw it coming, well done.
All i have ever stated is that the correction HAS NOW BEEN OVERDONE!!!
That is why i have already been in & out for 55% & now it has retraced, am in again at 41.75.
You may just have noticed the rns - Fortelus seem to agree & have taken a position of 3.29% by way of CFD's - i expect you will think they are wrong also (as is your right) and now a balance of positions has been achieved
DYOR

[quepassa] 01/11/2013 10:05

more cheap jibes and quips because I frequently caveat my posts.

it would be easy to criticise and mock your style of posting and your choice of phrase. you are a bully. a cyber-bully.

Negativity. Perhaps. Because I do, in my view only, not see a positive outcome for shareholders on this stock.

My first negative post was no. 509 last November, 2012 when the share was about 250p. Where were you then?

Today the share price is c 40p. So, it would appear that I have not been entirely wide of the mark.

Cash Window still closed. They do seem to be taking such a long time to revamp their range of loans at this subsidiary.

Long/indeterminate delays on release of 12/13 Annual Results. Why?

Second deferral on Covenant Test until February

Exploring all options.


ALL IMO. DYOR.

QP

[dewtrader] 01/11/2013 09:48

will look at 19p to get back in. Maybe not.

[enfranglais] 01/11/2013 09:41

QuePassa - sorry if i am boring you but just trying to provide a bit of balance to the constant barrage of negativity - they are meant to be funny quipps & not in any way derogatory m8!!
As you say DYOR & decide for yourself & this is certainly not a share for 'widows & orphans' - it is a recovery play & that is the only reason i am invested, as i feel (after doing my own research), that this share has been oversold - only in my opinion though!!