African Battery Metals Share Discussion Threads

[dewtrader] 02/12/2013 22:15

Rents need paying on 25 December
Expecting a load of landlords to turn up with long chains and padlocks

[dewtrader] 02/12/2013 22:14

niggle 28 Nov'13 - 15:29 - 984 of 1008 0 0

I think this share is fu*ked




Hey, dont stand on the fence. Give me your honest view

[simon templar qc] 02/12/2013 22:11

"Formal sale process" !

So what is the business worth with over £50 million of borrowings?

[trend surfer] 02/12/2013 20:52

Bengt Saelensminde from the right side has summed AMBs current situation like this, for what it's worth.Is this 19p pawnshop worth £1.74?When banks turned their back on borrowers after 2008, the pawnshops sensed an opening.And to put it bluntly, they made a killing. I mean, pawnbrokers completely derisk the loan by taking full collateral from the punter. And still they charge exorbitant interest rates! Albemarle & Bond (Lon: ABM) is one of the biggest pawnbrokers in the UK. And it wants to cement its position at the top. The only problem with that is that over the last year or so, just about every area of its business has taken a whack. With the plummeting gold price, punters aren't rushing to cash in unwanted jewellery. The banks have gradually started to re-open their doors to borrowers, and the payday loans business looks like it's about to face a rather nasty regulatory shock. To top it all, competition has been stiff – you can't have missed the changing nature of UK high streets, with new cash lenders and pawnbrokers popping up all over the place.ABM invested heavily in setting up new shops (and taking over others). But it now appears that the company overstretched itself. In October, it tried to raise money by way of a rights issue. A rights issue is effectively the issue of new shares to existing holders at a pre-set price - in this case, 50p. Alas, the biggest shareholder, US pawnbroker EZCorp, said it wasn't prepared to back the issue. What had been a steady share price decline turned into a rout.Last week the company announced that has resorted to melting down gold holdings in order to meet the debt schedule. It will also shut its online payday loans operation. And the trouble hasn't stopped there. This morning it was announced that four of the company's directors will leave the board. Wow! It just goes to show what a mess can be made of a business that, up until recently, was in one of the only growing sectors on the high street.Book value or share price?But despite all these woes, if you look at the business, you might think that the share price fall has been overdone. After all, even with debt, the book value of the business (the value of assets) amounted to some £1.74 at the time of the latest full accounts. The main issue is of course the debt and managing the company cash flow. It's all well and good saying that the company has £1.74 in assets. But if they haven't got the cashflow to keep the banks happy, then they can yet be forced into liquidation.But there's more to the share price fall than just cashflow. When the company abandoned a rights issue earlier that whacked investor confidence. Not only that, but the company has delayed publishing its results until next Monday. The markets absolutely hate delayed results. That's just another element of uncertainty that's not needed right now.But there's one more thing that explains the share price fall. And it's one every private investor must be aware of. Especially, if considering buying stocks like ABM in the hope of recovery...The poison pillSo should a brave investor consider 'catching a falling knife' as they say? That is, is it a good idea to buy some stock on the hope that there will be recovery? Provided the thing doesn't go bust, one could certainly imagine ABM stock bouncing from the sub-twenty pence mark to well over a pound in the coming years.And if this company were privately owned, I wouldn't bet against it. When it comes to privately owned businesses, owners will move heaven and earth to keep the thing afloat. For starters, they're less likely to get into trouble in the first place. I mean, in the case of ABM, trouble brewed from over-expansion. Those are classic powerplay antics from a management team that doesn't actually own the business.But secondly, even if private businesses do get into financial straits, management tend to have a few tricks up their sleeve. It may include putting their own personal wealth on line, or finding other routes to raising finance – rich friends, or bankers, will often scratch a back when required.But when it comes to publicly owned stocks, such avenues are seldom pursued. In publically-owned business, the solution to a funding crisis will all too often involve stiffing the ordinary shareholders.And that, my friend, is why the share price of ABM is now below 20p.To my mind, it is no reflection of the true value of this stock. Like I say, the book value of the business is over £1.50 - though we can't put an exact figure on that until next Monday. For sure, the company will not be returning to form any time soon. After all, it's smelting much of its stock and severely constraining new business in its lending units.That said, this is still a decent business. With a bit of streamlining (and debt management), one might expect a return to profitability after the current financial year is out. In fact, for all we know, the business could still turn in a profit for the year ending June 2013 (which is due to be reported next week).All the company has actually said is that it has been losing money for the first five months of the current year. For the period about to be reported, analysts have pencilled in 20p in profit per share. And we know that this figure is too high – the company has said that much!This is certainly one to watch. Will the company struggle on and just about get by? Or will it require financing – financing that comes with a sharp sting in the tale for current shareholders?We shall see. This whole situation highlights one of the nastiest sides of the stock market investing. When it comes to refinancing businesses, ordinary shareholders find that they're all out of friends in the right places.

[blippy2] 02/12/2013 19:11

"I would like to thank Robin, Tracey, Sterling and Tom for their significant and much appreciated contribution to our Board. We are grateful for the time they dedicated to the Company"

Yeah, what a truly spectacular job they did. Un-freaking-believable.

[simon templar qc] 02/12/2013 19:01

EZCORP have probably written off their investment imo. I suspect the banks may be putting pressure on here for removal of directors.

[grahamite2] 02/12/2013 18:59

G Brady takes it up to £1/4m (plus Ashton) in salaries saved.

I can only read this as the bank(s) having put their own man in as effectively an administrative receiver, without the formal appointment. If there's anything in this at all, it shows the banks operating with exceptional vision - the very opposite of the recent allegations of busting companies for their own profit.

[hopperagain] 02/12/2013 18:46

QuePassa - hit the nail right on the head, a cheap takeover must be on the cards, after
It is of course very interesting to see EZCorp distancing themselves ( and they are by far the largest shareholder ) from Albermarle and Bond.

Mr. Sterling Brinkley Jnr. is shown in the 2012 ABM annual report as DEPUTY CHAIRMAN of ABM and also as CHAIRMAN OF THE BOARD of EZCorp INC.

Mr. Thomas Roberts is listed in the same publication as on the BOARD OF DIRECTORS of EZCorp INC.

So, I'll be buying a few asap on pure speculation.

[energymatt] 02/12/2013 18:35

Now up for sale. Worth a punt for a quick return?

[quepassa] 02/12/2013 17:22

Another one goes.

Losing FIVE Board Directors in one day cannot just be a coincidence in my view.

Something major afoot for five to go in one day. What is so significant to force five to resign in one day?

A well-rounded and well-qualified Board is meant to be in place at all times to look after, inter alia, shareholder interests.

An explanation to Shareholders is now overdue from the Chief Executive and Chairman of ABM as to what is going on in my opinion.

ALL IMO> DYOR.

QP

[skanjete2] 02/12/2013 17:14

This clears the way for EZcorp for a takeover.

[quepassa] 02/12/2013 15:35

It is of course very interesting to see EZCorp distancing themselves ( and they are by far the largest shareholder ) from Albermarle and Bond.

Mr. Sterling Brinkley Jnr. is shown in the 2012 ABM annual report as DEPUTY CHAIRMAN of ABM and also as CHAIRMAN OF THE BOARD of EZCorp INC.

Mr. Thomas Roberts is listed in the same publication as on the BOARD OF DIRECTORS of EZCorp INC.


For two such senior representatives of EZCorp as the 29.99% shareholder of ABM to have resigned from the Board of ABM will likely in my opinion mean that the next chapter in the evolution of ABM's woes is about to begin.

One can but wonder to oneself why the largest shareholder of 29.99% is withdrawing representation now. One would frequently see large shareholders in distress corporate situations doing all they can to exert maximum influence over matters, increase representation in order to do all possible to safeguard their investment.

Distancing themselves from ABM at this juncture is in my opinion counter-intuitive for any major investor. Perhaps the investment in ABM may or may not now be de minimis in the scheme of things for behemoth EZCorp who laudibly advertise themselves very much as a socially conscious enterprise.

Perhaps, as a guess on my behalf, EZCorp need to be arm's length for a variety of other reasons.

An interesting turn of events.

ALL IMO> DYOR.

QP

[druinsky] 02/12/2013 12:08

end is nigh

[hvs] 02/12/2013 11:59

Very very NICE get out before the door is bolted. Very very typical "CITY" behaviour.

Albemarle & Bond Holdings PLC, the specialist retail financial services provider, has today accepted the resignation of Robin Ashton, Tracey Graham, Sterling Brinkley and Tom Roberts as non-executive directors with immediate effect. Robin was chairman of the Company's Audit Committee and Tracey Graham was the chair of the Remuneration Committee. Tom Roberts was a member of the Remuneration Committee.

Shall we give them a very NICE JUICY BONUS to boot ?

[grahamite2] 02/12/2013 11:47

This plus Farrell's resignation on 23 October strips out £207k of remuneration plus whatever Ashton was on, so it's what you might expect of recovery experts running a slimmed down operation. On the other hand I'm not sure how good it is to see EZCorp giving up all representation.

[sweepie2] 02/12/2013 11:19

Thought it would be weaker, how low can it go, don't see it going bust as I am a long term supporter of a rising POG

[simon templar qc] 02/12/2013 09:11

They are cutting costs down to the bare bones, signs not looking good.

[sweepie2] 02/12/2013 07:11

Yes some people will look at this as rats leaving a sinking ship, could see further weakness today

[gilly9] 02/12/2013 07:06

rle & Bond Hld
Directorate Change
RNS Number : 3705U
Albemarle & Bond Holdings PLC
02 December 2013


Albemarle & Bond Holdings PLC

2 December 2013

Albemarle & Bond Holdings PLC (the "Company")

Directorate Change

Albemarle & Bond Holdings PLC, the specialist retail financial services provider, has today accepted the resignation of Robin Ashton, Tracey Graham, Sterling Brinkley and Tom Roberts as non-executive directors with immediate effect. Robin was chairman of the Company's Audit Committee and Tracey Graham was the chair of the Remuneration Committee. Tom Roberts was a member of the Remuneration Committee.


Greville Nicholls, Chairman, commented:

"I would like to thank Robin, Tracey, Sterling and Tom for their significant and much appreciated contribution to our Board. We are grateful for the time they dedicated to the Company''.

Enquiries:

[mega_trader] 29/11/2013 19:34

Closed my short, reason, seen many covenants relaxed and refinancing arranged on other stocks, that usually go on to 10 bag. Buy volume increasing suggests sell off overdone, and a reliefgap until next update, and gold could rise too. Also a good period for pawno's .

[hvs] 29/11/2013 09:18

Is they applying to Wonga for a pay day loan, them so called Board of Directors need paying you knows.

[bad robot] 28/11/2013 17:36

who's buying this sick woof woof?


This suck woof woof will be put down early next year. Which bank is insane enough to allow them to breach covenants without any penalties.

The company itself has stated the market is more than the BOD think is possible. Only gamblers here and guaranteed total loss

ABM 0p

Resistance is futile

[elmfield] 28/11/2013 16:18

Knock,
Well this time round we never really had one!
Would not even guess where we will all be in twelve months,
No one knows, many think they know,
but they don't!

[knocknock] 28/11/2013 16:15

Elm, there was only 80 years between the last 2 great crashes so all to play for


;;-)