African Battery Metals Share Discussion Threads

[alphahunter] 06/2/2014 15:24

In my hood, ABM's and HAT's shops still side by side, selling trinklets.
ABM looks more presentable though.

Long in HAT.

[p@] 06/2/2014 09:10

Just put my profits back into this @8.45p

[hvs] 29/1/2014 10:02

Can we PAWN the so called BOARD OF DIRECTORS here ?

Or have they all JUMPED SHIP with BIG PAYOFFS ?

[p@] 29/1/2014 08:42

QP-Totally agree with your view,maybe Simon C just wants to close his shorts (could take time!..LOL).

[grahamite2] 28/1/2014 18:46

Hectorp was right yesterday. Quick and skillful traders may be able to make a bit yet but the essential message of the RNS was that the shares are valueless. We are lucky it wasn't a suspension pending clarification of the company's financial position...a message we could see any day at 7 o'clock.

[bensykes] 28/1/2014 18:18

I think you are possibly missing the point it is not what the Directors say the value of the stock is worth it is the perceived value of the stock.

What the stock represents is a £100 million turnover company with a hundred functioning shops and £30 million piled in the back room in gold.

Whilst there is huge debt, the perception is that this is a bargain! Hence rise from 6p to 10p.

[quepassa] 28/1/2014 15:39

Do remember that major shareholder EZCorp actively negotiated over summer2013 with ABM seemingly for some months on the terms of a rescue rights issue which ultimately they could not at that time agree.

Negotiating indicates interest. Not being able to agree terms normally means price.

If all other parties have now thrown in the towel in The Formal Sales Process, this puts EZCorp in a strong position, in my opinion only , should they still be interested. The two former senior EZ executives quit the ABM Board some time ago and so now would apparently have no conflict of interest vis-à-vis other ordinary shareholders.

Yesterday's RNS is fascinating.

In some ways, it throws up more questions than it answers.

ABM did indeed receive "a number of proposals". But none of the proposals were deemed to represent a "fair value" for the Company.

However, somewhat enigmatically, the same RNS also states that "as a result of ONGOING DISCUSSIONS" the Board of ABM continue to explore alternative options to maximise value for all stakeholders. But who are these mysterious ONGOING DISCUSSIONS with? Especially when none of the offers received were deemed acceptable and have all been rejected. There is no administrator appointed to negotiate with and the Company still operates.

On the one hand , ABM seem to be indicating that they still wish to max out value for stakeholders but are equally warning that shareholders are likely to get stuffed. This is perhaps a little self-contradictory in my view as stakeholders are normally the shareholders. Who else might a stakeholder be? A creditor (ie the Banks) would not normally be referred to as a stakeholder. Perhaps the term "stakeholder" in this context means a Major Shareholder.

The RNS also warns that there may be "limited" value to shareholders. Not negligible value. Not zero value. But limited value.

It should be noted that the banks have yet again provided another deferral for the third time. Whereas on yesterday's news alone, that would perhaps have allowed the banks to pull the plug in February rather than roll-over the Deferral again until March, had they wanted. Why do the banks further delay?

It seems to me that the act of the banks deferring yet again despite the Formal Sales Process having now been abandoned may indicate,in my view only, that ABM and the banks still expect a take-out of stricken ABM on better terms than the unacceptable proposals received in the Formal Sales Process.


On the back of yesterday's RNS, the market cap of ABM has yesterday further fallen by some 50% to a paltry £3.7million at a share price of around 8p.

In order to save the Company from formal administration and full break-up and to safeguard jobs, surely the management would recommend any forthcoming bid of a miserly few pence in the pound per share and the banks would subsequently fall into line, on the assumption that the debt would also be taken out or guaranteed, or even agree a debt for equity swap with a better covenant.


Personally, it seems puzzling to me why EZCorp go to the trouble, in their recent 14th January Webcast Alert: Fiscal 2014 first Quarter Earnings Release due today 28th. January, to highlight that they have significant investments in ABM when EZCorp latterly wrote down these investments heavily and their shareholding in ABM is now valued at around $2m.


That may or may not just be a coincidence. It is however a conundrum.






EZcorp also recently filed with the SEC in December a preliminary document called a PRE 14A on 6th. December about their desire to increase their number of authorized shares from 55.5m shares to 120million for the following given purposes:- "The purpose of the proposed increase in the authorized shares of Class A Common Stock is to make available additional shares of Class A Common Stock for issuance for financing activities, acquisitions, stock issuances pursuant to employee benefit plans and other corporate purposes without the requirement of further action by the Stockholders of the Company. The Board of Directors believes that it is important for the Company to have available for issuance a number of authorized shares of Class A Common Stock sufficient to support the Company's growth and to provide adequate flexibility for future corporate needs."



This needs to be voted on at EZCorp's Annual Meeting usually held in late February.



This may all just be coincidental and have nothing whatsoever to do with ABM, and EZCorp may have no interest whasoever in pursuing ABM. On the other hand maybe they do and it is clear that EZcorp have international growth ambitions.




I may be wildly wrong but my guess ( and that's all it is ) is that EZCorp will eventually acquire ABM for a pittance. Banks may accept EZcorp equity in lieu/part-lieu of debt, and ordinary shareholders may , if they are lucky,end up with a few pence in the pound per share. But that is anyway near as dammit nothing for ordinary shareholders given the former value of ABM stock.



It will be interesting to watch how the end-game for ABM is now played out. Not many more moves are now left until the game is over.


ALL IMO. DYOR.

QP

[buywell2] 27/1/2014 23:06

buywell2 27 Apr'13 - 08:16 - 604 of 1151 0 0 edit

dell1234 provided this link, thanks

hxxp://www.sharesmagazine.co.uk/news/albemarle-winded-on-gold-slump#.UXUSobU3s_w

It seems a decent write up of events re the share price V the price of GOLD

Bottom line is that there is MASSIVE competition now re buying/selling GOLD in the high street

The share price of A&B have been heavily geared towards GOLD

HOWEVER

The price of GOLD could still go a lot lower from where it now sits



Sub $1000 for example chartwise is not impossible

Such a drop would take this share to circa 90p or less

Wii Mr market take a -ve or +ve forward view of a GOLD drop re A&B ..... we will see

Thus far it seems the answer is -ve

[castleford tiger] 27/1/2014 17:41

Simon Cawkwell

If that's the case and I agree it seems nailed on , why would major shareholder allow this to happen.
I said a pre pack and feel sure it will still happen. When AB bought Herbert Browns they paid more than the whole lot is now worth.
Maybe the Brown boys may come knocking.

Tiger

[simon templar qc] 27/1/2014 13:56

FT comment...

[simon templar qc] 27/1/2014 13:52

Yes its as helpful as a warning of tooth ache fortunately I no longer hold I sold out a while ago.

[bad robot] 27/1/2014 12:34

My target remains 0p.

Hope this is helpful

[simon cawkwell] 27/1/2014 12:29

Gentlemen,

The directors have now advised that the shares are of limited value. This means to me that they are valueless since, were there any realistic chance of a positive valuation, the directors would not wish to rule out a placing/rights issue or an approach of some sort from somebody.

Simon Cawkwell

[hectorp] 27/1/2014 12:15

If I were a broker today I'd be advising my clients to get out right now.
However if you were a quick trader and bought at around 7p you are already quids in. I strogly suspect that you'll get nothing if you stick with the share here.
But I am not giving 'advice'.

[albertedwin] 27/1/2014 10:19

empirestate - dire news once more; what is your take on all this ? Are we now in yet another Jessops/GTE situation or might there still be some small crumbs left over in due course for the ordinary PIs ?

[rampster] 27/1/2014 09:47

What I don't understand is why not suspend it ?

[hectorp] 27/1/2014 09:01

My word! glad I decided not to buy recently.

[narindg] 27/1/2014 08:57

will settle a lot higher.. but I would not hold too long though

[sweepie2] 27/1/2014 08:39

Dead cat bounce?

[sweepie2] 27/1/2014 08:08

How low can it get before shares are suspended, will there be a dead cat bounce?
Somebody will make a lot of money sadly not the shareholders

[spob] 27/1/2014 07:57

WOW the merchant bankers are going to make a killing here

Shareholders to get wiped out


Stay we'll clear of companies with too much debt

Regardless of their assets

Because this is what happens

[sweepie2] 27/1/2014 07:25

Knackers yard, expect that the company will survive in some form BUT no value for shareholders, sad thing is that POG is now improving with a potential squeeze coming but arriving too late for them