Alpha Share Discussion Threads

[hope to win] 30/11/2017 15:56

RGP is worth a look for those hunting out big gains like here as it has a premium listing and is in profit and valued at a million.

Company policy is to DO A DEAL

[mister md] 10/11/2017 10:18

reminder: "As the Board has previously stated, the sales process will not result in any return to ordinary shareholders after repayment of the Trust's bank borrowings has taken place, to the extent that this is possible."

[gbenson1] 24/10/2017 11:29

Small tree shake, then in!!

[tiredoldbroker] 11/10/2017 17:03

gbenson1, as I noted above, Barclays will be taking the view that letting the directors do an orderly realisation of the remaining assets will get more back for Barclays than putting the company into administration and paying huge fees to the receivers.

[knigel] 05/10/2017 07:16

With a market value less than the value of my front room - I really doubt the market makers care!

[gbenson1] 05/10/2017 05:40

The share price defies logic, a buy of circa £45 and it rises over 13%, although the spread widens to 50%, market makers trying to sucker day traders in!

[sleepy] 15/9/2017 12:03

I guess some lunatics prefer not to be the only lunatic in the asylum!

[fenners66] 15/9/2017 10:26

To quote Victor Meldrew "I don't believe it ! "

[gbenson1] 15/9/2017 10:14

Nice to see a few albeit small buys yesterday and today, and not the more recent day trading lemmings, I feel a share price rise coming on, onwards and upwards?

[gbenson1] 14/9/2017 10:41

Hi tiredoldbroker thank for the heads up on ALPH history, although really was no need on my account for the followup post! I now have a clearer picture of where the co. went wrong, the banks were lending money as long as you could sign your name! What I can't understand is if the co is underwater to circa £57m, why on earth haven't Barclays pulled the plug? The shares are still trading and whilst that's the case, ALPH could still have a future!! The fat lady and all that.

[fenners66] 13/9/2017 15:58

T O B - also you have to factor in here the FX swap deal that Barclays did which the directors did not understand and which has cost the company a fortune, then the penalty interest and charges on top. Although Barclays will end up with a write off that is only some of the interest and charges so really no skin off their nose.

[mister md] 13/9/2017 11:29

Hence:

As the Board has previously stated, the sales process will not
result in any return to ordinary shareholders after repayment of
the Trust’s bank borrowings, to the extent that this is possible,
has taken place.

[tiredoldbroker] 13/9/2017 11:26

If you need an example laid out, here it is (an abstract example, not ALPH's own case):

You start with your own capital of £120m. You add debt of £360m. You invest the total of £480m.

Then the assets you have bought fall in value by 35%. They are now worth only £312m but you still have debt of £360m, so your own original capital of £120m is now a deficit of £48m.

You then sell 90% of your gross assets to reduce the debt mountain. This pays off £281m, but you still have debt of £79m, however the remaining assets are only worth £31m. Even if those remaining assets recover their original value, they'll only be worth £47, so you can't pay off the remaining £79m of debt and have anything left for shareholders. The bank lets you do an "orderly realisation" rather than a fire sale, and spares itself the huge fees a liquidator would charge; but you'll still never get anything back for shareholders, you'll just prevent the bank's bad debt getting worse.

[tiredoldbroker] 13/9/2017 11:16

gbenson1, ALPH went public in November 2005, issued 125 million shares at £1, with the specific intention of creating a highly-geared investment portfolio, using bank borrowings of maybe 3 times their own cash to build a £480million portfolio, intending to pay out dividends of 7p/share.

This looked fine to them in 2005, but when financial storms hit not many years later, the weakness of the plan soon became clear. In March 2008 they were boasting of their strong balance sheet, NAV of over £1/share and whopping big dividends. A year later, NAV was down to 62p, and in Aug 2009, 44p. March 2010: 32p. And so it has gone ever since. NAV dropped from 22p to 12p between 31/12/13 and 30/6/14, and their 13/11/2015 statement clearly said they were conducting an "orderly realisation" and that there would be nothing left for shareholders.

I'm sure you understand the problem: if you gear up to invest in an asset class which falls in value quite sharply over the following years, your equity is destroyed, because the gross assets are worth far less, but the debt stays the same. If you then start selling assets to reduce the debt, you can never climb out of the trough: because even if the properties recover in value, you've got only a few of them left, and any increase cannot wipe out the debt, which was related to the original, much bigger portfolio.

[gbenson1] 12/9/2017 12:49

Something that's been bugging me, is that ALPH borrowed in excess of £45-50,000,000 from Barclays Bank without sufficient collateral, presumably during or near the credit crisis, they must be privy to something?

[gbenson1] 12/9/2017 12:44

Think we get your point Mister MD, oh no the infamous 1 trade, news? Or another false dawn!!

[mister md] 08/9/2017 15:47

As the Board has previously stated, the sales process will not
result in any return to ordinary shareholders after repayment of
the Trust’s bank borrowings, to the extent that this is possible,
has taken place.

[mister md] 08/9/2017 15:47

As the Board has previously stated, the sales process will not
result in any return to ordinary shareholders after repayment of
the Trust’s bank borrowings, to the extent that this is possible,
has taken place.

[mister md] 08/9/2017 15:47

As the Board has previously stated, the sales process will not
result in any return to ordinary shareholders after repayment of
the Trust’s bank borrowings, to the extent that this is possible,
has taken place.

[gbenson1] 08/9/2017 14:35

Definitely US interest!!

[fenners66] 01/9/2017 22:08

And you , good luck.

[gbenson1] 01/9/2017 15:47

Hi fenners, I'm still invested here but haven't paid anymore than .10, yes there have been quite a few lemmings losing money, however there is still some accumulation going on, there's life in the old dog yet, have a great weekend.

[fenners66] 01/9/2017 13:46

You must still be thinking someone wants the shell co.
But surely not until after Barc's have walked away.
Will they have to liquidate to get every last penny?
In which case too late for the shell?

[gbenson1] 01/9/2017 11:19

Oh boy, heart jumped a beat, not the RNS I was hoping for!

[gbenson1] 30/8/2017 13:55

Hi Fenners, think with the market cap of 200k as so few shares in free flow, the upside is scewed, I could buy the company myself if it wasn't for the Barclays debt.