Ambrian Capital Share Discussion Threads

[lizzie ii] 01/5/2009 22:27

Given that Kalahari closed today at 111.5p, Ambrian is already "in the money" concerning these warrants.

Clearly Kalahari has a lot of potential to go much higher than its current share price

[lizzie ii] 30/4/2009 11:54

I think the market is starting to realise that Ambrian is likely to be a winner from the changes to oil taxation announced in the budget .... given the consultancy services it provides to the oil industry.

[trader351] 15/4/2009 12:31

Commodity stocks up. Take a look at JLP.

[pinemartin9] 15/4/2009 08:13

Any reason for this move? Or is it just people starting to return to the market and look for value plays/high yield stocks? This goes ex dividend quite soon so I think it must be people buying in for the dividend.

[slapdash] 06/4/2009 10:08

fairly disgusting..

we mess up..... lets lower the incentive bar... Marconi tried the same and was slammed down after the dot com crunch... but smaller companies like this have no corporate governance...

Never buy shares of a dodgy company like this one....

Slap

[grahamg8] 04/4/2009 09:19

Well I say the results are dire. What else can you call a loss of £16.50m on operating revenues of £9.64m? Looking deeper and strip out the one off £10.71m loss on the investment portfolio then the ongoing loss before tax is £5.79m. The admin costs are £15.41m of which £11.45m are fixed. How can you say a business running total revenues of £9.64m and fixed costs of £11.45m is doing anything other than disastrously? If and it's a big if the 70% increase in commodities lasts through the whole year then this gives a rise of £4.47m in revenue; and we assume this can be achieved with absolutely no increase in costs - pretty unlikely -; and we assume investment values stay constant, then at best there is still a loss of £1.32m. That is why in post #55 I say that further losses this year should be expected, and that means the cash pile is going to shrink further, and that is why the hamster may succumb before we see the turnover grow enough to move back into profit.

[washbrook] 30/3/2009 08:12

11 investment Trusts
Ambrian only one to show a rise this year.
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The Board is recommending a final dividend of 0.75p per share, which will be paid on 12 June 2009 to shareholders on the register at 22 May 2009. This would take the total dividend for the year to 1.50p.

xd 20.5.09

[washbrook] 30/3/2009 07:57

Investors Chronicle article here:-

[ammons] 30/3/2009 06:41

Inv chron called them good value on 27 March. @ 16p. Pretty good write up I thought.

[jfishy] 28/3/2009 22:28

Which commentators have noted the results are dire?

The company has had a severe downturn due to the "credit crunch". As markets start to rise again I would think the very nature of AMBR will make it considerably out-perform the market.

[grahamg8] 28/3/2009 09:46

As most commentators have noted these results are dire. The fixed costs are actually higher than their total revenues. At least now the investment portfolio is worth virtually nothing the same level of losses from this source wont recur in 2009. Particularly disappointing is the loss from market making (they don't seem to put a figure on it, too embarrassed?) as this is one part of the business that is being promoted for growth and future profits. Any loss the pension scheme makes on AMBR shares is simply going to turn up as a liability in the Company books eventually. The dividend is an illusion but will keep the incurious happy because they think the shares represent good income but this is wholly at the expense of the NAV.

The solution seems to be to run the hamster round the wheel even harder and fingers crossed the commodities trading will grow fast enough to create some profit before the cash runs out. A 70% rise in trading for Jan/Feb is encouraging But can it be sustained? I fear further losses this year, a high risk holding for the optimists.

[shakyhands] 26/3/2009 10:35

Thanks,Ford.Well,that's not as bad as I thought,then.If the loans are from Ambrian,they could simply forgive the interest until Ambrian became profitable,couldn't they? After all,Ambrian has to take care of its employee benefit trust,anyway.So they don't actually HAVE to pay a dividend to finance the loan interest..Or am I missing something here?

[shakyhands] 26/3/2009 00:58

Apologies for my dogmatism,but unless and until profitability is actually achieved,the company shouldn't be paying a div.Is that post about the Pension fund right?

[hywel] 22/3/2009 20:07

GE&CR note out on Ambrian last week, here's the conclusion:

'At 31st December net cash comprised in excess of 21p per current issued Ambrian share and the net asset value totalled over 28p per share, which compare with a current share price of 15.25p. The comfort the cash resources afford was demonstrated by a 0.75p per share dividend being declared, taking the annual dividend per share to 1.5p, just 0.25p below that paid for 2007 and representing a yield of 9.8%. These factors together with a de-risked asset base, a return to profitability likely in the current year and cash available to take advantage of opportunities the continuing uncertainty in financial markets may present, mean our stance on Ambrian is buy.'

Bear in mind though that Ambrian Capital owns shares in Rivington Street Holdings, the ultimate owner of GE&CR.

[shakyhands] 22/3/2009 10:27

Ford,so they've got themselves in a fix.In order to avoid paying dividends out of capital,they'd need to buy their own shares back from their pension scheme! Otherwise,they'll have to continue making a present of our money to the Chancellor. Brilliant !
Oh,and,I'm also guessing that,if they were to buy their own shares back off the pension scheme,the Pension scheme would make a big loss onwhat it bought them for - it would make an even bigger loss if it were forced to sell them in the market.

[not manu] 21/3/2009 23:06

> owenski
Having just read the latest RNS re Final results. There are three drawbacks with this company at the present time.

1. The operating costs are too high, see message 44 above.
2. They are not making any profits on their business activities.
Therefore, the dividend is a return of capital.
3. The cash is deposited with Barclays and RBS.

[shakyhands] 21/3/2009 14:00

It is interesting - the trouble is,the shareprice is still saying that the market doesn't believe the divi can be maintained long term.Most investors got into Ambrian at a higher shareprice than there is now.But any divi is taxable.It would be more tax efficient if the co lowered the divi and bought back a few shares instead.Or it could just save the money.

[owenski] 19/3/2009 08:46

current m.cap..................14.4m
cash...........................22.5m
final div......................0.75p = 5.35% at 14p buy price
full yr div....................1.50p = 10.70% at 14p buy price

interesting?

regards all.

[shakyhands] 17/3/2009 10:47

All the more reason to put a stop to it ASAP ! Maybe at an AGM or EGM they could vote down any further payouts [ we can always hope].
What we really need now is a nice hostile takeover...