Assetco Share Discussion Threads

[jockblue] 03/8/2011 16:51

Yes, there are some obvious parallels. Like spending money that you need for something else!

[warwick69] 03/8/2011 15:41

jockblue thanks good summary?

so similar to southern cross care homes where again cash flow stumped them increasing rents decreasing revenue no where to hide? sold all the assets

[jockblue] 03/8/2011 15:32

warwick69 - 3 Aug'11 - 12:00 - 1622 of 1624
Why did this fall so spectacularly from the 60p area in January was this another case of debt riddled business loaded up by private equity merchants? who stripped out all the capital?

Well, here's what I said in #1363 and nothing much has changed, although there seems to have ben a minor flurry of pump and dumping to bring us back to where we started...

To my mind, what went wrong was a classic case of the company taking its eye off the ball. It had been making overtures at the UAE for many years, and presumably has spent a lot of money in the process. In the meantime, there were many other calls on the company's cashflows and not all of them could be met.

So, a dividend is played with, some other expenses and oops, they forgot that they had to pay the VAT. In the meantime, the assets are getting older, more and more capital is required for the new and existing contracts, and the requirement to refinance the non-recourse loans suddenly becomes too hard when a) the banks are in "no-loans" mode as a default, and b) the existing management made a fundamental mistake such as not forecasting their cashflow correctly.

Having arrived in that position, vultures immediately start circling. Credit Insurers who only play a no-risk game fled the scene, other credit lines from suppliers are throttled back and/or stopped and the amount of cash needed to continue to fund the business changes on a day by day basis as everyone moves to a cash upfrontbasis. Many retailers such as HMV have seen this effect. It led to management having to make multiple calls as they were unable to survive in the new creditless world, and the departure of Shannon and the internal political ramifications of this will further complicate matters.

And so, we are where we are. A simple cashflow forecasting error has brought the company to its knees - of course it's profitable but bankrupt (nearly),

Lessons to learn: It's a hard one - I've been here since the Asfare days and bought into the story of long term contracts just producing profit and cash. All I can deduce was that the weakness of the FD in not standing up to the others has led to this and I dot see how you can legislate against this.

[tez123] 03/8/2011 12:26

The Middle East arm

Acetko company has evolved to fight fires and rescue of a subsidiary company of British Gas is working in the area of ​​equipment leasing and asset management, to developing a global company in the field of fire fighting and rescue.

In the last fiscal year the company won the admiration and satisfaction of its customers in its ability to shift to the island from company to company leasing services and asset management, which a growing company globally to deliver integrated services in the fight against Lafraiq and help. We have been restructuring in the areas of specialization of work to become fully integrated and comprehensive services in the field of fire fighting and rescue in order to achieve the highest rate of return on shareholders investors .. We have close and car assembly unit, as well as we had in the liquidation proceedings of the unity of specialized equipment.

We have achieved an average increase in profits for the fiscal year ending the equivalent of £ 10.8 million before tax as a product of ongoing operations. Due to the nature of Taakedatna Zawalh forward, we can say that we are safe in 2011 profits by 10% due to the presence of the return from these contracts as advanced. We have reduced debt from 35.7 million pounds to 18.9 million pounds sterling (at a discount cash flow, net debt is £ 5.2 million.)

Culturally and intellectually, there has been a tremendous development and improvement in the business in total and also on the basis of technical performance and operational and administrative. Our team now includes top international specialists in the field of fire fighting and rescue, and who have experience in policy and regulations, operating and training. .

[tez123] 03/8/2011 12:04

4.J O Hambro Capital Management Group.

These guys are heading up the "Investor Group"

[warwick69] 03/8/2011 12:00

no not really as all quiet awaiting news?

Why did this fall so spectacularly from the 60p area in January was this another case of debt riddled business loaded up by private equity merchants? who stripped out all the capital?

[caledoniaman1] 03/8/2011 11:51

warwick - does it really matter !

[warwick69] 03/8/2011 11:02

would not be so sure that 2.25 is a buy more like a sell ?

[zendik] 03/8/2011 10:20

Companies currently in talks with Assetco regarding potential bid:

1. Arcapita
2. US Company - Seacor Holdings Inc.
3. Italian company - InvestIndustrial.
4. ?

[treacle32] 02/8/2011 19:02

Couple of decent buys reported on PLUS.

02/08/2011 09:21 129,906 @ 2.25

02/08/2011 08:13 150,000 @ 2.40

[warwick69] 02/8/2011 16:51

Tez thanks may just do that tomorrow been out all day today. Least we seem to have bit of support at 2.25-2.35 level but still someone seems happy to sell at 2.4 as not risen all day?

[tez123] 02/8/2011 08:21

Warwick,

Pick the Phone up ring Assetco and speak to fiona like i did yesterday.

There are at least 4 companies interested in buying ASTO, Arcapita being the front runner which has already been reported in the media.

There is a lot going on behind the scenes.

[citytrader 007] 02/8/2011 02:36

warwick, yea ya right, always the same with these P+D's, ramp it and pump, now the dump because of lack of belief, simple as.

[treacle32] 01/8/2011 17:45

Gosh, chill out mate. It'll be imo over 5p in a flash in the near future. Very little buying is moving these up very quickly and imo is a good sign.

'In addition, discussions with a potential offeror have reached a very advanced stage but we have not been able to reach agreement, and as the potential offeror also needs to reach agreement with the banks, there can be no certainty that there will be an offer for the Company'.

[warwick69] 01/8/2011 16:16

wish i had not bothered with this pile of sh.. so much enthusiasum on Friday now nothing but lower and lower price no matter what trade? if someone interested to bid why no one buying at these levels?

[warwick69] 01/8/2011 14:42

since 9 am whether a sell or a buy the price has dropped subsequently so each new sellis lower and each new buy is at lower price very stratnge price action?

Are mm's just droping so as to pick up some cheap shares? as no real buying presure at the momment. 42% drop for highest purchase to current bid price that just shows how little confidence in any body holding this share.

[warwick69] 01/8/2011 13:34

net sales over buys of less then £5,700 and the bid has fallen from 2.65 earlier to 2.15 thats clearly a scare tactic as todays buyers have all been caught buying at way over current offer? and no new buyers willing to stick head above parapit?

needs some news to stir this up again?

[warwick69] 01/8/2011 13:31

mm's droping this on tiny volume scary share for the longs?

[mister md] 01/8/2011 12:44

or sellers

[treacle32] 01/8/2011 12:29

Spread very wide again and imo is a good sign. Don't want buyers.

[warwick69] 01/8/2011 12:28

no follow through from Friday plenty of early buys at up to 3.11 now drifting lower and lower with many sellers. are MM's trying to scare out day traders?

what are people expecting here?

[treacle32] 30/7/2011 18:05

Charles Stanley - 12.50p target and BUY rating???

Link:-


'The one analyst offering a 12 month price target expects Assetco PLC (ASTO:LSE) share price to rise to 12.50 in the next year from the last price of 2.68'.

Is this for real?

[treacle32] 30/7/2011 15:54

This is pointing to 7p imo once 3.50p is broken properly.

[intouch] 30/7/2011 14:08

FT.COM


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Risers led by targets

By Bryce Elder
Published: July 30 2011 05:36 | Last updated: July 30 2011 05:36
Takeover approaches provided the week's biggest risers.

AssetCo proved to be the week's biggest gainer, up 133 per cent. The troubled company, which supplies London's fire engines, bounced after shareholders said they were prepared to inject £10m as part of a plan that would allow it to retain its Aim quote.