Cityfibre Share Discussion Threads

[rambutan2] 04/4/2016 15:10

Also here. Made a new thread for new ticker.

[monty9] 04/4/2016 14:32

Thanks Freddie - I had thought the entire community had given up reading this thread!

[freddie01] 04/4/2016 10:49

Great post Monty9

[monty9] 04/4/2016 10:47

I don't hear that there is a fundamental problem with the company, indeed they seem to be progressing slightly ahead of plan. However the share price has been absolutely dismal since the cynical placing a while ago. How can it be that, in an era where so much effort is put into treating clients fairly, institutions can be given stock at a 30% discount, immediately sell it to the point where the market price reaches the placing level? Potentially

PI's who were not offered a chance to take place in the deeply discounted placing have effectively had 30% of their investment confiscated! The situation is now worsening further. While I don't know why the price has dropped a further 11% today, in the absence of other information I suspect frustrated PI's are selling into a market that is now highly illiquid.

I could write pages on this principal but suffice to say the obviously stacked cards mean that I will not invest in any future such capital intensive opportunities that are not producing cash because I will simply get financially raped. I guess other PI's will develop the same aversion. Shame really because this if the fundamental dynamic in a capitalist system. I am prepared to take commercial risk but will not stand at a huge disadvantage to other holders of the same class of share. Shame on you Mr Mesch.

In the meantime I shall probably be forced hold until the business plan has reached its targeted profitability (or failed to do so). The next time I won't be there but in profitable companies.

[rubberbullets] 17/2/2016 23:20

30p target

[b1ggles] 12/2/2016 11:03

It's been on AIM throughout, hasn't it?

[indi123] 10/2/2016 10:40

Just for information. City Fibre is one of Techinvest's nap tips for 2016.

[betelgeuse1] 15/1/2016 07:47

Will retest lows given market overall

[rambutan2] 15/1/2016 02:43

Wondered why they were keeping quiet about the new loan/debt facilities and rather surprised when dug out details in admission doc (pg66 in below link) and see they are paying 10% over libor on bulk of it.



The lender is a Swedish private equity style finance house...

[pentangle] 14/1/2016 18:57

Nice to see CFHL already adding to their TCV by exploiting their expanded network even before the deal with KCOM has completed (how many acronyms can you get in one sentence!). Its amazing that although they have expanded their network by a factor of 11 since flotation two years ago the share price is still languishing below the 60p flotation price. I don't think this will last.

[davidosh] 17/12/2015 11:24

City Fibre and the harsh treatment of private investors and smaller City Fibre shareholders was highlighted on the SmallCap radio show yesterday....



If you want to campaign against this treatment ShareSoc will help groups of shareholders.

www.sharesoc.org

[opodio] 14/12/2015 17:51

Even after this deal will lose £12.5m in 2016 and £8.5m the year after

Still jam in never never land

[edwardt] 14/12/2015 15:04

all agreed - great opportunity and gets scale quickly for business. what is annoying is that we could not participate by adding to our position. some blue chip institution basically did and is making a nice turn today - ie they are flipping it. if I were the regulator I would either insist in pre-emption rights or more realistically say the institutions who participate in such raises have at least a 6 month lock so you and me do not get shafted.

[aishah] 14/12/2015 13:13

Liberium reiterate BUY and ups target to 138p from 114p

[monty9] 14/12/2015 09:57

I take your point and haven't sold - I expect the end result will be good. Its the tilt on the playing field that irritates me in the meantime. We funding the de-risking of the institutions' holdings.

I should really have sold when the price was looking weak in the last few days, then bought back strongly today. If sufficient people started doing that perhaps the price weakness before a deal would scupper it. Management would then be forced to treat the small holders equitably.

[pentangle] 14/12/2015 09:25

Notwithstanding the placing, which is totally unreasonable, this deal is transformational and projects CFHL into a whole new league. I suspect that a year or two down the line it will not seem very important whether the placing was at 50p or 65p as the share price will be much higher. Personally I took advantage of this morning's weakness to add 25,000 at 53.5p.

[monty9] 14/12/2015 08:22

WHAT? - a 25% discounted placing and again the PI's do not get a look in.

That after unexplained weakness recently (I had assumed sympathy with the rest of the market)but now suspect some of the company's friends were perhaps a little more knowledgeable than they should have been.

I expect a letter, personally signed by the CEO, thanking me for the involuntary gift by me and the other smaller shareholders.

This is fundamentally unfair. The FCA should be involved or APCIMS. The argument is always put that the cost of extending placings to smaller holders is too high. In which case, might I suggest a company is forced to compensate shareholders, for the dilution following a placing, where they are not offered participation in it? Or would such an 'equitable' payment be too expensive?

[opodio] 14/12/2015 08:04

bricking it

[opodio] 14/12/2015 07:52

Going to tank to 45p today

[cisk] 14/12/2015 07:40

Good deal announced this morning but sucks that placing not open to the public. and at a large discounted price of 50p. That sucks.

[oregano] 13/10/2015 06:57

they have £26m of cash atm. i don;t know that debt is too big an issue.

[rambutan2] 09/10/2015 15:47

A bit of info on the scheme, although having read it, it's perhaps not so clear cut that CFHL will use this debt route?