Conder Environmental Share Discussion Threads

[topvest] 03/6/2006 08:21

I think the problem they have had is not using a big name broker. I don't hold, but almost bought shares in the original offer at 0.75p and so keep a watch out at how much money I didn't make! My view is that they have a good transaction and, if they complete, this should be a nice company. 10-15p was a high price compared with the original float and so even if it gets done at a significant discount to this, you can't really blame management. The winners on this stock were always going to be: firstly Starvest and management that paid far less than 0.75p for their stake and, secondly, the original float shareholders who paid 0.75p. Everyone else was playing a riskier game. Good luck on this one though. I'm still hoping they get this one away, being a Starvest holder.

[andy] 02/6/2006 23:57

Having had some time to consider things, I agree with Wassaper that they were correct in releasing after market close to prevent a panic selloff.

The weekend will give people a chance to consider, and as we are currently on Ofex, any rush to sell on Monday will result in a savage markdown IMO.

I am going to hold because the story hasn't changed, and the dilution not too large, Imo.

[judgement] 02/6/2006 23:56

Say you owned "MegaFund", and Concorde asked you to stump up say $30m for its acquisition - would you do it?

Well I guess it would depend on what you were getting for your money.

In this case, if I was to stump up funds to buy Pechora, I would want to own pretty much all of Concorde. That would mean that I would want existing equity holders to own as little of the company as possible post-deal, since without the deal the NAV of the company is pretty close to zero. Effectively the company is bringing little to the table.

In a strong bull market, significant value might be attributed to intangibles such as "management", but at other times that is less likely to be the case.

Given that the Pechora deal doesn't look anything special from the buyer's perspective (and that's possibly being generous), I would be surprised if the existing equity formed more than 20% of the post transaction equity.

[r33skyline] 02/6/2006 23:52

Muja

I know little about CDE but long term we all require Oil & Gas ,we have suffered a small correction recently but you can`t ignore the fact there is a hugh market and we seem to be at the start of a natural resouces rally that some predict to run for the next 10 yrs...

I will buy some of these when they list .

[woodpecker25] 02/6/2006 23:45

I do agree with you wassaper to a point, the timing of the current market conditions are particularly unfortunate for CDE. However I'm not clear as to why they need this extra finance right now, and could not have waited for 6 weeks until the deal is, hopefully, done.

Whatever the reason I cerainly don't go for this "shafting the PI's" theory.

The long term story hasn't changed for me, although monday may well present some interesting top-up opportunities!

WP

[mujahid2] 02/6/2006 23:38

what are your views longterm
on CDE regardless of short term movements.

[r33skyline] 02/6/2006 23:30

thanks Muja

Sorry no charts ,i`m just hoping those estimates that VOG have, x5 the estimated gas reserves come out in the next RNS.

[mujahid2] 02/6/2006 23:26

hi sky

before july imho.

p.s any triangle charts for VOG

[r33skyline] 02/6/2006 23:19

Muja

When does this come to AIM please ,has a date been set yet ?

[mujahid2] 02/6/2006 23:12

Scramal,

Its simple the institutions have been given a BIG DISCOUNT because they may have to lock in their shares for 1-2 years before being able to sell a percentage abd by that time CDE will be trading at £2 if everything goes to plan.

DYOR

[mickey take] 02/6/2006 20:28

Hi guys

I agree with everything that's been said by the posters regarding the handling of this placement and i think that this has damaged the confidence PIs will have with the management in the future,

The question i keep asking myself is has anything changed regarding the long term prospects of the company??????????????

Anyone's thoughts
MT

[sranmal] 02/6/2006 18:14

Boite Mobile - I would need to check, but I suspect the heavy discount may be a price to pay for OFEX companies trying to raise money, although this is countered by the fact they have a mandate for a $100M loan facility!

BTW,

English Bigblls - 2 Jun'06 - 18:09 - 1171 of 1174 (Filtered)
English Bigblls - 2 Jun'06 - 18:09 - 1172 of 1174 (Filtered)

...so no idea what rubbish you're writing at the moment.

[sranmal] 02/6/2006 18:12

The only good thing recently is the $100M bank facility, and with all said and done, that is quite a coup for an OFEX company.

Since they delayed the placing, I've been wondering whether they could complete the acquisition via their loan. I guess us PIs don't have enough information available to us to answer that question, and I suspect the vendors (Pechora) would want CDE paper as cheap as possible as they probably feel it would appreciate in value significantly in the future, with a deal similar to the initial deals Imperial Energy performed.

[hard work] 02/6/2006 18:11

The only crumb of comfort I can draw is that as this was for working capital purposes (ie cash), they put them away at a signifcant discount.

However, it adds to my current disolusionment - I fear waking up one morning to the announcement - "Due to market conditions, CDE shares to be removed from OFEX and taken private"!

I have sold just under 50% of my holding over Wednesday and Thursday and was happy with the risk - up until rhis announcement.

[english bigblls] 02/6/2006 18:09

"The placing consisted of 20,000,000 new ordinary shares being placed with
institutions at a price of 2.25p, raising GBP 450,000 before expenses. These
funds will be used for general working capital purposes prior to the
acquisition, and follows on from a similar placing made in January."

The price may have been agreed back in January?

[sranmal] 02/6/2006 17:52

tsmith - considering the board hold a lot of shares, I'd expect them to try and get the placing at a high a share price as possible, unless the board are going to be taking up a lot of cheap shares, in which case we could be shafted again!

[sranmal] 02/6/2006 17:49

Think I'll email 'em over the w/e. First the pulled placing, which was the correct decision, but they should have informed the market in the morning, and now this.

Considering that, IMO, it has largely been PI awareness and buying that has lifted the share price from the 1-2p levels to the current SP, therefore minimising dilution for future placings, the management seem to have a lack of regard for these same PIs.

[tsmith9426] 02/6/2006 17:47

looks like we have been shafted, what price the placment then.

[andy] 02/6/2006 17:42

johnyee7,

I agree, this stinks IMO.

Very disappointing, and as sranmal rightly says, I would have taken some at 4p!