Eurasian Share Discussion Threads

[shugsy] 20/3/2013 12:09

Net debt is about £4bn so doesn't look appealing at all and realistically overvalued.

[cfb2] 20/3/2013 12:05

careful: Sorry to hear you're underwater on ENRC. As you say, long term the net asset value provides protection on the downside but it may take quite a while for it to come good. The share does look like it is in play based around the weakening prices of iron ore and their increased debt burden as they service unprofitable contracts.

I've been digging around trying to find the source of Sunday Times article statement about the rights issue and come up blank. A while back there was a rumour of them breaking their banking covernants, which turned out to be false. I just wonder whether this is a revisit to increase volatility for traders.

ENRC do appear to have been unlucky as to their timing on aquisitions and this explains why, with the rest of the sector, the number of writedowns.

CFB

[p bear] 20/3/2013 11:57

You need to consider net debt in your calculations ($5.8?).

[shugsy] 20/3/2013 11:55

What about the debt careful?

[careful] 20/3/2013 11:39

down on very low volume.
i am underwater here.

i may hold for the ride.
net assets still $10.55bn after write offs.
that is about £7bn of assets versus current market cap of £3.9bn.

risky maybe, but very cheap.
if they fall further i may add depending on whether i am in a reckless mood.
split personality, i have a whole heap of cash tied up in sainsbury and morrison.

[shugsy] 20/3/2013 10:48

Nearing that 300 mark I mentioned.

Needs to bounce at this point otherwise it will be 250.

[dr biotech] 20/3/2013 09:27

Not a great set of results by any standards and they seem to have only paid lip service to getting in line with governance. I'd also like more details on how they are going to cope with the debt and meet the free float requirement. After an initial surge I am back where I started with these. Might chuck them in.

[shugsy] 20/3/2013 08:33

New recent low.

[careful] 20/3/2013 08:05

so far so good.

[careful] 20/3/2013 07:21

oops.
eps of 41 cents per share (ignoring non cash write down of $1.5bn).
cant see any mention of a rights issue despite net debt of $5bn+.
but looking through the gloom this company has assets above its market value.

the underlying pe is still only about 11.
never know how the market will react.

[careful] 19/3/2013 16:39

'the secret is to do the wrong thing at the right time.'
Quote from Lancey Howard, played by Edward G Robinson in the Cincinnati Kid.

[shugsy] 19/3/2013 14:33

Again careful - brave man to take a position without all the info.

Hope it turns out ok for you.

[careful] 19/3/2013 14:24

tomorrows update will be interesting.
miners struggling today on talk of falling china demand.
size of writeoff, status of legals, possible rights issue, and all of the actual results.

lots of info to look forward to.
the picture will be clearer.

[careful] 18/3/2013 12:26

looking at 'financials' on this website.
end of previous year.
ENRC net assets $11.2 bn.
market cap £4.1bn

[shugsy] 18/3/2013 12:07

Would this affect your calculation Careful?

Would have thought priced in.

[shugsy] 18/3/2013 12:06

The company may write down over $1bn of assets this week - Bloomberg news.

[shugsy] 18/3/2013 11:56

See what happens at 300.

Careful - I'm sure your trade will come good.

[careful] 18/3/2013 11:41

the only head and shoulders i bother about are my own.
and today it lets me down.

if you chartists all believe in it, trade by it, then it must be self fulfilling.
i prefer buffets approach.
net asset value, return on capital, future prospects, and more important these days..
buying real assets with trashy paper money.

it is a long term game.
high frequency traders are in and thousands of time per day.

[cfb2] 18/3/2013 11:35

The H&S on the chart has the head at 409, shoulders at 327. So the target is:
327 - (409 - 327) = 654 - 409 = 245.

careful: I'm glad you don't believe in technical analysis as that would keep me awake at night :)

CFB

[careful] 18/3/2013 11:31

it has dropped further.
not sure if brave is the right word.

[shugsy] 18/3/2013 11:22

Brave man careful.

[careful] 18/3/2013 09:58

just bought in.
this rights issue is good news.
this may well yet turn out to be a serious well run comapny after recent troubles are solved.
lots os juicy assets that the likes of glencore and many others would love.

[shugsy] 18/3/2013 08:57

H&S on the chart would suggest a retest of the lows.

[2ngh] 17/3/2013 15:19

May spook a few.

[dr biotech] 17/3/2013 12:25

Not unexpected. ENRC needs to issue more shares at some point soon to ensure the free float is 25% - its currently only 18%