European Equity Tranche Income Share Discussion Threads

[cerrito] 09/6/2009 13:39

bailed out today and all I can say I am glad that I deferred from buying more over the last couple of months and shows the risks of being in AIM companies where one shareholder has 87% of the shares

[deswalker] 16/2/2009 11:22

1 for 100 consolidation

[isa23] 16/2/2009 11:19

people are not sleeping, it's still a long way from anything resembling fair value.

[bull_mega] 16/2/2009 09:04

why no trade ???? I would have sold by now if had any..........may be people are sleeping

[isa23] 23/12/2008 15:45

I think we should hope for the bid offer spread to narrow so we can buy our shares back if we do have to sell. Today's rise in the bid price can be a start

[ianbrewster] 23/12/2008 12:23

ISA - I forgot about the CI listing. I too have some in my ISA (not that they are worth much now...)

[isa23] 23/12/2008 09:01

No it's AIM listed, and I fear that delisting from Channel Island will make it no longer eligible for ISA, which means those like me holding it in an ISA would have to sell and buy back outside ISA. Not sure about this, but I think these are the rules

[ianbrewster] 22/12/2008 16:13

Cerrito

since the bid is currently zero, we don't have much choice but hang in !!!

You mentioned AIM listing, but this is currently a full LSE listing.

Ian

[cerrito] 22/12/2008 14:45

Phoned up to make sure I understood what is going on
There will be E5.7m debt at Eibor +5% ie say 8.5 9% all in or E0.485m in interest charges a year compared to last year's of E2.6m.
Last year interest and capital repayments were E4.7m..if we reduce that to say E3.8m deduct say E0.5m for interest and even assume that operating expenses will continue at E2m(and one assumes they will be lower) that still leaves E1.3m of cash flow surplus.
There will be 927m new shares which added to the 98m existing ones totals 1,025m shares.
Might as well hang in but will do more work
A formal memo is coming out which should shed more light on all of this ie future cash flows, who will be the manager
Currently anticipated that AIM listing will be maintained.
I hope it is a good deal for the new investors who have dug into their jeans and paid out E30m odd to Citi..not sure if there was a better deal for us.

A_L_S For practical purposes both figures should more or less be the same

[arthur_lame_stocks] 13/12/2008 20:55

So Peter Gyllenhammar and Johann Claesson are going to bail out EET. It looks to me like it will have a NAV of ~E45m and debt of ~E6m after the restructuring.

I don't understand these instruments really. Can somebody tell me does the NAV represent the likely capital residual for noteholders after all of the mortgages have been paid off? Or is it the sum of the discounted cash flows expected to be paid to noteholders? Or is it both?

Cheers

[cerrito] 20/11/2008 14:41

The article below discusses the effect of the change of direction of the TARP authorities in not buying mortgage related securities..while of course EET has no US exposure this does have an effect on similar European assets and is a further downer for EET

[ianbrewster] 13/11/2008 11:56

And the market now agrees - bid down to 0.001p

Can still buy 5000 @ 1.5p if you want...

[hosede] 22/10/2008 12:11

Thanks erstwhile Got it now - and agree that its probably worthless

[hosede] 21/10/2008 10:26

Erstwhile
Can you explain the problem of Preyment to me? I accept that it reduces the potential income of the security, but does it not equally reduce the default risk - someone who prepays has not defaulted so the capital value of the loan is less at risk. What would be the result for EET if all the mortgagees prepaid in full?
Thanks

[hosede] 19/10/2008 20:55

Yes I guess there's no hurry

[hosede] 17/10/2008 12:08

Might dip a small toe in at this price - option money now

[isa23] 15/10/2008 08:46

Yes I am still here. Down sharply!!! Like most other companies, their biggest mistake was gearing in a falling / uncertain market. There's nothing (or almost nothing) wrong with prime mortgages, but when you're geared and forced seller, it ruins you. Pejr in the same situation.
The new rules about not having to mark assets to market is a huge plus for eet, though.

[hosede] 10/10/2008 15:17

Don't fully understand these, but yesterday's update sounds terminal and I suppose the share price reflects that. I hold CQS Rig, a Co. from the same stable I think, investing in oil rig loans and currently headed in the same direction but with a bit of a way to travel. And to think I bought them as a fairly secure high income paying security!! - how wrong can you be? I guess you did the same here ISA

[cerrito] 23/9/2008 21:20

EET holders may be interested in the following from Queens Walk today..both QWIL and EET are in the Lusitano mortgage pool and Portugal represents 20% odd of EET
quote
The Company's portfolio of Portuguese mortgage investments are predominantly collateralised by prime mortgages with more than three years of seasoning. However, recent increases in Euribor rates, higher inflation and slower economic growth have increased the arrears and default rates in the portfolio. The increase in arrears and default rates have been provided for in the Company's cash flow forecasts.
unquote

[nickcduk] 12/8/2008 21:12

erstwhile2 - You seem quite knowledgeable about the market EET operates in. Perhaps you could help me with TRIO. Recently sold up all their investments and left with around $6.40 in cash versus a share price of $4.30. Here is what they said in their announcement last week:-

"The Company's Board will meet to consider options for the use of the cash
raised through this transaction, on recommendations from Wharton. Although
there may be potential opportunities for re-investment of the cash should the
market stabilise, the Company has a stated policy of returning excess cash to
shareholders. It is anticipated that a decision will be made by the Company's
year end, 30th September 2008."


I personally think they will return the cash but in the event they dont, do you think re-investment opportunities are likely to provide decent returns if they invest in distressed situations at present? I don't really know a lot about Wharton either. Have you come across them and could you please proffer an opinion?

Thanks in advance.

[cerrito] 12/8/2008 19:04

erstwhile
I think that over the last 30 odd years the chairman has been pretty shrewd.
I have never come across Equity Partnership...can you enlighten us about them please??.
I do agree that refinancing will be a challenge which is why I would be more than happy if they canned all dividends to preserve cash.
Hopefully we will get some worthwhile info before their final results which I see came out last year in October but do not understand why such a delay