Gran Tierra Energy Share Discussion Threads

[tullynessle] 01/1/2011 04:40

It appears that Zouk provides significant support to their portfolio companies.




working with clean technology entrepreneurs

We believe that entrepreneurs and great management teams are the key to a successful growth business
From the point of engagement, our team works to build strong relationships with the management of companies to ensure a consistency of thought and alignment of goals and expectations. While zouk will provide support in multiple ways, the long-term success of any business ultimately depends upon the vision of the entrepreneur and on the ability of a strong management team to execute their plan. The management teams we back are commercial in nature, global in outlook and able to articulate clear expansion strategies. Exceptional management will always be the starting point of any zouk investment.

We expect management teams to have realistic plans for growth and be open to working in partnership with zouk. Companies at the expansion stage require more guidance than at any other time in the company cycle. We provide not only capital but a wealth of experience in strategy definition, business building, operational improvement and financial management. We work closely with our portfolio companies to create global businesses with strong growth value.

To enable our active approach, we like to lead investment rounds. We typically take board seats in the company and we establish close interaction with the management team.

We are able to support companies in many area of business development by assisting management in processes including:

•Refining business strategies
•Establishing robust structures and processes for financial and sales reporting
•Expanding businesses into new geographies, products and customer segments
•Supporting organizational growth with key senior hires
•Building strategic alliances
•Securing further equity and debt funding
•Preparing and executing IPOs or trade sales
Through the zouk cleantech platform, portfolio companies have access to an extensive resource of contacts to assist growth, including large corporations, institutional investors and private equity firms.

If you believe your business meets the criteria of this strategy and could benefit from our approach to working with entrepreneurs, please contact us

[tullynessle] 01/1/2011 04:34

Some background information about Zouk Ventures - available at their website.

Let's hope that they include as stakeholders "other shareholders", in the description of their ethos and strategy, namely "By working closely with management teams we become trusted partners. Being fully aligned with management teams and project developers allows us to maximise long-term returns for shareholders and stakeholders."





our approach to cleantech investment

zouk invests in clean technology companies and clean infrastructure projects
We manage investments through separate teams and separate funds, reflecting the different natures of investment in technology and infrastructure. This dual-track approach to the cleantech market has strong benefits for zouk: it provides us with greater visibility and understanding of the cleantech market and broadens our relationships across the space. In addition, it allows for superior deal flow and more effective execution of investment opportunities.

We take an active role in managing our portfolios of companies and projects. We support management teams and project developers in defining and executing long-term growth plans. Our team contributes to companies and projects its collective experience in technology and operational management, organizational development and financial structuring. By working closely with management teams we become trusted partners. Being fully aligned with management teams and project developers allows us to maximise long-term returns for shareholders and stakeholders.

While we seek investment opportunities primarily in Europe, we develop and support our companies on a global scale. The entrepreneurs which zouk support target the global marketplace, pursuing the universal demand for cleantech products. Hence, we are also active in Asia, the Middle East and the Americas. If portfolio companies are based outside Europe, we can help drive their expansion into our home market.

Our investment resources extend beyond our core investment team. We work closely with our Industry Advisory Group, whose members' expertise in cleantech adds insight and experience to our investment process. Beyond this close circle, we maintain broad-ranging relationships across governments, finance, industry and academia. Some of these relationships are formalised as strategic partnerships with zouk, bringing strong mutual benefits through co-operation. This powerful network amplifies zouk's presence in the market; it gives us access to high-quality investment opportunities and the best entrepreneurial talent.

[bozzy_s] 31/12/2010 21:58

Best of luck for 2011 for everyone. I somehow feel the need to post a back-to-back analysis from 2 shareholders -->



bozzy_s - 30 Dec'10 - 07:33 - 2267 of 2340 edit


Disagree that it was a desperate sale 6Kenny. Trading for Q3 shows a tiny loss of $0.2m (H1 net loss $3m, 9m net loss $3.2m as per announcements).

Also if it were a desperate sell-off, the company wouldn't have got 3 times it's market-cap for a tiny non-core underperforming subsidiary.

I am still very pleased to have found these yesterday, and very bullish having read, re-read and re-re-read the recent announcements. Especially the forced AXA sale which caused the share price depression in Oct 10.



gdasinv2 - 30 Dec'10 - 07:51 - 2268 of 2340


25p traget in short term. Very niche business p/e is very good, it was unnessary down when AXA sold 4.5million holding at a throw away price, it was rediculous.


This is bozzy again-
Draw your own conclusions. I'm positive and expecting the fundamentals to push out the mentals. Target 12p in 12 months with zero debt, lots of shareholder dilution now, and a profitable and successful business keeping going.

[bozzy_s] 31/12/2010 19:44

Wishing you a great 2011 jwe! Sensible and honest comments, bear and bull, are rare on these boards.

So much rubbish spouted by pump/dump rose-tinted spivs (3 of which I have spotted here). And equally, usually on bigger company BBs, doomsday scenarios repeated and repeated by shorters.

Speaking of sensible contributions, Tullynessle, I recognise your ID. You have posted some great stuff on PMHL or AGL. From memory it could have been AGL.

Here's to a 2011 where GTE get it RIGHT, issue D for E shares at a FAIR price, and cement a profitable, creditable, and prosperous future for themselves and their shareholders. With good management here, they could well be a profitable £25m-valued company in 3 months. NO RIPPING OFF CURRENT SHAREHOLDERS. That would ruin the life-long efforts by the management team who have produced a good product.

And AGL will look after itself and make another 60% in a year easily :-)

[jwe] 31/12/2010 18:48

bozzy-no problem,have a great New Year.Wife getting the hump so off now,will watch with interest Tuesday

[tullynessle] 31/12/2010 18:38

It is hard to effect rational, complete and balanced review when it appears that Private Investors, (including me), may consider that they are being manipulated.

It is not for me to pronounce on whether such fears are reasonable.

I suppose concerns could arise from the following:

(a) release of selective data

e.g. Details of financial problems highlighted without release of financial and operational information about "two major longer term service agreements with leading power generation companies"

and,

e.g. Details of financial problems highlighted - without financial goals and timelines for "GTE's cost structure will be re-focused on sustainable profitable growth of these core product lines; an extensive cost reduction programme is underway to lower the cost base and eventually generate free cash flow"

etc. etc. etc


(b) Alignment of all Shareholders' interests during fund raising

(Do any shareholders / investors benefit from the Share Price falling in the near term?)



(c) Perception of the potential formation of "poison pills" or perhaps, "complication pills", during a period when the Company may be attractive to Third Parties (post sale of the aviation business). e.g. Amendment to Warrant excercise price.


I could go on.....



To be fair there is an abundance of information in News Releases issued since 30th June 2010. I have included a couple of extracts below - one of which describes an investment of $11m (perhaps one-off expenditure?)



Extract from Current Trading - 29th December, 2010

Current trading, strategy and prospects

Sales for the first nine months of 2010 were US$25.0m including aviation revenues of US$3.9m. Sales for the full year are expected to be in the region of US$40.0m, which would be an increase of 7.8% over 2009 due to an increase in sales in GTE's Energy Services segment, primarily Turbine Services and sales of Combustion parts being partly offset by a decline in sales of Auxiliaries (reflecting continued spending constraints among customers). The Company recorded a net loss for the first nine months of 2010 of US$3.2m; a substantial portion of this loss was exceptional costs associated with the potential investment in the Company by a strategic investor, which terminated at a late stage in negotiations



Extract from 2009 Final Report - Released June 2010

GTE kept focus on strengthening the infrastructure and product offerings in preparation for the rapidly emerging market opportunities. We took several
long-term actions that are expected to pay significant dividends in 2010
and beyond.

We invested over US$11m in new products, capabilities and infrastructure
that will start delivering benefits as early as 2010. These included combustion
maintenance and upgrade solutions, expansion of the EcoMax optimisation platform, compressor cleaning products and aviation product lines for the small, military and helicopter segments.

[bozzy_s] 31/12/2010 18:16

Same as 2333 - Simon have you managed to speak to the company? Before or after today's stupid RNS timing?

[wskill] 31/12/2010 17:57

Would not want to put my shirt on this one 20% are the management holding these notes?with the rolled up interest it must be a goodly amount now.

[knowing] 31/12/2010 17:29

Simon did you manage to speak with anyone at the company?

[jwe] 31/12/2010 17:19

jak-If i were you i`d give up on investing,you`re clearly not cut out for it
Bozzy-I`m not a day trader or short but app[reciate that may have not been directed at me.
Trade debtors could certainly account for some or all of this amount we just do not know.They will not have any cash.They will recive around $14.5M from P & W and have to repay 6.5M immeadiately to `D` holders.The other $20M of loan notes are now due 15th Feb,and assuming no further cash burn they will be $12M short,therefore at best dilution awaits.To be fair i cannot see Loan Note holders not swapping for equity it is just a question of price
Kenny-Sorry for your loss here.FWIW personally i`d be tempted to bail first thing Tuesday even at less than 5p.IMO even if all goes well and there is a swap 5p that will not be seen again for a long while.Try TAIH:-)Good luck anyway i know it is not easy being bearish when you are long.a 50% loss is a lot better than nothing especially with a chance of getting a gain elsewhere.Somebody once said-`would you buy at this price?If the answer is no you should sell`

[6kenny] 31/12/2010 17:00

empire,

what is your take on things?

[jakleeds] 31/12/2010 16:58

It all looks very promising to me. As Bozzy said the Asset Purchase Agreement with P and W is a done deal, and P and W aren't exactly small-fry so there's minimal risk of it falling through (Pratt & Whitney reported an operating profit of $1.84 billion in 2009 on revenues of $12.58 billion. The company's 36,000 employees support more than 11,000 customers in 195 countries around the world).

Also the Business Collaboration Agreement (BCA) "will terminate on Completion and P&W will make a payment to GTE of US$2.1m on 3 January 2011, in respect of 2010 fees due under the BCA."

They've also agreed with the loan holders to retain the proceeds of the Asset Sale (subject to repayment of the D Loan Notes).

And their other objective was "to seek further funding and in this regard will explore all available options including, without limitation, equity investment, further debt financing or a sale of the Company. There can be no certainty that any further financing or a sale will be achieved."

And they've done this too.

Zouk's philosophy is as follows:

"Cleantech is largely industrial by nature and companies can consequently have a high capital demand. We select the most capital efficient companies to invest in to maximize the value creation of our investment. We like to invest on a fully-funded basis to allow our management teams to focus their energies on doing what they know best: building successfull technology companies on the back of intelligent funding. This means we will generally provide sufficient capital to support a company's growth plans through to cash-flow breakeven or to an exit. Typically, zouk invests €5-20 million of growth equity per company over the course of an investment. If a company requires a higher amount of funds to meet its growth objectives, we will invite trusted co-investors to a transaction"

I'm not saying it's without risk, but in my opinion it all looks very promising, the market loved the news on wednesday, and the little mark-up at the end of today could be a sign of what's to come when the market reopens.

I generally go for Zulu stocks but having seen this on Wednesday thought I'd have a dabble.

Very interesting....

[6kenny] 31/12/2010 16:50

his mobile is on the RNS, text or phone the guy...

perhaps we are all misreading the RNS...as most of them seem to be written in hebrew or arabic to me!

they just need to get the COMPANY FOR SALE adverts put up in all local post office/newsagents windows ASAP!!

[bozzy_s] 31/12/2010 16:38

Which of those people would be the one to complain to regarding today's RNS timing? Would it have been the CEO who suggested releasing the news at 12.30?

[knowing] 31/12/2010 16:34

Yep terrible management

[bozzy_s] 31/12/2010 16:33

jwe - all but $2.3m is receivable on completion of the sale. So, assuming D for E goes at a fair price, and other loan-note holders are repaid, there will be some cash in hand.

You are quite right to ask why cash burn appears to have been so high. It could simply be an increase in trade debtors as the 'main' business continues to grow strongly?

Again, that's the positive spin! I'd rather put it across eloquently than some rubbish being spouted by daytraders.

[6kenny] 31/12/2010 16:29

with the current team at the helm it is quite clear they have NO IDEA of how to run a business...let alone grow one!!

seems to be a bunch of techies with no commercial sense whatsoever. it should be illegal to make announcements after the bell after many more punters were sucked in today.

looks like heavy dilution at best and insolvency at worse...or am I missing another option?

seems absurd that the company was almost on it's knees, recently sold off the aviation arm and ONLY NOW are looking at ways of cost cutting....DISGUSTING.

[knowing] 31/12/2010 16:28

Eh? Maybe that is where they utilised the cash. Set up the backbone of the company. Position themselves for growth whilst things in the economy are cheap. many companies do so in lean times to reap the rewards when the economy flourishes.

[jwe] 31/12/2010 16:21

bozzy-There is where we disagree
Firstly they will not have $10M because not all of the money is paid at once
Secondly after seemingly having a cash burn of $5M+ in January to assume they will be cash positive thereafter is not realistic
Knowing-Surely you hope they ARE NOT growing the company don`t you??If they were stupid enough to do that they would require even more cash!

[knowing] 31/12/2010 15:57

jwe you don't know how they have used the funds to potentially grow the company so it is all assumption at this stage.

[bozzy_s] 31/12/2010 15:57

It does seem that the debt-holders hold the trump cards. And it seems the company has shown total incompetence by the timing of this RNS.

But, being positive, even if D for E goes at half-price 3.5p per share, the company would be debt-free and profitable going forwards. Hope that's their plan. To give a shedload of new shares to their debt-funders. Then concentrate on business and try to get a return for shareholders.

[jwe] 31/12/2010 15:55

Bozzy-i was writing that before i read your post which i find at least a reasonable take on the situation

[jwe] 31/12/2010 15:53

Bozzy-Our posts crossed.I think 4p is a bit high because after this the share price is very likely to drop heavily but in the ball park
If i were a holder i would add to your list
4/Announcing this(funding issues) 2 days after the last RNS-appalling imo
Bozzy-i`m not suggesting it was but it was more than one poster i believe