Paragon Entertainment Share Discussion Threads

[fft] 26/6/2018 10:21

Quite bizarre. Gave PEL a call and John Dobson is on holiday. Back Friday. Apparently he is reading emails, but I had no response to an info request a week or two ago. Neil is esconsed in the finance Dept and unable to talk at the moment.If John is not back til Friday, I dont see how they can sign off the accounts until then, so could be a 5pm results RNS. Hmmmm........

[1savvyinvestor] 26/6/2018 10:04

I must say it is looking very grim . This has turned from a great investment for me into a dire one

[stiffybristol] 26/6/2018 09:28

Survival on AIM would be good news.

They may be looking to delist to save the company money.

Will be hard to fund raise from this position unless someone/ new investor takes a big chunk.

[pj 1] 26/6/2018 09:17

If you owe the Bank a £5 then you have a problem.

If you owe the Bank £500,000 then the Bank has a problem.

[hallowed be thy name] 26/6/2018 08:40

After speaking with other investors recently it seems blatantly obvious to me that this Co is actually insolvent and at the mercy of its Bank (HSBC?). If they were to issue Accounts now then that would instantly tell their existing and potential clients of the material risk that any contracts or work in progress cannot be completed, these clients would then mitigate their own risk and place work elsewhere, and the vicous circle continues. By failing to meet the date for Results with no further communications to the Market highlights to me the disregard the Co has for it's investors.
Uninvestable.

[playful] 25/6/2018 22:13

They seem happy to walk Shareholders into the final week until suspension...

[fft] 22/6/2018 12:17

I suspect the results are sh*t, and they are hoping an order comes so to soften the blow. But, unfortunately, that would mean they haven't even met the 200k EBITDA. Or, a fund raising is needed.Either way, I can't see the delay being good news.

[phowdo] 22/6/2018 09:02

Im still curious as to why the CEO was buying at 2.5p earlier in the year.
Soon find out I spose.

[pj 1] 22/6/2018 08:39

Rightly or wrongly the Co has been regularly valued EV/EBITDA by the Market at x7 EBITDA.


So with my pessimistic head on Id say we're looking at a share price 0.6p ish based on £200k EBITDA, subject to any other news flow. Whilst I'd welcome 3p I cannot see it with the information we have available. Things will change though, so the valuation guess is not to be taken too seriously.


I also noticed an interesting RNS from SIM yesterday, who also have Finncap as NOMAD, which includes

''This increases the total Contract value, for which the Company will be entitled to invoice the client up to an additional $315,100 during the 12 month period ending 30 April 2019. The expected revenue from this Contract was already factored into management's expectations for the year ended 31 December 2018. In addition, the Contract is expected to contribute to improved revenue visibility for FY 2019''



It seems it's a bit of a lottery at least as to what differing Company's are allowed to RNS contract wise, with one rule for one and another for another.


Maybe it is to suit the ''needs'' of the NOMAD more than the Company? Especially from a Broker who supports Company's with ex US fugitive CEO who was replaced by an inside dealing FD to CEO. And being investigated by the FCA.

Assuming they maintain the AIM listing then I see no value whatsoever in having Fincapp as NOMAD, they may as well ''downgrade'' to Allenby and screw them down on price.

[playful] 22/6/2018 00:11

In the two most recent announcements they said..

“The Company expects to announce the FY17 results during May when further information on FY18 trading will be provided.”

So what’s happened?

PJ points out the typical timeline expectations and we are well beyond acceptable bad news so it’s hard hats and under the table time.

[stiffybristol] 21/6/2018 23:27

The results will already be done. The only problem could be getting them signed off as a going concern going forward which would be very bad news.

I think they are looking for the most positive statement they can get for the 2018 year. 6 months is known, probably the next 3-4 months pretty easy to guess with a known order book. More likely looking for clarification of news.

The factory move is currently off as the application has been withdrawn by the landowner.

When things get tight the cost of maintaining a listing starts to encroach into the forward planning and thinking.

The share price is pointing to bad news, the results and statement will be very important and survival on AIM would be good news IMO. If its not bad news 3p will be cheap.

[pj 1] 21/6/2018 22:52

Previous Results

26/03/2014 share price 3.75p Revs £10m EBITDA £600k

26/06/2015 share price 1.73p Breach of Covenants. CFO resigns

14/06/2016 share price 1.48p Closure of legacy issues. More confident outlook

20/04/2017 share price 4.73p Excited about the future

So, the trend is the earlier the Results the better the share price performance. The later the Results...…. Late June Results whilst not the norm, have been regular. However, I'm not aware they have ever issued a Results date and then not met that date before.

[playful] 21/6/2018 20:48

If this delay is all a ruse to delist at the lowest possible valuation it stinks to high heaven.

[pj 1] 21/6/2018 10:26

Well, if that is the case, then rather than being a sweetener then I would imagine reality would quickly kick in and they end up with a red flag and distrust. All imo

All smoke screens get seen through eventually

[phowdo] 21/6/2018 10:20

Yeah, that never happens on AIM...

;)

[pj 1] 21/6/2018 10:13

I don't believe they could delay Results for that reason phowdo..

[phowdo] 21/6/2018 10:10

My guess, waiting on a contract to be signed so as they can sweeten the release.

[1savvyinvestor] 21/6/2018 10:03

Getting very tight now. What are they playing at?

[pj 1] 20/6/2018 08:10

YetI still think they will be released!

[stiffybristol] 18/6/2018 16:52

They have started hiring staff again so the business levels must be improving.

[playful] 15/6/2018 08:25

I noticed they posted a picture of The Abominable Snowman on their twitter feed yesterday so it just shows you have more chance of seeing him than their results.

[playful] 08/6/2018 08:36

Three weeks and the company shares will be suspended from trading if they don't release their results.