Pcf Share Discussion Threads

[cc2014] 19/12/2022 13:28

Last day of dealing before delisting.

If you are thinking of selling I wouldn't leave it to the last hour as the MM will want a flat book and may not be willing to take your shares.

[dandigirl] 15/12/2022 14:58

See tomboyb above - net tangible asset 6.5p ps.

[masonmaster] 15/12/2022 12:19

This is not finished yet.

[g2theary] 15/12/2022 12:14

Looks like it was a good time to take profit there :) I'll leave you all too it here .. only popping in .D

[g2theary] 15/12/2022 11:23

Yeah all I'm saying is MEAL will have another ramp up like this it's just when to buy :) I know nothing about this company just saw the opportunity to trade it yesterday ;£

[g2theary] 15/12/2022 11:22

Banked two big chunks ... can't say no to 50% especially after WSBN this week :)

[catabrit] 15/12/2022 10:19

Re Castle - they might not have been able to make an attractive enough offer vs liquidation value. Doesn't mean there's anything wrong with the assets per se, more the price at which it makes sense for a buyer to run the biz as a going concern. Hence liquidation. And again, you have to layer every argument - good, bad and neutral - versus the odds implied by the price. At sub 1p, I think most eventualities are well covered.

[catabrit] 15/12/2022 10:14

Let's avoid the ramping, g2theary. This is nothing like Meal - this actually has asset backing multiples in excess of the current market cap. At below net cash, you could make an argument for meal albeit burn rate etc. Above it - good luck.

Dandigirl is right in that it might not be the 15 or 16p currently assumed by the b/s but if its 2,3,4 or 5p, that's a *very* decent return considering the downside protection.

[g2theary] 15/12/2022 09:08

Nice buy here yesterday :) MEAL WILL DO THE SAME SOON ITS JUST WHEN TO START BUYING THERE ;)

[g2theary] 15/12/2022 09:06

Nice but here yesterday :) MEAL WILL DO THE SAME SOON ITS JUST WHEN TO START BUYING THERE ;)

[dandigirl] 15/12/2022 04:19

Catabrit: What will be left depends much upon the speed of wind down. There are lots of costs on an ever diminishing income. Both sides of the balance sheet extend out 3 to 5 years. If a buyer doesn't come forward then what is left has to be dismantled. Given that Castle walked away, just who is coming to the rescue in this quite awful market?

[catabrit] 14/12/2022 14:43

Well, yes a bit crazy to sell this unless you've lined up a really good replacement (i.e. you have strong opportunity cost). The spread was just insane. Silly really, as it encourages zero trading. Hopefully more trading will resume and those that want to sell out can, and those that want to buy can get hold of more shares. I have had offers out for 1m + shares yesterday and today and had very very few bites.

[tomboyb] 14/12/2022 14:25

Looks like I sold too early then -

[catabrit] 13/12/2022 16:40

This looks like a steal. You're paying so little for the proverbial dollar that it doesn't even matter if the dollar declines in value during the runoff period as you are well compensated. I can't seem to get my larger order filled so I will look to buy smaller chunks every day until the de-listing. Very sorry for those that bought this at much higher prices - I hope you get the chance to average down. Don't let the past cloud your better judgment: on a probability-weighted basis, this looks like an absolute bargain at sub 2m market cap. Best of luck.

[graham1ty] 12/12/2022 17:59

CC, you may be right. It can never have been their intention to lose all their money…..

[cc2014] 12/12/2022 13:45

Hi Graham,

I have an entirely different take on Somers.

As the very dominant shareholder I suggest they have been behind every major decision including Board appointments and it is their strategy that has caused the downfall of PCF.

[tomboyb] 12/12/2022 12:29

Approved -

Shares will be cancelled -

[123davidgwilym] 09/12/2022 20:59

I don’t think their losses absolve them from blame.

[graham1ty] 09/12/2022 20:04

“Inherited mess”. But was it ?

Yes, some fiddling of the books, that was just wrong. And wrong. And unforgivable.

However, the underlying systems, the accounting system, the lending platform, had been approved by the PRA, had been stress tested over a year before the licence was granted, and had been audited by a major firm. It had allowed growth from c£100m to £450m book with no major problems. What would have been cost of upgrading/replacing that system rather than the tens of millions being spent on remediation ? It cannot have been “not fit for purpose” entirely to have got them as far as they got.

Re major shareholder and Somers. Yes, they may have completely taken their eye off the ball, and may not have insisted on the necessary governance oversight, but I am not sure it was their ambition or greed that was driving the rapid growth. Of course it was in their interests, but all shareholders were thrilled at the rapid growth post banking licence. Should they have done more to save it ? Have stopped ( or tried to stop) the excessive cost of “remediation” ? Should they have stepped in earlier ? Who knows. However, I think it is a bit unfair to blame this on Somers !! They have lost £60m+ after all..

[cc2014] 09/12/2022 10:51

I listened to the recording of the meeting today.

It's a sad end and I'm left with one fundamental question which will never get answered. "Garry broadly says the business in it's current form does not have sufficient scale to succeed". I'm struggling with this.

Anyways, at least they did the Investor Meet. I don't think they were required to and didn't have to do some of the other ones either, so I think at some level they were for a very long time trying to find a way through the inherited mess and find a future pathway.

A reminder though to be careful when investing in companies with large dominant shareholders and agreessive expansion strategies.

[graham1ty] 07/12/2022 13:13

Oh, sorry, you said yr wife “now” has £50,000 worth

[tomboyb] 07/12/2022 13:07

Graham -

That is a historical share not PCF -

It delisted in 2012 -

Wish you the best with PCF though -

[graham1ty] 07/12/2022 13:05

Actually, I see you say £50k worth. Well, they are currently worth 0.6p which would mean yr wife has c8,000,000 shares which is a declarable holding

[graham1ty] 07/12/2022 13:01

And also, Tomboy, you had better get them out of your ISA. I don’t think the proposed dealing facility will be with a “recognised stock exchange” so you won’t be able to hold the unlisted PCF in yr ISA