Phoenix Copper Share Discussion Threads

[growthhunter] 12/2/2008 17:05

bubface....is that for real ?

[spights] 12/2/2008 17:04

bubface thankyou:o)

[bubface] 12/2/2008 17:02

from goldman 11th feb morning minutes.
pipex announced that it is in an advanced stage of negotiation with a single bidder for the sale of some or all of its hosting & network services division.no terms have been disclosed.
should a sale conclude ,the company plans to return to shareholders a "substantial portion" of the net proceeds plus the net cash [£107m on our estimate] already recieved from the sale of the broadband business post repurchase of the company's conv debt.the return is expected to be via a tender offer for a roportion of the ordinary shares.should no transaction arise,the company expects to run itself as currently constituted.
.....about meeting......
analysis
market cap £174m,consequently if the hosting and network business sells for more than £67m,the amount of cash returned to shareholders could exceed the current market value.ignoring the potential value of the retained assets [largely the stake in the wimax operation] we value the hosting and network business at £105m and the stake in wimax network at £25m.
implications
we see this announcement as positive for the stock since it confirms a sale as a real possibility and that receiots will be largely returned to shareholders.however it is not clear what happens to the net cash balance in the event that a sale is not achieved.
target 10p buy rating maintained.

they also have a pre disposal cash balnce in excess of £100m.

[spights] 12/2/2008 15:36

yes :o)

[troys] 12/2/2008 14:58

Someone wants our shares on the cheap. Only longtermers here. :-)

[ludlow3] 12/2/2008 14:46

good luck ..

[stevi1111] 12/2/2008 14:45

OK Ludlow...

Looks like you will miss out when the hosting division sale is announced.

Bye then.

[zimbi] 12/2/2008 14:43

muppet alert.

[mr bagpuss] 12/2/2008 14:41

whatever, their name is being dragged through the mud nevertheless. A strong sell.

[stevi1111] 12/2/2008 14:38

About Pipex Mr Bagpuss?

Their hosting I presume as they sold their broadband division to Tiscali months n months ago now ;)

[bubface] 12/2/2008 14:37

i believe they have over 4p cash now, pre disposal, they should get close to 6p from disposals and that leaves a 50% interest in freedom4.
ludlow3 please explain your valuation.

[mr bagpuss] 12/2/2008 14:37

TV programme now on BBC2. punters moaning about pipex.

[stevi1111] 12/2/2008 14:30

Ludlow......17p totally over-valued....Just like 7p totally undervalued now.

Thats sentiment for you.

Common sense will soon prevail.

[mr bagpuss] 12/2/2008 14:28

agreed it looks doomed.

[ludlow3] 12/2/2008 14:27

the last time i sold some they were 17p. now 7 p soon 3p.

[stevi1111] 12/2/2008 14:26

Why would UBS advise and be soo close to a deal if it was to shaft shareholders ?

UBS have a huge stake here....DYOR.

[ludlow3] 12/2/2008 14:21

the only person to make any money out of these will be p dubens i have been telling you punters for 2 years . i made alt of cash playing this company but the game as ended.sell and buy back cheaper next month.

[mr bagpuss] 12/2/2008 14:20

More like 0p.

[stevi1111] 12/2/2008 14:18

Ludlow.....I suggest you re-do your maths.

This is worth somewhere close to 10p IMO.

How can the whole company be worth only 3p when the proceeds from the hosting sale will be worth 4p+ per share alone. Then theres what cash & cash equivilants they have already THEN theres the share of Freedom4.

A lot more than 3p !!

[ludlow3] 12/2/2008 14:15

this isonly worth 3p.

[bubface] 12/2/2008 14:13

yes in the tender i would be looking for something like 11p for 80% of company,remaining 20% equity = 50% of freedom4.
cheap

[stevi1111] 12/2/2008 13:29

Bubface......PXC are returning cash to shareholders but not in actual hard money but through a capital reduction then soon after a share buyback via tender offer (meaning less shares in issue meaning higher shareprice for same Net Assets)

When I last spoke to the Finance Director I put him bluntly my bearish views (shareprice was 9p at the time) and he sounded horrified that anyone could suggest investors would get less than the 9p then. Hes in the right position to comment so I'll take his word for it.

(Hi Spights....I will get that email sent to you as well....Been busy moving house recently and life is hectic..lol)

[bubface] 12/2/2008 13:16

no stevi111 you're not the only bull,think they're a steal but would like a few things clarified by the company to confirm my thoughts.
i do not think that pxc has put that much into new financing of freedom4 as they have stated that should the disposal be sucessful "the substantial portion of the net proceeds of that sale,together with the net proceeds from broadband disposal....would be returned to shareholders.
but i do think the value of the freedom4 equity is enhanced by intels ongoing support.
there is no point in having general meeting if sudsids are not sold [oakley has significant capital] so there should be no problem with funding,so i am looking for confirmation of the disposals in the next two weeks and i still think there will be equivilent of 10p cash to distribute.
i may be missing something but that looks a good return and a free ride in wimax from here.