Pressac Share Discussion Threads

[empirestate] 05/5/2004 13:17

wakey, wakey

[empirestate] 28/4/2004 12:42

i am still convinced that within the next month or so u would be looking at a take out offer of around 25p.

[dubbsie] 28/4/2004 12:31

I must be a half full man because although the FT article was down beat it gave me some reassurance for the future

[cg1953] 28/4/2004 10:18

given there are keen 'trade buyers' for parts of prsc.
this stock has to be a buy, but at what price ?.it has never been so vulnerable.
imo only a matter of time before 'ttg' makes its move as they wont countenance a rights issue or else someone could launch a break up bid.
what price ? sufficiently attractive to deter a counter offer !!!
what new finance director would want to join this company now ?

[jelfsie] 28/4/2004 09:55

Fairly negative reaction to the results in today's FT.

[mcfctrader] 27/4/2004 20:22

I love an over reaction. 14p to 16p spread will be back by Monday. The MM's have ambushed anyone speculating on a T10/T20 over the last month. They didn't catch many people out though looking at the recent trade history.

Best figures for years once you take out the tax and debt problems.

The debt problem can and will be overcome. The lenders can only lose out if they dont help make it happen.

The tax problem is beyond me and I'll admit ignorance on that one.

[growbag] 27/4/2004 15:31

not really. too much debt.

[empirestate] 27/4/2004 14:27

call me optimistic , but i have just read through the rns, but this is the precise scenario for a predator to give serious consideration to a business on the so called ''cheap''.

[empirestate] 27/4/2004 14:07

dubbsie 20p will do me, just hope it isn't too long though

[growbag] 27/4/2004 14:05

Looks like a rights issue waiting to happen to me. If this company can clear its debt, then it could be in pretty good shape as a recovery stock. Car sales, in particular, are starting to pick up globally - Ford, for example, have recently surprised on that score.

Wait for the rights issue - then pick some up IMO.

[farsight] 27/4/2004 14:03

Call me a cynic dubbsie, but if there's £26.5m that doesn't need to be paid, it won't be paid. But I repeat, I hope I'm wrong.

[dubbsie] 27/4/2004 13:57

EBITDA is £14.5m - a fair multiple would be 5 giving a valuation of £72.5m less debt £46m gives £26.5m vs Current Mkt Cap £11m. I think we will be asked to accept an offer of 20p.

[farsight] 27/4/2004 13:57

But not necessarily for existing shareholders dubbsie. Experience tells me that when you see such high debts that are rising and an FD resigning, you need to be very cautious. But I hope I'm wrong, good luck anyhow.

[dubbsie] 27/4/2004 13:47

"the Division had the most successful year in its history in winning
important contracts for electronics in cars and trucks from a variety of OEM's
and Tier 1 suppliers. While still being the second largest supplier in Europe of
automotive relays, relays now account for some 20% only of the Division's sales
and this will reduce further in 2005 and 2006 as the new contracts for
electronic modules come on stream. This growth in automotive electronics
modules will help secure the Division's future for several years to come;"

There does appear to be light at the end of the tunnel

[kiwihope] 27/4/2004 12:57

not that I can see dubbsie. They are burdened with too much debt (which is increasing) and the multi-country tax problem. Just ask yourself why they accepted such high interest charges (higher than we pay for our piddly little company) ... did they have any choice? I am disappointed as I thought they would do better at these results. There's no doubt there are some good assets there but they're swamped by all that debt, which it now seems cannot be reduced significantly by improved trading. There were some very pointed remarks about the high level of debt, and the high cost of borrowing ... I reckon they're softening up shareholders for a rights issue or something ...

[dubbsie] 27/4/2004 12:22

Net Assets of £15m, unrecognised Tax Asset of £10m, Mkt Cap £11m, plenty of upside

[raynern] 27/4/2004 10:30

The MM's are not allowing me to sell any stock - not even 100 shares. Is something about to collapse big time here?

[dubbsie] 27/4/2004 10:13

Underlying business is good - problem is financing and tax - what the hell was the FD brought in to do? Well he didn't do it so no wonder he has gone. A rights issue should have been the order of the day a year ago!!

[cg1953] 27/4/2004 09:54

none of the above reflects too well on 'ttg'investment criteria.
paying far too much for a strategic stake that maybe worthless/useless !!!
there are other 'trade buyers' out there for some divisions.
only now i realize why they are waiting for administration.
at -10 pence, is it worth to average down ???

[latestarter] 27/4/2004 09:52

i dont hold any, but would spend time sifting through the wreckage

[latestarter] 27/4/2004 09:51

surley a cash flow problem would have shown by now, the problems here are all there own doing, and at libor +5% you would hope they have had the good sense to ensure they get through the year, couple of interest rate rises though.....
does anyone know what the assset situation is? ie property

[jelfsie] 27/4/2004 09:49

With the greatest respect you need your head examined, but I really wish you all the luck in the world (Wish I had that sort of money to gamble).

[latestarter] 27/4/2004 09:46

yep realise all of that, they are not in the strongest of positions, but they are also vunerable, little wonder the fd fell on his sword, how the hell did the board of a plc allow it to get into this crazy tax position, i am only interested in recovery situations and this is starting to fit the bill

[jelfsie] 27/4/2004 09:45

The £10M Tax Asset in France is interesting (TTG are in the process of building their business in France through acquisition). Well, the margin over base tells you the banks said "please please please go away" but are unfortunately stuck with PRSC for another 12 months. They will not lend another bean and PRSC have only £3M headroom during a year which they acknowledge will be a difficult one.
I cant see TTG paying more than about 5p per share for this business. Wait for the first signs of a cash flow problem, followed by TTG taking it our for nothing. All IMHO of course, and DYOR.