Pv Crystalox Solar Share Discussion Threads

[zcaprd7] 23/3/2019 02:58

"The Board intends to return GBP38.5 million (EUR42.8 million at year end exchange rate) equivalent to 24 pence per ordinary share to shareholders."The company net cash is all held in Euro's...

[zcaprd7] 23/3/2019 02:54

It's still in Euro's, which is why they say around 24p...

[eezymunny] 22/3/2019 21:47

Ooops apols didn't think I'd posted that. Checked the wording and it's unclear what's what. Agree it reads like 24p will be paid. What's not clear is whether that cash was already held in Sterling at the year end. If they xferred a big chunk into Sterling at y/e rate of c. 1.11 we've done nicely. If not, and cash is still in euros, it'll would cost a fair few more euros to pay the 24p/share if the current 1.167 rate is similar when they xfer the euros to sterling.

[cockerhoop] 22/3/2019 21:08

EezyMunny,

I read it as returning £38.5m (not the Euro equiv) so would expect 24p. The balance sheet would just be slightly weaker due to the change in exchange rate since YE.

[eezymunny] 22/3/2019 20:45

Usual boloney posted by everyone. The cash return is closer to 23p than 24p at current exchange rate.

[konradpuss] 22/3/2019 17:50

'They're not randoms based in Dubai are they' As I always say to people going to Dubai, don't you fly over Italy to get there?

I think there is a good risk/reward for buying at 25p. If they soften at all I will buy more to fund a trip to Italy!

[zcaprd7] 22/3/2019 17:37

Also, they are 25p to buy, and there would be no (selling) transactions costs to get the 24p back...

[zcaprd7] 22/3/2019 17:35

I think 5% is extreme... There is overlapping risks holding the money elsewhere. They're not randoms based in Dubai are they? That it's held on account in euros is also of interest to me, as a safish haven whilst brexit plays out.

[cjohn] 22/3/2019 16:47

It makes sense to hold, if you're already in. You get 24p (95%) guaranteed. So máximum downside then in 95% of scenarios is 1p. Upside is anything from 0 to 3p maybe .Downside max is 1p in 95% of scenarios.


But if you're not invested like me, you have to put in over 25p.

In 95% of scenarios, you get anything from 24p to 28p.(In 5%, there's some "black swan event" that prevents the 24p coming back.)


So my return would be anything from -4% to 12%. And a 1 in twenty chance of a greater loss.

It's not tempting enough, given the opportuntiy cost of capital tied up, with many good value opportunities coming through currently.

[zcaprd7] 22/3/2019 16:32

Not really, it's 3p in cash, the rest is extra?

[zcaprd7] 22/3/2019 16:06

Well, you'll get a chunk of change, may as well let the rest run?

[steve73] 22/3/2019 08:47

When the last payment to shareholders was made (2013), I sold half of my holding on the small spike a few days before it went ex-div, and then bought them (and more) back just after at a small discount to the revalued price, and then sold again a few days after as the price recovered... Managed to boost the dividend by around 5% overall in this way.

The half I retained, I received the dividend as expected but it was a few weeks later. Definitely preferable getting the full use of the cash immediately.

Be looking to do the same this time if possible..

[desha] 22/3/2019 08:18

zcaprd7

It's worth 3p if you trust the management to preserve the value and sell the remaining business or close it down if there are no buyers! That would be the sensible course but it's taken them 6 months or more just to decide they may be open to offers to sell the business ...

No agenda BTW - I am a holder and pondering whether it's worth a further punt given limited downside. The key question is how long are the Board going to take to decide?

[zcaprd7] 21/3/2019 18:32

I was think the difference. The leftovers cost 1p, and will be worth 3p...

[konradpuss] 21/3/2019 16:57

I'm assuming buy now at circa 25p and then eventually get 30p.

It's been a long day!

[zcaprd7] 21/3/2019 16:36

Erm, you're paying 25p, but gettong 24p cash, so 1p a share...

[konradpuss] 21/3/2019 14:13

Should that not be your "you are getting (eventually £6 for every £5"?

I see little downside here unless the directors abscond with the cash!

It's happened before.

[zcaprd7] 21/3/2019 13:40

Dunno, you're getting 3 pounds for every 1 pound?

[salpara111] 21/3/2019 12:06

I would agree that it is not worth buying back in, but for the £7K or so that I still have invested I am going to let run and see where it ends up.

[cjohn] 21/3/2019 11:27

net balance sheet value of 52.34m euros which equals 45 million sterling which is around 28p per share.


This allows no value for the ongoing German business, which is currently loss-making, or the listing.


A management buy out of the German business - the most likely outcome, in my view - would probably produce little or nothing for shareholders.


So 28p - running (especially legal) PLC costs - loss on the German business + possible value in the listing.


I sold out a couple of months ago at somewhere above 25p. On the basis of today's report the upside from 25p - the current market mid-price - is too small to tempt me back in.


Good luck to holders.

[salpara111] 21/3/2019 10:58

Well, I am going to hold onto my residual holding as I do believe there is still more value to be released than is shown in the current share price.
It would make a perfect shell for another business to reverse into for the listing.
The current share price has effectively no downside given that we are getting 24p guaranteed.

[konradpuss] 21/3/2019 09:37

Circa 10 million Euros left for them to draw salaries from.

I still think in the long run this will return net, net over 30p

There is the cash, the shell, the tax losses and what ever the German operation could be worth.

I bought at circa 20p so I get my money back and a bit on the distribution then await what ever is left to come.

Could be worse.

[zcaprd7] 21/3/2019 09:29

Yes, we are the vulture funds when you need them. They've already taken the Mickey with the delay, and they've been using our cash to polish up the German operations (pay for redundancies etc), before no doubt grabbing it for a pound...

[eezymunny] 21/3/2019 09:17

Yes, leaving a fair old chunk of cash in the business. Gawd knows why...