Rm2 Share Discussion Threads

[ltcm1] 14/6/2018 09:44

But isn't this exactly what Woodford wants, the can kicked down the road and the day of reckoning postponed???

The longer Woodford can avoid having to fess up to this disaster, the greater the chance something else will come good and he will be able to bury away RM2 in the small print.

[hpcg] 13/6/2018 17:44

Better than that dexdringle, in a couple of my accounts I was able to go short with spreadbets then insane pop to 4p. Flat now though, profit bagged.

From the refinance RNS we know the second batch of money from Woodford is contingent on certain KPIs being met.

"The issuance of the second tranche of 1,256,161,970 new Ordinary Shares (gross proceeds of $17,837,500) (the Second Tranche Subscription) would occur ten business days following a drawdown notice issued by the Company and is subject to the satisfaction of the Key Performance Indicators described herein."

Right now the capitalisation is more or less the new money raised, which is appropriate. The fact that a second tranche has been premeditated implies that they think they will need more cash and talk of positive EBITDA only in 2019 also implies that. The scenario which is good enough to pass the KPIs but means they still need more money must be fairly slim, but we can likely say that they aren't over achieving or the share price would not have gravitated. If they need the extra cash and it is granted then that is amber. However at any time the cash runs out and KPIs are not met then that is essentially game over. So its ok, until its not. The share price should be a good guide.

[montyhedge] 13/6/2018 16:47

I always thought this company tried to solve a problem that was not there.

[dexdringle] 13/6/2018 16:45

So what does Woodford pulling the plug look like ? Is it just a case of him refusing to put up any more cash and the company therefore running out of cashflow ? That isn't really pulling the plug though is it as 'pulling the plug' would suggest an action that, in itself, brings the company down (like a bank calling in a loan)?

And I doubt even Woodford has any intention of putting up any more cash in here.

Luckily hpcg as you are not invested here it doesn't matter to you so you can sit happily on the sidelines and gloat at those of us who are invested.

[hpcg] 13/6/2018 15:30

Because it's a failed business! Amount of money poured in is not important, it is the amount of money that comes out of the other end. There never has been, is not now, and never will be, any surplus cash generated by the business.

[dexdringle] 13/6/2018 15:26

Why would he do that bearing in mind how much money he has in the bath ?

[hpcg] 13/6/2018 15:23

To no ones surprise at all one can now buy for the placing price. How long now before Woodford pulls the plug?

[ltcm1] 05/6/2018 10:14

And the last thing the planet needs is more plastic!

[topvest] 31/5/2018 18:45

Dexdringle - LOL. What happens if the tracked pallet arrives, with nothing on it? You must be joking. It much easier and cheaper to RFID chip the products. This is a company that is inventing something that is not needed.

[phowdo] 31/5/2018 09:49

More fool the punters who shovelled that cash into his funds.

[ltcm1] 31/5/2018 09:29

Anyone know how much Neil Woodford has fired into this cash guzzler???

It was 12.5m sterling in 2014 for 7.5%. He raised his holding in 2015 to 21% and then 27% via a placing. And now he has ended up with 68%.

Are we talking over 50m here???

[hpcg] 30/5/2018 13:00

Still not quite at the placing price but it will get there. Those buying at 4p were unhinged.

[dexdringle] 29/5/2018 15:17

Hmmmm Topvest......but given everything that has gone on you'd think the management would realise that by now and knock it on the head. But no, they keep on raising new money and ploughing on. This means that they:

1. are genuinely stupid dreamers or
2. are corrupt and just milking the thing despite knowing it is hopeless or
2. have some tangible reasons to believe that the wheel can indeed be re-invented

I wonder which it is..........

PS surely the USP here is not the fact that the pallets are plastic (or whatever) but is instead the fact that they can be 'tracked'. Clients can be invoiced as soon as the good are received. No dispute about delivery etc. Is that not what is new about this ? It is a sort of e-pallet. Or i-pallet. And we all know what happens when an e or an i are chucked into the mix ????

[topvest] 28/5/2018 18:47

Looks like a failure to me. Inventing something to replace a cheaper wooden pallet (and more sustainable) product that has functioned satisfactorily for decades is a risky business strategy. It’s basically inventing something that’s not needed or wanted. Reminds me of Joseph Joseph.

[hpcg] 23/5/2018 16:12

dexdringle - why does it have to come good? The statistics for new business failure make it more likely to not succeed than to prosper. Too much money spent? Well we do know Woodford has a hard on for the sunk cost fallacy.

[jimmyloser] 23/5/2018 13:40

Thanks Dex.

[dexdringle] 23/5/2018 13:11

"jimmyloser 23 May '18 - 11:08 - 908 of 908

Read the notice, Woodford et al are not participating"

Good point. Note to self. Read the official release and not just the guff from my own broker !

Surely this thing has to come good at some point ? Too much money spent and too much embarrassment likely otherwise ?

[jimmyloser] 23/5/2018 11:08

Read the notice, Woodford et al are not participating.
I will go with over subscribed

impo/dyor

[my retirement fund] 23/5/2018 10:44

If its another opportunity to flush a wad of cash round the u bend, you bet your life Woodford will be interested and will probably be the one front in the que LOL

[hpcg] 23/5/2018 10:42

Woodford already has his. The shareprice will fall to the placing price once the wall of "quick profit" OO shares hits the book.

[dexdringle] 23/5/2018 10:38

So, what is the thinking on here re the attractiveness (or otherwise) of taking up the latest Open Offer shares ?

Is it likely to be fully subscribed ? Will Woodford take up all of his ?

[jimmyloser] 23/5/2018 09:46

I thought the layout of your note was very artistic bordering on pretty, thank you for posting, you clearly know your onions!

Are yours unbiased opinions?

[walbrock82] 23/5/2018 09:24

Here’s my latest commentary on RM 2 international:

[jimmyloser] 01/5/2018 07:27

Kevin Mazula and Co. have certainly gotten to grips with what was needed. I like the re-affirmation of general ebitda in 2019 - didn't need to say that to-day but they did! and the strong hint towards China manufacturing.

Positives to me.

impo/dyor

[jimmyloser] 22/4/2018 10:51

Can anyone advise if this actually happened...tia
jl

Application has been made for the First Tranche Placing Shares and the Conversion Shares, accounting for, in aggregate, 4,435,957,235 new Ordinary Shares, to be admitted to trading on AIM, which is expected to become effective on or around 19 April 2018