Skil Ports & Lg Share Discussion Threads

[diku] 19/9/2016 14:51

Can the Indian Government take a stake here if they thought the port will give a good return in future?...not to late to convert into a holiday resort/hotel!!..that would create lots of jobs for local people...

Is it going to be another normal procedure...rns after market closes?...

[azalea] 19/9/2016 12:58

A good while ago, a poster stated that N.G. launched the company without himself or Pavan paying for their stakes, albeit incurring costs to form the company in the first place; whilst raising money for the project by offering the balance to institutions. Whilst I cannot see a placing at 5p, it would be a cheap option for him to maintain his position as the largest shareholder.

[harebridge] 19/9/2016 12:58

UKInvestor- you're obviously hurting. The only advice I can give to you is not to get emotionally involved with your shares.Thanks for your time.

[lefrene] 19/9/2016 12:38

In the interims they talk of preliminary discussions with possible partners/end users. Looking at the figures one can see that £37 million was consumed in the previous 6 months and they flagged the need to look for more funding. They also mentioned two more non execs to join and claimed that some part of it would be operational by year end, that would be a first! So far two out of three. The 30+ hectares has value, and it's up to the board to leverage that value for the required finance deal. The sooner they get something working then the sooner the value of the facility will rise. At the end of June they claimed £18 million in hand and £15 million left to draw from the Bank at the onerous 13.5% Chances are they have £15 million left in total given the previous burn rate. So what is the least they can spend to get the thing earning some income? How do they do this and not dilute existing holders to near zero? One suspects that the directors will grant themselves generous options to cover their positions?

[family values] 19/9/2016 12:31

harebridge

If you buy now you are going to get diluted into homeopathic cures levels.

A placing now would be below ? 5p, 3p?

[harebridge] 19/9/2016 12:26

Paul Scott (Paulypilot) wrote this in Feb:SKIL Ports & Logistics (LON:SPL)Share price: 78.5p (up 14.5% today)No. shares: 44.0mMarket cap: £34.5m(at the time of writing, I hold a long position in this share)Website update - all rules are made to be broken in special cases, and this is one of the very rare situations where I'm prepared to believe that an Indian AIM company may be genuine. The company has been building a new port (barge unloading) in India, and the market remains very sceptical about it.However, from making enquiries, I'm reasonably comfortable that the project is real. The company has published drone video footage on its website, showing the site under construction.I suppose it's possible that this might have been created in a CGI studio, so what do readers think - does the video footage look real to you, or not?I've held shares in this particular company for some time now, as it is either an extraordinarily elaborate hoax, or it's real, If it's real, then the upside from such a low valuation could be considerable. Management seem to have previously built large infrastructure projects in India. We'll have to wait & see what happens, but I remain cautiously optimistic, that this one might be genuine.Oops!

[cockerhoop] 19/9/2016 12:21

Mr Gandhi could chip in via the placing to keep his stake at the same level.

[jojaken] 19/9/2016 12:19

Mr Gandhi is a large shareholder not a bond holder. While plenty of fault can be found in his governance, would he really be ready to let his friends profit to his loss?

My guess is that it will either to sold to a third party or a compromise will be found. Either way the probability is that there is value here, but only for those who understand the considerable risks.

[cockerhoop] 19/9/2016 12:14

If you look at the potential maths here:

Say SPL place £36m at 5p per share, thats 720m shares meaning that current holders with 44m shares own 5.7% of the new company. New holders contribute £36m for 94.3%.

[lefrene] 19/9/2016 12:09

H'mm gets taken by creditors and then friends of Mr Gandhi step in and take it for a song? Is this where the Lord Flight supplies the 'friends'?

[jojaken] 19/9/2016 11:59

MrX001 I beg to differ. While I haven't bought back yet as I want the price to stabilise, I really question whether the fact that a company with a half finished port worth $200m on completion and with debt of less than half that if finished is worth less than $10m. I know it is a risk but I really question whether some of the larger shareholders would be really ready to walk away and let the banks/bond holders pocket a handsome profit!
Having said that I am in no hurry and will certainly stagger any purchases. IMHO

[mrx001] 19/9/2016 11:47

Can't see the point in buying these at the moment. Whatever the fundraising price is, which will be at a discount to the current price will result in a price drop. So I think if anyone is interested in buying they should wait until the fund raising price is announced. Personally the management have no credibility and cannot be trusted so they are a bargepole job for me.

[azalea] 19/9/2016 11:46

I cannot see the BoD getting a successful 'placing' away at circa the current price. however, if it did and was large enough, might it change the order of major share holdings so much, that it could then pose the threat of a bid? The port will be completed, regardless of financial considerations.

[horndean eagle] 19/9/2016 11:28

Fundraising isn't a surprise. The scale of it is crazy. Personally I can't see anyone giving them what they are looking for. Existing holders already wiped out of existence so unlikely to feel the need to protect their position. Best guess it gets taken by the banks with zero recovery for holders. Been a very sorry tale.

[kev0856153] 19/9/2016 09:45

i thought they spent ipo money first and have only now started drawing down the $48 mill debt

[my retirement fund] 19/9/2016 09:40

Yes of course they will. However banks dont like owning half built complicated projects so will sell back to connected parties immediately if they are guatenteed of getting their principle back.This is why the first thing theu did was raise as much debt as feasible and draw it down asap l9ng before spending the ipo money.Its clearly been the plan from the outset imo, however it was flagged many many times over the years.

[kev0856153] 19/9/2016 09:30

Isn't there going to be a near immminent problem of paying the 13.5% interest on $48M of debt. How much have of this have they drawn down already?
$6.5M in interest payments. What are the terms of this debt. Is there a possibility the debt holders will end up owning this company?

[yasx] 19/9/2016 09:27

PJ,

The biggest clue was that despite a buoyant market in India, the Chairman chose to list here - this was even more baffling given he repeatedly espoused that he had a glowing reputation to rely upon, and that under his watch no project had ever suffered a delay. With that sort of reputational profile, surely investors back in India would have been queuing up to throw cash at him?

Instead they chose to come to AIM, the platform with a flavour for overseas duds.

[pj 1] 19/9/2016 09:11

The 'no fly zone' was the biggest clue all those years ago. Once a ....

edit with hindsight

[diku] 19/9/2016 09:04

Watching & waiting to see what happens is the problem...is that what the CEO & the board have been doing?...

[deepvalueinvestor] 19/9/2016 08:21

Fair comment, I see someone sold 10k at 15p. Like others, I am watching and waiting to see what happens.