-3x Short China Discussion Threads

[selkirk69] 15/6/2011 09:03

Don't understand all this maybe I'm seriously missing something.
My question is: Who's going to manage the SC business better than SC ?
4 Seasons ? They're all in just as bad a financial position according to the press.
Where are they going to get the staff from - use SC ? Well apparently they're not up to it and there's not enough of them either.
Are they going to have intake from LA's at the rate they're paying SC - surely if SC can't afford to then neither can anyone else.
Will the replacement operator be able to afford the rent, SC can't on the current package so how will they.
The company in the best position to solve this crisis and run this business is SC hands down and everyone knows it, even SC thank god.

[aspers] 15/6/2011 09:03

Typo...in my opinion this aint going into admin...!!! A lot will come out of todays meeting from all concerned...we will see SCHE emerge the winner in the longer term!! :-)

[prhc] 15/6/2011 09:02

Straight fight between bricks and brains. Bearing in mind the two dimensional nature of UK zeitgeist the main story of bricks causing the pain is not absorbed into the psyche. If the bricks were reasonable, the pavement rent needs to be cut by 25% permanantly with SCHE management contract open book accounting on the basis that both staffing costs are INCREASED in order to provide a humane service and the surplus management revenues are shared between the bricks and the brains

Any UK tax owed should be reclaimed from the bricks

In this enlightened scenario, why not buy it? I fear that all interests will not be aligned and further implosions will occur. Good luck:- as the Dragons say "I'm out!"

[typo56] 15/6/2011 08:55

Aren't the meetings also about putting plans in place, should the company go into administration? If that should happen I can't see there being a material return for ordinary shareholders.

[ajmace] 15/6/2011 08:32

Yes, today's meeting will be critical.
Is news expected before 4.30 pm?

[aspers] 15/6/2011 08:18

I see this settling down at about 15p once today's meeting is finished!!

[stevespi] 15/6/2011 08:08

Here she blows (again)

[ajmace] 15/6/2011 07:58

or onwards and upwards.....?

looks to be up from 9 at the start

[risk1] 15/6/2011 07:37

await the shorters moving back in today

imo dyor etc

[ajmace] 15/6/2011 07:18

the large 1000000 buys yesterday were, in fact, earlier in the day not late afternoon.

[aspers] 15/6/2011 06:44

Radio 5 have not done their research too well as they said the share price was around 5p!! They forgot to mention the 50% price increase yesterday!!!

[warranty] 15/6/2011 06:32

The future here is still dangling on a thread and any one of a number of issues could push this company under. The Government and Landlords could if needed take on the running of the entire business so I'm sure won't be pushed too far to placate shareholders of a private company. The fly in the ointment for me is HMRC as they are not known for their sympathy where taxes come into play. Let's hope somebody in Government leans on them to at least be a little less "official". A smaller slimmed down company may in the longer term have more value but it's still hard to see it coming through without at least massive dilution to existing shareholders. I thought the programme on 5 Live this morning was pretty well balanced though and wasn't just bashing SCHE as I thought it might.

[edmondj] 14/6/2011 21:42

A wide boy!

[aspers] 14/6/2011 21:40

Some nice late trades....who bought two lots of 1 million shares???????

[boffster] 14/6/2011 21:14

In the interests of impartiality, here's a slightly less euphoric article

[boffster] 14/6/2011 16:13

We'll see Seans, if shareholders are not getting wiped out, as would seem to be indicated, then I think it very likely that whatever happens this will be worth more than £20m..

[2seansflag] 14/6/2011 16:06

the biggest winners are those who day traded yesterday to today expecting a bounce, and they got it

[nermil] 14/6/2011 15:02

Held out for so long but there is only so much doom and gloom you can listen to before you give in. I wish I'd held but oh well. GLA and fair play to those who kept at it. I've been on this board saying they won't go under because there is more to lose than gain from it from the point of view of all involved. But oh well..you win some, you lose some.

[warwick69] 14/6/2011 12:38

Landlords throw Southern Cross a lifeline
Tue, 14/06/2011 - 11:08 | Sarah Modlock


Embattled Southern Cross Healthcare (SCHE) has been thrown a lifeline by its landlords in a deal made on Monday night.

An emergency rescue plan was agreed with the landlords' committee which represents the 80 landlords who own the company's 751 care homes.

It means that no care homes will be closed in a transition period that will last until at least October.

Southern Cross shares soared for the second day running, rising more than 66% in morning trading on Tuesday as the news was welcomed by investors.

The proposals include an overhaul of management at the reworked company, which could be less than half the size of the existing Southern Cross and operate under a different name.

Daniel Smith of Grant Thornton, chairman of the landlords' committee, said property owners have "agreed in principle that they will make significant financial concessions in order to achieve a sustainable solution", which is understood to refer to short-term rent cuts and longer-term lease changes with Southern Cross or new operators.

He added: "Our overriding concern at this time remains minimising disruption and concern for residents and their families."

The proposals are believed to include an agreement for some kind of long-term rent reduction on the condition that key creditors write off some of the company's debts.

The plans will be tabled tomorrow in a meeting with the government and the company's main lenders, including Barclays (BARC) and taxpayer-backed Lloyds Banking Group (LLOY), which are understood to be owed about £40 million between them.

It is hoped that HMRC will also be supportive over the £20 million it is owed by Southern Cross.
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[sul2] 14/6/2011 10:30

It will only tank it its going bust. Imo it is a going concern for the next few months atleast so depending on negotiations with the government (who will not let this fall), SCHE is going up short term to around 15p. Im expecting a strong finish today ahead of news tomorrow.

[bogg1e] 14/6/2011 10:18

boffster, i know mate. Im looking at this sp, thinking whats the chances it will tank by 40% within two weeks - frigging high, but if your 85% down like i am with an share price this volatile, may as well sit it out.

[boffster] 14/6/2011 10:14

SC board would be wise not to take any favours from the banks and particularly not the gov. Ask NRK shareholders what happens when they do that!

[sul2] 14/6/2011 10:04

lol...news tomorrow that the government will also be taking a 'hit' by writing off £20m tax. Hopefully.

[boffster] 14/6/2011 09:53

I think I would look a bit of a prat if I held on all this time and bailed as soon as it looked like things might be going my way, so rightly or wrongly I will have some cajones and hold on this time.