Stanley Gibbons Share Discussion Threads

[jeanesy] 23/11/2017 19:17

Is anyone still willing to make a punt here ? Im so glad that i haven't so far !!

[pugugly] 23/11/2017 09:48

Down yet again. Will the last shareholder left standing please visit the offices and make sure the lights etc are turned off.
A classic example of how to destroy value - Case history should be included in all Business School courses.

[superiorshares] 22/11/2017 18:46

jasdan /pre .. your not getting it !. The share price is still going DOWN !... They sold nothing in the for sale process . In fact they completly forgot to mention the fact, they told everyone in the results, that one or more bidders were interested in parts of the company ??. The bankrupting of the subsidiary means nothing but a loss of 12 million stock for no return !.. Its a takeover alright at about a penny per share, no more than that . They are still going too have to service the huge debt but from what will be a very smaller company . That could be crippling . They again reminded people in the update that sales are slow in investment grade stock . That was your clue to their next profit warning. I said I thought it would go below 5p. Im in for the gamble at between 1p and 3 p .

[jasdan] 22/11/2017 10:33

pre, no point in making such obvious comments on here. No-one else gets it.

[pre] 22/11/2017 09:42

sitting takeover target now imo...liabilities relinquished as no longer need to support subsidiary...cashflow will benefit too imo, dyor:-)

[superiorshares] 21/11/2017 18:05

Jasdan .. if you are talking positives from that statement. you are seriously deluded brother !..The next set of results will report a loss .

[orinocor] 21/11/2017 15:51

Blimey so jasdan there are £54m "contingent" liabilities that are not even on the balance sheet? I thought everything was transparent here now.

[clocktower] 21/11/2017 14:38

Spot on PUGUGLY. The lights seems to be turned down here now, seems like the dimmer switch will be turned slowly down to extract the last pennies left in the meter, which seems to be in much need of being topped up but with little likely-hood of anyone coming to rescue those still left in the room. They will try leaving this in the hands of PI`s who dream of making a killing.

[pugugly] 21/11/2017 13:47

jasdan: If you owe your bank a lot of cash the relationship is always constructive as they want to get back as much as possible - if you owe them not much they tend to be far more agressive - Look at ALPH Their bank is "supportive" as they reckon they will get more cash back by allowing the business sell off parts, than they would get by putting into adminisrtation

[jasdan] 21/11/2017 13:36

"The measures announced today will fundamentally limit the exposure of the Group to the buy-back liabilities and remove the cash-flow burden associated therewith."

If that is not a positive statement, then what is?

These liabilities that the Company is now ringfenced from amount to £54m of contingent liabilities plus £11m further liabilities already on the balance sheet.

That is £65m of liabilities that the Company is ringfenced from.

How can that be bad for shareholders going forward?

[jasdan] 21/11/2017 13:28

Without the liabilities, this must be a takeover target?

Perhaps now the directors can buy some stock - the company is no longer in a closed period?

I note that wageroll is down sharply, that the coin business is doing well, and that the stamps remain subdued because of the previous working capital constraints. This must change going forward so it is surprising to see anyone selling out. On the contrary, this must be a target.

Several times SGI comment that the relationship with their bank is constructive - this is positive as well

[pre] 21/11/2017 13:24

Subsidiary dependency reduces cash flow burden as mentioned in post 3164 plus it's ring fenced therefore will be better for SGI now going forward imo.

[clocktower] 21/11/2017 13:22

Time Gents! and that does not mean time to buy another pint.

So much for buy-back guarantees - the only guarantee is that the tax man continues to draw blood come what may, and death comes nearer every day.

Time this was put out of its misery imo.

[pugugly] 21/11/2017 12:43

One hell of a mess -


Agreed re Gernsey but I suspect there may still be claims against SGI - Might well be a lawyers field day - Depends on how well Guernsey ring fenced. The Coys lawyers should have done a great job but those holding buy back guarantees will have their lawyers looking for any potential holes in the separation of liabilities. (imo)

[sikhthetech] 21/11/2017 12:29

end of FSP...
SG Guernsey in administration, reducing the cash burden on SG plc...

"Hence, the Group will be free to continue to trade in the normal course of business without the cash-flow burden of the buy-back guarantees."

[ragewarrior] 16/11/2017 22:29

Nice 720,000 buy ....

[jasdan] 13/11/2017 20:51

Like everyone else, I do not know if SGI will be reporting a profit when they update us again at the end of December, but one thing's for sure - their losses will be sharply reduced. They have cut their staff numbers by half, their wageroll has been decimated. And all these auctions are getting and keeping the wonga flowing in.

So, although cashflow is tight, I would guess it is slowly getting a lot easier. And then there is the culmination of the formal sales process. As certain unwanted parts of the operation are divested, so we must return to a profitable, albeit smaller entity.
As to what it is then worth? Who knows, but it is going to be somewhere between 6p a share and £4 a share, and my guess is eventually it will be the high double figures to low three figures. Current share price completely undervalues SGI, but they have no institutional support at the moment.
According to the December Gibbons Monthly magazine, the recent SGI Indian States sale went rather well - should be good for sales.

[superiorshares] 09/11/2017 20:19

Two things to consider 1. Stanley although should not have the huge losses at the next results, as the previous results were exceptionals in the main. It still doesn't mean they will report a profit ?.. still a very good chance they will report a further loss ?
2.. A major stock market correction will happen sometime , some say its long overdue ?. now that would seriously cane the share price !

[superiorshares] 09/11/2017 19:56

sikhthetech.. in the results they said it was unlikely that they would receive a bid for the company. Their is a possibility they will receive a bid/s for portions of it ?.. don't get too excited .

[sikhthetech] 08/11/2017 17:02

I hope we hear about the FSP soon... if there are more than 1 bidder then it could get interesting...

The next TU could be interesting, if they can continue to service/reduce the debt and increase the core business...

[jasdan] 08/11/2017 10:28

Pugugly, you need to look more closely at last month's update. First you will note that it is for the period up to end of March 2017. It is now November. We are over seven months later on, and the financial position of SGI is not as stated in update. What you are failing to especially take account of is that if you just value SGI on a net assets per share basis, then you need to understand why the net assets are that value. It is because of the large amount of exceptionals / impairments / write offs etc which all form part of last year's trading. They are largely non repeatable. If you therefore redo the accounts without these impairments etc, the position dramatically improves, so the NAV would also sharply improve.

Even in the introduction to the report, SGI comment that the trading losses will dramatically reduce [page three of the report].

Read it and then reconsider the situation. Look at the list of exceptional operating charges and cost of sales as broken down on page 12. Imagine the next update without these - the difference will be marked.

Can everyone else please do this before responding?

[ragewarrior] 08/11/2017 10:12

L2 gone up again today, another delayed BUY should show after 16:35...

[superiorshares] 07/11/2017 21:11

Heres my ten year view. should it not go bust shortly ?.. share price will be 5 pound plus .

[pugugly] 07/11/2017 18:11

jasdan - How ndo you reconcile your target price of 25-50p with net assets per share as per accounts of 10.1p per share.

Intangible assets " Intangible Assets

Except for those acquired in the Noble & Mallett acquisitions, no value is attributed in the consolidated statement of financial position to the Group's brand names, the value of the Stanley Gibbons stamp referencing system, editorial intellectual property or its database of customer lists as an accurate valuation of these items would be impractical to establish and the capitalisation of internally generated assets is not allowed under IAS38. External costs incurred in the development of the software for the Digital Asset Management system and the redevelopment of the Group's websites have been capitalised and are being amortised in accordance with IAS38. "


Also "Basis for qualified opinion on the financial statements " Needs an hour or so of spreadsheet work and digging into old accounts (imo) to quantify possible downside risk. (neither time or wish to do at the moment - too much uncertainty)

Goodwill (If I am reading the accounts correctly) as at 31st March and included in net asset value was £7.77 million - v- Market cap per advfn of £12.3 million.

Basically having studied the accounts I have a MASSIVE HEADACHE - Decision Keep finger off buy button for the moment until fog clears a bit.