Ten Entertainment Share Discussion Threads

[stemis] 11/6/2012 15:21

The mistake people are making is thinking that TEG have some sort of innovative and unique technology. They don't. See New Earth for example:-



So if they aren't unique then its all down to how efficient their technology is compared to others, how good their management is, how well financed they are.

Anyone got any views on that?

[c2b] 10/6/2012 17:31

As I see it the business of treating waste in their own facilities should be profitable, but the colossal overheads of developing, quoting and delivering under-priced treatment projects to third parties:- who then don't pay:- has killed this under-capitalised business. No doubt the business is run by well paid enthusiasts keen on innovating over-costly green technology with other peoples' money. Equally, potential purchasers probably saw this and were not prepared to give undertakings to keep the business in its present unprofitable form, and would have performed radical surgery? Is this why no deal was concluded?

The Annual Report and Accounts is full of complete nonsense on 'Corporate Governance' but clear explanations of what the business does, where it has gone wrong, and explanations of what will be done in future to address these errors are entirely absent.

The straight composting side of the business looks capable of making a Net Profit of £1 million per annum and being grown to twice that.

Have I got this right?

[knigel] 08/6/2012 23:15

He seems to have a few pies in a few pots atm...

[praipus] 08/6/2012 22:02

Peter Gyllenhammar increasing holding to 5.1%

[cerrito] 08/6/2012 16:55

is anyone planning to go to the SGM?
From London you have to take the 930 from Euston to Chorley via Preston.
Not sure if they are trying to put people off by having it in their base rather than in a London or manchester hotel..they would claim they are saving money and for those who go will be able to get a better feel for the company being at their Head Office.
My decision to go will depend on how expensive the ticket is...at least they made it at 1pm so practical to get there from London.

[mgsmith] 08/6/2012 10:44

After nearly 20 years as an amateur investor here's what I've learnt

NEVER invest with your heart ALWAYS invest with your head
When an investment goes wrong accept it, quantify the loss don't add to it
A professional investor makes losses but makes more in profits
Never try to catch a falling knife however much your ego tempts you to follow the price down
A low price and a cheap price are not necessarily the same thing
Concentrate on minimising your losses, profits will look after themselves
When you are doing well take some profits off the table
If the business model is good then hang in for the long term

Some of the above are relevant to the current situation with TEG which is why I will retain my existing holding but not add to it

[praipus] 08/6/2012 10:09

"Why would anyone invest in this company?"

It always seems difficult to invest in a low and or volatile market but I think there are positives with TEG and they will come from the following IMHO:

1. Steady consistent building of cash generating assets.
2. Exposure to carbon credit or similar mechanism.
3. Future spikes and continued long term uptrend in fossil fuels prices.
3.a Governmental and industrial concern over security of supply.
4. Continued squeeze on acceptability of Nuclear energy (did you know Germany is closing down all of its Nuclear power generation?).
5. Expoaure to potential global moral social/political swing to renewable energy.
6. Limited downside.
7. Ultimately cash generating utility charactersitics.

[spaceparallax] 08/6/2012 09:37

Not so far, but often investment is about the long term

[spaceparallax] 07/6/2012 17:32

That is important - manifold so given our parsimonious times.

[madengland] 07/6/2012 17:22

Space, think you have made a good call, having now eyed the detail properly. I expected a drop off in the event of the offer period ending. The open offer was a bit of a surprise. So what else came of the strategic review? I want to hear news on future funding options.

[delladella] 07/6/2012 07:34

The Ex-Entitlement Date for the Open Offer is 8.00 a.m. on 7 June 2012.

Interesting to see what happens today!

[acta_topup] 06/6/2012 21:21

It seems that there is so much managerial incompetence / destruction in AIM stocks at the moment. And it just gets rubber stamped by the toothless shareholder base again and again and again. Something is not working when incompetence is at best repeatedly ignored or at worst rewarded.

TEG, HAMP, BIOM, PMK, MTV, MHG, ZEN, EKT to name just a few! Let's add to the list

What the hell can be done about it? How can BoDs be held to account more than they have been? Many are getting away with absolute murder, whilst salaries continue to be paid...and increased!? golden goodbyes anyone?

[madengland] 06/6/2012 20:24

Space, good for you! I can see more buying at this level, inc PG. That said I can appreciate the disgust of so many on this situation today. I am in two minds on this now. Its a head and heart situation. I think we are all decidedly annoyed at mgt, once again. Will the 2m be the last call, and allow TEG to turn a corner? Change of mgt required, but exciting opportunities.

[spaceparallax] 06/6/2012 14:25

cant see them dipping to 3p - have placed a 50K Buy order for 3.5p

[the shuffle man] 06/6/2012 14:11

The 17p was my averaged down price and i did say i wont be buying anymore and am writing this off as a bad investment.

If the balance sheet is to be believed they have net assets of £21m against a market cap of £4.1m so something looks seriously a miss here.

[mgsmith] 06/6/2012 13:51

How anybody can fail to see bad news in today's results beggars belief. They announced a loss of £7.6 million. Current market cap is around £4.1 million. That's like Tescos saying they made a loss of £44 billion last year. I accept I made a mistake in buying in but at least I'm not in denial. If you buy at below 3p with a view to breaking even at 17p you will be bitterly disappointed and just adding to your losses.

[williamgtheobald] 06/6/2012 13:15

Well at least we know why the accounts were delayed given the current going concern problems. I shall not be partaking in the offer. I believe current managment aren't up to the job, and given their small/non existent shareholdings their interests aren't aligned with those shareholders.

[diku] 06/6/2012 13:05

Yes you will probably be able to buy shares below 3p...just like the last fund raising...I kept an eye on this for the last few months and have had a lucky escape....more of luck than judgement!...

Me thinks the board are running out of ideas and to ask for more money is to simly keep their salaries coming in and the company going for a bit longer....

[spaceparallax] 06/6/2012 12:51

You could be right - I still retain high hopes for TEG - they've just got to grow steadily within the available means.

[the shuffle man] 06/6/2012 12:37

If you wait i reckon you will be able to buy as many as you want in the market below the 3p price.

I too was expecting a bid and have already avereaged down to try and get my money back. My avereage price is around 17p and i wont be averaging down again.

[spaceparallax] 06/6/2012 12:23

I wonder when the deadline is for eligibility for the share allocation - I'd like to buy more now to increase my entitlement at the bargain price.

[spaceparallax] 06/6/2012 12:20

ironically I see little bad news in today's announcements except perhaps the pricing of the open offer, which I'll be more than happy to take up to the max.

[mgsmith] 06/6/2012 12:11

I invested in TEG with my eyes open, knowing that I was hoping for a bid that would give me a good return but that I was taking a risk. It didn't work and I have written off that investment in my mind. Putting more money into what is now an ultra risky investment given the appalling results we got today strikes me as madness. Put it another way if you had no shares in TEG would you invest today?
I think not, so forget averaging down and desperately hoping to break even by buying more and more shares at lower and lower prices. It does not work believe me I've been there. I'll just hold on to my current shares and maybe they will give me a return one day. Bottom line is that whatever happens I know exactly the maximum loss I will make and I don't intend to add to it.

[boonkoh] 06/6/2012 10:50

At the current overheads the company will definitely not be profitable in 2012, unless they've really cut the cost base and/or revenues increase in a big way.

The first - well, I don't have confidence in management to do some good and take a paycut.

The second - the "outlook" section of the releases make no mention of any firm upcoming orderbook or preferred bidder for any contracts. The industry operates at long lifecycles, so I don't expect to see any positive updates for the next 6 months.

So where does that leave us? Definitely another circa £500k-1m cash burn in 2012, and probably another fundraising on the cards towards the end of this year to "fund opportunities and provide working capital for exciting growth".