Triplearc Share Discussion Threads

[threewheels] 07/12/2006 12:07

Minho don't believe all the sales hype - MCM is one of Dr David Wong's two offshore investment companies (see p12 of the fallacious 2004 accounts). No more Wong interest on the board of TPA anymore unsurprisingly leads to a reduction in their shareholding over time. (Still two Wongs could never have been right !! - sorry couldn't resist that) And a 20m share overhang is a bit of a downer on Altium's long term prospects of 10p a share. Anyway Christmas is coming and HSBC can look forward to another £500k of debt and £300k of interest coming their way - good news for someone!

[sithuk] 06/12/2006 19:12

Why would an institution selling be a reduction in debt for TPA?

[minho] 06/12/2006 17:23

LOOKS like a forced sale by an instution,where by they must sell,still good time to top up news soon,this should be a reduction in debt.

[minho] 01/12/2006 12:45

THE printing press is going like the clappers to boost this conpanies fortunes.DYOR Now the buys are comming in at a bargain of 3.37 showing as sells FILL your boots.Must be some news soon what with the odd big sell.

[pippit] 29/11/2006 17:04

Ignore him Minho.

[clarkyboy1] 29/11/2006 08:37

Minho, what's your reference/justification for this statement? The Stevie Wonder book of company analysis??

[minho] 28/11/2006 17:54

This co will be out of debt soon and showing a good profit,there is one thing for sure the management are doing a very good job in bringing in lots of orders.The management have resently bought shares.GET READY FOR LIFT OFF

[pippit] 24/11/2006 15:53

Clarkyboy why on earth do you hold shares (if you do) in this company when you loath everything about it. Could it be that no one else will listen to your nagging?

[clarkyboy1] 24/11/2006 15:46

Not a pessimist Pippit. My observations are, in my view, a common sense analysis of the financial and supporting information provided by the company. The debt position and lack of profit alone would suggest the future isn't bright for this one. If it was, I'd expect a show of confidence by the Board by buying in, and sizeably, but there hasn't been. I wonder why?

[pippit] 24/11/2006 14:42

Clarkyboy if I was not an eternal optimist I would not buy shares in a company such as TPA. As for wearing large blinkers you are wrong. I never invest in penny shares unless prepared to lose my lot. You on the other are an eternal pesimist and should have nothing what-so-ever to do with companies like TPA or you could lose your savings and resort to blame the company for it by knocking everything it says or does. Come to think of it...

[minho] 24/11/2006 11:07

Overhang nearly gone.

[davethehorse] 23/11/2006 14:56

Agree - 10% absolute max on margin but doubt its that much. If its a fixed price job they might have underquoted to get the work and struggle to deliver at the price meaning margins might be eventually be 5% or less....

[clarkyboy1] 23/11/2006 14:21

Kimboy, the OD facility is £250k and an £800k repayment is due EVERY quarter, made up of £500k capital and about £300k interest according to the last set of accounts.

I agree they have won some contracts, but CW use HH Associates for their work so how likley is it that they have put the AOL contract work that way instead of to TA. IMHO Betterware appears to be a high volume low margin operation and no way would the quality of the catalogue support a 30% margin.

[markthecarp] 23/11/2006 10:10

Margins are highly unlikely to be anywhere near 30% - nearer 10% absolute max imo. As for a large part payment - why would they? They will pay per campaign surely.

[dell314] 23/11/2006 09:45

Kimboy - Where have you got that O/D limit from?

The annual accounts 2005 state in note 21 that "the Group has an annual overdraft facility of £0.25mln".

It's also interesting to note that the £4mln revolver is maxed out.

All IMHO, DYOR etc.

Rgds
dell

[clarkyboy1] 23/11/2006 09:04

Pippit, I know you're an eternal optimist but even with your extra large blinkers on you must see that this isn't a significant contract.

If the win had been for something a bit upmarket then I might agree that margins would be reasonable, but 'Betterware' doesn't live near 'upmarket'. This looks like a 'volume' rather than a 'quality' job and the margins are likley to be razor thin.

As for the debt position, how do you think the company can afford to repay it's debt in 2H given 1H was spent squeezing debtors and stretching creditors as much as it seems they have? DYOR etc

[dell314] 22/11/2006 15:16

davethehorse - I'd imagine that this contract is the result of winning a competitive tender and therefore margins aren't that great.

Funnily enough, there was one of these Betterware catalogues shoved through our door, the other day, so I have one to look at. It certainly looks like a low budget basic print job. FWIW, a quick glance over the covers doesn't appear to reveal who currently prints it.

All IMHO, DYOR etc.

Rgds
dell

[pippit] 22/11/2006 14:58

Still the same old Clarkyboy I see. I suspect nothing will please you more than to put the company into liquidation. WHY?

[minho] 22/11/2006 14:38

There should be a good part payment with this big order,we might get an announcement to that effect?

[davethehorse] 22/11/2006 14:20

Yes I suspect a big overhang to clear - debt the big problem here but possible recovery story - still the big question remains - WHAT ARE THE PROFIT MARGINS ON THESE CONTRACTS??

[minho] 22/11/2006 14:07

NONMAN There are lots of over size buys here today and any rise might be held back but we will see, should be interesting.

[monman] 22/11/2006 11:21

must be a large sell in the wings because this is fairly heavy buying for this share

[quotes_4_u] 22/11/2006 10:22

Maybe Alti are taking part in a placing to raise funds for this
payment, either that or they have a big seller.

They are 4p offer, next offer is 4.75p, they've been there since
8.14am and took plenty of hits but dont move up as of yet.

[clarkyboy1] 22/11/2006 10:20

Kimboy, if the company doesn't make £3.2m per year in profit, every year, then it can't sustain the debt repayments. The interim cash-flow shows that debt repayments in 1H were made by driving down debtors and allowing creditors to increase, a situation that can't continue for long. Profit, and lots of it, are the only answer to this problem, and they need it in a short space of time. In addition, the repayments and interest of £800k are due every 3 months, not £400k per quarter as you think.