Volution Share Discussion Threads

[tara7] 05/2/2010 07:52

QS9 what was in the paper please.!!

[qs9] 05/2/2010 07:43

good post GG thanks. Rumours in Eve Standard last night about more news afoot but no RNS!

[soulsauce] 04/2/2010 08:01

Welcome back greengiant and thanks for your thoughts.

[tara7] 04/2/2010 08:01

Good to see two of FAN*S players /managers on the sky, spurs match last night. [Harry redknapp and young Beckford.]

[greengiant] 04/2/2010 07:59

Just come back from a week of skiing and must say the snow was fantastic.

On FAN, good news regarding the disposal and the subsequent proposal of a reduction in debt. I just hope that the reduction is on the Mezz debt which has a coupon rate of 10% + LIBOR. As regards the price, not bad, not great but okay. A 5x EBIT is okay. As regards the trading update and the sale of the sports business. I can only see this as being positive and if you use the same multiple of 5x EBIT, the company should generate profit of £2.2m. So the sums in my head are around a £10m - £11m asking price. More realistically, it will be around £8m though.

I reiterate my view that debt is not a bad thing, the ability to service the debt is the issue. With the majority of the debt being cheap debt, the issue remains over the Mezz, once this £3.75m has been repaid, interest costs should drop by over £400k per annum.

gg

[soulsauce] 03/2/2010 16:10

Nice, wondering if I should have bought some more now.

[tara7] 03/2/2010 14:08

£400.00 buy puts the price up.

[soulsauce] 03/2/2010 13:29

Aye nice to see a tick up, fingers crossed for a lot more.

[tara7] 03/2/2010 13:26

More buying, next Fri[12th] should be the fun day.

[tara7] 03/2/2010 08:34

Your trade went through on PLUS at 8.23 good luck.

[dd776] 03/2/2010 08:27

first thing you could buy 25000 on selftrade but by the time i sell others and come back i could only pick up 7500, no sign of the trade, look forward to the 12th feb

[moorsie2] 02/2/2010 18:00

Real opportunity here now.

Good trading statement on the 12th plus news of Sports spin off and debt pay down and hey presto we have a new business with good margins, recurring revenues and a multiple of todays share price.

60p target for the end of February is not unrealistic

[soulsauce] 02/2/2010 13:23

egoi I agree.

Although there seems to have been fewer high profile names tranferred in this window there still have been a significant amount and many of which might be on FANs books being smaller names.

It would not suprise me if the goalie from Portsmouth to Stoke was among them.

[egoi] 02/2/2010 13:12

Yeah it's a shame it's all going straight to the bank but at least it reduces debt. Anyone know off-hand how much debt they have - a lot more than 1.5 million if I recall. Nevertheless stock is starting to look interesting at this level if we get a positive trading update next week.

I'd have thought any moves to enable transfers at any time would be seen as a positive?

[tara7] 02/2/2010 13:04

Note also going to pay off debt with cash, not being used for working cap.

[tara7] 02/2/2010 12:30

Football is now a tiny part of FAN and the cash i understand comes in over a period of months and years. The Jan transfer window is also a hell of a lot less than the summer. Top that with the fact Fan just might have done ok in any event.

[lionheart79] 02/2/2010 11:18

The lack of transfer activity last month is a little discouraging but I am holding for the mid-long term here.

[soulsauce] 02/2/2010 09:13

Cheers Tara lets hope so as I have broken one of my golden rules buying back in to this.

I don't usually buy back in to shares that I have lost money on. However the downside risk now here should be minimal compared to 50p+ that should be possible IMO.

[tara7] 02/2/2010 09:10

Have no fear here, they got a huge bank loan when only one in a thousand companies would have got it.!!! IE the bank see what FAN are about. Also note debt was priced at 7% ish when the big deal was done. That fell to 2.5% within weeks. those lower repayments would have helped no end.

[soulsauce] 02/2/2010 09:02

Yep tara that is what I thought. When there is any good news you are lucky to get 500 on line at a premium.

Hopefully it is good news we will be getting from now on.

It would be nice to sell one of the businesses for close to the current mkt cap to really put a line in the sand and get that debt down to negligable amounts.

[tara7] 02/2/2010 08:49

Well done you, have to get stock when you can or the MM will screw you.

[soulsauce] 02/2/2010 08:41

Just bought back in after a long while out, just a small amount. Intentions are clearer with todays news and the Mkt Cap is currently discounting complete failure.

We know several parts of the company are worth more than the current mkt cap alone.

Will buy more as the risks lessen and the debt lowers.