William Sinclair Share Discussion Threads

[castleford tiger] 28/5/2015 09:13

OK so where are we.........

On 30 November 2014 the Group completed the transfer of its working capital facilities to Leumi ABL Ltd. The new facilities comprise debtor and inventory facilities totalling GBP26 million and amortising loans of a further GBP3 million. The working capital facilities are at 2.1% and 2.5% above Libor while the amortising loans are at 2.75% and 3.0% above Libor.

So its fair to assume that the banks are owed 29 million from the above.
We also have the bond holders being owed circa 8 million.
We have a defined pension deficit of about 13 million.

We have the current period of trading loss/profit to add or reduce the above.

ignoring market cap which is I agree almost pricing in a failure. Where is the value?
The biggest issue I see is that the peat free compost made from green waste is not that good. Repeat orders are reducing as peat based composts are still available.
Therefore the company and this is before any more write downs may still be losing money!

So please explain how I have this wrong and how and why there is value here?
First thing you would do is a form of pre-pack especially as the pension boys will want their share.
Am I wrong?
Tiger

[caveat_emptor] 28/5/2015 08:49

Agreed mostly.

[rachmanninov] 28/5/2015 08:14

Hard to buy in the middle.

[rachmanninov] 28/5/2015 07:37

To sell or to buy?
That is the question.

[caveat_emptor] 28/5/2015 01:13

You're full of joy!!!

[castleford tiger] 27/5/2015 18:18

Caveat

I have been expressing my opinion on the company for a long time. Well before you bought in.
As a pretty good Bean counter and an investor of many years I spotted issues here.
I thought this may be a good buy at one stage.

Anyway you can filter me or just ignore me...........I certainly don't want you as my friend.

Nocton
Cash is short and its short now. I am not sure with their backs to the wall they can do it fast enough.
They raised the last lot at a crazy price.Costs were too high and the final payment for Bolton Fell just went into a black hole.
The compost market is at its peak now and they need cash!!
Invoice discounting? or is that in place?

I really don't like it and see shareholders getting wiped out.
Callum
We have all had them( sometimes too many) and cutting now may be the best you could do.I often hang on too long!!

as every guys DYOR

Tiger

[nocton] 27/5/2015 16:39

The market cap of Sinclair is now less than £5m. I expect they will decide to sell their other sites and consolidate at Ellesmere Port where they have plenty of land for development. The original/Lincoln site should fetch £5-10m alone as discussed last year, so they may not need a rights issue. It seems to me that by the end of the year the shares will either be worthless or if the new chap can get things sorted they will be worth at least 50p. I shall just hang on as if they go down I have got lots of capital gains in other AIM shares, e.g. Dart Group, International Greetings, to set against the loss. As Callumross says 'As long as the "good uns" more than make up for the bad investment decisions, then life is fine.'

[caveat_emptor] 27/5/2015 16:15

Advice and opinion are not the same.

[3800] 27/5/2015 15:35

It looks like the squealing has started by someone who is looking for someone else to blame for his losses. Like many more here I have lost plenty on this one but aren't trying to look for a scape goat. 3800

[callumross] 27/5/2015 15:23

Caveat - give it a break. Who knows whether Castleford's advice is sound or not but you should not be coming onto bulletin boards if you get upset by such "advice" as he has proffered. I see much more extreme opinions than that every day. Clearly you are hurting with regard to your investment in SNCL. I have lost thousands on this investment but I don't blame anyone else for my wrong investment but myself. I was fortunate enough to get my last 15k out at 22.55p early yesterday and was surprised to get as good a price as that after reading the RNS at 7a.m. so it almost felt like a result! As long as the "good uns" more than make up for the bad investment decisions, then life is fine.

[caveat_emptor] 27/5/2015 14:24

YOU here for the good of my health?

[caveat_emptor] 27/5/2015 13:37

Advising and Tipping are one and the same.

[my retirement fund] 27/5/2015 08:43

I see he also owns PVR the Irish Penny Share dribbler, an oil rainbow riches pipe dream.

enough said!

[castleford tiger] 27/5/2015 08:35

oh I see now you just bought into this.
Sorry............I had not read back.

Tiger

[castleford tiger] 27/5/2015 08:31

C E
I don't tip or give advice. Its my opinion as is everything that is posted on a BB.
I read them because we all miss things and cannot have in depth on every company you follow.
The cash burn here has been far too high for too long.

People consider there future in a company not on what people say.
No idea why you are so touchy about it.

Tiger

[caveat_emptor] 27/5/2015 08:25

Well......you may well have advised and continue to do so...
and it may well be good advice....
BUT utterly ILLEGAL nonetheless.

[castleford tiger] 26/5/2015 15:39

What I said on the 5th of march over on iii..............



The Group has issued a principal amount of £8.24 million of Convertible Notes. The Convertible Notes have a maturity of 5 years and carry an interest rate of between 8% and 11% per annum, reducing with the principal amount outstanding. Interest may be either settled in cash or added to the principal amount. The interest rate may be varied upwards in the event that spot LIBOR plus 3% exceeds 8% per annum. The Convertible Notes are redeemable by the Group in whole or in part at any time prior to their maturity.

Under the terms of the Convertible Notes the Noteholders are entitled to receive 5,665,000 warrants (the "Warrants") to subscribe for new ordinary shares of 25 pence (the "Shares") in the capital of the Company at a price of 80p per Share. At their maturity the Convertible Notes may, at the option of the Noteholders, be converted into Shares at a price of 159 pence per Share ("Conversion").

Issue of the Warrants and Conversion (the "Equity Features") both require the approval of shareholders in a general meeting of the Company. Should the Company fail to approve the Equity Features the interest rate payable on the Convertible Notes would increase to between 25% and 28% per annum, their maturity would reduce to 3 years and the Group would not be able to redeem them prior to maturity.

The Noteholders are also entitled to appoint a non-executive director to the board of the Company. The Company expects to work closely with the Noteholders to identify a suitable individual.

That was raised at a cost of 1 million to the company. look at the rates we are paying, plus warrants.
the loss last year was about 5/6 million but after the net 9 million we got ( the other 3 disappeared) we showed a small profit.
However it was not a trading profit............
Now as the season is about to start they warn again. Goodness the season starts at Easter!!
Just very worried that this is all out of control and they have lost market share.
Cash will be an issue here and until that is sorted I think its a massive AVOID.
I hold no position in the company long or short.
Tiger

NOW ITS CLEAR SHAREHOLDERS ARE GOING TO BE WIPED OUT. IT WENT ON TOO LONG AND TOO MUCH DEBT TO SAVE IT.
PREPACK AT BEST.

Tiger

So my advice take the 20p whilst you can.

[my retirement fund] 26/5/2015 15:22

Looks like a pre pack is more sensible than raising further funds. Given the liabilities and the interest accruing on the loan notes, who would support further equity ?

[callumross] 26/5/2015 11:31

Where did this urgent fundraising requirement come from given the funding they received in 2014 from equity and from the settlement. Just feel that when this latest fundraising is done, the remaining equity shareholders will be wiped out.

[caveat_emptor] 26/5/2015 09:08

That hypothetical scenario was posted on this board for the last month,

[callumross] 26/5/2015 08:33

Just when you think it cannot get worse. What a pile of crud!

[caveat_emptor] 25/5/2015 18:43

First sensible commentary I have heard.

[nocton] 25/5/2015 08:32

In principle, what Sinclair are doing - building new plant on new site with excellent logistics and consolidating all activity on that site - is just what is required. When I looked round the site (at Ellesmere Port) after the AGM it seemed that the operation should have huge potential. However, as we know, the reorganisation has been badly managed. The new plant has been slow to get up to speed - but when I viewed it was increasing production rapidly - and marketing has slipped so they have not kept up market share. You can have the best product in the world, but without good marketing it does not convert into cash/profits. After all Microsoft did not get where it was to day by having the best software - far from it - but they had excellent marketing.
So I'm very hopeful, but if the turn round does not start his year then that will be it.

[caveat_emptor] 23/5/2015 13:47

Very reassuring.

[nocton] 22/5/2015 21:11

In reply to your query Caveat_emptor the peat-free compost, sold as New Horizon for the retail trade, has been judged as the best peat-free compost by organisations such as RHS and Which.