Discussion
Anyone currently invested in them?
They've cratered 90 odd percent from peak and have had a rocky few weeks, but seem to have put most of their financing issues behind them (for now).
There is an outstanding issue with their accounts/auditors which was announced on Friday (and which could potentially lead to the shares being suspended from the market temporarily) - but everything I've read about them including all announcements to the market indicates a company which is still viable, has a load of valuable land and which still has a future. Their share price now reflects all the bad news of late but still seems extremely cheap to me.
I guess like anything else it's a punt but interested if they've come onto anyone else's radar?
They've cratered 90 odd percent from peak and have had a rocky few weeks, but seem to have put most of their financing issues behind them (for now).
There is an outstanding issue with their accounts/auditors which was announced on Friday (and which could potentially lead to the shares being suspended from the market temporarily) - but everything I've read about them including all announcements to the market indicates a company which is still viable, has a load of valuable land and which still has a future. Their share price now reflects all the bad news of late but still seems extremely cheap to me.
I guess like anything else it's a punt but interested if they've come onto anyone else's radar?
Edited by princeperch on Saturday 25th March 22:25
Cheers DA. I guess this one is as high risk a punt as it gets really.
Here is what the market knows about the auditor issue so far so hard to say if it's terminal or not.
https://www.dhakatribune.com/financial-markets/202...
Here is what the market knows about the auditor issue so far so hard to say if it's terminal or not.
https://www.dhakatribune.com/financial-markets/202...
DonkeyApple said:
If you start that webpage from the bottom up which is always the best way to read financial information you can see instantly from the 'most popular links' bit that the website is a nutter publication for nutters. It doesn't mean that this particular article doesn't have merit but that that would be accidental not by design. The website is there to sell nutter products and services to nutters using nutter content. 
What you can glean is that this is an AIM stock that's been doing what AIM stocks tend to do and are incentivised to do via lax governance.
If the Board members that did the deals with themselves are no longer on the board then they will be working with the lender(s) to get the assets off the shareholders if there are any actual assets.
It's going to delist in April so that pretty much sets in stone that the shareholders are to be wiped out. The only thing as of yet unsettled is whether the new board members suck out any remaining value as salaries or the old directors help a debtor get that money.
If a shareholder who has no seat at that table then logic would tend to dictate that one should have left the room a long time ago and that the opportunity for leaving a room full of stinky farts with at least a free biscuit is coming to an end.
It may come back and the old shareholders may have some shares in the new entity but the odds are simply so terrible that one would have to be clinically insane to consider them. It's road kill with the scavengers already tucking in, the days of it possibly being a Sunday roast are long gone.
I still might pop in £500 to see what happens. If it does manage to come back from the dead and it bounces in a similar way as it did when it managed to obtain forgiveness from it's lenders a few weeks ago, I might make a grand or so on it.What you can glean is that this is an AIM stock that's been doing what AIM stocks tend to do and are incentivised to do via lax governance.
If the Board members that did the deals with themselves are no longer on the board then they will be working with the lender(s) to get the assets off the shareholders if there are any actual assets.
It's going to delist in April so that pretty much sets in stone that the shareholders are to be wiped out. The only thing as of yet unsettled is whether the new board members suck out any remaining value as salaries or the old directors help a debtor get that money.
If a shareholder who has no seat at that table then logic would tend to dictate that one should have left the room a long time ago and that the opportunity for leaving a room full of stinky farts with at least a free biscuit is coming to an end.
It may come back and the old shareholders may have some shares in the new entity but the odds are simply so terrible that one would have to be clinically insane to consider them. It's road kill with the scavengers already tucking in, the days of it possibly being a Sunday roast are long gone.
Could also obviously lose my monkey within a few days.
How bad can this issue with the now departed board members be? I mean the directors were still hoovering up shares a few weeks ago at 0.2xp and the company was still announcing future developments that are in the pipeline.
My thinking was someone has been either a bit naughty and done something they shouldn't have, which is a regulatory issue, but there hasn't been a fraud or anything which is going to breach their lenders covenants or make the company insolvent.
The FD is still there and has been at all times.
My thinking was someone has been either a bit naughty and done something they shouldn't have, which is a regulatory issue, but there hasn't been a fraud or anything which is going to breach their lenders covenants or make the company insolvent.
The FD is still there and has been at all times.
AdamV12V said:
I see they have just signed the DLUHC cladding remediation contract, which means they will self fund all the buildings over 18mtrs tall that they built with dangerous cladding? Do you know how many buildings that is? I am heavily involved with getting the cladding on our home building remediated, and I understand that the typical costs of fixing a building with say 100 homes is anywhere from £5M-£20M.
https://www.londonstockexchange.com/news-article/I...
That's a huge outlay just to fix one, and if they have a decent portfolio it could run an insane figure. I have no specific knowledge of this company, other than if they are in the first 100 being targeted to sign, then they are one of the largest companies with a bigger portfolio for sure. Nevertheless I assume they have calculated they can afford it, otherwise I guess they wouldn't have signed - seems none of the builders are fixing buildings purely through their own goodwill, it's Gove's threat to put them out of business if they don't sign that finally making them do what is right.
If you knew the pain and suffering that hundreds of thousands of homeowners are going through with regard to post Grenfell remediation issues I'm not sure anyone would rush to put money into one of these companies...
What's next, putting money into the shares of the airline who have the contract to deport refugees to Rwanda?
Very true. Or perhaps they have agreed to sign it due to the fact they intend to phoenix it all in a few months and the agreement can then be used a toilet paper in their swanky new offices of the second iteration? https://www.londonstockexchange.com/news-article/I...
That's a huge outlay just to fix one, and if they have a decent portfolio it could run an insane figure. I have no specific knowledge of this company, other than if they are in the first 100 being targeted to sign, then they are one of the largest companies with a bigger portfolio for sure. Nevertheless I assume they have calculated they can afford it, otherwise I guess they wouldn't have signed - seems none of the builders are fixing buildings purely through their own goodwill, it's Gove's threat to put them out of business if they don't sign that finally making them do what is right.
If you knew the pain and suffering that hundreds of thousands of homeowners are going through with regard to post Grenfell remediation issues I'm not sure anyone would rush to put money into one of these companies...
What's next, putting money into the shares of the airline who have the contract to deport refugees to Rwanda?
egomeister said:
Did you buy?
Not sure what to make of the announcement today. It smells a bit of desperation since the shares will be suspended on Monday.
I can only assume the founder has said they will participate as they need to project confidence in the raise because it will be much harder to raise money after the weekend.
I put in 500 quid as a punt. If it goes it goes. Bit of fun really if nothing else.Not sure what to make of the announcement today. It smells a bit of desperation since the shares will be suspended on Monday.
I can only assume the founder has said they will participate as they need to project confidence in the raise because it will be much harder to raise money after the weekend.
egomeister said:
I'd be taking the profit and running in that case!
But then I wouldn't have put anything into it to begin with...
I think I'll let it ride. If I end up with nothing after the accounts issue is bottomed out to my detriment it's unlikely you'll find my body in my study with an empty bottle of scotch cradling a discharged firearm.But then I wouldn't have put anything into it to begin with...
ooid said:
It's a bit risky really, I wonder how many investors started shorting this so far? or shorting the equity and buying bonds (if they have any) If I remember correctly, they were also land-banking a lot, so they might have some potentially good sites available.
My understanding is that have absolutely tons of land/sites and have several projects that are about to imminently start. If I remember correctly, they were also land-banking a lot, so they might have some potentially good sites available.I guess time will tell!
egomeister said:
But no money, and moving into an increasingly slow property market. However that's all fairly irrelevant if you can't actually cash in your shares because its suspended/delisted.
I expect they will be taken over by a larger builder in the not too distant future. I could lose my money. I could make a couple of grand. Let's see!What I find odd about the whole thing (and I'm a big boy ill get over the 350 quid odd that's now clearly gone) is the directors were buying the shares all the way to the end. Steve wickes put in a million quid a few months back when presumably the writing was on the wall and they knew it
Something very iffy has gone on here and I suspect some of the directors might be wise go lawyer up
Something very iffy has gone on here and I suspect some of the directors might be wise go lawyer up
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