numberbiter
01 May 2018
Re: Liberum Several years ago, after either losing money or making little profit, I got lucky! Someone told me to read the annual Berkshire Hathaway letter, written of course by Warren Buffet. Follow this expert and you won't go far wrong. Rule number 1 is indeed 'do not lose money' which means avoiding companies making losses and incurring massive debts. There is a big difference between Company directors saying, "well we have produced a little jam and we will make more tomorrow" and those saying, "we have never learnt how to make jam, but we promise you we will make a lot of jam tomorrow."We are told in this BB that the company could sell its one profitable division and wipe out it debts. But if it did this it would be left only with loss making businesses. The truth is that this business currently has an unmanageable level of debt. Even if turnaround is possibe it will take years. There must be better opprtunities out there.Before investing in this company, I would advise everybody to read this year's Berkshire Hathaway letter. It runs to several pages and will take hours to read, but it will be the best investment of your time. It will save you thousands of pounds.
FRTEB
01 May 2018
Re: Liberum A fair assessment, I think. Personally I won't invest (again) in IRV as there are far too many risks and not enough potential reward - I am reminded of a quote from Uncle Warren: "rule number 1, never lose money..." Too much chance of that happening here (and down another 6% on the day as I type this). I would say avoid IRV like the plague, unless you like gambling and can afford to lose the lot.
nk1999
01 May 2018
Liberum From Citywire:"Interserve facing myriad problems, says Liberum There is upside at Interserve (IRV) but Liberum is concerned about the myriad risks facing the support services company.Analyst Joe Brent retained his ‘buy’ recommendation and target price of 180p on the stock after ‘terrible [full-year] results as expected’ that saw him cut earnings per share forecasts by 12%. Interserve’s debt refinancing deal saw warrants issued over 20% of the business, reducing the upside for investors. ‘We believe that the balance sheet needs addressing and we expect that will be achieved by a mixture of disposals and rights issues, but we think it may take time to arrange a rights issue,’ he said. ‘We still see significant upside, albeit arguably 20% less than after the grant of the warrants on the banks.’ The shares tumbled 12.3% to 93.8p yesterday."
onewayticket
30 Apr 2018
Peel Hunt - 140p Seems I timed a buy about right then today. 6 weeks to the AGM on the 12th June and for turnaround progress to be made.Own due diligence
onewayticket
30 Apr 2018
Re: Todays RNS I am sorry schwee but the analysis is not spot on and when the credibility of any post has disappeared when read the last few lines and it is talking of 9pence, as opposed to 90pence, being a gamble. That lets you conclude what the motivation is. Same as with anyone claiming its the next Carillion.Very happy with my top up this morning.Now lets let the CEO get on with the turnaround plan and in improving things.You do however make an interesting point regarding the value of the Equipment Services Division.Own due diligence
schwee
30 Apr 2018
Re: Todays RNS Numberbiter,Your analysis is spot on except for one thing. IRV does have a jewel in its tarnished crown in its Equipment Services Division. Selling that would more or less wipe out its debt.So far IRV has refused this obvious opportunity, so the Board must be confident they can stabilize the other divisions so that they could eventually go for a rights issue to repair the balance sheet and repay the usurers.
onewayticket
30 Apr 2018
Re: Todays RNS About 6 months too late Dougie with those comments.May I suggest you read the RNS where it says its got its money and surviving. So no its not another Carillion. Capita also got its money just in case you didn't realise that also so its also surviving and not another Carillion. The CEO at Interserve has an excellent track record of delivery. I think she will deliver on the turnaround plan. No need to post by the minute or indeed sometimes at all. Review on the 6 and 12 monthlies and on any company updates.Own due diligence
onewayticket
30 Apr 2018
Re: Todays RNS The company made a £75 Million profit last year. That's what it says. The exiting of the EfW business and finance restructuring costs make up the bulk of any write-offs and one-offs that have accrued thereafter.As stated all already known and factored in and I'm actually surprised that it actually didn't go up this morning.Interserve has its money which means the banks will have done tehri own due diligence and number crunching and see it surviving. Now its on with delivering the "Fit for growth" strategy. Own due diligence.
Uncle Doug
30 Apr 2018
Re: Todays RNS Another Carillion? Looks like these are toast.
numberbiter
30 Apr 2018
Re: Todays RNS Well, I have done my own research. Latest accounts show a massive loss in the Income Statement and even a large outflow of funds at the operating level in the Cash Flow Statement. Then look at the Balance Sheet and you will see that debt has nearly doubled in a year. Worse, intangible assets are about five times greater that net equity, which means that tangible assets are highly negative. Financially, this company is a basket case. What evidence is there that the company can suddenly become profitable? When you buy a share you are often buying future earnings, but in this case it is a great act of faith to believe this might happen. Even then, it will take years of earnings to wipe out the debt. At 9p per share, you could argue you were taking a gamble, but at 90p per share there is no justification for holding this share. Get out now while you have the chance.
onewayticket
30 Apr 2018
Todays RNS Most of todays news was already known and well anticipated so any falls are probably overdone and "bot" accountable.The company has secured its funding so let it get on with the rest of the turnaround plan. The rest is down to whether you think the CEO will pull it off. I do. Only a 3M volume on Interserve today, a decent amount of will be buys, does not in my view merit a near 25% fall.Purchased a few for the mid to long-term.Own due diligence
onewayticket
28 Apr 2018
Share price is looking a lot more healthy Well done anyone who picked up a few more of these in the half price sale or any on the way back up.Capita's RI out the way should also now help and the businesses can concentrate on delivering and turning things around.I think gone are the days of loss leading or single digit contract returns not only for Capita but for all outsourcers. Own due diligence
axel27
27 Apr 2018
RNS today... Be interesting to know the buyers in recent trades especially the volume that unwound at 16.25 on the Thursday...A, what is IT
gallant02
27 Apr 2018
Re: Share Price up 15% today I expected a rise ahead of results following the old "buy on rumour, sell on news" so wouldn't be surprised to see a drop on Monday. I did always believe management would be given a chance to implement their strategy but for me this remains an opportunist trading stock given ongoing volatility and problems among their peers. Not one for the faint hearted, which I became having bought at 105p and seeing it drop back into the low 80's...
MartinDrew
26 Apr 2018
Re: Share Price up 15% today I dunno, but I missed it too, a 28% rise and no news or even rumours. Over on LSE someone suggested that the shorters are covering their positions as the trading update will be better than expected - but who knows? I'm just happy that my losses on this are somewhat reduced!
