theprior
08 Nov 2016
Re: MXC Capital Yes, would have loved to be a fly on the wall at the board meetings over the last 6 months!!TP
ookyfly
08 Nov 2016
Re: MXC Capital Hmm...... that sequence is indeed troubling.But the bottom line imo is that MXC have bought back in big time - which implies strongly that Redcentric is fundamentally sound. Which is what interests me, since I am currently 60% down on my original investment (but up 14% on yesterday's topup).
charlie51
08 Nov 2016
Re: MXC Capital So Tony Weaver, founder of MXC, and former CEO at Redcentric steps down as a NED from the Board on 1 November. Irregularities only came to light last week? hmmm.....MXC sold out of its position in Redcentric at 180p on 23 June. The CEO sells out his options at 180p around then as well. Then MXC buy back in post the 'MisStatement' Statement yesterday.Given that everybody involved is so business savvy and talented this all seems perfectly normal and above board to me 
theprior
08 Nov 2016
Re: Accounting irregularities Speculation isn't helpful at this stage ....let's see what they come up with when the investigation is completed. Would be nice though to see directors investing whilst the sp is lower, showing confidence that the company can survive this setback.TP
ookyfly
08 Nov 2016
Re: MXC Capital That's encouraging. A merchant bank puts its money where its mouth is - a lot of money. (On a more modest scale, I myself bought 10,000 shares yesterday at just under 60p.)
alltold9
07 Nov 2016
Re: Good analysis report on RCN HAPPIER DAYS AHEAD!
The Dutchman
07 Nov 2016
Re: Accounting irregularities Well this is very bad news, I seem to have lost as much money on this as I spent on a new small car last week !!The statements from the board do a good job at quantifying the loss but not really in explaining what happened. In my experience this will almost inevitably be an income and profit recognition problem - always an area of concern in companies selling services where the contract spans a number of years. Problems in the area of profit recognition on contracts fall into two categories; either recognising profit too early, or recognising profits when in reality none, or only much smaller, profits exist. In the former case it is true that the underlying profits exist, and the business is still good, albeit profits should have been spread over, say, 4 years rather than 3 or just more back-end loaded. In the latter case though management have deluded themselves and the business is fundamentally less profitable than previously thought. This is the more likely scenario I'm afraid as managers have been incentivised to grow the business and have succeeded in hiding from their superiors the fundamental unprofitability of the contracts they have entered into. This scenario would suggest that the business is a lot less profitable than previously thought, whereas in the first scenario the profits still exist but the growth has been slower than we all thought.; not good news but not as bad as the second scenario.In both cases there may be goodwill arising on acquisitions to be written off as it is now apparent that those acquisitions are less profitable than previously thought and the goodwill can no longer be justified by future trading.I find the timing of this while sorry tale somewhat surprising, Why was it identified as part of the prep or finalisation of the interim results, these things are usually identified in the much more rigorous, and audited, process of preparing the year end figures. I wonder if indeed the early recognition of profits ( or recognition of profits which didn't exist) started to unravel at that stage with apparently profitable contracts suddenly showing losses or only small profits for the six months. I have checked and they have the biggest auditors, PwC, who have been the auditors for the last few years, so clearly they didn't identify this problem - maybe the BOD will have wished they had changed auditors and had afresh pair of eyes looking at profit recognition.The market may well have over-reacted, but there will now be something of a fight for survival - no-one wants to outsource their IT to a company which might conceivably fail. If I can get out only showing a 50% loss on yesterday's price then I will....... and no more new cars for a few years !
old wise owl
07 Nov 2016
Re: Accounting irregularities Think I will need to see the bod investing some skin in the game following this debacle begone investing here.Could come good but let's see some confidence from the bod otherwise it's all risk free to them.
theprior
07 Nov 2016
Re: Accounting irregularities Excercised options and sold them for a profit (about double)Not uncommon for tax purposes etcHowever the BOD must've known something to instigate an enquiry.Bound to be insider knowledge somwhere along the way.
charlie51
07 Nov 2016
Re: Accounting irregularities You are correct! interesting that Weaver from MXC ducked out in such a timely fashion....
old wise owl
07 Nov 2016
Re: Accounting irregularities Am I reading this right that Fraser Fisher sold 275,000 shares in Sept at 1.80p and no other directors have a stake in this company?
alltold9
07 Nov 2016
Re: Accounting irregularities Bottom fishing for a quick 30%!
theprior
07 Nov 2016
Re: Accounting irregularities Hi, MCBI bought two tranches this morning, the first was too early but the second is showing a healthy profit already.Expect both to be profitable by the end of the day but will hang on to them now till we get back over £1That will help with the current losing position I've held for a number of years now.Regards, TP
Misty Creamybib
07 Nov 2016
Accounting irregularities I agree with you.It is worth remembering that such errors shake the confidence of investors and the selling has been driven by fear. Based on the forensic report you would think all is out in the open now.The price is dragged down by the financing - If financing has been provided over a number of years based on incorrect figures then I would suspect there is a clause to re-finance.The company has acted very quickly in sacking the CFO so if I was a lender I would ask what more could they do. I have bought a very small tranche based on the trading guidance remaining in line to sit on and see.BIt of a knife catch though...
theprior
07 Nov 2016
Re: Accounting irregularities Fundamentals haven't changed. Last period is in line with expectations.Just a bit of a hole in the historical accounts and a bit more debt than previously reported.Way way oversold this morning. Good chance to buy in or top up at bargain basement price ???TP
