How long before Phumelela trade at R2-00 a share?

  • Over the Air
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How long before Phumelela trade at R2-00 a share?

5 years 11 months ago
#765581
Phumelela reached its lowest level in years today trading at R4-80 off low volumes before the obligatory bump by the "night watchmen" artificially raised the share back to R5-50.

Phumelela looking good - no liquidity, labour issues, poor management, legal challenges.

Where are all those lads that abused me just a few short months ago?

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  • Mad Max
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Re: How long before Phumelela trade at R2-00 a share?

5 years 11 months ago - 5 years 11 months ago
#765604
Drop in turnover looming after closing most TAB Branches, forcing regular punters to find new places to bet. Hollywood, Marshalls, etc. must be smiling.
Last edit: 5 years 11 months ago by Mad Max.

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  • harry hotspur
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Re: How long before Phumelela trade at R2-00 a share?

5 years 11 months ago
#765607
Maybe someone could enlighten me who the head of tab and betting world was and where he is now?Sadly you need to get rid of the problem not transfer him from position to position because he ruins whatever he does.

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Re: How long before Phumelela trade at R2-00 a share?

5 years 11 months ago
#765618
harry hotspur wrote: Maybe someone could enlighten me who the head of tab and betting world was and where he is now?Sadly you need to get rid of the problem not transfer him from position to position because he ruins whatever he does.

The new man has done a sterling job.

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Re: How long before Phumelela trade at R2-00 a share?

5 years 10 months ago
#766532
In free fall down to 380

Buyers at 275

The end game is upon us

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Re: How long before Phumelela trade at R2-00 a share?

5 years 10 months ago
#766533
Market capitalisation at current levels R389M

Debt levels R360M +

Not a happy picture.

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  • Over the Air
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Re: How long before Phumelela trade at R2-00 a share?

5 years 10 months ago
#766535
Technically insolvent - they do not have the assets to cover the debt

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  • jim
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Re: How long before Phumelela trade at R2-00 a share?

5 years 10 months ago
#766537
a few things.
firstly market cap does not equal nav. need to know what nav is.
secondly looks like we race for 400 m odd in stakes . if the levy is permanently lost that equates to r 75 m odd so stakes would have to take the hit.
thirdly it would appear there are areas where rationalisation and cost cutting can be applied to improve efficiency.
lastly can the entity be delisted and revert to the old status quo ?

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Re: How long before Phumelela trade at R2-00 a share?

5 years 10 months ago - 5 years 10 months ago
#766541
Hi Jim

Of course market cap does not equal NAV, however it will have a major effect on the loans taken with shares being used as collateral. In terms of assets, Phumelela have Turffontein and the Vaal. Crucially the gem Randjesfontein is owned by the RA unless Larry has done a "verbal stakes agreement" type arrangement.

The 400m in stakes are much more affected than just the lost 75m. In previous years all the dividends from Phum ( and they were artificially high ) went into stakes pot - I may be corrected but I think that 80% of the entire dividend amount went to stakes. In 2018 roughly R113M was paid out in dividends so theres another 90m hole. Taking this into account the funding of stakes will have to be subsidised by the RA coffers or reduced significantly. It makes you wonder why there has not been a peep from Larry and the boys..

Insofar as cost cutting and rationalisation goes, these actions could never restore parity to previous performances. And your last point about delisting, this is a possibility obviously, my question would be who would be stupid enough to be interested?
Last edit: 5 years 10 months ago by Over the Air.

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  • Chris van Buuren
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Re: How long before Phumelela trade at R2-00 a share?

5 years 10 months ago
#766548
Over the Air wrote: Hi Jim

Of course market cap does not equal NAV, however it will have a major effect on the loans taken with shares being used as collateral. In terms of assets, Phumelela have Turffontein and the Vaal. Crucially the gem Randjesfontein is owned by the RA unless Larry has done a "verbal stakes agreement" type arrangement.

The 400m in stakes are much more affected than just the lost 75m. In previous years all the dividends from Phum ( and they were artificially high ) went into stakes pot - I may be corrected but I think that 80% of the entire dividend amount went to stakes. In 2018 roughly R113M was paid out in dividends so theres another 90m hole. Taking this into account the funding of stakes will have to be subsidised by the RA coffers or reduced significantly. It makes you wonder why there has not been a peep from Larry and the boys..

Insofar as cost cutting and rationalisation goes, these actions could never restore parity to previous performances. And your last point about delisting, this is a possibility obviously, my question would be who would be stupid enough to be interested?

There is a group of very wealthy, very well respected people who are more than interested.
It's my full hope that delisting takes place and a takeover or buy out happens.
Nothing can be as bad as what the chosen few did to our beautiful sport

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  • the hawk
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Re: How long before Phumelela trade at R2-00 a share?

5 years 10 months ago
#766557
Approx 80% of the Racing Trust's share of the dividends went into stakes - not 80% of all dividends!! This stake money is principally used to fund the stakes of the work riders racing programme.

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Re: How long before Phumelela trade at R2-00 a share?

5 years 10 months ago
#766558
the hawk wrote: Approx 80% of the Racing Trust's share of the dividends went into stakes - not 80% of all dividends!! This stake money is principally used to fund the stakes of the work riders racing programme.

My apologies - Graeme is spot on I am multitasking and rushing through things without thinking. It still leaves us with a 25 bar hole depending on how you look at current shareholding.

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