Re:Why are people not talking about Phumelela folding tomorrow?

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Phumelela Gaming and Leisure Limited
JSE: PHM
75,00 ZAC −5,00 (6,25%)
04 May, 10:35 SAST · Disclaimer

The Group remains engaged in discussions aimed at raising capital. Should these discussions not prove conclusive soon, the Board
will have to decide on whether there is any reasonable prospect that the Group’s business can be rescued, or whether to make
application for voluntary liquidation. The Board’s current view is that even if financial relief can be obtained, a relief package should
be negotiated as part of a business rescue plan. The Board will make an announcement in this regard in the near future.

i don't understand why people are still buying this share. I see there is someone looking to buy 60000 shares at 75c on the exchange.At one stage the share dropped to 57 cents and the highest was 80c. Why buy them? Or are they playing around to make it look good and eventually get out of their shares when the price is driven up?

They aint got a snowballs chance in hell in raising capital especially in the circumstances they find themselves in.
To top it all they have little or no prospect of generating any serious income in the current Covid 19 situation.
The only prospect is a totally new horse racing dispensation. If the big racing family dynasties try bail them. they will simply be prolonging an on going torture. It is not only capital that they require it is human capital that is most importantly required in order to trade out of the mess and a better management that is most important and yet they are fresh out of that commodity.

BATMAN wrote: i don't understand why people are still buying this share. I see there is someone looking to buy 60000 shares at 75c on the exchange.At one stage the share dropped to 57 cents and the highest was 80c. Why buy them? Or are they playing around to make it look good and eventually get out of their shares when the price is driven up?

...usually they are risk-seeking investors who have no prospect of offloading the equity in the short term. They could have offloaded the share at 200 in Jan and they are taking a position judging from the (inside) knowledge they have., From the AFS, seems the price has bottomed up ie if the operations are resuscitated.

or it could simply be more monopoly money trying to buy more time.

BATMAN wrote: i don't understand why people are still buying this share. I see there is someone looking to buy 60000 shares at 75c on the exchange.At one stage the share dropped to 57 cents and the highest was 80c. Why buy them? Or are they playing around to make it look good and eventually get out of their shares when the price is driven up?

...That"s only 2000 british pound an Investec exec could spend that on a posh dinner

A Merry Go Round

Phumelela Gaming and Leisure Limited
JSE: PHM
80,00 ZAC 0,00 (0,00%)
04 May, 12:18 SAST · Disclaimer
80,00 ZAC ‎12:18

It has been a very disappointing day thus far, and the Jameson remains unopened.

No disrespect to anyone on this site . I have avoided it for a while . Can’t read some of the stuff that gets written here from Phumelela getting suspended today to the rest of the tripe !
For what reason would Phumelela have got suspended today ?
There is no merry go round with the shares . Their are 100 m shares in issue it’s black and white, shares can trade , perhaps liquidity came as a result that racing was not starting again and shareholders had concerns around that ! Go look at the share register . I have been a stock broker for over 20 years and have seen many things , this ain’t the worst by any means .
When the comment is made that nobody would invest money in Phumelela , it’s a clueless and useless comment ... simple , according to financials out this morning assets = 1,6 billion and debt of just over 700 m ... Easy maths and facts there is a gap for an investor . This entity needs to be split up and run like a business which I believe will happen. We all entitled to opinions but prefer educated opinions that are valid rather than comments out of needle .

Point taken Flaunt but what is most worrisome is that some of the assets may be over valued and open to massive depreciation given the crisis we are in for who knows how long. Take Turffontein Racecourse as an example what would the actual property value be in a fire sale, Who could/would buy it at the current ledger price and repurposed it given the location. How badly do they bleed just trying to maintain it Then Supabets what is its value today or even Bettingworld that cant generate any of the value /profits of the rather hefty price tags they were bought or built for. Who would want to sink their hard cold cash into this dogs breakfast a very bleak prospect indeed.