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Companies on the brink of collapse
krisbarry1
post Posted: Oct 6 2010, 04:14 AM
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In Reply To: gjh's post @ Oct 4 2010, 04:14 PM

In a recapitalisation they will sell millions of new shares to raise the new equity, these new owners of shares will create a major rally to sell out at a profit right?

 
krisbarry1
post Posted: Oct 4 2010, 05:31 PM
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This is yet another example of a company too big to fail, so many business will be affected by the collapse of ABQ

 
krisbarry1
post Posted: Oct 4 2010, 05:29 PM
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Yes I have read and re-read many of the past announcements from ABQ and from what I can learn is that the business as a whole is a going concern. I have seen plenty of companies survive in these exact situations, they just need a genrous re-financing option, so there is hope and I truely are hoping for the best outcome. Not just for investors but for all the mum and dad franchisees too

 
veeone
post Posted: Oct 4 2010, 05:17 PM
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In Reply To: krisbarry1's post @ Oct 4 2010, 05:03 PM

QUOTE
I might just sit tight and see what plays out over the next few days

Kris right now that is the smartest move until the path forward is a bit clearer. They may come good with financing which they have alluded to. Did you read this bit in the last announcement. V1
Cookie Man turnover is only 10% of the group turnover and less than 10% of its profit and therefore in itself is not material to the overall financial result of the company. However the appointment of a liquidator to Cookie Man was a matter which could cause significant commercial damage and was considered material.

 
krisbarry1
post Posted: Oct 4 2010, 05:03 PM
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In Reply To: flower's post @ Oct 4 2010, 04:37 PM

I might just sit tight and see what plays out over the next few days

 
flower
post Posted: Oct 4 2010, 04:37 PM
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In Reply To: krisbarry1's post @ Oct 4 2010, 04:09 PM

If it were me, and IF ABQ gets requoted, BEFORE any possible recapitalisation should that happen, I'd sell and run immediately on the requote--if you can--ie dont hang about! (Not advice-- please note)

Miracles rarely happen in share trading/investing!



--------------------
Combining Fundamental comments with Fundamental charts.

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gjh
post Posted: Oct 4 2010, 04:14 PM
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In Reply To: krisbarry1's post @ Oct 4 2010, 04:09 PM

In a recapitalisation they will sell millions of new shares to raise the new equity capital, enormously diluting existing holdings even if those existing shares have not been officially declared worthless.


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krisbarry1
post Posted: Oct 4 2010, 04:09 PM
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I guess it depends on what share price exisiting shareholders got into the stock. I am sitting around equal money, so what your saying is that after a re-structure and re-cap, I would find it hard to sell at equal money or a profit as the stock would drift down further?

 
gjh
post Posted: Oct 4 2010, 04:03 PM
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In Reply To: krisbarry1's post @ Oct 4 2010, 03:59 PM

Existing shareholders are often wiped out, or at least so heavily diluted it is effectively the same thing, following a restructure and recapitalisation.

 
krisbarry1
post Posted: Oct 4 2010, 03:59 PM
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How often is it that companies re-structure and re-list rather than going under all togther? Is a re-structure and recapatlisation a better option?

 
 


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