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Tom Winnifrith Bearcast 9 March: Bell, D&D, PR Fuckwits at FTI & Glenwick Rampers talk balls

By Tom Winnifrith

9 March 2016 08:14

I warn you that there is a lot of bad language in this podcast. I start with the balls talked by D&D on Fastjet (FJET). I have put the company on the spot as to what $20 million cash available means and I await a response. It matters big time. Then there is Andrew Bell talking balls on Horse Hill ahead of placings ahoy across the board. Then those who denied placings at Pantheon (PANR) and the posh fuckwits who spin for Scancell (SCLP). Both denied my stories. Both placed today. Folks: you know where to send your ouzo apologies. I discuss those placings and also that of Armadale (ACP) - a pisser as we own those shares. Then I discuss dire results from Glenwick (GWIK), shares in which deserve to halve and which were ramped by the same sort of mothers who ramped CEB/Andalas. The result will be the same. And also a horrid profits warnig from Tandem Group (TND) comes under the spotlight. I also mention my articles today on greedy Junior Doctors ad the BBC's woeful Trump coverage HERE

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Comments

Duck and Dive

9 March 2016, 12:10

I have posted three different learned sources today (of many) which state very clearly that net cash includes trade payables and I am happy to rely on them:

http://www.investopedia.com/terms/n/net-cash.asp#sthash.bNGEy48Z.dpuf
http://www.investopedia.com/terms/t/total-liabilities.asp#sthash.bNGEy48Z.dpuf
http://www.businessdictionary.com/definition/net-cash.html#sthash.bNGEy48Z.dpuf
http://www.businessdictionary.com/definition/current-liabilities.html#sthash.bNGEy48Z.dpuf
https://books.google.co.uk/books?id=fzAVZvAGP7cC&printsec=frontcover#v=onepage&q=trade%20payables%20net%20cash&f=false

I suspect you are confusing “cash” with “net cash”. The essential point anyway is that “net cash” (ED) or “available cash” (RNS) is free of encumbrance and can therefore sustain the company’s reducing monthly losses for the foreseeable future.

In addition, Equity Development yesterday stated “net cash” of $27,403 (informed estimate) at 30/12/2015 which with their estimated seasonal peak Jan/Feb 2016 cash outflow leaves “net cash” of $20m at the end of February.

And to boot, Fastjet owns an Airbus 319 which it can borrow against or sell for around $14-15m.

For good measure, Fastjet’s reputable chairman has signed off an RNS this week which says that the company doesn’t expect to need to raise cash this year. And major shareholder, Stelios, is pushing for additional cost saving measures including the relocation of Fastjet’s HQ from Gatwick to Africa.

So your scaremongering rants about trading while insolvent or being on the point of going bust are clearly well wide of the mark.

Easter and summer holiday bookings will dictate whether Fastjet elect to raise more cash to give them more headroom. If they do, it need not be via a placing.

I hope Fastjet reply to your question. If not, perhaps I can suggest a more responsive email address.