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Statement out today that indeed they plan to return cash to shareholders.
Restructuring, job losses, planning to be cash neutral next year all make me bullish about significant cash return. I have topped up on the fall, which i am very surprised about. Investors taking profits and knee jerk reactions to the loss for the year which is farily unimportant. This is a cash and assets play, ideally for shareholders the company would cease trading and liquidate.
I’ve bought £500 at 9.1p. I was looking to buy when they were at just over 8p but dithered and missed my possible entry point by a penny! Their recent interim management statement hints at a return of cash to shareholders. I’ve writtenabout this company before and their massive cash pile. They have been crippled by low prices for their products and their strategy was to conserve cash, cut costs and limp along until prices picked up, perhaps in a few years time. The latest statement shows a marked change of tone: http://www.pvcrystalox.com/scripts/php/rns_viewer.php?id=20506230
“The Group has a strong net cash balance and the Board is continuing to reorganise the Group, to enable the return of cash to shareholders. The Board expects to make a further announcement before the year end. ”
Briliant news and an expected catalyst by year end for share price movement (year year or financial year i wonder). Best case scenario for shareholders is a winding up of the busniess and redistribution of all cash – worth twice the current share price. Worst case, who knows, but just 20% giveaway could be 3.5p.
(Figures in Euros unless otherwise stated)
Solar panel maker that has been savaged by cheap Chinese competition. I can’t recall the details of what’s gone on in the industry but essentially there has been mass over supply. At the half year point they had 122m cash. And at a glance about another 100m of assets too. Their strategy seemed to be to cut costs, reduce production and limp along until prices recovered – using their cash pile slowly. Of course shareholders might like the company to voluntarily fold and cash to be distributed.
First half loss was about 12m. Market capitalisation is £35m.
In the management statement released yesterday ( from the ‘outlook’ paragraph):
‘’The Group has a strong net cash balance and the Board is continuing to reorganise the Group, to enable the return of cash to shareholders. The Board expects to make a further announcement before the year end.’’
From the half year report ‘outlook’ section:
‘’While the Group continues to believe in the positive long-term outlook for PV, it is mindful of the intensely competitive environment which is likely to persist in the short to medium-term and which has already led to many companies exiting the industry, either voluntarily or through insolvency. The Group has a strong net cash balance and the Board will make the necessary decisions during the remainder of the year to serve the best interests of shareholders.’’
This looks like a change of attitude within the company. Just how much cash they might return is a guess at the moment. Of course with a dividend payout the share price will fall but if a payout is announced, then I expect the SP to jump before the ex div date.
