I'm afraid so, been in PRS a few years now, and can't understand the pathetic share price, worth double todays price, but like Amed it just remains static,
I'll give it a few more months and if there is no progress I'll cut my loses and put the cash into Metal Tiger or N4p, trouble is PRS already has a holding in Metal Tiger, as well as Plutus and a number of other growth companies, so there is always the possibility PRS will come good one day, but like Amed it's not If, but when.
Not sure any of you guys took any notice, when I said take a look at N4 Pharma last month, when they were 10p, up to 15p this morning, with Viagra due to be sold over the counter this could be the share of 2018, so still worth a look.
Amedeo, well there seems to be a shortage of news, yes the price of Copper is rising, so that looks promising, and one of my other investments "Metal Tiger" also has investments in Copper, so that's looking promising.
With Amed, I just wish they would give us another update on what's happening with the Rig, ready in 2016, preparing it for delivery in 2017, and still, as far as we know, in the shipyard, I would imagine that's why there is a lack of interest in the shares, they may have cash in the bank, and good investments, but the company seems stagnant, I feel had the rig been delivered on completion, (in 2016) the share price would have been around the 20p - 25p share mark,
Certainly not a buy at present, but for those already invested a solid hold, well that's my opinion.
I am a little suprised that we have not had an update yet which could suggest that completion of the rig sale did not take place during the last financial year. Having said that AMED always appear reluctant to pump up the sp only announcing factual developments. With a small mc of £4m and well regarded investors there is still massive potential here and the lack of news puts it out of most PIs radar. Perhaps a Swan - grace on the surface for all to see but thrashing away under the water.
If form is consistent then we should see a pre close or rig update by the end of the year. The current share price continues to baffle me and is probably worth at least twice its price even without the rig being factored in.
I don't know if any of you guys took any notice, I suggested you take a look at N4Pharma a while back, (Up over 25%), as it really could be a multi bagger, only a small company that reformulates drugs, and has a few patents in the pipe line, including "Viagra" which is worth billions.
Really is worth a look, as like Amed, only just under 75 million shares, cash in the bank and a solid BOD,
Whilst it can be frustrating waiting for newsflow, our major shareholders are invested for the end game, which is why our company are looking for the big ticket items.
We have the yard and a huge JV partner. The sector is consolidating and the bigger players are going to get bigger. We are perfectly placed to be at the forefront of an industry that is developing its services, in order to meet new regulations.
As we await newsflow, I have been accumulating further and will continue to do so on weakness.
AMED seem to play their cards very close and do not go out of their way to pump the price of their shares. This does not mean that the Swans legs are not working hard under the water. The news will come and it will be good and will justify a share price substantially higher than current levels. The major shareholders and management have got their eye on the ball and have no need to put minor news items out. As you say Izzy only a few shares in issue, cash in the bank, quality copper investments and a substantial investment in the yard sharing this with a progressive regional partner. Perhaps not on the radar of many small investors at the moment but that will change. All in my opinion but I would rather add than reduce at anything below 30p
Last year we had an update on 21 December and I feel it would be reasonable to expect further news on the rig this year. Also much more has been happening with MGR and the copper mines that I feel sure the BOD would wish the market to know.
I find it rather odd, that there has been no news from Amed with regards to the new order, I was going to say will it benefit the company, but I'm starting to have doubts, but going back to the rig, and "The yards first order" gives me the impression the building of the rig was all Ameds work, when they were only a third party.
But I suppose as OWO stressed, it's a 19% indirect interest Amed has in the new order. even so. why the drop yesterday
Amed has a 46.5% in YZJ off shore engineering, who has a 40% stake in Jiangsu Jangzijiang offshore engineering, which means it has a indirect investment in the shipyard. so from what I can make out, if the ship yard makes £100 million, YZJ would make £40 million, and Amed 46.5% of the £40 million (around £18 million).
The rig order from Primeport Drilling had an option for two more rigs, worth US$1.7 Billion in total, and Amed would have received 46% of YZJ's 40% share of profits.
Although Amed has posted loses for the past few years, I assume they have to be down to their Investments in YZJ, the copper mines and MGR, plus the loans to MGR, which all should bring in good profits in the future.
Remember it was only a few years ago that they built the ship yard, making it a modern ship building yard, able to a built a variety of vessels.
Also of interest is that over the past week or so the market seems to have been happy taking a fair amount of stock at 13p with no mark down which I feel a little unusual. I guess this means it may well have a buyer,
Whilst this new jv "investment will not have any significant impact on the earnings per share and net tangible assets per share of the YZJ Group for the current financial year ending 31 December 2017", I suspect this information will need to be the subject of an RNS in next months trading update.
Total assets in the last results amounted to just under US$ 21 million, which makes the shares worth around 60p each, so Amed is way under valued,
As I said in my last post, the ship yard has been busy making Blocks, or Containers,
We have to remember it took quite a while developing the shipyard, but what we have is a modern yard that can build an array of vessels, so surely it can't be long before another large order is secured.
Unfortunately if you ask a question of someone and give them an opportunity not to answer then the chances are they won't . But I do agree that although AMED has a low MC and may be considered a minnow the management will have much bigger plans which I feel will be made known once we have clarity on our largest investment, that being the rig and the future of the yard and our investment in it.
Yes I agree totally re things going on behind the scenes.
I sent Mr Lau (CEO) a couple of emails after the Interims. They contained observations and a number of questions. However, I did remark that I thought he may not be able to respond to some and those questions and would understand if he didn't reply.
I can confirm he hasn't replied.
I don't think you need to worry about the Ship Yard, and I doubt the need to put it up for sale, as since the Rig was finish it has been busy building Blocks for Container ships and the gas Industry, as stated in the last results, plus it is utilising it's berths.
I have a feeling there is a lot going on behind the scenes that Amed is not revealing, and it may not belong before another order is announced for the well equipped yard.
I'm inclined to write this year off with it's ups and downs, plus the problems getting rid of the Rig, but next year to be a bumper year with the Ship Yard, copper mines and MGR expected to do well,
Investors will then wake up and see the potential of Amed.
As far as the rig sale is concerned the interim statement said that the rig was being prepared to be delivered. This is not being prepared for delivery which is quite different. I think delivery will take place before the end of AMEDs financial year and we can expect a pre close statement at least no later than the end of December.
On another matter it is a pity that we do not have other investors posting.
I can only go on what is in the latest Interims and Finals:-
Finals for year ending 31/12/16
Loans receivable c/f $1.4m
Interims for 6 months ending 30/6/17
Loans receivable b/f $1.4m
Loans made in period $1.8m
Loans repaid in period $1m
Loans receivable c/f $2.2m
Re the rig, yes the original order value was $170m. The order was then upgraded by the original client to include $5m of additional features. However, the order was then taken up by Keppel, without those additional features. So the order value reverted to the original $170m.
Obviously we are unaware of the exact build costs, so we can only make an educated guess re profit margins. However, I did comment on the LSE board last Saturday:-
I read a while back that it was normal for a client to pay for the build costs up front, then when the rig was complete and standard international checks undertaken, the client would pay circa 90% of the balance. The remaining 10% would be exchanged on delivery. Now I cannot say whether that has been the case with Explorer-1, as details are very much confidential. However, we do know that the client was arranging finance and that the wording of the Interims was bullish, re the rig being prepared for delivery. That is suggestive of both client finance and crucially, employment of the rig being in place.
Any thoughts re what you think the build costs are?
Going forward, it is going to be interesting to see how the yard is utilised, ahead of new rig orders. Or will a big player try to buy our JV yard, knowing their order books are growing rapidly?
I personally think we will look to deliver those big ticket orders that our major shareholders invested for. Watch this space.
Just to clarify the loan situation, MGR Repaid (in the half year results in June 16) $1,717,000 of the loan, and the remaining $1,200,000 according to the Sept results, the original loan was for
$2.200,000, and I would imagine the extra $717,000 was accrued interest on the Loan.
Amed then made available to MGR a $800 K loan facility, just a point, MGR paid interest on the original loan of $717k, but it will only pay 10% interest if it starts using the $800k loan facility.
Regarding the rig, you said the order value was $170 million, how much profit Amed will make on the sale remains to be seen, as someone had to pay for the steel and labour to build it in the first place, there is also the added cost of storage,
It seems looking back at the RSN's, the original buyer of the Rig could not raise sufficient funds for it's purchase, so an alternative buyer had to be found, hence the delay in delivery.
The Shipyard, I was of the opinion it was a white elephant, but it appears it has been quite busy building containers
So a bigger picture shows us Amed is doing quite well, plus I feel we are all agreed that once the copper production starts, it will be a lot better
The US$2.2m of loans have been drawn, which is why they are a balance sheet loan debtor. Whether the latest US$800k is used, will in part, I guess, be dependent on the number of commodity deals they are brokering.
As for the rig payment, the order value is US$170m. So payment will, I assume again, be in the same currency.
Happy to be corrected though.
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