SML - Synlait

[snapiti]

I have nothing positive to say about the company,just making an observation

[Minimoke]

Now trades are getting down to the pennies in the pound level, interesting that each $0.005 drop in SP wipes another $1,000,000 off the market value. Which might not seem like much. But it is when you are only now worth $74 million

[Buzz]

Chris Lee rips the bandaid off. Worth a read https://www.chrislee.co.nz/taking-stock

[Left Field]

Chris Lee rips the bandaid off. Worth a read https://www.chrislee.co.nz/taking-stock

I guess Teitei/Balance will be happy that Chris Lee agrees that SML bondholders are likely to get their money back.... though maybe delayed. Gutsy call by Balance.

[Minimoke]

Chris Lee rips the bandaid off. Worth a read https://www.chrislee.co.nz/taking-stock

He a bit late to the party. Things we have been discussing here for ages. I don't share his view on the bonds. But really. Who knows?

[Minimoke]

What are bonds telling us today?

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[Minimoke]

And who or what is keeping the SP propped up. Every day there are loads of these 1,000 parcels being traded.

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Closed today down to $0.32. Which make market cap now worth less than $70m
And bonds crossed at close on 160%

At what point does the market regulator step in?

Big question now is: Does Synlait have the money to pay the interest due on Monday?

[SemiStrongForm]

Why does the regulator need to step in? The market is aware of Synlait's financial position, including its ability to continue as a going concern, its covenants, and some are more bullish than others.

In my opinion, for now, it remains buyer beware.

[SemiStrongForm]

I guess Teitei/Balance will be happy that Chris Lee agrees that SML bondholders are likely to get their money back.... though maybe delayed. Gutsy call by Balance.

Through what path do bond holders get their money back other than if there is a change of control event? I would not expect the banks to want to reach a deal to sell Synlait's assets fairly quickly, ie, a fire sale. I can see them getting something back, but perhaps not all.

[Minimoke]

Why does the regulator need to step in? The market is aware of Synlait's financial position, including its ability to continue as a going concern, its covenants, and some are more bullish than others.

In my opinion, for now, it remains buyer beware.

But the market isn't informed. On 3rd April Synlait announced a $130m rescue package. But they still haven't told the market what the terms of that deal are. In the absence of this information Synlait has lost 25% value in 2 weeks. If they had gained 25% over this time in a vacuum of information questions would be asked.

[Teitei]

But the market isn't informed. On 3rd April Synlait announced a $130m rescue package. But they still haven't told the market what the terms of that deal are. In the absence of this information Synlait has lost 25% value in 2 weeks. If they had gained 25% over this time in a vacuum of information questions would be asked.

The answer of course is that SML is cum-CR.

Everybody but everybody knows that a pending CR results in a sp falling - refer Sky TV, Air NZ and Ryman.

Ryman imo should have been suspended from trading as the market was definitely two tiered leading to the CR - instos in the know vs retail investors blissfully unaware.

[Minimoke]

As Synlait today dips below $0.30 we are in the Final Countdown. 8 working days left to update market on details of $130m loan so shareholder approval can be gained.

Edit - Market closed today at $0.30 giving it a market cap of $65.5m

[Teitei]

As Synlait today dips below $0.30 we are in the Final Countdown. 8 working days left to update market on details of $130m loan so shareholder approval can be gained.

Edit - Market closed today at $0.30 giving it a market cap of $65.5m

Banks will give another extension if required.

Just chill and enjoy the drama.

[Minimoke]

Banks will give another extension if required.

Just chill and enjoy the drama.

Back in September the banks wanted their $130m ( or more) back by 31 March. Back then the SP was $1.13

Then on 2 April banks extended time frame out to 15 July. Back then SP was $0.70.

I reckon banks patience is wearing out, and they are a bit more relaxed now Bright is apparently coming to the party.

[Teitei]

Back in September the banks wanted their $130m ( or more) back by 31 March. Back then the SP was $1.13

Then on 2 April banks extended time frame out to 15 July. Back then SP was $0.70.

I reckon banks patience is wearing out, and they are a bit more relaxed now Bright is apparently coming to the party.

Sp is cum-CR.

And it will continue to drop until the CR is announced.

Just like Sky TV, FBU and Ryman.

Simple, no need to look too hard for answers.