Investing in Cattles

RickyRah

On recent form, I'm considering adding some shares in Cattles (CTT) to my portfolio. I'm pretty new to the investment scene and so just wondered if anyone could offer some insight into their value.

I know they've fallen from the best part of £3 over the past 12 months but do we think these are a good long-term buy?

Sol00

I don't know much about the stock market, but I know they have laid a lot of people off and cut back on lending with their Welcome Finance company, so you should be careful if you were to invest in Cattles.

Stavros_3

VERY high risk punt.
http://www.bankingtimes.co.uk/26012009-cattles-withdraws-banking-licence-application/

tonygee_3

Ive been following these also
I set buy order for 9p but just missed out, they fell to 10p then rose to 35p
Pure gamble,be prepared for a rollercoaster ride,I might be tempted if they crash again but only small stakes.I just bought E2V and WKP,fingers crossed:beer:

RickyRah

Thanks for your input guys. I'll maybe have a re-think. . .

gozomark

down 50% today, to 7p

http://www.bloomberg.com/apps/news?pid=20601102&sid=aR1WvLw4C47A&refer=uk

“We think the company is over,” said David McCann, an analyst at Numis Securities in London who has a “sell” rating on the stock. “We don’t think that it’s going to get its funding when it has to refinance in June, and if they can’t get it, they’re going to end up owned by the banks.”

tradetime

gozomark wrote: »

down 50% today, to 7p

http://www.bloomberg.com/apps/news?pid=20601102&sid=aR1WvLw4C47A&refer=uk

“We think the company is over,” said David McCann, an analyst at Numis Securities in London who has a “sell” rating on the stock. “We don’t think that it’s going to get its funding when it has to refinance in June, and if they can’t get it, they’re going to end up owned by the[strike] banks[/strike].”

taxpayer I know. I know we don't own all of all of the banks......yet.

Andrew64

gozomark wrote: »

“We don’t think that it’s going to get its funding when it has to refinance in June, and if they can’t get it, they’re going to end up owned by the banks.”

I can't see the price going up much when you consider the level of debt involved:

http://www.guardian.co.uk/business/2009/feb/20/cattles-shares-profit-warning

"Cattles is desperately trying to renegotiate its bank debt - £500m with a group of banks led by Royal Bank of Scotland, due in July, and a £135m loan with RBS alone, due in December."

gozomark

its very easy for the price to go up alot in this situation due to the massive debt/equity ratio - debt is £635m just based on the two coming up - assume thats all there is (and it isn't). The market cap is £30m odd - their annual interest bill is higher than that, so if by a miracle they were able to renegotiate the debt, the mkt cap could go up several times, hence why the share price isn't zero. One for the very brave/foolhardy - in a years time the price is likely to be alot higher or zero - feeling lucky, punk ?

trenchwars

I would steer clear if I were you.

fatpig_2

RickyRah wrote: »

On recent form, I'm considering adding some shares in Cattles (CTT) to my portfolio. I'm pretty new to the investment scene and so just wondered if anyone could offer some insight into their value.

I know they've fallen from the best part of £3 over the past 12 months but do we think these are a good long-term buy?

Maybe instead of putting your money on Red, you should be putting it on Black. Who knows.