Angry man goes on rampage in Trafford Centre over its plummeting share price

[Abyss]

https://www.manchestereveningnews.co.uk/news/greater-manchester-news/angry-man-goes-rampage-trafford-18466150.amp

As I am from Manchester and the Trafford Centre holds some found memories I thought look into this story. No mention how many shares or the amount of money this man has lost but looking at the share price obvious only been one direction after price topped at £920 back in 2007.

My understanding of the story this man tried to be "clever" and attempted to pick a bottom as the share price hit all time low of £12 back in February 2020 and now subsequently worth £4.61 60% loss. The morale of the story before investing look at the overall context and avoid trying to catch a falling knife https://www.investopedia.com/terms/f/fallingknife.asp

[dicker]

You only have to look at investment managers 'hit' rate to know how hard it is to call winners vs losers.

They have the benefit of vast amounts of research, visit the companies they invest in and can probe the management of the companies they invest in!

We mere mortals can win, but it is of course harder.....

Best

Dicker

 

[Martlet]

Looks like it has found a bottom now, bumping along around 4p, unless it collapses completely.  Clearly had problems going into 2020, presumably loaded up with debt and mismanaged.  Might be one to watch in the recovery, the upside is very large. 

[dicker]

Intu have called in the administrators (on standby).....not looking good

[Kman]

Once high, now low = good buy mindset 

Something I have to check myself on regularly lol

 

[Norskgeld]

He should have bought Sovs. 😁

[Darr3nG]

1 hour ago, dicker said:

Intu have called in the administrators (on standby).....not looking good

Apologies for the basic question (definitely new to all this)...

The current company will cease trading, and assets (i.e. big building with rental income) sold to another company - so company #2 is the potential investment opportunity?

[dicker]

I am not an insolvency practitioner, but I think...

(1) The company's debts could be restructured and it then could continue to trade (Needs another party to commit cash or take a stake in the business)

(2) If the company cannot meet is liabilities then I believe it would be sold off an potentially broken up.  Generally there is a hierarchy of who gets paid first (debtors, bond holders, shareholders etc)

If another company buys and is listed on an exchange, it could be.  You might find that the buildings / remaining assets are bought by a hedge fund / private company in which case there would be no way to invest as they would typically not be listed on an exchange

Other form members with more knowledge may have additional points.

Best

Dicker

[cornishrich]

This is why you should be real gold and sliver 🖒

[dicker]

It is often surprising how quickly companies share prices are hit.

Tesco was a prime example - impacted by competition and an account scandal.  Prices in the 400p region in 2007 - 2010 remain at about 230p today.

Cheap is not always a bargain is the lesson.

(Tesco I think is still paying ok dividends though.

Best

Dicker 

[HerefordBullyun]

1 hour ago, dicker said:

I am not an insolvency practitioner, but I think...

(1) The company's debts could be restructured and it then could continue to trade (Needs another party to commit cash or take a stake in the business)

(2) If the company cannot meet is liabilities then I believe it would be sold off an potentially broken up.  Generally there is a hierarchy of who gets paid first (debtors, bond holders, shareholders etc)

If another company buys and is listed on an exchange, it could be.  You might find that the buildings / remaining assets are bought by a hedge fund / private company in which case there would be no way to invest as they would typically not be listed on an exchange

Other form members with more knowledge may have additional points.

Best

Dicker

Thats what Mike Ashley does asset strips and then either restarts the business and/or then flogs it.

[Abyss]

Trafford Centre owner prepares contingency plan for administration. Intu, which also owns Lakeside in Essex, has been unable to collect rent from many tenants

https://www.theguardian.com/business/2020/jun/23/trafford-centre-administration-intu-lakeside-rent

Coronavirus: Shopping centre giant Intu warns of debt default risk https://www.bbc.co.uk/news/business-52704216

Owners go in administration, the share price go to zero, assets sold off any funds raised will go to bond holders receive pennies on the pound. These debt holders are pension companies so everyone is impacted. The lawyers collect the fees and the cycle continues.

[Kman]

1 hour ago, Darr3nG said:

Apologies for the basic question (definitely new to all this)...

The current company will cease trading, and assets (i.e. big building with rental income) sold to another company - so company #2 is the potential investment opportunity?

I don't know if anyone will do well out of them in the short term, not for couple years anyway until we start coming out a recession 

 

[vand]

Yep, retail REITs have been hit very hard.  NRR, HMSO both crushed and on my watching. Steering clear of INTU though.

[StackerCollector]

What happened to using a stop loss? 😁

[GoldenPhil]

On 23/06/2020 at 16:30, StackerCollector said:

What happened to using a stop loss? 😁

It's for cisseys 😄

[5huggy]

12 minutes ago, GoldenPhil said:

It's for cisseys 😄

 stop loss is for those with "BRAINS"! Bert wert duz aye NO! 😉

[Bullionaire]

On 23/06/2020 at 07:46, dicker said:

...visit the companies they invest in and can probe the management of the companies they invest in!

 

To be fair, that's what this guy was trying to do... 

 

[Abyss]

To be fair we should all give management team at INTU more time to turn things round wait...... The fat lady is now singing.....

On Wednesday 24th June INTU share were suspended at price of £1.77 but technically whoever was holding these shares at the end game of musical chairs will end up with nothing. The anger man is now so anger that he has turned green and customers at the Trafford Centre believe anger man is advertising by Odean Cinemas to promote the public back into the cinemas...