The Evil Diaries: “it was a gimme”

I nicked 3p out of Glencore (GLEN) on the capitulation scenario by going long. OK, it is not a lot but it was a gimme.

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However, the real news is Ennismore’s comments this morning on Globo (GBO)‘s results. The chief debagger writes:

“Gents, I know you all have an interest in Globo. In case you missed it, the company was due to make the first of 7 instalments repaying its first EUR 20m term loan in April (see page 103 of the 2013 annual report and page 100 of the 2014 annual report).

As the results today state this amount was fully drawn by the company. One seventh of EUR 20m is nearly EUR 2.9m. What the accounts do not show is repayment of debt sufficient to meet the first instalment, which suggests either the company is in default or that it required a waiver / restructuring from its lenders. Either requires disclosure and, given the supposedly large cash balances, explanation. None is given.

Repayment of the second term loan begins in October which probably explains why they seem so desperate to issue junk debt at any price. It is interesting to note that their RNS states this is to fund acquisitions but the terms of the bond issue are as a refinancing.

All of this is public information so you may be well aware already, but just in case.”

Globo now stands at 36.5p bid. It is therefore a perfect time to short.

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BooHoo (BOO)‘s results statement is not accompanied by any shock horror revelations. But it is still on a stratospheric rating. There is therefore no reason to buy to close.

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Finally, Mitie (MTO) is surprisingly bullish. this morning I think this statement must be wrong somewhere. Like the Terminator I’ll be back.