Here Today... Gone To Hell!

The members of this board could round up enough money to buy this company. What is Sanctary's role in releasing the CD? I would hate to be a stockholder waiting on Axl to save my company...thats a tough living!

LJ

5 cents?? That means they're worthless. How will they pay their artists? They might be able to right now, but funds will dry up quickly. This isn't very good news. :nervous:

Maybe we should do a hostile takeover of Sanctuary. : ok:

yea you do that

isn't  Sanctuary  just axl's management

In todays news Sanctuary Music's stock holders have changed the companys name to "Heretodaygonetohell Music"

According to company PR man Saul, "Chinese Democracy starts now!"

I've got a dollar on it.  Thats what?  20 Shares.  Maybe we can get some pull.  Sit in on the board meetings...  Maybe then we could get some good news on the board! ;)

Five cents?

I read their stock dropped 40% a while back. It last sold at 4.1 per share if I am reading correctly.

There's Sanctury management, then the record label version - argh so confusing

that actually means they are worth nothing. As mentioned before their liabilities are greater then their assets. Reason nobody wants to buy that company is that they would also have to take the debts.

If Management had any trust in their company they should buy it. That would also be a positive sign towards investors.

So if heretodaygonetohell would want to overtake sanctuary we would have to pay app. 33,4 Mio. USD which is the current market capitalization at 5pence / stock. Also most likely we would have to have at least a couple of millions backhand to pay debt and restrucuring measures.

If anyone wants to start collecting  ;D I would give some managerial help for free and help set up an investment fond.

Its actually at 5 pounds not five cents. And I just bought 600 bucks worth!

I think you mean pence.

5 cents? 5 pennies? or a fiver?  :confused:
Are they publicaly held ones?

I say that as a collective unit, HTGTH buys 51% of the company to insure we have voting power in all major releases and buisness decisions....first matter on the table, the release of Chinese Democracy or the hanging of Mr. Rose :hihi:

5 cent stock. Pump and dump baby. Better buy some when chinese democracy comes out.

 

 :rofl: You do know what Plc stands for. You do know what "limited" refers to?


True  : ok:


 :rofl:


Please finish your first fall in college first. You're probably the most clueless person ever to type a line like the last one. And I don't mean flame you, but you  got one out of three right. Not exactly adviser material...  ;D

Ok, the last one wasn't all that bad so I'll elaborate: You'll never be able to buy a whole (or even a majority) in a public company at the current share price. Simply doesn't happen with multiple vendors.

@Axlative:

1) Please think and then write
2) Do not assume things, but know things

3) PLC: You would not be a happy investor if you bought a company that is heavily indebted, without having a plan concerning debts. What would be the sense in doing so? You either have to restructure the company and take on the debts or you have to shut down the company and sell the parts that bring money. There is no legal obligation of course in paying the debts, that is correct.

A couple of months ago the company was worth less then nothing since their assets were less then their liabilities. Who would buy a company like that, it does not matter if it is plc or privately owned. Just for you: You do not buy a company like that (if you plan to leave it on the market) without having a plan on how to take on the debt. An example: Rover Ltd. was sold a couple of years ago from BMW to an investment fond for 1?. Why was that? Because the investment fond had to take over Rovers debts.

4) One out of 3: You can count, can you? 33,4 Mio USD IS the price you would have to pay if you bought all their shares at 5 pence/piece at the  market + my hint about managers buying the company creating trust:    That`ll make 2 correct hints, even for you! You might calculate on your own though: http://www.hlhz.com/download.asp?fid=1654
http://www.advfn.com/cmn/qkchart.php?epic=SGP

It is clear though that during buying process stock might go up so in the end you pay more, except you can negotiate directly with large chunks holders. But we do not want to elobarate our strategy yet, do we? :hihi:

5) I doubt that htgth will be able to collect money, so see my remark as a joke. Oh and btw. I do not know where you are coming from, but usually we do not just say things that we do not know. I finished my studies in international economics last year and I do in fact work as an advisor for international management issues in a very large consultancy.

I think Sanctuary should hire you! :P

Long story short(?):

3. Assuming the heavily debted refers to the leverage of the company, it in itself is irrelevant. It does, however, imply a heavy annual debt servicing (i.e. interest) payments. The problem exists if the company's cash flows aren't able to service that debt. The debtor can file for banktrupcy. That's a problem. The company doesn't have a legal right to not pay the debtors. The debtors either receive their money, agree to alter the terms in your favor or file for banktruptcy on your behalf.
However, if the business is good and the cash flows sufficient, the cost of capital for the company is much lower than with more debt (debt is cheaper than equity). That is good. And the equity value will start rising.

From an investor point of view high leverage = high risk. But it doesn't affect the risk/reward ratio.

Also, a company's value is not "less than nothing" when assets < liabilities. Company's value is the market values of debt and equity added. Also known as enterprise value. Value of equity is also never "less than nothing" in a functioning company. It is always share price times the number of shares. If that figure is zero, the company is bust. But until that time it will always be positive. If it was zero, the risk/reward ratio would approach infinity (zero division) and that cannot happen (yes it's usually called risk/reward, but it's actually calculated vice versa i.e. reward/risk), because everyone would want to buy it.

4.Yes, IF you bought the company's shares at 5 pence a piece (I assume the number of shares is correct) you'd have the company for 33,4 M. But if it's the current share price it cannot be done!

You somewhat undesrtood what I said, but didn't beleive it for some reason. I repeat. To purchase a whole company you must pay above the market price. Why? because the price is the price the last deal was made at. Why would you expect the people who didn't sell then to sell it now? You'll get them to sell buy upping the offer a notch. Then again. And again. And again. Even if you got the first batches/blocks at the same or lower price it will still go up eventually (other things remaining the same) and take the average share price paid to above the initial price.

It is not a probability we're talking about. It is a pure fact.

Law of demand & supply, you know...

edit: typo

chill guys chill!!


 :rofl:

Short:

short term financial investor: If you are interested in squeezing out a company (and then sell the rest): make sure cash flow covers intererest; enough to keep the company alive; from that perspective you are correct. And I am pretty sure that you can earn lots of money with companys close to financial collapse. This is not my area though I work with sound financial data.

strategic investment: long term interest; restructure and organize a company which is creating cost, so investors have to take care of old debt or even give additional funds, so a company gains trust again and gets access to cheaper capital on its own.

debt is cheaper than equity: That is not correct in general. It depends on the mixture(leverage). Cost is one side: return  on total capital is the other side. If you want I can give you an example. Sanctuarys return on total capital is NEGATIVE, since they made a loss. This is a problem.

assets= equity + liabilities --> assets in Sanctuarys Case: assets < liabilities  meaning equity is negative!!!! A company whose assets are covered only by liabilities is worth less then nothing in the books (THAT IS THE REASON WHY SANCTUARY IS AT 5 PENCE, which is pretty damn close to nothing) if you do not consider other things which we will do here:

Enterprise Value=Company's market capitalization - cash and cash equivalents + preferred stock + debt; not very reliable since it only reflects current positions.

personally I would rather trust DCF using FTE because it gives an outlook and you can calculate better.

Buying a company on the stock market: You might not be able to buy everything on the spot at 5pence that is correct. You could  slow down the buying process and negotiate directly with large chunk holders though, which could give you a fair chance to get in a comfortable position at a price close to 5pence. Example: Porsche was able to buy 20% of VW and nobody noticed till they anounced near completion.

If you like to eleborate this topic further I suggest we do this in private because the board ist most likely bored and not interested.

LOL

I was already writing a reply, when I realized that there's too little diagreement left in the issue(s) and I'm too hungover to get interested anymore so I deleted it.  :peace:

Let's not bore 'em anymore.  :hihi: