Amigo Holdings PLC (lon:amgo)
Amigo – Now Seen As Genuine Public Company?

Amigo Holdings PLC Share Price
Grade:The Pink Grade - A Pure Slightly Informed Gamble, The Market Doesn't Like The Company But I Think That I Understand Why.
Title: Amigo – Now Seen As Genuine Public Company?
Company: AMGO - Amigo Holdings PLC
Share Price Then: 0p
Author: Ian Smith
Date: Fri 03 Jul 2020
Comments: Starting yesterday, Thursday, there appears to be some sort of recovery in the Share Price, meaning that it is now at a “total disaster level” for anyone who has held them for more than a few days, rather than a “Oh well there are heading to zero level”.

The 20p offer was formally withdrawn and a trading update says that there may be more than the £35milion costs associated with the miss-selling, we have to wait for the 2019 results due on or before the 23 July.

This trading update also stated that the company had a £136million cash balance which equates to a share price of around 20p, in other words the old offer price.

With The Richmond Group now apparently committed to its sell off of 1% per day and having passed below 50%, the company can now be considered as no longer owned by one person who would block a sale at 20p.

Given that the board appears to have the support of the majority of the investment funds that held most of the shares that were not Richmond’s we can look at the numbers alone.

A while back I was valuing the shares at around 70p based on the value of the loans plus cash so I think that a sale of the company at 20p would be disappointing. Whether this price was simply one to force the issue of who controls the company and 30p or more would be offered now is unknown.
Read Count/ID: 165/13150

Buy/No Buy In A Nutshell
NegativesA combination of making risky loans and an unwillingness to tell complainants and regulators that the borrower and guarantor has the majority of the responsibility as they asked for and accepted the loan
PositivesNew management could get much more aggressive with people complaining that they asked for and were given loans but they can't afford them.
Initial Review Price7p
Last Review Price13.26p
Last Review Date02-Sep-2020
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