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Red Letter Days On The Brink Of

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Exactly the type of company to go under in tough times.....

http://www.sky.com/skynews/article/0,,30400-13398244,00.html

BRINK OF ADMINISTRATION

Gift company Red Letter Days which sells vouchers for activities is on the brink of administration.

A number of suppliers have stopped accepting the company's vouchers for activities which range from motor racing to bungee jumping.

The firm has called in restructuring specialists and has called an emergency meeting to reassure staff.

However, the Sunday Times says administration is the most likely option.

Red Letter Days was founded 16 years ago by entrepreneur and television personality Rachel Elnaugh.

Ms Elnaugh shot to fame on BBC show Dragon's Den, appearing on a panel giving out advice to budding businessmen and women.

Both Thruxton Motorsport Centre and Everyman Motor Racing Activities have said they can no longer accept vouchers for driving days.

They claim Red Letter Days owes them "substantial" sums.

Telecoms entrepreneur Peter Jones is said to be discussing a possible takeover and was quoted as saying the firm was "in a bad way" but not bust.

The company offers vouchers for more than 1,000 activities, such as piloting a jet fighter, climbing Mount Everest and learning to cook with a celebrity chef.

Edited by Time to raise the rents.

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Oohh... exactly the sort of company to short then? By the way, can you do this with UK PLC? I have done all trading online in the US, was not aware that shorting was allowed. Can you short more than you have in savings like you can in the US? I was allowed to short at 4X my cash ammount last time I tried?

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Exactly the type of company to go under in tough times.....

http://www.sky.com/skynews/article/0,,30400-13398244,00.html

BRINK OF ADMINISTRATION

Telecoms entrepreneur Peter Jones is said to be discussing a possible takeover and was quoted as saying the firm was "in a bad way" but not bust.

Interestingly Jones was also on the Dragon's Den panel, usually smirking at Rachel's idea of what constituted good business sense .... he must be lapping it up, and that may be hi smotivation for getting involved....

The Telegraph point sout that it is rather embarassing for the Beeb as Rachel took part in the second series of Dragon's Den, dishing out pearls of wisdom, set to be screened in September....

But MOST importantly of all, Red Letter Days was set to, you guessed it, FLOAT later this year. Lesson to be learned: NEVER forget what the stock market constitutes : businesses that owners wanted to reduce their exposure to. It's up to investors to ask the question"Why?"

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NEVER forget what the stock market constitutes : businesses that owners wanted to reduce their exposure to. It's up to investors to ask the question"Why?"

This comment sums up the ridiculously negative nature of so many posters on this forum. The stock market exists for growing companies to exchange shares in their future prosperity for cash, to help their business grow.

To suggest that all, most, or even a few companies float to get rid of bad businesses is rubbish.

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To suggest that all, most, or even a few companies float to get rid of bad businesses is rubbish.

Possibly not most, but certainly more than a few companies appear to have floated primarily so that the owners could get rich before the company collapsed.

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This comment sums up the ridiculously negative nature of so many posters on this forum. The stock market exists for growing companies to exchange shares in their future prosperity for cash, to help their business grow

Tell that to Martha Lane Fox she would p1ss her thong.

Tell that also to Alan Sugar he too would pee his leapordskin thong.

Tell that to Richard Branson, the plan backfired when he realised he could not fleece the investors so he bought the shares back.

I'm afraid the Stock Exchange exists so the public can share in the risk while the owners draw huge salaries and bonus's out of the organisation.

If you are lucky you might make some money on the share price rises, however seeing as the initial ideas was that the return was supposed to be on dividends then I think we all know that the Stock Exchange is now a failure.

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Everyone's entitled to make a mistake, but my understanding is that Red Letter is continuing to trade despite the large number of organisations which are owed rather a lot and are refusing to honour their vouchers.

I see nothing on Red Letter's website which warns of this or evidence that refused vouchers have been taken off their offers list. Well maybe I am mis-informed, but I think if I sold vouchers for anything which I knew were not going to be honoured, that would be fraud wouldn't it?

This is precisely the kind of business which went under very early in the 1990's crash. If you want to drive a fast car round a track you can contact the circuit direct. Many third party sellers with no direct service (which is what Red Letter Day is) invariably go under in an approaching recession.

VP

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If I remember correctly Courts Furniture had a special discount weekend sale prior to going into administration on the Monday having taken millions of pounds in deposits for furniture they had no intention of supplying.

Cant see any of the directors behind bars.

I think like most things in life, you pays your money and takes your chance.

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And always use a credit card.

You are guaranteed your money back if the company goes under and you have no goods.

Make sure you pay off the full balance each month, stick 0% interest trap where the sun dont shine.

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Shame to see a company go out of business but this kind of thing relied on borrowed money or the odd person that could really afford it. A classic symptom of the consumer society gone bust in my view (for what it's worth!). I love to career around race tracks on my track bike but I only do it with cash from my pocket not on plastic for a 'voucher'.

Apart from 'shopping' collapsing this is precisely the kind of activity I would expect to come next in 'The Great Crash'. So no great surprises so far then!

All on track.

B)

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This comment sums up the ridiculously negative nature of so many posters on this forum. The stock market exists for growing companies to exchange shares in their future prosperity for cash, to help their business grow.

To suggest that all, most, or even a few companies float to get rid of bad businesses is rubbish.

Whilst there is a propensity for some on this forum to be a bit negative, you have picked a bad example with which to mount an attack.

From what I understand, all sledgehead said is that the owners are lowering their exposure by floating and that investors have to weigh this up before investing. There is absolutely nothing negative in that. Cautious, sensible, yes. Negative, no.

Even a listed company where the Directors are selling shares raises eyebrows, and typically a shareprice will drop.

NDL

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Whilst there is a propensity for some on this forum to be a bit negative, you have picked a bad example with which to mount an attack.

From what I understand, all sledgehead said is that the owners are lowering their exposure by floating and that investors have to weigh this up before investing.  There is absolutely nothing negative in that.  Cautious, sensible, yes.  Negative, no.

Even a listed company where the Directors are selling shares raises eyebrows, and typically a shareprice will drop.

NDL

You have to look at the business model and the prospects of the company. There are very sound reasons for a private company to list - say for instance a company which has the potential to gain a niche in a world market and there is insufficient capital to achieve those goals, in such instances shareholders and the company can both gain.

The flip side is companies who have already exapanded to fill their niche, don't need the money and have no where to go or in fact have just rode along a boom and see the clouds gathering and there are simply no other buyers in the private market place that would cough up the sums of money to allow the owners to cash out at the top.

A couple of company names mentioned on here a few times spring to mind that belong to this this category.

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Guest Time 2 raise Interest Rates

Sky News, Rachel Elnaugh has put her company into administration.

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Exactly the type of company to go under in tough times.....

http://www.sky.com/skynews/article/0,,30400-13398244,00.html

BRINK OF ADMINISTRATION

Gift company Red Letter Days which sells vouchers for activities is on the brink of administration.

A number of suppliers have stopped accepting the company's vouchers for activities which range from motor racing to bungee jumping.

The firm has called in restructuring specialists and has called an emergency meeting to reassure staff.

However, the Sunday Times says administration is the most likely option.

Red Letter Days was founded 16 years ago by entrepreneur and television personality Rachel Elnaugh.

Ms Elnaugh shot to fame on BBC show Dragon's Den, appearing on a panel giving out advice to budding businessmen and women.

Both Thruxton Motorsport Centre and Everyman Motor Racing Activities have said they can no longer accept vouchers for driving days.

They claim Red Letter Days owes them "substantial" sums.

Telecoms entrepreneur Peter Jones is said to be discussing a possible takeover and was quoted as saying the firm was "in a bad way" but not bust.

The company offers vouchers for more than 1,000 activities, such as piloting a jet fighter, climbing Mount Everest and learning to cook with a celebrity chef.

"called in restructuring experts"? I thought she was supposed to be the business genius...

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If I remember correctly Courts Furniture had a special discount weekend sale prior to going into administration on the Monday having taken millions of pounds in deposits for furniture they had no intention of supplying.

Cant see any of the directors behind bars.

I think like most things in life, you pays your money and takes your chance.

i did see some legal stuff later on tv i think. there was bruce forsythe as a high court judge and he said he must "lay down the law" but instead of refund the customers he simply went to sleep. ?

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can anyone remember the Nina Brink story ?

she owned an ISP called World Online and secretly dumped her shares to a hedge fund in which she also had an interest at X dollars per share just weeks before the public IPO. After the IPO they collapsed to Y dollars per share where Y was much lower than X.

This is reckoned by some to have been the collapse that triggered the whole

dot.com burst.

Edited by privatefraser

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Why the negativity about the stock market? It's not like it's the housing market you know? :D

*Checks share portofilio, spots ROS up 15% for the day, FWY up 4% for the day, walks off stage left chuckling at the thought of people invested in a falling asset class like UK residential property*

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I think we all know that the Stock Exchange is now a failure.

My Unit Trusts have appreciated well over 30% in the last 24 months.

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This comment sums up the ridiculously negative nature of so many posters on this forum. The stock market exists for growing companies to exchange shares in their future prosperity for cash, to help their business grow.

To suggest that all, most, or even a few companies float to get rid of bad businesses is rubbish.

Cr@p : The stock market exists as an exit strategy for venture capitalist and business angels who otherwise would NEVER be willing to put up the seed capital. It is a way to diversify risk. It has also been used as a way for governments to off-load non-performing assets. To think otherwise is pure fantasy.

Floating is not a "sharing of success" or any of the b@llox you read in the company's prospectus. It is a straightforward transfer of risk to the public.

And before you accuse others of talking rubbish or being too pessemistic about stock markets I suggest you read here (written ~ a year ago. :

Sentiment good 4 s&p500, comments?

I think you will agree that I have a rather better record on this iste than you of telling people to be less pessimistic about stocks.

One tip to winning in any game: understand the rules and the participants. That means accepting what the stock market is. The fools who lost money in the Dot Com collapse thought they were "sharing in success." Others understood that they were there to hold the baby. And if you wanna tell people to stop being so pessimistic, at least have the guts to pick a market that hasn't rallied 10% in the last 2 months.

And as for my statement:

NEVER forget what the stock market constitutes : businesses that owners wanted to reduce their exposure to. It's up to investors to ask the question"Why?"

it is neither rubbish nor pessemistic. Floating a company necessarily reduces your exposure to its fortunes. If you wanted to retain exposure the funding route could take the form of all manner of debt instruments be they revolving loans or syndicated loans or corporate bonds.

Floating reduces business exposure: FACT.

Whether this statement constitues pessemism turns on what you believe my answer is to the second half of the statement, ie why would somebody want to reduce exposure. It could well be they want to invest the float proceeds in other shares. Does that make my statement anti-stockmarket?

Plonker! Is it me or did we once have an admissions policy on this forum?

Edited by Sledgehead

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Sledgehead

Of course flotation gives the owners the means of reducing their exposure, but it also gives them liquidity for their retained shares, and the ability to raise additional equity more easily, finance acquisitions through paper etc etc.

The notion that this is generally some kind of con against shareholders is a bit daft. In some cases it is, in most cases not.

Strange type of con where I get a better return playing the stock market than I do from cash or house ownership...

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Sledgehead

Of course flotation gives the owners the means of reducing their exposure,

= means of reducing their exposure

but it also gives them liquidity for their retained shares,

= potential to quickly reduce their exposure

and the ability to raise additional equity more easily,

= means of reducing their exposure

finance acquisitions through paper etc etc.

= means of reducing their exposure

The notion that this is generally some kind of con against shareholders is a bit daft. In some cases it is, in most cases not.

Strange type of con where I get a better return playing the stock market than I do from cash or house ownership...

I never said it was a con. I said it was a means of reducing business exposure and diversifying risk, something you clearly agree with.

As fo ryour or my experiences with making money through stocks, what does that have to do with business? I make money shorting as well as going long. I mak emoney tday trading as well as investing long term. Does position trading say anything about your confidence ina business? of course not. It merely means you believe it's shares are not trading at the correct value. You are mixing up floating with share performance. Why?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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