TMS television & media services limited

technicals if you own...

  1. 10,543 Posts.
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    Well, as Grant62 has clearly outlined things don't look too rosy with ol' TMS. Technical support has been well and truly broken in this stock at 5.8c sice early February and it now looks more like a resistance.

    Worse still probably lies ahead with the current prospectus documents portraying a substantially worse financial situation than I think could have reasonably ben presumed.

    Nor have they revealed why several major payments took place that have placed the whole company in such a dire financial state that it has been in breach of bankers covenants several times. Despite this, PBL, TEN and the ANZ appear determined to draw out placing their contributions until such time as the shareholder vote on the recapitalisation proceeds.

    This looks to me to be designed to encourage existing shareholders to vote in favour of the restructuire without there being much likelihood of them taking up their entitlements therefore allowing TEN and PBL to substantially dilute minorities down, perhaps ahead of a buy out?

    Either way interim supports appear to be 4c (tested this morning) which were it to break then leads to a potential low of 2.8c very close to the 2.5c issue price.

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