DYOR
...It's nice when Directors have faith in their products and they buy shares, but we're less keen when they sell them. However, as long as it's a few here and there, and there is a strong order-book and profits, dividends etc...who can blame them?
However, here we appear to have an instance of profiteering for no better reason than a profit is a profit, etc.
Just recently as others will have noticed CTT directors bought shares, OK, it was at a very low...but that's not all...Oh No!
Just yesterday we read that two Directors have sold shares - and in one instance it looks like a good profit was taken, in about a month - yet the reason the sp rose was not due to Good News..(which is in short supply, from where I sit)...it was entirely FTSE movement and tha fact these few Directors had bought...giving some comfort for CTT investors (-that all was OK.)
These sales make (the future) look less certain and with interest-rates so low....
-is there any room for a new expensive Money-lender/Bank...?
Maybe that is the reason for the selling - Directors are concerned the future is far from rosy...?
Oh deary.

I dont think they can recover they continue to fall daily.

Well, we know why the sp picked-up after the 10p low looked like the beginning of the end.
Three days after the upturn it seems BARC has invested 5m by way of shares, probably to av dn from earlier buys well over 1. ( so they are still losing) - and so more punters are chancing their arm on this, despite no licence news and even IF that comes, there is no g'tee folks will be interested in putting their money into this new Kid ( =Bank ) on the Block. Oh dear.
Today at 35p to buy, it is a far-call from 10p and this potential investor can see no improvement in value . . . . high street shops closing, UK Banks appear to need more Gov Money, US Bonds, Derrivitaves . . . the War in the Middle East ( Two, now!).... the list of Bad News reaches as far as I can see . . . so why is this dog perking-up?
Could it be the realisation that D4E is off the books - er, so that's alright, then, if true....but who says so?
Surely, BARC is ensuring it gets a seat at any D4E conference, rather than having to stand in-line...? Already this deal has shown BARC a notional profit....let's hope they don't sell, eh?

Incredible now up 40% wish I had bought @10p.

"sub-prime lender Cattles continues to advance strongly on hopes that its application for a banking licence will be granted. Yesterday, Barclays announced it had increased its stake in Cattles to 5%."
Watch out for a double bounce. That could be the sign to pile in, imo.

HARRYCAT, yes er, maybe. I heard that (again) it is now possible to "short" financials - so even if CTT gets their Licence they still have to prove the business model, while their target-customer are likely to be losing their jobs.
Not that I short, but some may . . .
-or- does BARC have wind that the licence is in the bag? - - - *(wash my mouth)

MoneyAM
Sub-prime lender Cattles this morning announced plans to reduce costs, preserve liquidity and significantly reshape the group. Cattles said there will be a reduction in the volume of business it will write and a thousand jobs will be cut.

The lender said discussions are ongoing with its bank syndicate regarding the refinancing of facilities due for repayment in July 2009 and also with the FSA regarding its banking licence application.

The reduction in new business volumes will have a negative impact on profitability in 2009.

Cattles will continue to write new business in 2009 but it is expected that new business volumes in Welcome Finance will be reduced by some 75% on 2008, which itself saw a reduction from 2007.

Collective consultation with employees has begun over a reduction of around 1,000 jobs within the group. This includes a proposal to close the operation in Hull which currently employs 400 people. In addition to job reductions and the suspension of dividend payments announced in the pre-close trading statement, a range of other cost saving measures will be adopted to conserve further cash over the coming months. "

Back down 23% today on cost cutting measures.

Mitzy, can you put any sense on the 25% rise today? - Late trade of 32k-worth appears to be part of this frenzy for action, with almost as many Sells as Buys, despite the rise.
I agree that cost-cutting measures are an indication of lewer activity (and profits), so I'm guessing the Directors have accepted that with the Lunatic International Financial excesses over - CTT is fit only as a small regional-lender serving a small market they know - in effect a return to their roots, now the Party is over.
+Just a shame (for investors, although I never was) CTT didn't understand the International Market before the 2000's - by 2005 it was already over.
( er, although many small punters like me hadn't seen its slide-effects).

Perhaps I should have bought at 12p, for I see this settling about 50p in a couple of years.. . . .

Alternative views. . . ?

From Digitallook:
"Sub-prime lender Cattles tops the FTSE 250 risers after being rated a speculative buy by broker Evolution Securities, which is e xpecting good news on the companys refinancing efforts."

Cattles are for the cows...5p now.


Cattles delays results - MoneyAM


Sub-prime lender Cattles said today it is delaying the release of its preliminary results.

The company has warned that profits will be substantially below expectations.

The group said the preliminary results were being delayed pending the completion of a review of the adequacy of its impairment provisions.

Cattles said that while it was not possible to determine the outcome of the review at this stage, it was expected to result in profit before tax being substantially lower than current market expectations.

A new date for the results will be released in due course.

Delay in producing accounts..!

The directors selling was a clue before Xmas.

Doesn't bode well for refinancing - a board that has no idea of the correct level of provisioning.

One suspects they are arguing with the auditors to spring this one out of the blue, as surely regualr provision review is an inherent necessity in this business ?

Cattles delays results - MoneyAM


Sub-prime lender Cattles said today it is delaying the release of its preliminary results.

The company has warned that profits will be substantially below expectations.

The group said the preliminary results were being delayed pending the completion of a review of the adequacy of its impairment provisions.

Cattles said that while it was not possible to determine the outcome of the review at this stage, it was expected to result in profit before tax being substantially lower than current market expectations.

A new date for the results will be released in due course.

Well I got my 4p eventually.

This last flurry of Bad News has driven the sp down - and posters (here) may be right the Director action is under question - except in fairness it is "never that easy" to determine if a borrower will default - and CTT doesn't appear to take any colateral ( DYOR), for the moderately small sums.
. . . . . These are dire times and like Governments very few study wuch times, OR have the opportunity to become "experts" - since it is better to work on the assumption it won't happen. . . . .

For the brave this looks (soon) to be a buying op - but I'm holding off for now, maybe until their results are clearer . . . um, er, there is no rush.
(I don't hold).

Wow I've just seen the final price down 75% this is bust no point in buying and lose your money .

December 2008

Cattles has strong demand for its products. The Group is on course to deliver trading results in line with expectations in 2008 despite having deliberately reduced volumes in all businesses since February. Although affected by the current economic situation, our operating model is proving robust and arrears and impairment are within reasonable tolerances.

Jan 2009

20% workforce slash

Feb 09

Delayed results - profits warning etc

Don't mention the interim update (positive), the intended 2009 actions (leading models, and other management babble spouted), the annual report extolling the virtues of their credit lending assessment capabilities (so good that this justifies taking on fewer customers of the highest quality etc etc)

An out and out management failure - one which again the FSA will ignore, and one the auditors should eqaully be ashamed of

I never thought it would be 5p again..!

Gone up quite a bit on trades of 26m and 28m - hardly a stong comment IMHO. But gave MM's a chance to push the price up. I was thinking of buying this morning but only a few so even this 20% increase wouldn't show a profit (after charges, etc.)....and frankly this is a broken business - despite Poster's assertion this is needed - I suspect sensible folk will avoid borrowing, just as lenders would be wise to avoid lending....since jobs are "at risk" so no-one knows if they can repay in 6-months, say.
That CTT needs to borrow on the wholesale market is dire news - since lenders require colateral - which CTT cannot supply, IMHO. It matters nothing what customers "want", if the Wholesale Money markets won't lend - this is CTT's weakness, although they may be able to "recycle" their cash reserves, that's my guess, but they have to repay ots in June/Jy09 and lenders will want to grab any cash they can.

Update on impairment provision review

"On 20 February 2009, the Board of Cattles announced that it would delay the release of its preliminary results announcement for the year ended 31 December 2008 pending completion of a review of the adequacy of the Group's impairment provisions. At that time, the Board stated that, although it was not possible to determine the outcome of the review, it was expected to result in profit before tax for the year ended 31 December 2008 being substantially lower than the prevailing market expectations.

The review of the Group's impairment provisions, which is being conducted by Deloitte, the Group's internal auditors, continues. Based on work carried out to date, the Board believes that there has been a breakdown in internal controls which has resulted in the Group's impairment policies having been applied incorrectly. Although it is still not possible to quantify the effect on the Group's financial statements, the Board believes that profit before tax for the year ended 31 December, 2008 is likely to be substantially lower than its expectations as at 20 February 2009.

The Board anticipates that it will be required to enter into discussions with its banks and the holders of its outstanding Eurobonds and US Private Placement Notes."