Tanfield Group is the new company name of Comeleon. As I understand it, Comoleon was getting into trouble so TAN (paerent company?) took over. Since this has happened the share price has dropped by 0.25p each day for the last week or so (on average) and are now around the 3p mark with very little activity.

Does anyone know much about this company or previously held stock in Comeleon? There is virtually no info out there other than on the company website.

cheers

Mike

Yes but look at the spread.

Do you get the impression MM's don't want us to make any money atm lol

They never want us to make money!!

New DS note :


Tanfield - SELL

Price: 7.3p Target price: under reviewp
Code: TAN.L Analyst: Mike Stoddart | 0161 830 1892


Lifeline?

The company made an announcement on Friday:

New Bank Facility The Company announces that its wholly owned subsidiary, Snorkel International Inc., has agreed a five year revolving credit facility of up to $35 million with JP Morgan Chase Bank NA ('Chase') secured over Snorkel's assets. The facility will bear an interest rate of the greater of prime rate of interest announced by Chase and the Federal Fund's effective rate plus 0.5 per cent., subject to a cap of 5.25 per cent and a floor of 3.67 per cent.


There may be some relief today that Tanfield has been able to secure a credit facility. It had repaid all its debt (except about 1.7m of finance leases and 81,000 of invoice discounting) with the proceeds of the share issue that was done to pay for Snorkel in mid-2007. If the group can halt its cash outflows, then this facility may give them sufficient time to be able to stabilise its finances and survive the downturn in sales of powered access equipment. To put the amount in context, $35m is about the same as the cash outflow that the group suffered in H1 2008. Hopefully, the cash outflows should slow down from now because of the reduction in the need for working capital.


There were also press reports over the weekend that PWC is being brought in to verify the accounts and check the working capital assumptions. It is difficult to know whether to be worried or relieved over this news. Our biggest concern would be that PWC would find that not all of the amounts which had been ascribed to working capital should have been. This could lead to a restatement of the accounts and a further collapse in confidence (if it can get any lower). As far as we can see there has been no official notification of their appointment or the reason for it which, once again, is an example of poor communications.

We would still sell Tanfield. Until the group can demonstrate that it has reversed its cash outflows we could not recommend the shares except on a speculative basis.

From across the road......

Tanfield & St Helens Capital Lets Get the Record Straight
I declare my interest first. The largest adviser to PLUS Markets companies is St Helens Capital. The fastest growing adviser to PLUS companies is RSCF which shares an owner with Sharecrazy. So were St Helens to collapse I cannot pretend that I would not be delighted. As it happens I think St Helens deserves to collapse and the reason is Tanfield.

Let us just get the facts straight. In late 2006 Roy Stanley who is CEO of Tanfield started building a stake in St Helens. Tanfields then broker was Daniel Stewart but Stanley had a very close relationship with a few key employees of Danny Stewart. On February 6th those employees jumped ship to St Helens where they are now in charge. On February 19th 2007 St Helens was appointed joint broker to Tanfield and with St Helens stock flying on 23rd February Stanley started to sell his holding. By April 2nd Stanley has sold all his shares at a tidy profit.

In May and June St Helens acted as joint broker on a 130 million share placing at 150p for Tanfield. St Helens does not break down its income by client but assuming it earned a 1% fee then it will have made 1.3 million on the transaction which all goes to the bottom line. In the half year to September 30th St Helens recorded sales of 2.3 million and a pre-tax profit of 990,000 which was the springboard of a move to AIM but if there had been no Tanfield that would have been sales of just 1 million and a pre-tax loss.

The relationship between Stanley and the pukka establishment fellows who run St Helens is no doubt totally above board. No doubt Roy had no idea that St Helens was about to get a new injection of talent when he bought his shares and no idea that he would appoint St Helens to such a lucrative brokership so pushing the shares up allowing him to make such a tidy turn. And his selling of St Helens shares was, we must remember at all times not something he wished to do but an altruistic gesture designed entirely to satisfy institutional demand. It says so in official announcements made by St Helens so it must be true.

The fact that the St Helens chaps and Stanley have done so well from these remarkable coincidences will, no doubt, be of great comfort to those who bought into the Tanfield placing at 150p. Tanfield shares are now 6.1p to sell which is exactly what any remaining shareholders should be doing. What is important to remember is that St Helens is run by well bred, well educated good City chaps while Roy Stanley was an acquaintance of Tony Blair and on that basis any suggestion that anyone involved in this episode has done anything which is remotely improper is clearly 100% wide of the mark. The whole story leaves the City and all concerned bathing in glory.

Tom Winnifrith

I have read all these doom & gloom postings but day after day purchases reported exceed sales by a clear margin, today for instance it is 12m to 3m so someone is selling and not marking the sale .... it would be very helpful if anyone could give me an explanation.

hopefully tipton11.

not necessarily true at all ..... sp is up and in any case, MMs must have swathes of shares on their books to shift

tipton the Buy-Sell is an ancient Art - no-one knows what it means - only when the ratio is 10:1 does it mean anything...yet the real interest is the price- as it moves during the day.


I thought the 200 unsold stock was cherry-pickers, not electric vehicles...which is fairly bouyant, although a small part of TAN's projections, it could be the driver of New-TAN*'s fortunes.

It was 80% industrial lifts
and 20% vehicles.

I suspect we can cut the (access)80% to about a quarter of projected figures -and- ( e-vehicles) to about a tenth. ( that's half projection)...making New-Tanfiled about 20% of the hype. Sure that's a big jump - but let's be realistic, not all those Orders were going to happen . . . . and we don't need the extra materials, so a few savings there.

*New-TAN - i.e. as of 6-July market close, has changed everything...
1) RS must go
2) along with St Helen's - - - and I hope the FSA and SFO have a field day with them. Some change is necessary and I suspect Shareholders would be the ones to do it - probably for free.
3) Applegarth must not be allowed into their car-park

The Government needs to change Corporate Governence...more like that in Australia . . . following their implosion some years ago.
That would be a good legacy for GB to leave....something that would benefit UK plc for many years to come.

On the basis that New-TAN can still serve their customers, their sp is probably right somewhere about 20p with dividends some way away. The company must face their customers and satisfy them that New-TAN can deliver, along with spares, etc. This sort of blood-letting is easily mis-handled.

To reach 3x (the current sp) will need some hard-evidence of prospects. Removing the bosses will go some way towards this and the sooner the better. Let's hope it's before the AGM. This should be re-scheduled and arranged in London, with a DVD showing current production in the factories. It won't be the end, but should signal a new beginning. I expect the recovery time-scale to be 3-6 months.... but this is partly tied to the General Market woes and in particular the housing and warehousing where these Cherry-pickers are used. That is why I've cut the "access" annual production by so much in 's.

DYOR

Goldfinger . . .arrgh . . . . just how bad can CEO's get?

Collars and Felt spring to mind.

Tipton, I think the consensus is this stock is on the rise, but we've not had the PWC Auditor's report and their fees! ( See above Post earlier ).

hangon many thanks.

Going down again.

.. and out if they aint careful

Hangon, ceos.....

after reading that telegraph article not much worse I wouldnt have thought, mind ive got an online pal who swears by stanley.

Rally short lived on tan.

What we need now is the auditors report from the new guys.

Gone long at mere 25 per point no stop loss, so not much risk if it goes tits up! Telegraph certainly did some thorough research, Stanley certainly has a bit of history of company blow ups but then that's normal for entrepreneurs! My missus is a secondary teacher and I wouldn't buy shares in any company she was running but Tanfield does surely have more potential than most and seems oversold we shall see...

Same gone long 100 a point - can handle 560 loss, but if recovery in coming months, upside can be far greater...

Stanley purchased 500,000 today. (2 purchases)

Mind thats a drop in the ocean compared to the 14 million he took out last summer.

Confidence building exercise anyone?.

Where on earth do people get the idea that this is going to go bust like tomorrow...total rubbish.....really....you would think that people would think....or.... or perhaps not in the UK now, otherwise we would not have the muppet government we have now !, but anyway let's be fair : Tanfield has its problems but they are not insurmountable....look at Marks and Spencer...if they can survive the USA downturn and come through the other side without having to sell off everything then they will recover.....which brings me to the point : big director buying (see after hours RNS)...that can't be bad...!.

BT, I hope you don't suffer another loss, as I am riding on the same horse. 8-)

As much as I would like to day trade this, the huge spread and more importantly the independent auditors worry the hell out of me. If everything is OK then these are well undervalued which will be reflected when the SM recovers. However, if the auditors uncover problems (remember WNG!) then they will tank 50%.

Stanley buying doesn't sooth my worries. Worthington (WNG) if I remember correctly purchased loads of shares at around 112p and look what happened to them! I hope TAN survives and recovers but tis a gamble and as I hold too many dodgy shares, this is one I'm not prepared to take atm.

I think for the good of the Aim market Tan needs to recover because you could argue amongst PI's it took over from SEO as the flagship company. Unlike many other companies, I have never lost money on Tan so have no axe to grind. When I came back of hols I was genuinely shocked at the share price crash and it sort of loses your faith in the SM.

So here's hoping it recovers and good luck to those who hold.

that reminds me i need to get some sun cream

Mismagement is not the sole right of AIM Stock, but it might be more often. Carter was a large FTSE company and cost me a packet.