Good morning!

Over the coming Xmas & NY period, If the markets are open, then I will write a report here. Also, sorry to disappoint those readers who have a sense of humour, but I won't be doing my traditional vodka-fuelled special report this year, as my NYE celebrations will be limited to sipping a sweet sherry & nibbling Quality Street with mother, here in Bou'mth, as opposed to my usual partying in London with friends. On reflection, that's probably a good thing!

Yesterday's report was a bit of a rush, as I had to travel back to Hove to pick up some more things & then return to Bou'mth. So re-reading my report on the train, I spotted several typos, so I'll revisit that report later, and correct the errors. My apologies for that.

There's still plenty of news today, despite the proximity to Christmas, so here goes.

Interbulk (LON:INB)

Share price: 8.5p (up 112.5% today)
No. shares: 467.9m
Market cap: £39.8m

Results y/e 30 Sep 2015 - these results are only of passing interest, because the company also today announces an agreed 9p takeover bid.

This is an outstanding outcome for shareholders, because INB has one of the worst balance sheets of any company on the market. It's technically insolvent, with negative net tangible assets of -£34m. The interest cost alone consumed the bulk of profits, and the company was resorting to asset disposals, sale & leasebacks, etc, to reduce debt.

So clearly a distressed company, therefore shareholders should consider themselves extremely lucky that a white knight has come along, and is prepared to pay a substantial premium for the business. I would bite their hand off, if I was reckless enough to have held shares in this company.

So good to see a happy outcome for shareholders.

Tracsis (LON:TRCS)

Share price: 497p (down 2.0% today)
No. shares: 27.2m
Market cap: £135.2m

Disposal of non-core business - this announcement came out yesterday, and I pondered why Tracsis had decided to dispose of an Australian subsidiary which generated £0.25m in profit, for only £0.5m sales proceeds, most of which is deferred.

I try to build good relationships with the CEOs of quality companies, so dropped John McArthur an email querying the logic for this disposal, which on the face of it doesn't appear to be a good deal.

He replied…

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