George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
It's very quiet in here. Hopefully we'll see some progress and greater cash retention (or perhaps some acquisitions). There are stamp duty changes (for bulk purchases) coming in on 1st june - there could be some activity on that.
THere are some proper opportunities out there (lots of activity with fixed charge receivers at the moment). Perhaps some bargains for KCR to purchase and add to their stock.
Https://www.investegate.co.uk/company/KCR
NAV 32.42 pence per share. Loss reduced to £166k. Cash £982k. Revenues up 23%
Share price represents a large discount to net assets.
Following this avidly (because I've got Drumz shares and they have a significant investment in KCR).
BUT keep on thinking - do I invest directly in this too?
Counting down to the results now and expecting a significant improvement over the same period the previous year.
Can buy online again.
With a discount of circa 73% to NAV, I am anticipating a decent correction when the interims are released next month which will hopefully show a cash flow positive situation and being profitable at the operational level.
Having £2.5m in the bank also helps.
Not sure what is going on here, but there has been an error message when trying to buy shares online through Interactive Investors. Managed to buy more with a telephone trade.
Now a huge discount to NAV and with the interims due in March, which should be a whole lot better, perhaps we may get back to a sensible valuation.
Still NT to buy anything over 2000 shares....
Still no shares available......................
Not surprised with a 70% discount to NAV and circa £2.5m cash.
No idea, other than Drumz are looking to sell their 5.85% holding here. However, they would incur a significant loss if they did sell at the current share price.
I have bought a few more recently and currently have a limit buy in place as the share price is NT at the moment.
Any ideas why the share price has fallen?
23) POST-BALANCE SHEET EVENTS
On 6 August 2022, the option agreement that the Group entered into with Torchlight in the 2020 financial year, to grant Torchlight an option to subscribe for a further 50,000,000 new Ordinary Shares, lapsed. No further options were exercised after the balance sheet date.
It would appear the company have finally turned the corner. Quite a few positives in the results and with cash of £2.5m, there is an opportunity to expand the portfolio further.
With a NAV of 32.82p, the shares are trading at a significant discount.
It would appear Torchlight have not exercised the remaining options which expired today. I wonder if we will see some rebound in the share price now that the expiry date has passed.
With plenty of funds in the bank and improvements in the ongoing business, the share price is a significant discount to net assets at the moment.
I'm already in Drumz (the old Energiser plc company) so through Drumz I've got a hell of an exposure to KCR. So this is definitely good news. I'm not buying into KCR direct though. Haven't got the appetite for more exposure here. :) But yes - here's hoping for 30p. It's interesting to see they've got £2m+ in cash and a larger RCF - I'm surprised they've not bought more buildings tbh. (or perhaps they've tried - but it's a v competitive mkt out there at the moment).
Fantastic RNS and great results. We could see the share price going to 25 soon or 33.
Let’s hold for gold
Due this month. Let's see if the promised turn-around in the company's performance has actually happened.
Here's hoping that 2022 sees KCR move forward.
Ha, snap!
Thanks for that insight phenomenonnick. I'm not going to invest directly into KCR but I keep a v close watch of what's happening as I'm heavily in Energiser/Drumz.
No I don’t think so - shares get issued at the higher of 95% of share price or 10p a share. Even if the remaining options all got issued at just 10p per share, looks to me like the net asset value would still be over 19p per share. More likely they get issued at say 18p on average, and assets per share dilute to 23p. So the current price is well underpinned by assets. We get maybe £7-£10m extra cash to deploy (including recent issuance) and therefore far more assets to spread over a similar overhead.
They could take it down to 2 or 3p then?
Well....that took some finding.
The "Option Period" expires on the third anniversary of Admission, which makes it the 11 July 2022.
https://www.investegate.co.uk/kcr-residential-reit--kcr-/rns/subscription-and-strategic-agreement/201907121624304368F/
If Torchlight exercise their remaining 36m options, this would take them over the 75% holding and then allow them to do whatever they want with the company.
It would appear that Torchlight will end up controlling KCR having paid a significant discount to the prevailing net asset value of the company and LTH's will see a material decrease in their investment.
The problem as I see it is the option agreement that is in place. Torchlight who now own 55% of the company have 36m options remaining which can be exercised at 95% of the prevailing share price.
Can't remember if their is an expiry date on the agreement, but until this is sorted, the share price will be held back and easily controlled by vested interests.