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I think it’s just market disinterest to be frank. I’ve posted in reasonable detail here in the past on the pros and cons of investing here. Since there aren’t many posters, you wouldn’t need to scroll very far to find my views.
One of the main reasons for the illiquidity is the fact that the management team holds the vast majority of the stock which, ironically, is also a great reason to invest.
Anyhow: maybe watch the Soraya vid I posted some time back and read the other comments (even mine, if you like).
I think it’s a great company if one can stomach the illiquidity.
What’s happening here? No news, v low volume. No price flux... I’d have thought that RA are well placed to take advantage of the current Covid situation. Aware of last big contract but nothing since.
Value any opinions . TIA
This morning's August newsletter just out from the highly successful River & Mercantile UK Micro Cap trust shows that with the recent rise RAI are now in the top ten holdings, at 3.2% of the fund. And they have this to say:
"RA International, the leading provider of integrated facility services in remote locations, also made a strong contribution over the month with a 28% gain in the shares. The company reported two large contract wins with one, a $60m two-year contract, the largest contract the company has even won. The contracts should, alongside the estimated $200m order book, support earnings over the next few years. The company trades on a historic FY19 P/E ratio of less than 10x despite a strong, net cash, balance sheet."
Today's H1 results were better than I expected, and surprisingly are much better than last year's. They provide a good platform for the year. I just wonder whether the naturally weaker H2 which has been flagged for ages due to COVID may actually turn out better than expected.
The order books are bursting at the seams, and RAI has over $20m net cash so is nice and secure.
This set of results will be very interesting, the last set were (as previously posted) pretty spectacular but didn't lead to the leap in share price they should have.
The decision to do a buy back which is restricting the liquidity even further may be behind that. It would be nice if the company would come out and make its stock market strategy clear. The risk is that they choose to delist at a price not advantageous to the minority shareholders. It would be god if they made clear their intentions, whether to stay on the market for x years or what.
Still, decent rise over the last few months, hard to believe my April posts are still on the first page of the chat boards.
Key reasons to buy
The company has a strong balance sheet with little debt and large cash balances.
The revenue backlog stands at over $188m and it has won a number of important contracts recently.
As the company grows, it is focussing on winning larger contracts.
As the UN and other development agencies are its major customers, the group has initiated a Corporate Social Responsibility strategy.
It has been diversifying its customer base by winning contracts with developed economy governments.
The group's business model is based on crisis management, the Covid-19 outbreak presents some opportunities for the group to be involved in providing medical and isolation facilities.
Nice slow burner rather then a big jump and then retrace really like this share.
RNS - H1 results will be out next Tuesday 8th September:
Ticking up once more already today - this is looking well supported now.
Brief update by Mark Watson-Williams on Master Investor last night FYI:
"RA International (LON:RAI) – order books up and still buying its own shares
Less than two weeks ago this provider of services to remote locations in Africa and the Middle East announced a $60m contract with a global engineering and construction group for a project in Southern Africa. That took its order book up to an impressive $188m.
Then at the end of last week the company declared that it had been appointed as the preferred contractor to Danakali and its partners on a $20m plus contract in Eritrea, in East Africa.
The company is still buying in its own shares, the last purchase was of 800,000 shares at 56.1p each, taking its treasury holding up to 2.62m, representing some 1.53% of its own equity.
The shares closed last night at 57.25p."
imo seems like they get hurry, they are victims of their own success.
Nice - the buyback programme has stepped up a gear, with 800,000 shares bought back at 56.1p:
well, this required a week for move. I expected this beginning this week. I think we should have few days sp move up any time when buy back programme get some shares. This is very good time to be in here! RAI has very strong financials.
Another $20m contract likely in the bag over the next two years. Starting to motor now:
RA International secures new $60m two-year contract with energy client
13 August 2020 | 09:39am
StockMarketWire.com - Service provider to remote locations RA International has been awarded a contract with a large engineering and construction firm focused on the oil and gas sector, which will run for two years and with an approximate contract value of $60m.
The company said that under the terms of the new contract, it will provide integrated facilities management services in Southern Africa and that activity will ramp up over time, with full service provision expected to begin shortly before the first anniversary of the contract award.
RA International said the new contract supports a significant increase in its order book to $188m.
Chief executive Soraya Narfeldt said: 'This is an important contract win for RA International that underlines the strengths of our business and our growing reputation for managing and delivering large, complex projects for commercial clients in the energy sector.'
Got in here at 0.56 and have now read all the previous RNS sounds like and exciting company and with just ovwr 80% locked in thia could be a belter in 2-3 years with a good Divi and growth plan in place
Thanks for link @cautionyourblast. Good viewing.
In the video she was talking about 10million contract. It was on Feb 2019. Now, they have just signed 60million contract. That indicates how good they are doing. I am expecting similar kind of multi-million contract near future.
The free flot shares are very limited 80%+ owned by CEO and COO. PIs have less than 10% (around 6%)
Soraya Narfeldt 55.2
Lars Narfeldt 24.2
Jupiter Asset Management Limited 6.02
River and Mercantile Asset Management 3.11
Barchart gives 100% Buy. Will see today. I expect this will fly on Monday..
Polinvest _ I was in same boat as you, saw the RNS and jumped in with minimal research but saw what I liked but the more I see and find out the more I like this one.
...and this company pays dividend. Last year 1p per share, this 1.25p.
God to see RAI picked out and highlighted, which will hopefully bring in further buying interest:
"Stock Watch - RA International
Outsourcing minnow RA International inked a £46million two-year deal to provide services to an engineering group that focuses on oil and gas.
RA International will be in charge of facilities management – which can include doing laundry, supplying food and cleaning – for the unnamed company in Southern Africa.
Shares in the AIM-listed business, which also sets up refugee camps for UN agencies, surged by 19.1 per cent, or 8.8p, to 55p."
Thank you, parm!
Posting for others what @cautionyourblast's summary from Feb 9th. Good one cautionyourblast.
This is a fascinating one I bought last week: these are some very high level notes - some of which is obvious stuff. Market cap GBP69m, 2,000 employees.
79% owned by wife (CEO) and husband (COO) team. It does construction, facilities and supply chain & logistics mgmt in places such as South Sudan, Somalia, Mozambique and the CAR, also a bit of middle east. So it looks like "barge pole" material, but...
1. Founded 2004 and has geographical diversity in its projects and is expanding its regions and countries.
2. The management team are ex-NGOs and international development bodies. I suspect this is their life's work. They take modest salaries for directors of a listed company.
3. Barriers to entry in the areas they operate are very high - great as competition for tenders (especially by experienced parties with a proven track record) will be low. Presentation says competition is much larger companies who bid much higher prices.
4. Clients include the US & UK govts, aid agencies (eg UN), NGOs and corporates. High quality counterparts - credit risk managed.
5. Listed for about 18 months, now have liquidity and structure which allows them to tender for bigger projects.
6. Significantly growing their "revenue backlog": It's USD166m at last report, up from USD119m. This is their pipeline. Quite how scientific this is, I am still trying to ascertain.
7. Targeting bigger, longer term contracts with services revenues.
8. Prior year PE is 6. Very low for a growing company with a cash pile an a decent contract pipeline.
9. Cash pile at 31 Dec 18, USD26m (29% of market cap).
10. Dividend yield 2.5% more than three times covered. Expected to increase.
11. CFO bought GBP60k's worth in Dec 2019.
12. Price/NTAV = 1.5.
13. Revenue growing.
14. Institutional shareholders are in (despite the huge ownership by management.
15. Management highly aligned with other shareholders, but see A below.
16. Take sustainability and integrity seriously. Good... and also, this will be good for winning tenders too.
A. No control at all by IIs/PIs given founders own 79%.
B. Key man risk on founders.
C. Geographies in which they operate, but they are diversified.
D. Potentially lumpy contract awards and potential delays could make for lumpy revenues and volatile earnings.
E. Interims showed margin under a little pressure, but recent update suggest revenue marginally ahead for 2019 and earnings "broadly in line" with expectation.
F. Share liquidity given tightly held.
Surely they'll plan to grow it and sell it?
Constructive thoughts most welcome.
@cautionyourblast you can add some more 'Pros' now. Please update!