Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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So the 1,000,000 of options awarded on the 1st of April have now been handed back as Robert Parker has now left the organisation. The question now is will ne new CFO/FD get them handed back to her. Although if she can get the shareprice to £2 from here I would be happy with that.
And the CEO has bought a further 250,000 shares at around 64p
The sell off today seems overdone based on the RNS trading update and significantly undervalued as per IC article. Seems a great entry opportunity to me. IMO and DYOR
Simon Thompson of Chronic Investor tips RBGP as BUY to take advantage of 45% price anomaly to peers. No share price target is stated but doing the math and it would be 157p.
ST's investment case is laid out in much more detail in this report from Progressive Research https://progressive-research.com/wp-content/uploads/data-sync/research/RBGP%2020220719.pdf
Tomorrow morning's presentation should be interesting and hopefully add to the bigger picture.
Debt is going up thanks to the slow pace of litigation. Critical now against the background of high inflation and rising interest rates. Am not surprised that the decision on an interim dividend is being held back until the H1 results come out. If it was reduced or suspended, would not bother me, as I came round to the thought dividend payment was too high, when money is being borrowed.
RBGP have made a decision to no longer mention any cases as it may interfere with the outcome. That said, it would be extremely beneficial if some cases are concluded with a positive outcome. I believe that the historical success rate is around 86-87%.
Not sure how low the sp could go, below 80p intraday perhaps. With market sentiment currently against the company and with AIM in bear market territory. It could be a while before the sp recovers to anywhere near the highs of last year.
There is a lot of hidden value in Lionfish and RBGL from the contingent cases where the cost is on the balance sheet but unlike Burford no revaluation is done. When they win one of the big contingent cases like Shango, Mercury and Neptune which are known since the time of the IPO I would expect a 20%+ rerating of the shares in 1 week or so.
Great to see in today's trading update that despite the depressed stock market RBGP is trading well and in-line with market expectations. I'm particularly pleased to see that 'market expectations' is referenced and stated: This adds absolute clarity and I wish more firms would follow this best practice.
The integration of MC appears to be going well and the EBITDA margin improvements are very positive. The other Divisions are trading strongly which is reassuring with the general poor economic sentiment.
A key attraction for me is that the Legal Services market tends overall to be uncorrelated with the general economy. If one part of the market is suffering another tends to be busy. The degree to which this true and recognised by Mr Market we'll have to wait and see - Legal Services as an investible sector is still relatively recent.
Turns out it was an employee sale of locked-in shares. Surprising they were rushing to sell.
https://www.lse.co.uk/rns/RBGP/limited-employee-share-sale-to-satisfy-demand-zd5oz6vhextljt9.html
It looks as if a block of 2m shares have been sold and snapped up. Oversold because of a row over shares handed to the CFO, who hadn't been getting anything extra since joining. The company has done well financially, paid two dividends last year, perhaps he deserved something. Future shares depend on performance. Has got the sp moving.
AGM likely later this month with a probable early interim payout qualifying in July. Litigation payouts rewarding the money invested, likely to be increasing this year, which should boost profits.
In my world the (few) elves aren't on 6 figure salaries then given 7 figure freebies.
The company owners (shareholders) are being run ragged by a few elves building themselves one big grotto.
Had to call an FD with this package an "elve"
In your world planet X, the elves work for you for nothing and give you all the money.
Company announcement to shareholders
“RBG are pleased to announce a restrosoective bonus of 600 thousand pounds of your money for turning up to work for the past 3 years .
We are further pleased to announce a future bonus of 400k pounds of your money for him turning up to work for the next 2 years.
We wish to recognise and reward him for his ability to drive to work with 1 million pounds of your earnings and we are sure you will all be supportive of this .
Many thanks for your support of us and our efforts to improve our wealth “
“incentive plan for top management is not dissimilar to other PLC”
This is part of the problem that many others are bang at it filling their boots .
I would wager that if the FD was paid and extra 200k a year then his remuneration would be viewed as above market rate .
No need to beat around the bush about this, shareholder theft at RBG by a management team motivated by their own enrichment (without performance) at the clear expense of shareholders .
I just don’t buy the argument “it’s standard practice” , “everyone does it at UK plc” .
Banker mentality ftom a total set of wonkers .
That is not correct Figueire - clearly states: "will vest over two years and be subject to no further conditions other than for Robert Parker to remain employed". Good try.
These are options which will only vest in December 2026 if the shares are above 200pence. The CFO has not received a bonus in 2 of the last 3 years. This was explained in the Group investor call at 10.30 and not “hidden”.
The incentive plan for top management is not dissimilar to other PLC and was consulted and approved by the top independent shareholders as per investor call.
Over the period the dilution is capped at 10% for all options/management incentives as per corporate governance guidelines.
I agree Planetx - this is just outrageous !! Released on the same day as results hoping no one would pay it attention. Also looks like they are bribing the CFO :-)
“1 April 2022, granted 1,000,000 nil-cost options over ordinary shares..to Robert Parker,Chief Financial Officer..will vest over two years and be subject to no further conditions other than for Robert Parker to remain employed”
So the FD effectively get a 1.2 million pound bonus courtesy of shareholders simply for staying in his well paid ob.
A companies executives are employed to create value for shareholders, not to enrich themselves at shareholders expense.
This is a smash and grab tacky self enrichment tactic that does a disservice to credible investors and shareholders.
Avoid this company like the plague, investors need to call these people to account and vote with their feet.
Total disgrace.
Ex Div (3p) Tomorrow 3rd Feb
Wow, we have have people using this board! It got so quiet I thought I was only speaking to myself. Thankfully we now know that everything is running tickertyboo, which I thought it would be, but slides like what we saw from 168p can make many nervous. I find even when other small caps are tanking it is hard not to wonder why my greatest conviction share if falling and whether others perhaps know something I don't.
The presentation was was the best presentation i've seen from any company and i've watched many. If you haven't seen it:
https://www.investormeetcompany.com/investor/meeting/investor-presentation-98
We've also been tipped again today in the IC with a TP of 175p :
https://www.investorschronicle.co.uk/ideas/2022/01/28/back-a-high-yielder-on-the-upgrade/
Google the title if you haven't got a subscription
Hopefully these will get people interested again despite the poor market conditions. Nicky did say in the presentation that they were courting II's and were planning to engage further with PIs in the months ahead. Despite getting a good write up from Jack Brumby at Stockopedia on the day of the update, nobody made comment or asked any questions. We certainly seem to be off the radar, but maybe this is a positive as it means the masses are still to become aware of the opportunity? Get in before they do!!!
Why is this down the pan with a trading update due on Thursday? Part of their partners' remuneration is in shares so maybe it's just cashing these in before the closed period. Share price had strong run up to the results announcement last year (April ish) and the it fell back. Looks ok on fundamentals unless something has left the track...
This is looking great value now… based on this years coming results, let alone the next few years.
Memery crystal purchase looks like a bargain too, 30m for a company making 8m profit.
Feel like this share flys under the radar atm, that’ll change if the great results continue though.
Any ideas ! Why the double digit fall? Cannot find any news or sells, that started this fall
Profit taking probably on disappointment that no earnings upgrade with this trading update.
I do think it is a buying opportunity as the odds are good that come September earnings upgrades will indeed occur with more granularity of MC integration and possibly some more deals closed by Convex
At least you'd think so by the reaction. Down over 12%
Got to be a good buying opportunity unless I missed something.