The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register 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.
https://www.ii.co.uk/analysis-commentary/stockwatch-good-it-share-patient-buyers-ii515193
Delighted.
There was no need to sell this out to private ownership just as it has got its house in order and hand all the upside over to private equity. So sick of seeing that happen.
Let's see where it can go as a publicly listed company under the strong hand of current management.
Highly cash generative, back into organic top line growth, operationally in great shape with minimal CAPEX and efficient margins, and opportunities to move forwards via acquisition.
I'm in it for the long term, and trust the board to make the right capital allocation decisions on cashflow.
Has anyone actually received any shares or money as part of the restitution scheme? Seem to be dragging their heels, though from the recent RNS it looks as though payments have been made - maybe still in the hands of the brokers?
Thank you Happyzone. This is a bit weird as my broker Interactive Investor contacted me in July saying the last date for me to nominate my choice of cash or shares was the last week in August. Maybe it was their own internal deadline. But they didn't go on to say when the payment would be made. I've messaged them and am still waiting a reply!
These are the dates;
RESTITUTION SCHEME DEADLINE
All claim forms (including supporting documentation) must be received by Deloitte by 5.00 p.m. on Friday 30 October 2020 in order for the claim to be considered. After this date the Scheme will be closed. If any claim form is received after 5.00 p.m. on Friday 30 October 2020 or is received before such time and date but is not valid or complete in all respects at such time and date, your claim shall be void and you shall not be entitled to receive any compensation under the Scheme.
However, my broker, Barclays, says, "We will aim to update your account within 5 working days of receiving the proceeds", which kind of leaves it very open ended..... Hopefully by Xmas, though I'm expecting it by next Wednesday. We;ll see...
Can anyone on here know when the restitution cash payments will be made? I cannot see any dates on the original corporate action documentation.
I had a go at a small limit buy this am on announcement of FSP (underplayed) but the price of 1.48 was not met despite some trades going through for less after (thanks X-O you excelled again).
I find it hard to work out if it will/might be a premium sale or distressed one. Company talks of profits but sheet shows losses. Maybe that's to do with exceptional costs of the FCA restitution. Good revenue with growth could see that putting company valuation beyond mcap if generous mutliples used, not so much with the bottom line figure. From the limited share chat I think 120p would have been a better buy in point and the fsp was not a surprise so may already be well priced in.
Finance directors resigning suddenly I never see as a good sign but maybe that would be expected. I'll keep watching this out of interest.
Anyway I put the money into Rockfire Resources instead fingers crossed on deep drilling results after rising recently. A top up.
Very good results. However not sure if price will stay in the mid 1.20s with the placing/subscription priced at 1.10, lus such a spike today. Do people know if this placing/subscription is open to anyone that held shares at the appropriate time. Weak short term sell for me with view to buy back in and hold for longer term.
Nice trading update today. Regretting selling 50% of my holding when it reached 117p a few weeks ago!
Some averaging down going on but relatively new FD jumping this close to results sets bells ringing. What does he know and is investigation completed?
Something happening today, no News, no RNS, somebody knows something. Any Ideas ?
Could we have that in English please.
...trading pattens o here.
But regardless, we have had two weeks of much overdue relating. Imo a this should be at the 120-125 level, with 150-160 to come once financial clearance comes through.
H9ld and chill,
Bassea
...and dividend. But where is the conclusion of the financial investigation???
I wonder if the share buyback is making the difference. At the very least, I would imagine it shines a positive light on the company in general. And also attracts attention to it.
I wish I didn't already have a lot tied up in RCN, otherwise I'd want to add at this point.
LM
...we’re about to get the all clear financial judgment!? In any case, way undervalue at the moment imo:)
GS - Fair shouts. I am not yet convinced about attraction of valuation ....although I like the amount of cash the business appears capable of throwing off at the moment - so maybe I should be. GLA
No ghost. Maybe Lazarus though :-)
RCN looks as if it has turned. Brotherton was a first rate FD and looks as if he might be a good CEO. I bought in again today after an absence of nearly 3 years. I use DCF to try to judge an entry point and now I reckon RCN is well and truly undervalued at present. There is an FCA report awaited which I hope will be OK and I like the determination to start returning cash to shareholders. As for no ideas - give the BoD a chance. Fix the sinking ship, take a breather and then get stuck in.
GLA
GS
Its very quiet round this board.......or were the published year end figures so unexciting that there is nothing to say.
At least they changed their dividend policy back to a sensible 2x cover (yeah!).....which puts the yield on 2.5% (oh dear) ....and they might do some share buybacks with all that cash flow (yeah!) because they can't think of anything productive to do to grow the business (oh dear). The business should be in a great sector with exciting opportunities and prospects.
Not exactly a scintillating story to light a fire under the share price........although I am often wrong (here's hoping). zzzz zzzz zzzz.
Good news.
Thanks would have thought that the fact settlement, once done, would drive up the sp.
But know little of the fine business, what order of magnitude fine cab we expect? More, less or same as pic?
Looks like the FCA have finally settled with PwC, now RCN's turn:
https://uk.reuters.com/article/uk-pwc-accounts-fine/pwc-fined-4-55-million-over-audit-of-redcentric-idUKKCN1TE0J1
Will be interesting to see the result, and a pragmatic approach is to expect RCN receive a fine.
This fine on top of poor sales numbers for FY18/19, perhaps its time to dump this stock. Its ripe for asset stripping or buy out.
Thank you Zarro, that's exactly the sort of informative answer I was looking for.
LM
LoveMusic - I am in a very similar position and was asking myself the same question. The trading update did not give much away but does not, on face value, imply anything materially better or worse than the recent results and outlook expressed in the presentation with the interims.
I am estimating EPS around 4p - maybe a bit more - which puts PE on about 20 - 22.5. The £10m net debt reduction to £17m is good news, putting leverage at only around 1x EBITDA and gives them either some firepower within their £40-£60m Bank facility or more likely scope for substantial dividends (they would be debt free within 2 years). I thought perhaps half of the annual free cashflow could be used for Dividends which would be a dividend yield of 3.75% and wondered whether that was what was underpinning the rise in the share price BUT I see that the Board have said they will maintain EPS div cover at 4X which points to only a 1p annual dividend (split 1/3rd 2/3rds) i.e. no better than 1%.
So all in all I don't really know what is really driving the price up. We have low growth and low dividend yield. At present levels share price looks just about justifiable and sustainable but hard to see what takes it a lot higher from here and keeps it there. This is all IMHO
Anyone have any idea as to what's going on with Redcentric? Why is it going up now? Does anyone think there is any basis for expecting the rise to continue?
I am in rather heavily with an average of 92p per share. I had more, which I had bought for much less, which I sold when it topped 100p. Naturally I've been kicking myself ever since for not selling the lot.
Perhaps now, though, it will exceed its previous recent high.
Any thoughts, anyone?
LoveMusic
The sp dropping yet all the big holders are adding to their holdings. Yes the q results were not great, and we still have the financial ruling hanging over us, BUT with the major stakeholders, we are surely undervalued atm. Will rerate and I for one is sitting tight until then