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I find the crazy thing is that by selling piecemeal into any liquidity, these funds are destroying the value of their remaining holdings of RFX!
Simply madness....
But agree with you, a lovely opportunity to buy shares at daft cheap prices.
Hi Rich, yup I see Downing appear to be selling down as they close their fund and it is therefore providing a rare opportunity to secure some cheaper RFX shares, seems rude not too 😉
427,830 shares gone through at 186p
I'm expecting to see Holding RNS soon that big seller is out..
Share price should recover then.
Good call, Surprised! A couple of funds have been selling RFX for a while, presumably due to PIs taking money out and funds closing. As a result, any decent PIs buys have been sold into and this has spooked / scared others from buying.
As always market makers drop bid hard, at first sign of a few large sells and spread can be large..
However RFX now dirt cheap at this price (35% off year high price, despite record £10m profit) and decent dividend too.
What's not to like!!
Back in after a year, sp dropped on ex div couple of days ago and now on a 52 week low surprisingly, RFX generates, profits, FCF and organic steady growth plans for 2024
https://twitter.com/surprised_trade/status/1758427520796430647
Rich, it may well be that many of the small "sells" at 192p were in fact buys. Mine was a buy for exactly the reasons you say. At the time the broker quoted sell price was 185p.
The weird thing for me here is that there are still private investors selling small blocks of shares around 192p. Makes no sense when this goes ex dividend next week 15 Feb at 7.1p a share. Surely they would hang on for a few more weeks to pick up their 3.5% return.
Yes there are other PIs buying around 195-197p, but its pretty much stalemate at the moment in terns of buy / sells.
High interest rates are here for another 6 weeks. The reality is that they are not that high when compared with the long term, simply high for recent memory.
https://www.cnbc.com/2024/02/06/credit-card-balances-jump-to-new-1point13-trillion-record-at-end-of-2023.html
This link shows that credit card balances are rising (29% rings a bell for some reason, though I have not used a credit card for a decade or more) and https://www.cnbc.com/2024/02/06/credit-card-delinquencies-surged-in-2023-indicating-financial-stress-new-york-fed-says.html that there are defaults.
The UK tends to lag the US by a few weeks. Gold is hovering a little off its highs but is stable. https://goldprice.org/
This SHOULD translate to pride a boost to the SP but at worst simply limit the downside. Very rarely, I have marked this as a weak buy - not investment advice, simply an old duffer with an opinion and some basic supporting narrative.
Oh, and as far as I am concerned, "weak buy" is not as strong as "buy" and a long way behind "strong buy". Almost 100% of my posts have "no opinion" as my default. And now, I have an appointment with a fresh glass of claret as the tide appears to have gone out.
Spinal_Tap, the dividend payment will be reflected by a corresponding drop in the share price. If this is a candidate for a bid, it is likely that a substantial premium needs to be offered to tempt shareholders. The positive side is that the company is profitable, throws off lots of cash has gold trading at record highs and has holiday season to kick off in an Olympic year. Airlines are noting bookings are rising.
Expansion is happenning organically for RFX and there has been some press comment that de-banking of pawnbrokers has taken place. This does allow opportunity to grow through acquisition. With the exception of Albermarle & Bond and H&T, not sure that there is any more competition that has capacity to put a bid forward. Management buyout, I suppose but would need to have quite deep pockets.
And could be a takeover target at these levels.
Even more puzzling considering there is a big dividend due very soon(ex-div next week).
Have added a few more today. Seems a great entry point to me, though disappointing that the shares remain in the doldrums.
Agreed mate - I'm not suggesting you sell. I'm a holder here and as far as I'm concerned they are a bargain at this price. Unfortunately there have been forced sellers (funds) where PIs have taken money out of these funds and they are scratching round trying to liquidate assets. Also PIs generally are harder to find when you can get 5% in a deposit account with no risk. However RFX share price will turnaround this year and I fully expect to see 265+ plus later this year.
A late transaction is often something as a bargain that exceeds the normal market size (NMS) by a factor of 3. The NMS according to the financials tab is 1,000 shares which seems very low to me. Therefore as the bargain has been executed for 70,000 shares which is considerably outside the NMS, then it is of no surprise that the transaction is recorded late.
You could be correct with a share overhang in place, but I am not inclined to sell shares in RFX based on the most recent information published.
There's got to be a large overhang here to clear, before the share price can move upwards.
I keep seeing big trades going through at the mid point i.e. between bid and ask - this is where one market maker has shares to shift from a large seller (fund) and is selling to another at the mid point price.
Just seen another 70,708 go through at 210p (reported late as always!)
Three is also a mention, though rather pessimistic, in todays Times. The link is behind a firewall though.
Perhaps the IC article will bring new investors in…………
https://www.investorschronicle.co.uk/ideas/2024/01/15/a-harsh-market-reaction-to-ramsdens-record-full-year-profits/
Indeed, Chelsea11, that is not an unreasonable point to make.
Perhaps we may read of changes to managers holdings over the next few days? A token single buy sets alarm bells ringing for me. Anyway, I re-aligned my portfolio in October to reflect the huge uplift provided by 4 US holdings and will review things again in March.
Odd that we have not had a January effect (yet) - it might be that as markets in November and December were so strong gains are being recorded, losses crystalised and geo-political concerns are such that cash is best at home on the sidelines.
Taiwan, Pa(k)istan, India and US have elections this year with a pretty high chance of the UK joining having a bunfight too. I am confident that Rachel Reeve will be a breath of fresh air from the unpleasant whiff in the wind from this discredited Government.
Ah well, people will still go on holiday, some will have too much month left for their pay others may have surplus trinkets to be scrapped. I just do not see any compelling reason to change the qty of shares I have.
Simon Thomson, Investors' Chronicle, just now...
"It means that Ramsdens’ shares are rated on a lowly price/earnings (PE) ratio of 8.5, offer a prospective dividend yield of 5.4 per cent and trade on 1.3 times book value despite boasting a heavily asset-rich balance sheet. That’s a low rating for a company that has just delivered a post-tax return on equity of 17 per cent. It’s worth flagging that Ramsdens is forecast to deliver growth even after absorbing the 10 per cent increase in the national living wage in May 2024 and £0.4mn higher energy costs this year, a reflection of the strength in its underlying businesses."
I suspect it’s also the case that some of those selling aren’t just Traders, they are Investors who don’t see any short-medium term inflection points ie. they expect the SP to just bumble along sub 225p for the rest of the year and want to place their bets elsewhere.
Traders tend to do what they often do - sell the news and buy the rumour. I'm now back from a refreshing holiday and see nothing to be worried about in todays news so will make no change to my holding.
Looked v good to me, Market reaction never ceases to amaze.
No nasty surprises re anticipated PBT. Overall positive I thought but caution threaded through some of the forward looking statements and wonder what the market will make of that.
Annual Results 15th Jan then and will reveal if PBT is above the £10M anticipated by the Board. Something closer to £10.5M would perhaps be a catalyst for the SP, particularly if accompanied by a bullish outlook statement.