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I'm with Motley on this Oddmoney and thanks for the follow-up. I will be taking up the rights issue but not increasing my base holding and then I'll be looking to hold this until at least the low teens which may take a year or so. I like the business, trust the managment and I think this is strong medium term opportunity.
Thanks. Will I get a message from my broker? Been ages since last time.
Deadline for acceptance of Rights Issue 24 February 2017
I'll be buying more but when is it exactly? I asked before and got some sarcastic comment I think. Had a quick scan through but didn't see a date. If anyone can just tell me I'd appreciate that. If you're going to be rude or unhelpful then please don't bother wasting your time. Ta
Motley Fool rates RPC as a BUY and advises to take up Rights Share offer unless it messes with your portfolio balance.
Since last Sept: 2016, RPC have acquired 6 UK companies, and the BoD of RPC have indeed added value to the company / shareholders, however Letica is a private company in the USA. America has been a graveyard for UK companies (by the same token USA has enhanced quite a few UK companies). I have held RPC for about 3 years and I seen considerable growth, and on balance I will buy more shares because so heavily discounted but if the share price dips to (say) £8.50. I may sell and take a profit. Best wishes to all. DAR
hi oddmoney ,thanks for the well detailed excellent explanation .yes I have 2405 shares which I got from my 4000 bpi holding when taken over . Id also probably have to pay the capital gains tax too as I received £18800 in cash from the takeover though I did sell bnc at a £4000 loss then repurchased & isa d them
Hodjie - The rights do indeed have an intrinsic value and as Tyneagle says can be traded. These are known as nil-paid shares (or nil-paid rights). Hence the RNS on 10.2.2017 As to what they are worth, it depends on the value of the RPC shares at the date of issue. But to get a rough idea you need to work out the ex-rights price of the shares i.e. the reduced value due to the dilution. In this case, current share price is 922p, the Rights issue price is 665p. I assume that you have 2400 shares - so 2400 @ 922 = £22,128 the Rights share price is 665p so (600 x 665) = £3,990 – add the two values together and divide that by the number of shares you would have if you took up the rights - £22,128 + £3,990 = £26,118 / 3000 = 870.6p per share after rights issue. Thus, the value of the nil paid share is 870.6p - 665p = 205.6p. So, in your case you would be entitled to approx. £1,233.60 (600 x £2.06). However, this is just an estimate, should the value of the RPC shares continue to trade lower then, the value of your nil-paid shares will also decline. Don’t forget that selling these rights may give rise to a capital gain. If anyone sees a mistake in the above please put me right. Hope this helps
thanks for that tyneagle ,my shares are on certificate so haven't received any information yet .I think I'm entitled to around 600 shares ,so will I receive 600 £6.65 ?
Hi hodgie. I notice from my Hargreaves Lansdowne email that there is an option to 'sell on' your entitlement. You should be able to check that
hi . I got into rpc through bpi been taken over . if I don't take up the rights issue do I get a certain amount of the share price back in cash ?
Read the recent RNS ,very clear. Thanks
When do we find out more info about the right issue and when it is? Thanks.
Absolutely ,at this level and closer to the 900 level,its accumulate for me. RPC has been a star performer in the last year and the BOD have done a great jobs integrating the acquisitions they have made so far.
Thanks for the honest answer Oddmoney and yes I'm of the same opinion ... they have earned my trust. That said I am going to be doing some digging on Letica but as relative long-term holder here [+2years] I'm very happy with my returns so far and will almost certainly topping up. GLA
I have to confess RickFitts that Letica, being a private corporation, I have not yet found much financial detail, but I understand that they put themselves up for sale loking for $1 billion. So either they were being very optomistic or we have got a reasonable deal. Much of my feeling towards this takeover is based on the Boards past track record so I appreciate that I am taking a fair bit on trust, but so far the Board have earned that. However, you are quite right that N America has been a graveyard for many a UK Company trying to expand and time will of course tell.
With the rights issue being at a discount to the closing price it was always going to drop to the theoretical ex rights price at the very least.
I'm very much in the same boat as you Oddmoney but wondered if you had any opinion or knowledge of the outfit RPC are looking to acquire in the States? The board have a clear strategy and have executed it very well over recent years but they wouldn't be the first company to come a cropper dipping their toe into N.America. What are your thoughts on Letica?
I'm very surprised at what's happening with the price. I'm hoping it will bottom out no lower than 900 then we will hopefully see a steady rise again. May take a while though. So afrc. You bought some more now then?
This could turn out to be a great buying opportunity. It is exactly what the Board are excellent at - buying up Companies and making the integration work. Yes, in the short term the dilution via the discounted Rights issue will depress the share price, but for long term holders this could be very good news indeed IMHO. So, I intend to hold fire until the rush for the door subsides and then top up very enthusiastically.
I am a bit surprised that Questor recommended RPC's sp at this very elevated price.No questions at all about the quality of the co ,however the sp has been going up and up and up without any profit taking .So although i agree the sp could well hit the 1300 level mid to end 17, i would be more comfortable buyng more if it comes down to the 950 level
Divergence and Bearish price action on the daily timeframe, with daily value area at around 945.00. On the hourly the price action is also bearish with price falling just before the 1030 level. The value area is around the same level. We are currently just under the 1000 level which could be a key psychological level. Brokers and institutions look to be bullish on the Co. at the moment with ‘5.2% potential upside indicated by Credit Suisse’ on the 25th November. Jefferies Group reaffirmed a “buy” rating and set a GBX 1,100 ($13.65) target price on shares of RPC Group PLC in a research report on Monday Panmure Gordon reaffirmed a “buy” rating and set a GBX 1,156 ($14.34) target price on shares of RPC Group PLC in a research report on Friday https://uk.tradingview.com/chart/RPC/WP1XKsHv-RPC-ahead-of-half-year-earnings/
Another one of my favorite companies ,also starting with an R like RCDO. RPC will soon hit a new high!!!!!!!
Independent gets pearl of a gas deal with Oyster Broker reckons share price could increase seven-fold in next 12 months The scope for considerable share price upside means investors should be adequately compensated. Completion of the company’s acquisition on of Oyster Petroleum (28 Oct) helps underpin its natural gas ‘hub’ development strategy in the southern North Sea. This involves bringing on a number of fields in close proximity at the same time in order to share infrastructure and reduce costs. GOOD TIME TO BUY An inconclusive result from the company’s hotly an antcipated Skipper well (30 Sep) has created an interesting entry opportunity as that news pulled down the share price. House broker FinnCap’s 110p price target implies upside of 664% at the current 14.4p price. The Oyster deal cost an initial £1m, rising to as much as £5m depending on certain milestones. It adds tax losses of $25.6m (£20.5m) which can be o set against future produc on. FinnCap reckons first gas may be possible as soon as 2018.
Accumulate for me at this price.Slightly worrying though,that recently the sellers outnumber the buyers by 2 to 1.Is it profit taking after the 35% rise of the last 6 months or ?