Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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The CEO was asked about the impact on Brexit during presentation of H1. He said something along the lines of minimal impact on RPS - but more so on their clients ( I assume he is referring to private clients and not the public sector). Where the Public sector is a client + water companies - Brexit has minimal impact. Furthermore, their revenue streams are quite geographically diversified anyway - so this Brexit fall = chance to buy in.
My thoughts probably generally align with yours Peaks, I would guess. I think there will be a general negative impact on the market in general, which RPS will not be immune to, but that this will correct itself for RPS over time when the realisation that actual business impact will be minimal becomes apparent. So if there were to be a no deal come Monday, I think the price will initially fall a fair bit.
However given what the main sticking points preventing a deal being done at the moment are, I cannot possibly see any other outcome than some form of agreement being reached.
Bojo will sell out the fishermen and allow access, to be fair it makes sense to do so, given fishing only forms something like 0.1% of our overall economy. It would make absolutely no sense to destroy the other 99.9% to take a moral stand on this issue, my belief is this is solely being used as a bargaining chip at the moment, as access to UK waters is a much larger issue for the Europeans such as the French. The other main issue being the following of future EU rule implementation, again I don't see a major hurdle here and believe both sides will give ground, the EU will be flexible on what we have to adopt and the UK will accept adopting all that are currently in place, as well as some future and those that are not accepted may mean some minor changes to the agreement or what products are subject to free trade (sounds complex, but really not a big deal).
If/ When the deal is done RPS will benefit from the general market rise and the return of some certainty, but may not jump as quickly as the likes of Lloyds and others who have more skin in the game.
Either way I think of the longer term we are all on to a good thing here.
Best of luck
Would love to know people’s opinions on how a no-deal Brexit would impact RPS?
I think a lot of the uncertainty surrounding Brexit over the last few years has been a bit of a headwind for RPS (think that has been mentioned in previous trading updates). But, that is the ‘uncertainty’ which has stagnated the market in general. That uncertainty is removed whatever the outcome. As for a no deal, what exactly would the impact be on the services RPS offers?
They provide services in Ireland (approx 5% fee revenue) and Norway (approx 12% fee Rev) but not much more in Europe.
Obviously there would be general macro economic damage which would have a negative impact short term.
Interesting articles here-
https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/international-markets/deloitte-uk-brexit-insights-professional-business-services.pdf
https://www.prepareforbrexit.com/insights/services-sector-post-brexit/
Im not convinced that a no-deal would be as damaging for RPS as some might think. The fact that they operate in Europe and further afield is not a reason in itself to assume a dramatic impact on business.
When it moves it moves fast, that being in both directions haha. Just picked some up, need to start somewhere.
Could slide more Monday but maybe not... decisions.
Yeah, getting tempting now...
Picked up another tranche at 66.5!
Will pick more up below 60 if necessary
We'll be back in the 80s by Monday lads, todays wobble is all down to Brexit - deal or no deal, as soon as the deal is ratified everything, including RPS, will steady and take a decent wee jump in the right direction.
There is fear out there and a hell of a lot of posturing on both sides, but both sides do want a deal and both know the potential down side of no deal is massive, so I am confident a compromise will be reached and we can all rest easy again. Tomorrow could be turbulent though, so hold on to your seats!
Best of luck
Yes agree, good board.
Not nice watching your profit being chipped away at, but focusing on the share price next year, not this year.
I’ve taken my gains a little early on some stocks this year, and with everything generally going north, there’s less opportunities about to get in at the bottom. So I’m in the mindset to run my winners into next year now and by then some sort of calm may be returning to the market.
Nothing bad to say about this stock at the moment, undervalued, good company, no silly valuations, no speculation. Just good value investing here haha. You're right though, not many silly people here.
Really like this board here. No silly ramp/deramp, just sensible discussion from both sides. I've built a position here pre and after placing . Obviously not great suffering a big drop on paper today, but I must convince myself what I'm getting in for in the first place and where I see this company come next year.
Yeah agree
Yes I think I remember your posts. I did exactly the same thing. Once I’m in I’m holding LT this time.
Yeah i think 65 would be a nice start. I built a very nice position in this at the start of the year, but stupidly sold a bit early. So keen to get back in, but not rushing.
Hoping for 65 entry. Topped up under 70! This is a bargain
Good shout, thanks
It’s probably related to Brexit uncertainty, profit taking and all housebuilders are down as well (port supply issues, materials prices increasing). Warranted a pullback.
Anyone see a reason for this? Volume picking up a bit, but just see loads of auto-trades. No news, and market looks steady.
Nice one mate. Not worth the risk. I should have sold yesterday really. Pure gamble. I think it may well go up but it’s just a complete gamble. Got in at 3 so made a decent amount but didn’t feel comfortable with it. I think this should do well mid-long term and not too worried about Brexit uncertainty here.
:) :) :)
You won't believe this, but I just done exactly the same and dumped my Hurricane! At a slight loss I might add.
I have invested the dough into RPS and Lloyds
Good luck Peaks - I wish you all the best
Picked some up. Sold a risky investment in HUR.
Plan to pick more up at 70 and in big at 65 if it gets there. I think it may drop further tomorrow.
Good call by you Peaks :) well played - You getting back in now?
I think I will purchase some more, when the deal is done by Sunday, we'll rocket back up Monday morning!
Tempted to wait for 65 but probably won’t get there
Indeed. I think you are probably right. If it drops below 75 I will join you. I suppose it’s a bit bleak buying at double price, having been in so low previously. That’s probably one of the reasons I’m waiting for a pullback. Good luck anyway!
Thanks Peaks, some great points, all worth noting.
I can see where you are coming from, but my argument would be that it was already undervalued when the placings happened (and before this), the dilution wasn't massive either. I work in a related sector and have worked with in conjunction with RPS on a few occasions and always found them to be an excellent company. I see the concern over furlough, but throughout the industry people have taken advantage of the furlough "free money", to offset any impact on the business, in several cases this has been used where it simply was not required and I feel this may be the case here.
January seen £1.84, so I really don't think £1 this year is out of the question. Whilst I don't think things will simply jump in a straight line upwards, I don't see a track back any further than 76/78p at very worst and wouldn't be surprised if it doesn't drop below 80p again. Of course I could be wrong and the way things have been this year you never can tell, but I have an average of 42p and I won't be selling until we hit £1, and even then probably only a small percentage as I believe this has lots of potential.
Best of luck to you and everyone else