Roundtable Discussion; The Future of Mineral Sands. Watch the video 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.
Risky but could be a good idea. Gold miners look good but risky if there is a wholesale sell off of everything liquid or the mine you invest in has problems. It's all a gamble and almost impossible to get it right
Could always sell up now, rent for 12-24 months or downsize, come back to market in 18-24 months, my guess is you will be able to get more bang for your bucks then.
aimo
Imo Stay out of property. People loosing jobs. Will not be able to pay mortgages. Prices will slip probably by quite a bit
A few pump and dump companies being mentioned on various platforms as a haven for the RRE cash. Personally I am staying out of the stock market. The stress of the last 3 months has been horrendous. Also if RRE is a benchmark for valuations there aren't many bargains out there. COVID is savaging the USA and South America so another flash crash is quite likely. £18.50 still fking hurts.
What about property investment? Buy a fixer upper or a flat to rent out. Any experience out there? any tips?
Mcquarie are totally out by the looks of it.
Seems like easy money for these funds who are using derivatives to make approx 18p margin with two of the funds making approx £100k if it goes through at 18.50.
I have funny feeling about this. A lot of people have moved on already. This is just a first offer that the board have accepted. If it fails on the vote they will have to come back with a better offer or walk away. Seeing as they are buying the company for cash it makes sense for them to up offer. Just my opinion. But funds are snapping the stock up. Do they something we don't?
over 2000 O trade Buys so far today. Not entirely sure why...maybe people dont read the news,
With more and more institutions taking positions at circa 1833p, it's looking like they expect 1850p to be trumped ..... maybe 'Trumped' is the wrong word .... but you know what I mean.
atb
INEOS, Jim, if you're watching, that's £27/sh. With all this buying it must be squeaky bum time for Viaro Energy...;o)))
RNS out
£27/sh. I would have been happy with that price.
They have paid $5 per boe reserves. Given the cash position this is low ball. $8-9 per boe was being paid pre-COVID. Maybe circa £350m would have been a fairer price to pay though. Equal to Serica valuation.
Their 'quick buck' equates to circa £100,000 for 4-5 week hold with, as it appears, limited risk.
But that aside, I have to ask myself, why go in yesterday when they could probably get the same deal in a few weeks, unless they expect the SP to climb !
so, yeah...quick buck it appears.
leveraged 'purchase'. Effectively 'buying' but not owning a quantity of stock with less cash than they are worth. No voting rights attached. Purely a financial play to make money I suppose...well, of course it is, but in this context they are taking the fraction of a % profit to takeover price.
It's true the decom liabilities should factor in. My guess is that AA predicts a suppressed oil price for the next few years. Meaning we have to spend quite a few £m to maintain production (especially considering the 2020 reduction of £100m), nevermind decom coming forward, where we don't have much margin above OPEX and more necessary baseline CAPEX to pay for it. Therefore the share price would likely stay where it was for a few years. Equally as implied in the statements from the company it seems the potential $1bn loan vaporised, maybe leaving only c.£100m to spend on assets/pay dividends, severely limiting expansion options.
Personally I'm a bit more bullish on oil price in 2021 and could have waited. But then I'm not the CEO or on the board!
The decom liabilities are spread out over 10-20 years. There is plenty of time to stash cash from cash flow to pay for them. If we get some fossil fuel pricing normality RRE could be earning about $200m a year.
How do the CFD work? Are these guys buying CFD to make a quick buck?
has actually moved a bit. Ask 1838. About as exciting as it gets, apart from all these CFD's being purchased by random funds.
Except there are decommisioning liabilities. The scenario is completely different. Do you think there will be a rival bid? I am annoyed as AA could have grown the company more and got q higher value.
OK lets say RRE have no cash and no decom liabilities and no debts. Is £250m a fair price for 63m boe reserves and 27,000 boepd?
£18.50 does seem cheap though!
Where do you get the current cash position from and why would you ignore decommissioning liabilities?
Investor81 its just a finger in the air. £250m less un-restricted cash held. 2021 producing 27,000 boepd £18.50/sh is criminal !!