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Was he a large holder?
Clearly he has sold causing the 10% sp drop since I asked.
are you still invested?
insight maybe news of approval of soil disposal.
Yep, looks like it.
we're off again
Can't find any news out today so quite possible someone with insight is buying ahead of the results.
Next month there will also be the final dividend.
NAV is 50p, so quite under valued.
PE of 6.65 is half of what the industry average is.
With the change of direction from a downward price trend this is looking good.
On the negative, it is over bought on both RSI and STOCH.
My hunch will be the sp will shoot up and peak around 50p once it breaks the resistance before a retrace and then continue going higher.
Hi all, I'm new to the chat room (just registered) although I've been following LSE for a few years and been an active investor for several more.
Been wondering the same thing myself, but given that RWI's preliminary's are due next Thursday, it begs the question that somebody may know something the rest of us don't...?
I'm not complaining, the £750k buy might have something to do with it
today. Any reason?
https://www.edisongroup.com/publication/atm-prudence-and-debt-management-actions/24054
Found it:
FY19 in line, guidance reduced for FY20 The Commercial division had a stronger Q4 including delivering planned synergies following price increases at the start of the quarter. As seen at the H1 stage, other divisional performances remain variable but overall group profitability was as management anticipated. Cost-reduction actions are underway in all divisions to improve performance and plant efficiencies, which will strengthen the group platform for future growth. Separately, we now expect total exceptional charges, which are mainly non cash, of €80m+ in H2, over half of which (c €45m) relates to the Derby energy from waste project delays and financial difficulties at prime contractor Interserve. Other components include synergy delivery costs and proactive provisioning at UK Municipal ELWA, given possible Brexit impacts.
Looking ahead, guidance is now to expect no resumption of remediated soil deliveries from ATM in FY20, which explains over two-thirds of our 36% lower group PBT for that year (with a 20%+ reduction in FY21 also). The existing 3.5x net debt:EBITDA covenant has been extended for a further year (previously due to step down to 3.25x in June), which looks sensible given our projected c 3x end FY19 position and allowing for some normal seasonal working capital fluctuation. A flagged dividend reduction (to 1.45p/1.68c) for the year including a proposed 0.5p final, versus our previous expectation of a flat 3.5c (3.05p) payout), forms part of this debt management strategy. Previously flagged disposals (ie Hazardous, Reym, and Municipal, Canada) are said to be progressing, with the latter business at the due diligence stage, and are expected to reduce net debt in due course.
Valuation: Event-driven net debt reduction upside Renewi’s share price has rallied to January 2019 levels but remains over 60% below its 86.9p year high (June 2018) with estimates also under pressure during this time. Factoring in our revised forecasts, the FY20 P/E has compressed to 8.3x with EV/EBITDA of 4.9x, which become 5.7x and 4.2x respectively one year further out. The group net debt position could improve significantly if disposals complete and/or the ATM position is resolved, although the timing is uncertain. Even following the proposed dividend reduction, Renewi is yielding 4.4%.
There's a new Edison Research note out.. can't access the full report at the mo.
Management flagged stronger Q4 trading, in line with its expectations. Netherlands soil remediation activities require regulatory approval and a prudent stance has been taken over resuming shipments there, which is the primary driver of our significant estimate reduction. In this light, the steps being taken for debt management, including a proposed dividend reduction, are entirely logical. Renewi’s rating is at depressed levels – we feel due to earnings uncertainty and higher debt levels – but potential resolutions to both issues are visible. The company is still yielding 4.4%.
Skid, i am staying until the dutch soil issue is resolved as that will be the catalyst for final re rate imv.
Woodstock, you could be breaking even soon
35p is tempting as there is some resistance there. Should hit 35p quite quickly imo. I think I may hold for 48p though where that is also the start of a gap to fill as well as the NAV price.
Another good day perhaps ask at 31.90
Recent follower here. Recently purchased 40k shares at 23.5, just thought they were too cheap with all the bad news plus was built in.
Wondering whether I should keep for a short term gain at around 35p or stay in for 2 yrs + ?
Good morning Woodstock, I'm surprised you didn't fill your boots when the sp dropped to 18p the other week, I bought another couple of grand that day, but wished I had bought a lot more.
GLA
Hello Taversham,Joe and other friends. I am still at a loss as bought in at 35p. I agree Taversham i wonder if finally going news is arriving over Dutch soil issue. I am tempted to buy a few more.
I wrote last month that RWI had a NAV price of 55p. This is incorrect, it is 0.55 euros which is approx. 48p.
The company certainly has issues, but I think investors are waking up to the fact that it is very under values now.
Currently RWI has an enterprise value 3x that of it's market cap. I'm not sure when I last saw an enterprise value so far out from the market cap.
The change in direction of the share price started from the the TU on 29th March. The BOD have removed ATM from their forecast, which leaves only an upside if shipments are allowed to continue.
Their bank facility has been extended which removes financial worries.
The sale of Reym remains on track.
And, what I liked most, was the reduction in the dividend which will save 30m. This is an easy saving and the correct one to make. They could of axed the dividend altogether but that would of forced some institutes out and hurt the sp more.
Other savings through cost cuttings and improving efficiency will be carried out and the group expects to save 30m this year and an additional 40m next year.
Overall, despite the hard times, the company has set out plans to turn the company around. Over sold and under valued now imo.
Could well be. It is well under the NAV price and has broken out of the downward trend channel.
I doubt it - while the shares volume seems relatively high you're only talking 380 grand in notional amount which is tiny. I'm more hopeful it's actually the start of a trend reversal and the realisation by the market that a 225 million market cap is way too low for the combined group. The purchase price of Van Gansewinkel a few years ago was nearly EUR 500mm .. yes there have been serious issues but Bram Cornelisse thinks he's spotted a bargain.
I am wondering if the soil issue is resolved and the news has leaked??
now 30.6p awesome