Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Can only agree. Personally, I think it has not had this since Mike Averill was CEO, now a non-exec at Biffa.
This company has £1.7bn of revenues i.e. sales every year and is currently valued at only £148m. Even if you add back the debt it looks a steal. Imagine how much it would cost to replicate from scratch their infrastructure & facilities, market & customer relationships, environmental and building permits etc in the wealthiest part of Europe.....this businness is just crying out for some proper strategic direction and lets face it some good luck.
https://sleutelstad.nl/2020/05/28/flinke-containerbrand-bij-afvalverwerkingsbedrijf/
Typing with my former investor hat on, its clear that there is a seller in size here who has either decided that (1) the coming update is likely to be negative about prospects and wants out or (2) more prosaically has decided position is too large vs risk and is downsizing....hard to tell. My lingering concern is that the company might spring an equity raise which would go down very badly esp with the newly acquired Euro investors. Time will tell
Sterling is proving consistently weak agianst major currencies which should prove a tailwind for these guys as most revs are in Euros
Good start
Thanks fever for sharing your expertise.
I have 52.5k shares in my sipp, slight loss at these levels but a medium term holder.
Depends how big the shareholding is but normally CEO and CFO are in regular contact with top 10 shareholders. Shareholders tend to voice displeasure via:
1. Feedback post results to the company's brokers
2. Direct feedback in 1-2-1 meetings with management
3. If v unhappy about direction of travel, speak with Chairman or Senior NED 9or)
4. Flog your holding
Imho I think it is likely that with the Euronext listing and the fact that most revs are Benelux , some UK funds will be offloading as they have other UK-based options ie Biffa or Augean. This makes investing in this business trickier because unless that slack is picked up by Euro investors we could have a consistent trickle of UK sellers. It is not a fundamentals issue but a portfolio management matter. That said, on fundamentals this is a very attractive business, esp given they have shorn off the troublesome parts and paid down some of their debt, and are in a v. strong space in Benelux....
Thanks - a good summary.
As an ex fund manager who does a fund exert influence and show displeasure directly with a management team, how is this ratcheted up over a period of time?
I followed this since it was Shanks &McEwen and like other fund managers supported the Carlyle bid. The disastrous merger with the Europeans really signalled to me that management was going to destroy value as they subsequently did, not helped by some happenstance that forced them to shut down etc; the debt profile was a cause of concern then, as was the execution risk around the merger. We were proven right as soon sank like a stone and the architect of the deal jumped ship (amazed he got another ceo job frankly). However with the arrival of the new CEO for the first time there are glimmers of Hope here, hence my interest in building my own position ( no longer actively fund managing). There is value here no doubt but they really need to (1) reduce debt (2) string together a consistent set of results (3) Prove they can deliver consistently higher and sustained operating margins (by driving into higher value added areas as they are trying).
The mists around these businesses are high in theory - govt regulation, permitting, cost of building infrastructure etc...It should be an attractive investment and one that would fit well within a private equity/infrastructure group. Time will tell but I think investors will put Otto on watch at some point . Keep the faith
Are you sure lol this share will multi bag loaded up today with a few grand
I'm not pretending to be anything, least of all an expert. You seem to be the one pretending to be an expert on Renewi.
anyway, see how it plays out
If you read my posts you will see I am a very long term holder who follows the sector very closely. My comments which have been completely consistent are my observations on how this business has been managed, observations supported by the long term price trend which have moved from over 130p at the time of the Carlyle bid to below 20p now. I have always said that there is potential here if managed correctly. I find it amusing that posters emerge from the woodwork, pretending to be experts.
I find it amusing how posters appear from nowhere to talk down a stock that they claim to be invested in, strange. The reality of it usually, is their attempt at protecting their own short position , LOL.
"Renewi making encouraging progress despite virus" as at the 31st March 2020 is not exactly that long ago
Not new news and price has continued to fall since this statement. They seem to manage to create one crisis after another. Compare their recent share price with Augean which is run by a former Shanks Director who has been in the industry for 30 years and actually knows what he is doing.
https://www.letsrecycle.com/news/latest-news/renewi-making-encouraging-progress-despite-virus/
Certainly looks that way
Maybe the tides have finally turned. GLA
It was the current 18p sp that caught my eye here again. I remember this dropped to 18p in March last year, then rose to 38p, nice. Not implying history will repeat itself
shorters taking advantage maybe ??
Why is Renewi going relentlessly down on No News? Does someone know the results are awful?? What is the gossip behind the slide?
RWi...different markets....sill cant help sentiment.....share price at ridiculous level now, considering it hit 40+ after the euronext listing and fundamentals havent changed . Have topped up today in size
Publicly held