Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Indonesia in the 90s and the PTTs would pay no attention..they were/?are emperors...for them who is syq? a fly on an elephant doesn't come close imv
Yeah, you are right about that. The way I see it, investors should find out who are these major customers and then, shaming them on twitters or facebook etc may help? GLA
in indonesia (esp PTT) wd be amusing..knock knock..b*gger *ff..not great for lt relationship lol
well who knows on dear ol aim...an aimster whose business is the other side of the world is esp difficult to dd..at all.. ..essentially PIs are pis*..ing in the dark/wind ...whatever yr preferred cliche..and may get a mouthful..let's see
Is there any reason why they can't employ a no win no fee debt collector to collect money owed?, what have they got to lose?
Do you think there is something fishy going on here? I have been to Trade Meeting run by UK Gov. The suggestion from the Trade dept is, the customer and the supplier choose a bank and use them as a middle man. First the customer put the money in the bank, the bank then inform the supplier to ship the goods. When the customer receives the goods, the bank put the money into the supplier's account. Obviously, the bank takes 10% cut for acting as middle man but the supplier gets paid on time. It seems, AFPO is another company experiencing similar problems with their customer. I'm glad I got out from there a while ago with profits.
The RNS on 20/04/2016 looks good, except for two major customers not paying. I'm very much tempted to buy. The question is, what is the balance sheet looks like without 15M payments.
neg fcf is negative ....perhaps apply 10-30% to unsecured receivables for possible range of net net net style balance sheet valuation ..pays yr money, makes yr bed ..gla
Company makes ~£2m Ebit per year. PE firms/ most buyouts pay around 8x EBIT. Let's say we get offered 6x because revenues are less certain. 6x£2m= £12m £12m/Share Cap= 45p
sorry, take it back, got confused with jollygoodya.
Hi Jollyspeculator, sorry didn't see your post. No, I have never worked in Indonesia or Asia. But I have been to Singapore. A strange place. You sound positive about this share. If you are right, you could easily double your money here.
Excellent post..I dont for one minute think that CEO will get this on the cheap. The Trading update talks about a strong start and also foreign currency exchange losses impacted management results. The reverse is true now. In addition the bad debt provision is just that, a provision and not a write off per say. There are independent directors holding shares as well as an external company utilico (I think) Plus I think the CEO maynot be that disingenious to put in a low ball offer. I think the sp held up well and fully expect a premium offer. AIMO
Well again, your last comment Dibs really does you no favours as you clearly haven't researched MBO's past. MBO's chief executive Dato’ Hussian owned more than 33% of the company when it was listed back in 2007 and this fell after a placing diluted his interest. He increased his shareholding in October 2010 when GHL Systems Berhad sold their holding to him taking his holding to just less than 33% again. In September 2012 Director fees and loans outstanding to the CEO were converted to stock at 3.5p per share (premium to the market) taking his holding to 37.99% of the capital. In late September 2013 Dato' Hussian bought stock at 2.5p from another major shareholder at a 11% premium to the previous days closing share price taking his holding to 50.2% of the Company's total issued share capital. And guess what, the market responded positively with the price doubling in the space of a week! But this bares no resemblance to the situation at all as there has never been a takeover approach there to date, MBO is ticking along unnoticed but will be pull some impressive results in June, more so in September. Anyway point being, MBO's CEO acquired stock at a premium to the market price and the market responded positively. There has not been a takeover approach. The interested parties here have only declared an interest. The market is aware now and judging by todays trading activity there is some anticipation. Certainly not a sell-off of existing shareholders. Receivables to be clear are current assets, not debt. In this case payments due. The worst thing that could happen would be a write-down of the assets which would impact profit for the year but not cash-flow. The company is profitable and growing. So even if the entire value is written down you have a company generating £1.5-2m profit per annum. No debt. Cash-flow generation is impressive and has been funding the increasing backlog of receivables due yes, but that is not to say all future revenue generation will follow the same trend. Nor do I believe we are about to see the entire value of receivables wiped off the balance sheet with a cursory glance.
Indonesia..or SE Asia lol?????
The company should send debt collectors to those major customers.
Based on my understanding of t/over panel discussion. If any party making an offer either individually or in concert acquired any shares in the preceding 12mths, they have to offer the highest price paid. Here no such transactions hence depends on what is deemed fair value.
I see my earlier comments being scoffed at but after the initial "T/O" hype reality is setting in that you are not going to see 50p or 30p or even 18p. People just see what they want to see but no one can say you weren't told in black and white. There are going to be provisions against bad debt. And I suspect they will be substantial or they wouldn't have explicitly stated it. That is going to smash the BS. The CEO is being opportunistic and clearly believes he can pick the company up cheap, effectively a MBO.
There is no rules as to offer the highest share price in the year. The buyer and the seller agree on what price.
wd be terrific..i'd be interested to know how aim can deal effectively with this stuff...
Jolly S, am awaiting clarification from takeover panel (if they ever get back to me lol). Will post response. As I see it ceo owns 32%, but because he is connected, mandatory offer not required, however he has now stated intention and company in offer period. Changes the position. Looking to clarify this.
suspect you are wrong about 50p min; convenient spin for someone who wants other PIs to bid this up lol cf "than the highest price paid by the bidder for any interest in target shares acquired during the offer period and within 12 months prior to its commencement. " not the highest price per se..dyor of takeover code and other applicable regs, all..complicated stuff ..not an expert, not advice...but doubt you are sure either
Where do you get that idea from ???
Fill your boots then!
CEO has about 32% already but Dicky Tjokrosaputro Director has about 8% - he should want a decent price. jollygoodya - takeover code - think you're way off with that speculation. He hasn't been buying lately and he doesn't need to match any price in the last 12 months - that's my thoughts.
good luck with your investment.