Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. 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.
As far as I can make out the company is expanding to meet a need as government lending/cash hand outs will be decreasing.
Bought a few more today at 24.8p
Mmm maybe not, but hopefully his hard work will pay for nights out and hopefully not just for himself.
does not seem like Ed would be much fun on a night out
Interview with Ed Rimmer CEO Time Finance :-
HTtps://www.businessleader.co.uk/my-working-day-ed-rimmer-ceo-of-time-finance/130436/
Added a few more today, hopefully these should do well over next 12-18 months.
Trading at about 5x cash adjusted pre tax profit. With liquidity of 8m on hand ready to deploy to increase those profits substantially.
In case you missed our webinar with Time Finance the recording and stockopedia report can be found here: https://www.sharesoc.org/seminar/sharesoc-webinar-with-time-finance-time-16-june-2021/
To access the recording, you'll need to be a full member of ShareSoc, which is a not-for-profit organisation that supports individual shareholders and campaigns for shareholder rights. If you're not already a member you can join here: https://www.sharesoc.org/membership/
Once you've joined, you'll receive an invitation to register for our "members network" private social network, from where you'll be able to access the recording (and recordings/reports on 100s of other meetings). If you're already a member and have any difficulty accessing the report, please do not hesitate to contact us here: https://www.sharesoc.org/contact-us/
And if they don’t deploy any of that capital then at current market cap you are buying a business for 20m EV that makes 3m PBT albeit with no growth prospects.
I thought that sounded really promising yesterday.
I could see a situation in which they quite quickly and easily deploy around 6m of capital 30m total on a 1/4 leveraged basis. They borrow at 4% on that (slightly less as 6m will be free of interest) and lend out anywhere between 8 and 18% so I’d assume an average gross profit of 9% or 2.7m, assuming some extra admin expenses and defaults that could reduce to around 1.7m PBT to add to the 3m they are currently earning.
If they show a 4.7m PBT in a years time it’s very possible they could trade at 10-15x that given they have also outlined a plan to double the loan book from there. Of course that stage of the plan is a lot more difficult to execute than deploying their balance sheet capital but I think it’s possible the market would give them the benefit of the doubt having seen them execute the first stage.
When management only have a small stake they can end up being perversely incentivised to lower the share price by doing a placing and then getting rewritten Incentive Plans at lower prices where the new targets are much easier to achieve with the additional funding. It is why I made the comment about managements shareholdings.
I am not saying that this applies here at all but I am a cynical and cyclical investor and always look for the possible downsides. From memory they said they have funding for 3 years, not that they would not look at raising money after 3 years. If demand from profitable customers picks up faster than expected they will want to ramp up the capitol base they leverage to make loans sooner than after 3 years.
Re equity/funding. They said specifically they won't need to for 3 years.
It does make sense to raise equity at the moment with the share price still depressed.
Unlike some I am a recent buyer of these shares so have not felt the pain of past acquisitions. The presentation did indicate that they have learned from past mistakes and are taking positive steps to a more profitable and sustainable future. They were clear that despite the company being well funded at the moment there will come a time when either taking a loan or undertaking an Equity Event will make sense to accelerate growth.
Most of the management have a small stake and one of the NEDs owns 11% of the company (I would like to see the new CEO buy a stake to show some confidence). With the cash on hand, I do not see them undertaking an Equity Event until the year end at the latest and they should have announced improved interims by then. If the share price drops much more with people being concerned about a placing there might be a trading opportunity?
Let's be honest - the company has talked a good game for years whilst delivering very little for shareholders
It's not just one dividend payment but at least 3.. would have been happier if they had just cancelled at the start and not kept on deferring the decision... but they kept deferring the decision because they continued to make a profit.. and to now U-turn on their promised progressive dividend policy announced at the last 'strategic review' has caused me to lose trust in them.. although I do believe fair value for the SP is 50p+ so maybe I'll hold rather than dump in a fit of pique..
"The same level of profit as the year before Covid on revenue nearly 20% lower - there seems to be tighter control on expenses."
Not at all, last year the provision increased by about 2.5m, this year it increased by 0.2m.
Update today that TIME stayed profitable despite Covid. Group has an experienced new CEO plus updated strategy to double the net lending book.
Market conditions are improving rapidly and we see fair value at 50p/share, vs 30p in market, read new note here, free access:
https://www.equitydevelopment.co.uk/research/fair-value-50p/share-as-fantastic-opportunities-lie-ahead
The same level of profit as the year before Covid on revenue nearly 20% lower - there seems to be tighter control on expenses.
Net Tangible Assets up nearly 7% over the year, and they represent approximately 100% of the current m/cap of £28.2m.
Sitting on healthy cash of £8.3m to fund loans (which can be leveraged at borrowings costing 4%).
Good management of arrears.
BAD - Some may be unhappy with the cancelling of the postponed dividend and the lack of clarity going forward at the moment. But with the plan to grow own lending it does make sense.
I do not see much movement in the share price either way. The Investor Meet comments later may provide more clarity... I personally like seeing the body language displayed.
Hope to see you all on the webinar!
said to be on 16th.
Seemingly Seguro Nominees Limited when from 16.01% to 15.98% in the first and then went up to 16.03% in the second.
I wonder why ?
'bounce back better'
I was a bit annoyed at seeing the price drop after buying earlier this month so this improvement is slightly pleasing even though I am still down a 4 figure sum. The trading update on the 16th will be interesting.
Bounce back today .. hopefully ShareSoc can continue the momentum ..
hopefully they will confirm the company's 'growth' strategy no longer involves over paying for underperforming businesses
Current shareholders and potential investors in Time Finance may be interested in our webinar on the 16th June. Ed Rimmer (CEO) and James Roberts (CFO) will be presenting to ShareSoc members: https://www.sharesoc.org/events/sharesoc-webinar-with-time-finance-time16-june-2021/
All depends how things pan out with covid and the economy as a whole.
However, yes I'm looking for a return to pre-pandemic share price maybe over a year - eighteen months although I'd be pleased if that happened sooner.