Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Well, as a very happy ex-shareholder of RRE ( sold out on the market today) it is pleasing to see that undervalued assets in the sector are being snapped up. RRE was dividend paying and had a lot of cash on the balance sheet and decent free cash flow. Oh, and SLE are dividend paying and have cash on the balance sheet and more cash to come. Like Andrew Austin of RRE with a 27% stake In RRE we have, in OF, a CEO with 20% stake and having paid £20m cash recently for the lions share of his stake (unlike some who receive bucket loads of nil cost options) there are very many reasons to feel certain that he is now laser focussed on increasing shareholder value. In what form will that take, it is difficult to be sure but he has time on his hands but with cash burning a hole in his pocket it may not take too long. Meanwhile, the debilitating pipeline losses will come to an end very soon and this, in addition to increasing cash resources, could have a cathartic effect on the top team knowing that valuable black gold is no longer running down the drain. Lots of anticipation here now.
Iseo- yes this is potentially good news for us and I was excited to see this announcement earlier. I expect this is why we have had a good day for a change. It is a statement that BH are very keen on gas assets And ownership thereof and it begs the question as to how long will it take CalE to dip their toe into an equity position here. If they wait too long it will cost them a lot more I just hope that our BOD don’t sell out cheaply with a promise of a pot of gold in the form of shiny new employment contracts but I am sure they are far too professional to even contemplate that.
As for RRE, when they made the approach for IOG last year it put them on my radar and I invested heavily as I liked what I saw and I was expecting a take out above £20 but very happy with £18.50. Gives me cause for more optimism here as there is clearly a lot of interest still for undervalued assets in the NS and boy do we fit into that category.
Yes it is done and dusted folks as others have rightly said. Whilst we would all like more it is the easiest £75000 I have made this year. Challenge now is to find a home for this money. I am invested heavily in gold with GGP and SOLG already so may sit on the cash for a while looking for others RRE’s but not that many around.. Let’s see if the market takes us up the bid up to 1800p or so. Good start to the week chaps and good luck with your other investments.
Razor - thanks for correcting me. I wrongly assumed that Holder came back when Dunkerton came back to provide the design oomph but should have checked. One thing that I can be sure about however is that my holding here needs to get a wriggle on if I will be able to afford £500 shirts Any time soon but let’s see if Dunkerton can do it again and can monetise the digital retail marketplace with some exciting new products. No guarantees but I do like a turnaround story........
He must need the cash to sell at these levels. Does not show a great deal of confidence when you are a key man in the business and you sell 10% of your holding now. Impossible to know his personal circumstances but one would assume that he has significant assets from sales over the years at prices 10 times higher than today. Dunkerton and Holder need to keep their heads down and start producing inspiring new products the generate some enthusiasm for the brand. Tough times in the sector I know but at times like this they really need to step up to the plate and show the market why they have it in them to turn SDRY around in 2020 when the buyers are digital and as discerning as ever.
Yes, sadly it seems that most intermediaries cannot be bothered to arrange their back office to actually help their clients! You may wish to question why they did not alert you to this when you bought SLE shares in your SIPP or ISA. Needless there will be small print. So, I now have to decide whether I sell my pile of shares in SIPP and ISA’s if future capital distributions are to come by way of dividends ( which OF has confirmed again just this week ) as a 25% withholding tax on such distributions is an unnecessary bore.
Lots of good reasons why Chinese companies are seeking out gold acquisition opportunities. However, the UK and Australia are becoming somewhat protectionist/circumspect about China for a whole host of different reasons such as COVID and the apparent cover-up and misreporting, alleged hacking etc. This action will bid up assets which is a good thing but I don’t expect that we will see any competitive interest from the Chinese here any time soon but it sure stokes the fire.....
It is not impossible that AA will take us private but this depends IMO on the extent of his ambition. It would be relatively easy to fund but if you are trying to grow your empire you are turning your back on a valuable source of funding to achieve that future growth. Being listed is not a panacea however and especially frustrating if you feel that the market does not fairly reflect the value which you see. But, the sector is not flavour of the month and whilst AA has access to funding now as he has openly stated, why go private and cut off some of these routes to funding at this time? Also, many build fortunes buying assets for a good price at times like this. AA knows this, it is clear, so play to your strengths and eventually the market will reward you when you deploy capital intelligently. Naturally there is a lot of speculation at times like this. No-one knows unless you are on the inside and as many will know, these deals can take many months to flesh out so more patience is undoubtedly required. Getting rich quickly is not meant to be easy, which is indeed a great pity!
Hi Peakview - this what I posted on 31st May. “Peakview - of course you are correct. I can’t help but think that the well paid CEO of a public company should also know that hence I remain circumspect about AH’s experience and ability to deliver significant shareholder value. There is limited interest on this board as there is little to feed off and so we just wait patiently for news which may stimulate fresh buying interest. The relatively small free float and sticky holders can be a positive if new buyers appear but I see long term retail investors significantly under water. Some may argue that the scars from the past are still visible within the market hence we are off the radar/watchlists for some. CalE are in a perfect position with an ever deeper understanding of the opportunities and risks inherent within IOG’s assets yet still have no equity interest to ignite the flame. The cynic in me suggests that if they see a lot of value here they will want to pay as little as possible should they Intend to shift their focus from project to equity investment and therefore it suits them that we have flatlined. Patience is the watchword here hence I pop in only once a month or so like most other lth’s. The future of IOG is in the hands of the Administrator and LO as they will decide either to offload if they lose patience or indeed what offer they should accept if a bid if forthcoming. Until then.......”
This remains my view. I can wait but I am far from satisfied especially as the BOD awarded themselves almost nil cost options suggesting they are highly invented to see a higher share price. So far so what.
VanVan and OAPK20 - it would be helpful to know if you were invested in ISA or SIPP. Many thanks.
Maverick7 comes on here and announced a share back last week and this week a placing with our share price at a lowly level. What will it be next week - Muddy Waters doing a critical analysis and taking a huge short position? You’re really making yourself look silly and as others have rightly pointed out, you don’t dilute your large holding which contains a large chunk of your family’s personal wealth with a placing when shares are at such a discount. In his position I would find other ways to raise finance and it would not be a placing at £11.50. I do agree that with the price being held at these levels this can infer that something is going on in the background but IMO that is not it. It seems that you are misinformed and misguided at best or you are being paid to create doubt at worst.
It is taking much longer to fill these large orders as there are much fewer sellers than 1,3,6 months ago which is quite reassuring with the most stable base we have had for some time. Small blocks of 200k, 500k, and a few 1m but if you want 10m + and if there are a few parties trying to do the same, it takes a while. Those sitting on warrants appear content to do so pro tem. If they wanted to do otherwise they would help to fill these orders quickly but are sitting on their hands. I wonder why........
Dana - yes let’s hope it has unless Brent drops of course! It seems that the Algo’s are very active at times and then they disappear. AA makes no secret of the fact that he is looking for bargains but I also wonder about the value which others see in RRE but with his 27% stake and other friendly supporters it would be difficult for someone to buy us cheaply, so that is unlikely. Private Equity have over $1trl in cash burning holes in their pockets and lots of opportunities but lots of competition for the bargains too. Exciting to see what happens in coming months as AA may surprise us.
Many will pour scorn on those who claim that the share price is being manipulated if it does not do what you want/expect it to do. I have been around the markets for quite some time and feel confident that the price is being manipulated here. What is not easy to determine is how, perhaps Algo’s or hedge funds with large orders in the background as part of a wider strategy. All will be revealed in the fullness of time but sit tight as there are big returns to be made here at some point.
Well, if this article is accurate and I have no reason to assume otherwise, it seems that most intermediaries in the UK which offer SIPPS and allow clients to invest in companies registered outside the UK in countries such as Rep of Ireland do not want the hassle of acting on your behalf to reclaim the withholding tax on dividends given that their holdings are pooled and it is just too much trouble to Seperate them out for each client. Now, if you have a modest holding, 25% of a modest dividend is no great loss. If the company decides to return capital and pay a large special dividend once or more than once you will have to wave goodbye to 25% of that special dividend. The moral of the story is to avoid intermediaries like Interactive Investor who don’t give a damn about helping clients to recover WHT from a foreign company except US and a few others. I may have to take this one on the chin and I am sure I am not the only shareholder who is impacted. You live and learn.
https://the-international-investor.com/investment-faq/reclaim-withholding-tax-foreign-dividends-isa-sipp
Gazza - formal reply from II just received below explaining that if you hold SLE shares in a SIPP with them, they will not furnish you with a consolidated tax certificate to allow you to reclaim yourself.
“ Due to the way the assets are held and SIPP accounts administered, we can
only support tax reclaims for dividends from companies incorporated in overseas
territories for which we have qualifying intermediary status. Therefore meaning
we can act on behalf of the client and directly receive any reclaim from the
relevant tax authority, then apply the funds directly to the cash balance of
the SIPP. This means that for SIPP accounts, we are limited to offering this
service to dividends from companies incorporated in the USA and Canada.
They are aware that they would not be claiming the tax back but just
providing the document but we are unable to provide the requested
document. “
So, when I bought these shares in my SIPP I received no health warning about this and was not aware that II would not reclaim the withholding tax nor would they provide me with the means with which to do so myself. More than a little irritating but it would be good to know if others who held in an ISA or SIPP have had any success.
Well, OF is certainly getting out there trying to raise the profile of SLE, as one would expect, given his very considerable skin in the game. He is appealing to the retail investor and is promising significant future dividends which those of us who have been here for a little time are well aware of. I have spent the last 2 weeks trying to get a consolidated tax certificate to reclaim over £8000 of withholding tax from the Irish revenue. Can I get my SIPP provider, Interactive Investor, to send me the relevant forms - no I cannot. In fact, they have refused to send me what I need so I continue to bash heads against walls. My point of course is that if SLE continue to pay dividends rather than initiate share buy backs or tender offers, they may wish to consider, via their registrar and PR, encouragIng UK intermediaries to put some effort into supporting clients to recover this withholding tax. I recognise that the problem sits with the intermediaries but I wonder how many UK investors who bought SLE shares in an ISA or SIPP were alerted to the fact that 25% withholding tax would have to be recovered by themselves directly from the Irish government. Anyone with a good experience or an intermediary with exemption please share as I may move my business to them!
There may come a time when there are no oil or gas deals in play in the NS which are accretive and if/when we ever get to that point the company may announce a new strategy to look further afield. As others have said, management’s experience lies much closer to home and history tells us that many others have diversified in a quest to find rich pickings elsewhere only to regret that decision whilst burning through a lot of cash in the process. I am as frustrated as others here and can only explain the current indifference from the market as one of ‘ show me don’t tell me’. So, it is a case for me at least to remain patient and trust in the BOD who know what they are doing IMO.
Londoner7 - no need for a ? after RNS. The company is obligated to issue an RNS after the press release after close on Friday, no ifs, buts or maybes. I feel very relaxed about prospects from here despite what some may say. BoJo will reduce social distancing in a week or two IMO and analysts will start to revise forecasts when business opens up so expect a lift in the price and with no large increase in debt which has been priced in, all is looking optimistic if you are long. I strongly suspect that some posters who are very active on this board in a negative manner have an open short position and they will all be scrambling to close at 8am tomorrow am. Whether the 7am RNS says any more than the press release is doubtful but I do hope, if the increase debt has triggered the walk away, they are able to state that fact.
SOTB - hope you are well and holding up despite the tough times in the sector. As you know I look in here from time to time despite being chased away by your good self and Neil Hannon I think it was, some 18 months ago when I sold out totally disillusioned with Tom Cross. It seems that on this occasion I was right to be concerned about his abject failure in connecting with private investors such that many have lost faith and moved on. The lack of interest on here appears to be a reflection of his autocratic style which is failing badly. You may recall that I called into question the blind faith of loyal followers some time ago. I am curious to know what is it that keeps you here despite pretty dire performance? I will be back up in the Moray Firth area after lockdown talking to my contacts, who were of the opinion in 2019 that Cross had lost focus which was a sign to exit. Is there any value in PMG from here?