The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Of all my shares, this has been the most consistent since I bought in 2018. It seems to be always good news and a decent divi to boot, with good divi cover as well. I should probably sell some to have a free ride but my gut says this has further to go...
I don't think it's significant. The industry standard used to be 200mm but now 300mm is the new standard. I imagine most companies in this sector will have to slowly move to the new standard.
Unfortunately, I thought it was a good long-term hold too, buying in originally at 550p in 2014! Since April 2022 it has been flat or in decline but this latest drop looks the worst during recent history.
I am tempted to average down but today's further drop seems for no obvious reason and the overall drop seems OTT. Maybe an II is offloading? Other shares in other sectors seem to suffer similarly huge drops without justification.
Think I might a bit but think there will be a short-term bounce back suitable for a quick few days or weeks trade. The PE here is still high though.
I've been in and out of this share for years and it has done very well, in terms of SP and company performance. However, the SP peaked about 2 years ago at about £20. From the bottom of June 2022 it rose again to about £16 and has been declining since then.
Today's drop seems excessive and mostly based on the Health division caution. The PE ratio shows as 28 on this site, so still pretty high but I think it always has been. The SP now looks good value to me and dividend cover is quite healthy. I think I will be buying back in today.
Mmm, Chairman announced retirement in July, then CEO went and now CFO. It does seem serious and the market obviously doesn't like it. The SP has roughly halved since the recent high in July. On the face of it, the business seems to be doing OK, so what are we not being told?
Looking at the short-term charts, MACD and an SMA that I use have both crossed over, so SP may continue to decline. With that and the coal price, I decided to sell for a very small loss (thanks to the massive divis).
Will keep a watchful eye on this though and may get back in if the SP drops significantly.
Yep, it's an incomprehensible drop. I've been in and out of this share for years and it has always done well and pays a divi to boot. I've used today's drop as an oppo to get back in - I had planned to buy before results and then forgot. A bad memory is sometimes a good thing!
Had an email from my broker today about an EGM, for which the only proposal is THAT THE BALANCE STANDING TO THE CREDIT OF THE SHARE PREMIUM ACCOUNT OF THE COMPANY BE CANCELLED.
Seems this may be the capital reduction but I don't understand what this means either! Can anyone explain please?
It seems a fair offer at £13.50 looking at recent SP history so I will be accepting that. From the RNS, they are also hoping to complete the transaction during Q1 2024.
I wasn't aware of any acquisition talks ongoing and so not aware if there is any likelihood of another bidder entering the fray.
DShares, I am with IG and they send me emails about all GMs and EGMs; just click on the link and it takes me through to Proxyvote.com where I can make my choices. I'd imagine you can go directly to Proxyvote but will need some sort of unique ID your platform should give you.
I'm against all the BOO changes and voted to keep the current Board in place.
It's been a difficult 10 months for all us s/h but looks as if the legacy issues have been mainly sorted out and the trading update suggests Rev is moving into the back for the first time - woohoo!!
BOO trying to start a BoD takeover seems to have no rationale and will only create more inter-company shenanigans, when RevB needs to be left alone to continue its turnaround. It seems Rev will be growing without any "help" from BOO, nor does it need it. I will be voting against any of the BOO proposed changes here.
Main frustration for us all is the share suspension but it looks as if trading will be restored very shortly. I am not convinced it will gap up immediately, but am expecting a big increase in SP over the next year or so.
GLA.
Sorry, this reply was to jg68, not MHL2020.
MHL2020, I think you still hold the same number of shares if it is taken private. However, 2 things will probably happen:
1. A lot of PIs will probably bail out and possibly some IIs depending on their remit; this may cause the SP to decline quite a bit prior to privatisation.
2. Once privatised, of course the shares will no longer be quoted on a full exchange. An alternative platform will be offered but this may be highly illiquid, the costs are unknown and the SP itself may not be transparent until you are at the point of selling.
(This happened to me with Fusionex which became a nightmare, ending only with the private shareholders being compulsorily bought out at a considerable loss.)
For these reasons, if there is any inkling of being taken private, I will be voting against even if that means leaving the current BOD in place, albeit with their appallingly bad communications.
The divi has arrived in my IG account.
Now only down by about 40%!
Yep, I may be being a bit gloomy; it's a fair cop! And yes, I agree I was far too trusting of the BBC pre-Covid. I am now highly sceptical of numerous articles it publishes. Having said that RSA does have very serious problems.
I think there is great potential here - let's hope the management team can execute a successful development of this new asset for the company. Creasy, plus the LEXers with RSA experience have excellent credentials. Time will tell and I accept this will be medium to long-term investment. At the current SP, can you believe I am actually in profit for the first time since 2009.
The deal looks good on paper, with a massive increase in potential reserves - but these are not 'official' JORC; I wonder when/if this will happen.
My worries about working in RSA continue though. Have a look at this article from the Beeb https://www.bbc.co.uk/news/world-africa-65671718
It's a country rich in resources yet extensive power cuts now seem to be becoming the norm. This is basic infrastructure provision and things have got so bad that "Turkish company, Karpowership, has signed deals for its ship-mounted power plants to supply electricity to several West African countries, and last week South Africa. These are moored off the coast and directly plugged into the national grid, supply between 30 MW and 470 MW per vessel." This is another quote from the Beeb.
I am staying with Lex as it looks as if it could be a multi-bagger over a period of years but RSA will be a very difficult place to do business.
An interesting article on the Beeb here https://www.bbc.co.uk/news/world-africa-65671718 mainly about the internal problems in RSA. I know we export most of our coal but it made me realise the kind of environment TGA has to do business in. Having the new resource in Oz may be good news in the medium term but RSA looks like a country falling apart. Admittedly, I shouldn't judge on the basis of one article but it seems very serious.
I agree. The foundations seem solid and being internet only, they avoid a lot of other costs and managing what they have should be easier, especially now they've moved on to the cloud.
Today's drop did seem an over-reaction so I have bought back in at just under 105p, hoping that H2 will be as good as they expect.
Great to see the SP continuing upwards and this makes sense considering the potential increase in reserves.
However, I do have quite a few initial concerns...
Oh no, it's in Africa again - I remember all the troubles in Tanzania. I can't see RSA being much better. I have shares in Thungela and even for lowly valued coal in comparison with gold, they have infrastructure and crime problems aplenty.
The reserves are only independently verified, not JORC.
How aligned are the goals of WRE and BBBEE - is this likely to be the cause of future friction?
Looks as if no open-pit mining, so extraction costs will be higher.
Issuance of additional 110m shares, conditional admittedly, will dilute us nearly 40% - we need a high confidence level the reserves are as stated.
Do we really want to get into possibly mining?
WRE was in business rescue - why was this and why isn't the wealthy Creasy able to bail it out himself?
On the plus side, BoD members have experience in RSA and the tenements do seem rich.
There are 2 'unknown' trades totalling about £30k according to the trades page so if they are actually buys then that might explain the big shift. It is odd for such a big move on no news, even for LEX. I will be a happy boy if this really is the beginning of a change in fortunes as I've been here since 2009 and my patience is wearing a bit thin.