Member Info for Lenin

Err... practical experience off running a business...I have been successfully Self Employed with my own business for almost 30 years .....You really do know how to put your foot in it !!!!

Your clueless to what your reading ..I never said the Reabold business model was identical to a house builder more ...rather closer to the house builder model than the supermarket business model ..Reread and learn !!!!

I suggest you learn the difference to say how a Supermarket conducts it's business which is dependent on Revenue rather than assets to say how a House builder conducts it's business which is dependent on assets in stock ...Once you understand this concept you will begin to understand the Reabold business model which is much closer to the house builder ..Now the book to cost value is what would happen in terms of the shares if Reabold suddenly stopped trading tomorrow ???...Would the shares have no value ??? ..No.. .How do I know this ??? Because what would be done work out what would happen in this situation is you would take every single asset Reabold has ..Cash / Short term investments / Physical Assets such as inventory / Property / Plant and Equipment ...yes even the office chairs and desk would fetch a few pounds .../Intangible assets ... basically anything that will end up on a balance sheet ..You then minus all the liabilities ....You then look at the last accounts which in this case you would see is the 30 6 21 ...You will then see a book to cost value of .53 pence ...You would then work out the ratio in relation to the current share price ....Now as there has been no dramatic change for Reabold with the assets since this figure was last published then there is no reason why the figures would have changed much ..( if anything it may now possibly be a little higher ) ..If you refuse to believe this.. check the accounts for the date mentioned for the figure and then go on over either to YouTube or Investopedia if you wish to learn about Book Value ...

Book to Cost Value is a metric just like P / E ratio or D / E ratio etc ..which an investor can use to work out if a share in any company is cheap or expensive ...Now they are not foolproof and can contain flaws but combined with some knowledge of the company they can be a useful tools ... They are used by institutions and professional traders ...P E ratio does not apply to Reabold because Reabold is dependent on its assets rather than revenue which is why I only refer to Book to Cost Value ....

Yes ..it would be better it Reabold can get above .20 because only very recently there were messages being posted telling shareholders to sell as shares would become worthless ...Do not believe those who try to debunk this share being way below book to cost value !!!

I perfectly well understand the Net Asset Value usually historical and relating to the Book Cost Value for the share price is a different thing from the Net Present Value which is based on a future investment in a project such as Victory ...You think the current N P V value for Victory which could be as high as £ 190 million plus with 50% of this going to Reabold and with a planned payback of within 12 months ( and that maybe a conservative estimate with current gas prices ) ... Represents a very bad deal ....What NPV would you have attached to Victory before you would say it represents a good deal ..£300 millions ??? ...£500 millions ??? ...£ 1 Billions ...Simply no figure would ever be good enough for you !!!!

Many thanks ...these figures do not matter so much if you took a company ..say such as a supermarket which earns income from revenue .. but for a company such as Reabold which are asset dependant they mean everything ..A Ratio of 1 is considered equal value...while higher is expensive ..Reabolds ratio of 1/3 book share price to cost value is very good in relation to the current share price ..

How is it a gamble when the current share price represents 1/3 of the Total net asset value of the company .and which by the way has been increasing .. before anything has been monetised ???? ..I would say the share price is a bargain ...

Yes ..but you are hypersensitive to the risk involved ...A I M is no good for you dear boy !!!

Just observing a couple off points on Victory ...The company should submit a Draft Field Development Plan by the end of the year which may use a.. single well subsea tie back ..to nearby infrastructure ... recently read an article on this subject which said that the process used to be a technological and financial burden ..but today is much easier due to advances in engineering and improvements in operations ...The tieback distances have been pushed back much further as well with Chevron completing an estimated 188 kilometers tie back by 2016.....The second point the original payback on Victory was expected within 12 months on a historical gas price average of 50 pence per therm ..but with gas price futures now at 200 pence + per therm I should think this should be a very fast payback.!!!!

Although not directly related to Victory there is very recent news out the the big oil and gas majors are planning to boost their Capital Spending next year now that they have a much better cash flow situation with the sharp rise in gas and oil ... ..Their spending will be specifically going to core growth oil and gas projects with low breakevens and high returns ...I should think this bolds well for Victory ..

Your price target ( as already posted ) sub .15 and then worthless ...my price target a post victory sale !!!..

One thing I have noticed about Savs...... whenever the share price is having a bad day and he decides to post a message telling everyone to sell out .. within a very short space of time the share price does an about turn and goes back up again ...He needs to be posting messages of doom and gloom more often ...we would soon be back in the .60s ..

Persimmon ...I don't share the opinions of the doom mongers and believe everything will work eventually ..but I never make a prediction of what wil or won't happen with a company because if you get it wrong it will be remembered by others and then all credibility for that message poster is lost ..I have seen it happen so many times on other share chat boards ...

You say the record breaking Total Net Asset figure for 2021 is driven by speculation ..but assuming a successful sale of Victory this could double the Total Net Asset Figure for Reabold on its own !!!..

When you say Adios that seems to imply you mean bankruptcy..How have you come to this conclusion when Reabolds Total Net Assets for 30 th June 21 stood at £47 654 000 and current net assets at £ 6 640 000..? The Total Net Asset figures have substantially increased for the last 2 years .. Divide the current market cap of the number of shares and you end up with a share price figure around 3 X higher than the current share price .... It's all about sentiment dear boy ... Sentiment !!!!

You keep on saying that Reabold is about to collapse because of non existent turnover ...But this is a failure to understand the business model ...If you were talking about a company such as Tesco which is dependent on high turnover I would be in agreement ...But Reabold is dependent on its assets - not turnover - and although Reabold still has to prove these can be monetised this is the main driver of the business model ...

I remember reading earlier suggestions ( but cannot remember whom) of a possible takeover of Reabold especially with the share price down at the moment ...This is very unlikely to happen at the moment because of a thing called the EV/ sales multiple which is fairly high for Reabold at the moment ...This is because when a company wants to take over another company ..the market cap and company debt are considered as one cost and then this is divided by the annual sales to reach a multiple number ...the lower the number the more attractive the company for a takeover ... Usaully a multiple of less than 3 is best but at the moment Reabold is much higher around 5 to 6 ... However a sale of Victory could dramatically changed this multiple and then Reabold would be seen as a much more attractive takeover target .. However this is only a rundown of the current situation and I am not for one moment suggesting it will ever happen ...

Yes your probably right ...the reason I used the word Rollercoaster is because anyone who had absolutely no understanding of a share price chart would be confused into thinking they were looking at a drawing of a Rollercoaster for the last month!!!!

Whatever ones views are on Reabold ..I think most would agree that in terms of daily share price movements there have been very few dull days over the last few months ...It's equal to being on a rollercoaster .. definitely not for the weak hearted !!!