Member Info for Maplinman

He is an ex Goldman Sachs trader, apparently. Used to run Plexus Management: https://www.ft.com/content/8f889728-00e9-11dd-a0c5-000077b07658 ....Now runs Brennus Asset Management.

I'm not in this but find the tech interesting...I wonder if the spread better has got out with their profit now? If so, expect an RNS in a few days. A lot of this jiggery pokery about.

Sorry Stan, called you Phil. No disrespect to Phil, of course.

Phil,

Physical gold seems like a very save option for appreciation over next year. Staying in cash might make sense for now also, a big crash is surely coming.

Nice to get something right occasionally with the old research. ...I posted this on the 18th December in response to some question. "1798 Volantis. They take big stakes (up to to 29.9%) it would be 19.99% for SEE and try and get a place on the board."

I believe this fellow Michael Brown plays with a straight bat. He will be keeping an eye on his money and holding PM et al to account like no other on the board. My hope is that:

1) Loafers like Rudy Burger will be clean bowled by him;
2) He will push for a a decent PR firm to be put into bat.
3) Paul et al get remuneration based on the runs they make off their own bat.

He is clearly as impatient as the rest of us to win this game.

Despite the mixed messaging, there is a push for lockdown to ease. But, before it does, there will have to be so much deep cleaning: https://www.thesun.co.uk/news/11576545/headteachers-ghost-schools-reopen/

'Lets Enjoy React Lift-off' = LERT

Any (even staggered) return to work will necessitate the mother of all deep cleans in offices, factories, schools, universities, trains, buses etc. All places where we know React operates. The step change in attitudes towards cleanliness in the UK is a huge boon to shareholders here. As ever, a little patience required to reap the full rewards. Bye bye traders, investors are most welcome though.

This will come back up when results announced, if not before on contract news. Still, could do with a broker note to really convince wavers. So few companies really know the art of driving up a share price. GDR did a star turn in that regard.

More evidence that deep cleaning de rigeur from now on. Betting on drug cos is all very well but risks are huge. This is a boring picks and shovels play on a changed paradigm. Peter Lynch would be proud to own this, I imagine: https://www.edp24.co.uk/business/norfolk-bosses-on-their-plans-for-offices-after-lockdown-1-6637557

Shaun Doak seems to be a doer not a talker and he has already leveraged React's relationships with clients to bag a couple of contract wins. I'm hoping they bag at least one big contract in the next month. That would set the interims up nicely.

I can't see any downside here, tbh. The direction of the overall share price trend appears clear. More importantly, the business appears to be going from strength to strength in a market crying out for its services.

For the first time in my life I saw a woman (with plastic gloves on) spraying the handle of a basket with anti-virus spray today. That tells me: too many people are dead scared of coronavirus now and won't put up with shoddy cleaning practices, even when coronavirus is gone. After all, there is bound to be another pandemic scare every winter, whether it be 'Outer Mongolian' Flu, SARS, Ebola, etc.

The date at the bottom of the PDF is 1st April and it mentions "The Receivables Finance Agreement". That's how I read it. Still, feel free to educate me.

I guess those best placed to supply clarification are Shaun Doak or Andres Pankhurst?

I assume it to provide working capital as the company grows. This was mentioned in the trading update of the 6th April: "In addition, REACT has negotiated with a bank an initial line of credit of £225,000 on favourable terms secured through invoice discounting. We therefore believe we are in a strong position to support growth in key areas of the business."

Here's the link to that RNS: https://www.investegate.co.uk/react-group-plc--reat-/rns/trading-update/202004060700108172I/

I think they want to avoid dilution, unless an earnings accretive acquisition comes along at a good price.

What is your view?

As has been pointed out, the rules of the game have changed. A super clean workplace is a necessity now, not a nice to have. Some big contracts have got to come out of this, I'm sure. The partnerships should be a win/win and provide nationwide coverage.

Even the US is going for it now:
https://abc7ny.com/penn-station-cleaning-coronavirus-nyc-update-corona-virus/6146628/

Could React be the Colonel Sanders of deep cleaning? (Finger licking, bad!) Franchise their know-how to the US? Lol...a bit fanciful maybe.

Deep cleaning workplaces is going to be a crucial element of any successful return to work. React's skillset and knowledge have made it a very valuable company. IShaun Doak won't be selling its expertise too cheaply. Hence, believe the profits will turn out to be pretty good from now on.

According to FT Government will insist: "upon high levels of deep cleaning":https://www.ft.com/content/67cd0087-d2d8-4a69-bf7e-7950712f9d7c

I am sure large businesses with strong unions that don't want to get SUED use React as it is the gold standard.

REAT seems like a perfect share for Amati, who had a position in Byotrol prior to the meteoric rise. Also given the momentum Hargreave Hale might be sniffing around. Trouble is holdings below 3% don't have to be notified.

I get the impression Peterhouse are very much minor league. With market cap of REAT growing apace and backing of Helium and Octopus, Shaun Doak has more financial muscle to make acquisitions using stock.

Nice work Dubz. The link didn't work though.

My understanding is that are doing work for many rail companies and facility management companies. Historically, they've worked for Balfour Beatty and some of their people have previously worked for Mitie, so plenty of experience here. They are keen to grow fast and need a broker with some punch. Peterhouse do seem rather small for where this is heading. FinnCap and even WH Ireland might be better. They also need an experienced PR as they are letting opportunity go by. A PR release next week would have this shoot past 2p.

I'm wondering if George selling (for whatever reason) was to allow a new fund(s) to build a holding and broaden institutional investor share base. They should be marketing themselves to investors as it is a largely de-risked growth play - how often do you come across a share like that?

With Helium backing them this has zero chance of going bust. While the upside is that from now on their services will be very much in demand. The market has changed forever.

Yes, I'd say a buy from Thursday. Not sure why such trades are held back. Lack of transparency slightly distorts market for PIs trying to get a feel of where the price is going.

This is screaming out for a broker note to place some firm financial projections in the public domain. Still, even a little research indicates this is most likely heading for 2.5p + within 6-8 weeks as we approach interims. A good contract/extension within that time period could make even 2.5p look conservative. As it grows profitably it surely will attract more funds and brokers.

Thanks Wicky. This is an interesting article: https://www.telegraph.co.uk/business/2019/12/05/clean-trains-dont-run-want-make-millions/

Must surely get some contract news this month, I reckon. Whether a renewal or new contract. With UK looking to come out of lockdown won't facility managers want to secure the services of good suppliers in advance? Seems React is in a strong position to pick and choose its work, as Shaun has already revealed it is going after higher margin work where its services are highly valued.

It also seems to have a very strong Financial Controller, who has worked with some big companies.

Take a look at the last set of full year results: https://6ccc6872-76b0-4ecb-8f77-2a7e25baa334.filesusr.com/ugd/d2e8da_24705088c0c54c8fb11b6ee086cc8a2f.pdf

Contract news must be coming as that is the focus of Shaun Doak and he is evidently leveraging relationships, as shown by the big contracts earlier this year. That is why it makes sense to stay invested. 2.5p is a realistic target for this in the very near term. Would be easy peasy with a broker note.

At some stage today I'd expect it to hit 2p. Cheap as chips considering it is a profitable growth company. Still, without a broker note it is flying under the radar of most investors. We're the early birds catching it cheap.

Sorry Dubz. I assumed it was. Not that large on the face of it but that was 2-3 years ago so it must have risen I presume. Shaun appears to be focusing on getting bigger contracts with better margins.