Member Info for optimist13

For any potential new investors, the interview with DL back in February is well worth listening to: http://www.proactiveinvestors.co.uk/companies/stocktube/6836/the-ability-for-anglo-african-agriculture-to-grow-is-phenomenal-says-david-lenigas-6836.html Extract: Non-executive director David Lenigas tells Proactive: ''The ability of this business to grow 3,4,5, 10 times over the next few years is phenomenal''. ''When you look back at AAAP over the last year in particular we were doing about 80 tonnes a month of product. The demand for this product has picked up so dramatically from the new factory in Cape Town that critical mass for the business making profit is about 100-110 tonnes a month - we've blasted way through that in the last 3 months''. Lenigas adds: ''We're updating the manufacturing facility to do three times the output. That work will be finished sometime this month - we certainly have the order book to fill that''. ''I see this as a great business - and we've now got to the point we're making money''.

My post on the AfriAg BB: Just looking at the comparative strengths of AAAP v AfriAg. Both companies are currently trading at approximately 3 times there current net assets and both are projecting stellar growth going forward. An all share merger between the two would have benefits for both companies and should certainly lower the administration costs whilst improving efficiencies. IMHO, AAAP is too small to have a main market listing and does not have the cash to acquire any further businesses at the moment. AfriAg need a better platform on which to trade on and I feel pretty sure DL knows this. All pure conjecture on my part, but the next couple of months could prove to be significant for both companies.

Nice 500k buy gone through. A couple more like that and we will be on the top riser board.

From the first quarter update ended 31 January 2017: David Lenigas, the Company’s Chairman, commented: “The Company’s business is growing very strongly now and we continue to see increasing customer demand for our specialty spices, food additives and seasoning. Orders continue to exceed the Company’s ability to meet demand for Dynamic’s products supplied for the mass food manufacturing sector. Going forward, the operation of the new machines significantly boosts our future manufacturing capacity and should substantially reduce our overall unit operating cost and boost our competitiveness as we move towards much bigger turnover and product range offerings. We need more stock to meet customer orders and we are working hard to quickly address this issue.” Makes you wonder what the second quarter figures will look like at the end of April. I would imagine DL will be keen to get the figures out asap.

Doesn't take much to move the share price at the moment. Just had a top-up, which must be going through the NEX Exchange, and the price has moved up 3.03%

Positive development: http://en.mercopress.com/2017/04/05/s-p-raised-argentina-s-credit-rating-to-b-on-the-verge-of-exiting-recession Extract: Standard & Poor's raised Argentina's credit rating one notch Tuesday, from B- to B, saying Latin America's third-largest economy was on the verge of exiting recession.The rating bump gives a boost to conservative President Mauricio Macri, who has launched sweeping - often unpopular - economic reforms aimed at reviving growth. “Argentina is making progress in resolving several macroeconomic imbalances in the country while gradually rebuilding the country's credibility,” the rating agency said in a statement. It predicted Argentina would return to economic growth of three percent this year, with inflation - a tricky problem for Mr. Macri - falling by half, to 20%, and to 15% in 2018. Many economic analysts see signs of “green shoots” in Argentina, after it posted growth of 0.5% in the last quarter of 2016. S&P predicted “broad continuity” over the next two years, but also warned of “uncertainties about the pace of implementation of the government's corrective economic plan given ongoing political challenges.” Macri, who took office in December 2015, faces a key test in midterm elections this October. Some analysts say the upcoming vote has forced him to back off his austerity reforms.

buy price creeping up. Still not sure what caused the sudden drop in the share price yesterday, as the delayed trade yesterday looked to be a buy. Added further this morning. Nothing but positive news coming out from the company at the moment and I can't see DL raising further funds at this level.

I wonder why there has been such a drop in the share price, especially after all the positive vibes coming from DL. I can only assume there is a possible placing in the wind, but I would be surprised if it was at such a hefty discount to the prevailing share price over the past few months. Added a few today as I think the drop is overdone.

The small sell trades continue. Very suspicious in my opinion.

Hi jeddicat, no that wasn't my buy this morning. I will be looking to add in the new tax year if the share price stays at this level. Absolute bargain IMHO given the recent news from the company. It is important to remember that the company does not have the authority to raise any further funds via a placing, so an asset sale is going to happen. Once this is confirmed, the share price should realign to a more sensible level.

Current buy price is now 1.79p, but there are not that many available at that price. For any new investors, our NAV is circa 10.00p adjusted for the previous impairment at our Argentinian power plant. Whilst it is by no means certain that all of the impairment will be reversed in the 2016 year-end accounts, the fact that the business is performing well and funds are being repatriated at an increasing rate, should allow for the reversal of some or all of the impairment going forward.

So, it appears there was no background sell yesterday to merit the drop in the share price, just MM's looking for cheap shares. A couple of further buys this morning and we are almost back to where we were. We are well and truly off the radar at the moment, but this will change very quickly once the next update is given regarding the sale of some assets.

http://en.mercopress.com/2017/03/29/argentina-s-economic-activity-up-1.1-year-to-year-in-january Extract: Macri has implemented market-friendly policies designed to cut the fiscal deficit and attract foreign investment. Some of those policies, including a reduction in subsidies for electricity and gas, contributed to inflation of more than 40% last year. The economy fell 2.3% in 2016 overall. Foreign investment has been slow to arrive, but the Macri government has boosted infrastructure spending this year in a bid to jump-start the economy toward its goal of 3.5% growth in 2017. Economists see it slightly lower at 3%.

Added another 70k. I don't think you will be able to buy at this price for long though....let's see what happens.

jeddicat - you have to wait until the market opens before you can find out the true spread. Buy currently 1.74 - which will show as a sell and the bid price is 1.55p. So the spread is quite tight for an illiquid AIM company.

I see we have the small sell trades going through again. Could this be a prelude to the MM's dropping the price looking for cheap shares again. GFD, we might be lucky and get a cheap top-up again. Pleased to hear you are feeling more confident about your investment. It has been a painful time for LTH's and hopefully you will see some reward for your patience.

I reckon the MM's have realised that if they drop the price people are waiting to pick up cheap shares and there is an absence of sellers. Roll on the asset sale announcement and then we will really see some volume. Until then..........back into hibernation...

And more: https://www.bloomberg.com/news/articles/2017-03-20/these-economies-are-seen-improving-dramatically-this-year Extract: "The expectation is that 62 economies are slated for an improvement compared with last year, while 33 will see a deterioration, according to an analysis of the latest Bloomberg consensus outlook. Near the top of the list are Argentina and Brazil, both set to shift from contraction to expansion, along with energy exporters Nigeria and Russia thanks to a rebound in the price of oil from a 13-year low in January 2016."

Interesting development: http://www.belfasttelegraph.co.uk/business/news/support-offered-for-uk-companies-seeking-business-in-argentina-35548069.html Up to £1 billion of support is being offered to help UK companies win business in Argentina in a move aimed at boosting trade links after a 20-year hiatus. The Government announced e xport credit financial support is being re-introduced, providing attractive financing terms, loans and insurance against the risks of operating in other countries. Speaking in Buenos Aires as part of a visit to South America, International Trade Minister Greg Hands said: "Argentina has huge potential to be a modern vibrant economy, which is why we are reintroducing financial support for UK companies to maximise investment opportunities and wealth creation. "The UK's world leading expertise in areas like green energy and healthcare are in demand across the world and will form the basis of new trading relationships with South American countries as we leave the EU." Trade between the UK and Argentina is worth £1.3 billion and is growing. The minister will also sign an updated Air Services Agreement, making it easier to establish more direct flights between the two countries.

tonydive - I hadn't really thought about the payment of a special dividend, but you are right in that it was alluded to some time back following the Court approval of the capital reduction in Dec 2014. Seems like a long time ago now. The creditors of Sterling Trust could well be happy to hold shares in Rurelec if the business is on a sound footing following the asset sale to benefit from the appreciation in the share price that would follow. The special dividend would probably be welcome by all shareholders and would certainly instil a lot more confidence in the company going forward.