Member Info for optimist13

As we were. Just need the RNS to light the blue-touch paper now.

Well, it is now almost five weeks since the agreement was signed with Ethosenergy, which now allows Rurelec to dispose of the two Siemens-Westinghouse TG50D5/W701DS 127.8 MW gas turbine generator packages (which were originally supplied by Ethos). The company has been working on this deal for some considerable time and I feel sure the agreement was the last piece in the jig-saw prior to the conclusion of the asset sale. There is nothing I can find in the Argentina press which indicates any changes to the previous lifting of sanctions, so one would assume that the repatriation of funds is continuing, hopefully at an increasing rate. Cash certainly appears to be king on the AIM market, and I would expect to see a serious re-rate when the company confirms the asset sale, the repayment of outstanding creditors and money in the bank for working capital purposes. There appears to be very few shares left following the drop yesterday. A couple of buys would probably see us back to where we were as we await news.

So, the drop today takes us back to a mkt cap of £9.15m versus net assets of £40m, including all impairment charges which may well be reversed. A great buy IMHO given the recent updates and possible game-changing news due imminently. Might get another top-up opportunity tomorrow, depending on what games the MM's play.

Well, that was short lived. The 500k sell has now been matched by buys. Back to you MM's, what other tricks do you have planned.

I certainly can't believe the trading pattern today is not somehow orchestrated, but at least it allowed me a top-up at 1.59p. Let's see where they take the share price from here. Might even get more cheap shares before the positive news lands.

What's with all the small sells at the moment. After dealing charges, there can't be much left. Or is it a ruse by the MM's to drop the price. The offer price is hardly budging though, still 1.82p to buy. Watching and waiting.

MM's still quite happy to collect shares. I think they know what is coming.

Watching and waiting. A few sells have gone through, but the MM's are being greedy and still want 1.84p to buy. Every day gets us a step closer to that value enhancing asset sale.

MM's collecting some cheap shares in my opinion. At this rate I will get my top-up at an even better price.

MM's quite happy to take shares off people, but they are not dropping the ask. Still 1.89p to buy. Think I will wait a little longer before topping-up again.

I will take a look at the video - thanks. Another thing to bear in mind here, this is a very illiquid stock and has tended to move rapidly, either way on small volume. Take today, whilst the displayed spread is very wide, the actual spread is much narrower. On one purchase today, the ask has moved up 5.5%. I would suggest that on a couple more decent sized buys we will be at the full ask. As I said earlier, the recent RNS is significant. If we sell the turbines for £18m, what do you think that will do to the share price? We are owed £37.5m in outstanding borrowings and interest from EdS, virtually half of that impaired on the balance sheet. The business is performing well and we are now seeing an increase in the repatriation of funds. A reversal of the impairment will have a significant impact on the p&l account and the balance sheet. As you can tell, I am very bullish about the prospects here and fully expect to see a 'break out' of the share price from its current trading range.

LEFKOSIA - many thanks for your response, and I would certainly agree that it is investors sentiment that moves the price - because they are buying the shares. I am not a chartist, but Iike most things, they are a guide and fail to allow for significant changes in the outlook for a company. I can pretty much guarantee that the share price will 'break out' if/when the turbines are sold and the creditors are repaid. The share price was driven down to its lows on the expectation/hope that there would be a discount placing. This did not happen and can't happen now as the directors do not have the authority to issue shares. There are no cheap shares here, in my opinion, so any selling at the current price will probably be done at a loss for most holders. Each to their own, but on this share, a short would be a high risk strategy in light of the recent news from the company. Good luck with your investments.

jeddicat - I am sure it will go up soon enough. The share is now significantly de risked following the latest news from the company, and I can't see many people selling at the current price. On the other-hand, I believe a little research will show the shares to be very good value given the disconnect between the share price and the NAV. It's all about supply and demand. A few more buys in the absence of any selling will see the price rise. Added another 100k this morning...

Good to see a bit of interest today. I think the person who has taken out the short would be wise to close it IMHO. I can foresee a gap up to circa 5.00p on the sale of the turbines and the repayment of the outstanding creditors.

Yes, you are correct and there is also the added bonus of Sterling's depreciation against the Argentine Peso. The full year results could end up looking very good indeed compared to previous years and we must now be cash-flow positive given the improving situation at EdS. Great opportunity to buy before the herd arrive, which they undoubtedly will when the company confirm the disposal of the turbines and the repayment of the outstanding creditors.

The company's year ended in December, but the results will probably not be published until June. Given the recent news concerning the increased repatriation of funds from EdS in Argentina, could one of the accountants confirm whether this will enable the company to reverse some or all of the impairment provision against that asset. If the company can and does reverse some of the impairment, we could see a significant uplift in the p&l account for last year and an improvement in the NAV.

I keep looking at value of our assets and the improvements in the business over the past year, then wonder why the shares are still trading at this current low level. Adjusting for the impairments in Argentina, the shares represent a discount to net assets of circa 80%. Can anyone show me another power generation company that offers that level of discount. Added another 100k shares this morning. Sooner or later the market will wake up to the disconnect between the share price and the worth of the company following the positive changes at EdS and the the agreement with Ethosenergy.

Interesting news release from Tlou Energy regarding tie up with IPC. I wonder if they will be buying our turbines. Food for thought: http://www.investegate.co.uk/tlou-energy-ltd--tlou-/rns/development-partner-for-cbm-to-power-project/201702271212169372X/

If you read the last few RNS's and take a close look at the interim report, it seems clear to me that the company is now significantly de-risked, but the share price has yet to reflect this. There are no cheap shares or options available to anyone, the company does not have the authority to do a placing, and even if they did, it would have to be over 2.00p. Plus, the company now has the authority/ability to dispose of the two turbines or sign a JV agreement, which will release funds to pay off the outstanding creditors. I agree that further very positive news is imminent, and we may finally see a recovery in the share price to reflect the value of the company's assets.

Green shoots of recovery: http://en.mercopress.com/2017/02/26/argentine-economy-finally-seems-to-have-began-a-rebound Extract: Argentina's economic activity rose 1.6% in December compared with the previous month, government data showed, a sign the economy likely expanded in the fourth quarter after a long recession. The economy fell 0.1% in December year over year and closed 2016 down 2.3% compared with 2015. That ended a difficult year for Argentina as President Mauricio Macri enacted a number of market-friendly reforms aimed at liberalizing the economy and encouraging investment, which in the short-term contributed to rampant inflation.