Member Info for optimist13

That's because we are both very positive following the changes in Argentina. You must have read about the lifting of the currency controls, which is a material change for Rurelec.

jaf1948 - you are sounding very bitter. If the company announced today that it has repatriated, or expects to repatriate say $4m which is a fraction of what they are owed, what do you think will happen to the share price.

There will be news this week. From the 12 Nov Loan note update: "On 11 November 2015, a special resolution of the holders of the Loan Notes agreed, inter alia, that for the period from 11 November 2015 until 31 January 2016 (save in limited circumstances) the Coverage Ratio will be amended to 3.6:1." Given the 2.7m buy last week, I think the update will be positive. I bought 150k on Friday and will wait for the announcement. Could be a big uplift in the price if the seller is now cleared.

The NAV was circa 35p. I think with the share price at the current level, that is a significant discount.

Can't buy any on-line at the moment. I bought a few this morning on the back of the 2.7m buy at the close of play last night. There has been a distressed seller here for some considerable time and the buy last hight must have removed the backlog. The share price to the NAV is also at a significant discount.

We are now in 'blue sky' territory. Next stop ....4.00p

Some decent buys going through today. I think we could end up blue again if it continues.

http://www.bloomberg.com/news/articles/2016-01-22/argentina-may-lure-20-billion-in-investment-in-2016-macri-says Extract: Argentine President Mauricio Macri swept through the halls of Davos claiming a potential windfall of $20 billion in foreign investment this year from energy to infrastructure as he tries to persuade global investors that this time is different for Latin America’s third-largest economy. “Argentina has decided to take its place in the global landscape,” Macri said in an interview with Bloomberg News on Friday at the World Economic Forum in Davos, Switzerland. “We need important companies of the world to finance and construct roads, ports, waterways, energy, trains. We’re a huge country that only depends on trucks today. It’s impossible.”

I don't think the person who bought 2.7m shares is worried about that.

more positive news: http://en.mercopress.com/2016/01/22/us-announced-support-for-argentina-at-multilateral-development-banks Extract: "The United States is ending its policy of opposing most lending to Argentina from multilateral development banks, the US Treasury Department announced. US Treasury Secretary Jack Lew informed Argentine Finance Minister Alfonso Prat-Gay of the move on Thursday when the two met in Davos, Switzerland, the department said in a statement."

http://www.telam.com.ar/english/notas/201601/5988-coca-colas-ceo-is-to-announce-investments-in-argentina-for-us1-bln.html Extract: Muhtar Kent, Coca Cola's CEO since 2009, took advantage of the meeting to announce investments in Argentina for US$1 billion. Kent informed President Macri that "within a four-year term, the company is to invest US$1 billion, to be destined mostly to infrastructure works and environmental initiatives," according to official sources.

It just gets better. They are going to need more electricity: http://www.telam.com.ar/english/notas/201601/5990-president-macri-receives-interest-of-multinational-companies-to-invest-in-the-country.html Extract: 01/21/2016 DAVOS WORLD ECONOMIC FORUM President Macri Receives Interest of Multinational Companies to Invest in the Country PRESIDNET MAURICO MACRI HELD MEETINGS WITH TOP OFFICIALS OF COMPANIES TOTAL, SHELL GROUP, MITSUBISHI CORPORATION, DOW CHEMICAL COMPANY, COCA-COLA AND FACEBOOK, DURING HIS PARTICIPATION AT DAVOS WORLD ECONOMIC FORUM.

The ask is creeping up on every buy again. At this rate we could be moving higher today.

The new pro-business administration under President Mauricio Macri in Argentina has already taken significant steps to make the country more attractive to investors, Pan American Silver CEO Michael Steinmann told the CIBC 19th Annual Whistler Institutional Investor Conference in Canada. Related article, but in my opinion relevant to some of the discussions today: http://www.bnamericas.com/en/news/mining/miners-welcome-political-change-in-argentina-guatemala Extract: "These include devaluating the peso, which had been pegged artificially high against the US dollar, Steinmann said. Restrictions on imports of goods and equipment and on taking money out of the country have also been lifted. "We are very excited about Argentina, and things are definitely going in the right direction," the CEO said."

jaf1948 - you state: "there is no experienced management currently leading the company", but I beg to differ. You need to check who is running our only revenue generating, profit making business in Argentina. You will find that they are up to the task and have a vested interest in ensuring the business performs. As regards the directors of Rurelec, I am quite happy that we have the Sterling Trust administrators who now have effective control on what happens. Head office costs have been slashed, as have salaries with the departure of overpaid directors. I can appreciate your negative outlook, having lost considerable sums here, but things have moved on. It is only my opinion, but there was something not right with the timing, urgency and tone of the Open Offer document. Even if there was an asset sale, the company would achieve far more than the current share price, which to me, makes this an easy investment decision.

jaf1948 - I am sure you have read all of the RNS's, and you will know that the company expected to receive the repayment of loans and interest payments to the tune of £2m per quarter. This did not happen due to the currency controls implemented by the previous government in Argentina. Without the repayment of the loans, the company was unable to pay a dividend or fund the development of other areas of the business. This has now changed and the controls have been lifted. We just need confirmation of the quantum of funds that are being repatriated currently.

Top three on the riser board.....and a long way to go before we get back to anywhere near a sensible valuation. For any new investors, do your own research, as it is all there in black and white.

Now plus 17.02% today so far. I wonder if news has leaked out somewhere.

jaf1948 - with all due respect, I am looking forwards not backwards. As I said earlier today, the BOD who got Rurelec into this mess are no longer directors of the company. The company is not bankrupt, but until very recently, has not been able to repatriate funds from Argentina. This is no longer the case and the next update should clearly spell out the level of payments they intend to repatriate and a time-scale to go with it.

Gerhart - that is not strictly true. The company's main revenue generating asset is EdS which has its own management and the administrators for Sterling Trust have effective control of Rurelec. They have a fiduciary duty to obtain the best price for the shares and I am sure we will see new directors being appointed who have no connection to the old regime.