The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
"realisation election Riverstone credit opportunities in May 2024"
The directors state that f to many shares are realised in the upcoming election then they will ask for a wind down.
The figure is if only £54 million left after realisation then company will wind down as that's to small.
Total assets £96 on 15% discount. Today I have it down as a 2.8% spread.
Share price held up very well in the seller off yesterday.
So do we actually need buy backs to lift the share price?
Probably not as they generally don't work BUT can't argue at this bargain price it would appear mad for management not to pile in. Even increasing the RCF to do so.
I am in on an average of £11.63.
The huge reduction in dividends has changed the entire strategy of this company from income generator to a growth company and for the lucky ones like me an income one as well.
Debt reduction and taking advantage of the cheap gas prices to pick up bargains is what DEC is about from now on.
Could turn out to be very profitable.
Alas the stalwart shareholders of DEC will have to wait sometimes before there in profits and it will be a total returns profit.
As an aside DEC looks like the least likely takeover possibility in the sector.
I can't see any interest rate cuts before August. Actually inflation falling significantly and making an interest rate cut LOOK invertible will see a big rise in the share price.
Worth noting 1.5 million (supposedly) fixed rate mortgages come to an end this year.
Contacted GSEO about capital needed to finish projects. They have £74 million cash and they said
"All the projects that are currently in construction are fully funded. We do not require additional capital to fulfil these commitments."
Jefferies say only worth 60p when was that. I can't find it.
Anyway now saying in mid March it's a bargain at 79p?
I am underwater by 8% 78p to 71p today so I reckon Monday will see it start to climb and when we actually get rate cuts it will ŕocket.
Actually it will rise before then when inflation falls enough to make a rate cut a near certainty.
Https://www.proactiveinvestors.co.uk/companies/news/1043204/supermarket-reit-rated-a-buy-on-robust-balance-sheet-and-dividend-guidance-1043204.html
Buy recommendations Jefferies 14 MARCH 2024
Can't say the first B share payment is overwhelming!
The share price change agrees with me!
You have to start somewhere and we also have to take account the reduction in the RCF.
All in all a start on the long road to a total return of 80p....plus!
I live in hope!
"Continuing to accumulate whilst at a disproportionate discount"
Discount is bigger than it appears. Assets yet to come on stream are valued at cost. One Trust recently sold a “shovel ready “ project at twice its valuation as it was valuing at cost.
Valuing at cost is similar to buying land getting planning permission but still Valuing at the original cost of the land.