From news tab16 Feb 2023 11:51
"However, it noted that despite the "considerable value" of these assets, TRG has one of the worst-performing share prices of any UK leisure company, materially worse than its closest peers, and "disproportionately worse than what the impact of the challenging sector backdrop would alone justify. The poor shareholder experience of this long-term decline in market value is further exacerbated when taking into account the company's three equity raises since 2018, with proceeds totalling £547m, it said.
Oasis pointed out that since the close of the latest of these rounds in March 2021, the share price has dropped around 65%, reducing the company's market capitalisation to around £265m, just half of the combined proceeds raised.
Since the close of the first raise in 2018, used to fund the acquisition of Wagamama, the share price has plummeted around 70%, it added. Oasis put the share price decline down to group level decision-making and failure of oversight by a board that has lost focus on long-term value creation and its alignment with the shareholder perspective".
I don't necessarily agree with Oasis that its a board problem . The board have all bought in the open market and are running a tight ship. I do believe RTN is grossly undervalued to the tune of 70% by sentiment and when sentiment changes so will the price. Economic headwinds have pushed the valuation low due to borrowing for lockdowns and consumer fear and uncertainty on gov policy regarding inflation.
RTN are in a coming to the end of closed period now with final edits likely taking place on year ends, so I'm not sure why Oasis would release this statement now?
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