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I keep reading this statement from the 18th May and thinking, there must be news tomorrow - near completion and imminent in my book are not 3 weeks! Come on RKH. I'm sitting tight as always but a little bit of excitement would be nice. "The selection of the main contractors for the project, and finalising letters of intent to underpin the contractual arrangements and the provision of vendor funding for $400 million, is near completion. Following a comprehensive commercial bank market engagement process, with a number of banks expressing a desire to support the project, a pathfinder bank will be appointed imminently to assist with the arrangement of senior debt facilities for the project."
Some comments from me addressing some points below regarding the lack of institutional buying and timelines.. In the city, most traders have a 1-3month investment horizon and do not want to tie up capital for any longer than this if it can be avoided. With RKH, we're still in choppy waters with regards to project sanction and funding, it COULD be in a month, it could be longer. Once this is known the city money will flood in and will be back out again once the meat of the move upwards has taken place. As a private investor, feel lucky to be able to find value early, commit capital to it for a long period of time and realise the move upwards as and when it happens without the pressure of a boss pushing for returns on the capital allocated to you. It will happen in time, patience is the hardest part of this game. Sit tight in pole position at the race track and wait for the rest of the cars to arrive with conviction.
I see. So tomorrow should be an interesting day then!
Pretty hefty sales but the SP has barely budged? Not quite sure how that works.
Fundamentals always win, it's just a case of being able to fund your position until the market realises. I know it's a corny example but look at Michael Burry betting against the housing bubble in the US. The market caught up eventually! That said, I've been thinking about shorting this for ages but it keeps heading up..!
FFS does he have any idea what it actual means to make a profit. In his review he says "We are seeking to achieve further improvements in gross margin and we expect underlying profitability to continue on a positive trend during 2015" yet in the going concern statement it says "The Company made a loss after tax for the year attributable to owners of the parent of £1.29 million (2013: £0.95 million) and expects to make a further loss in the year ending 31 December 2015." This 'underlying' profitability needs to be made 'actual' before anyone takes this company seriously.
Alfista, what do you make of £4.92m? Increase of 23%. I hope we have made a small loss at worst but at best broken even, not sure if we'll find out before December?
That made me laugh alfista, good banter. If I become an inpatient I'll have plenty more time on my hands for research! All the best.
50's may be a bit ambitious but I certainly think it will drift down quite a bit from where it currently is. I think you're right about the liquidity of the share, not much volume day to day implying investors and happy to sit and wait. I am involved in elite sport and only bought the share because all of the athletes around me were using SIS and saying how great it was - in elite rowing no other brand is used now which is a big turn around from 2-3 years ago - I think the SIS sponsorship of the GB rowing team could be promoted more but when I asked the PR team about their plans they seem to be solely focused on the cycling sector (which is obviously much bigger so makes sense). Just hope endless cash isn't thrown at it when it's not always needed, like everything in sport, the stuff the top athletes are doing filters down the chain until it becomes normal - I believe this will happen with SIS products over time. Not too familiar with management and only head bad things about Moon but I hope they can achieve what I can see is possible for the brand.
I only see this share going one way until the next announcement of results. Historically there has been a buying frenzy when anything is announced and then a big retrace to a more reasonable valuation of our company when it goes quiet. At he current market cap I think the multiple of revenue is too high and this market cap can only be justified when profit of £1.5 - £2m is realised. I therefore think that at present, our company is over valued and will be topping up in the 50's when we drift back down. I plan to be a long term holder and would much prefer a slow and steady rise as opposed to unjustified gains that quickly fall back. On the flip side this creates an opportunity to make more money! Cheers. BC