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Real-Time news about Greenhouse (London Stock Exchange): 0 recent articles
|steve3005: topvest - I tend to agree. Even if the Bauxol stuff comes to zilch (which I feel won't be the case) the Molectra investment is worth more than the current share price, which even with it's recent uptick is still below NAV.|
|steve3005: Here are my jottings on the GHF. As usual DYO research, this isn't a recommendation to invest etc.
Disclosure - I hold shares in GHF and in Virotec.
There is little news flow (even the 2007 interims aren't on the website)
The shares are v tightly held 10 holders account for 75%, 28 holders account for 98% so maybe that's why there is no news word of mouth will suffice!
Virotec holds 19.3% - no sell off of this holding, they hit Hydrodec instead for some more cash.
Notable investors include David Gaskell the funds investment advisor (10%), Nigel Wray (resigned as a director but didn't sell off his shareholding of 7.5m shares).
I'm puzzled by the comment that 66.3m shares (42%) not in public hands being held by insiders?
Fund is trading at close to its NAV, probably due to lack of news flow.
IMHO a downside is that Brian Sheeran is Chairman now Wray has gone the only thing Brian has done as far as I can tell (IMHO) in Virotec is draw down a huge salary while destroying shareholder value. Please let me know if I'm wrong here and I will apologise effusively for my comment. The good thing is the Board of the fund is capped in how much they can charge, so no massive cheques for no ascertainable value a la Virotec.
Elsiva invested in 10m shares in 9/07
What's the company done?
1. Invested in Molectra it now hold 58% of company.
Also advanced a loan of AU$4.5m to secure land for building full plant. (No news on progress can be found).
There is a massive worldwide problem with used tyres, Molectra technology recovers 100% of tyre, and even uses some of the by products to power the plant!
Proven technology in pilot plant.
Currently consumers pay levy to dispose of tyres so raw materials will be free if not an additional flow of cash.
Molectra reckons on getting AU$5.40 (£2.50) value per tyre, not clear if this is gross or net - it comes from a comment from the inventor of the process.
Greenhouse says the Wiley report (can't find this published anywhere) suggests for the new large scale process plant:
Capex = £6m
Process costs: 2.6m tyres (26,000 tons @£70/ton) = £1,8m
Income (from Molectra comment) = (2.6m*£2.50) = £6.5m
Gross profit = 4.7m
Less capex writedown expenses etc say £1m
Net = 3.7m
Greenhouse entitled to 58%, so with 155m shares that = 1.38pps. So at 10p a share for GHF = P/E of 7 just from initial stage of Molectra
Rights to Molectra technology have been sold to 19 countries - not sure on what terms.
2. Invested £570k plus GHF shares (hence 19% shareholding by Virotec) in non-core Bauxol technology from Virotech, carrying this investment at £6m in balance sheet. Very quiet on development progress. Maybe something will be announced in annual accounts?
Assets = £13m
Shares = 155m
NAV = 8.4pps
Share price this morning 8.6p
Greenhouse Fund share price data is direct from the London Stock Exchange