Radicle Projects Share Discussion Threads

[tyranosaurus] 01/10/2008 22:10

As long as nobody flushes it away !!

[topvest] 01/10/2008 21:25

Really going down the toilet here!!

[topvest] 26/9/2008 22:09

Bad news coming?

[topvest] 21/9/2008 16:03

Share price dropped another 10p or so over the last week or two. I suspect Radicle Timber will be difficult to get away. Russian Timber has yet to float as well. These sort of investments appear to have gone past their best, for now anyway.

[topvest] 31/8/2008 18:55

Still watching this one, but won't invest for now. Will wait for the results. Some thoughts:

- Could develop an interesting fee based model to generate income.
- Will they get Radicle Timber away in this market? - hope so, but questionable.
- Don't like the debt issuance - the market doesn't like leverage at the moment and nor do I - the debt funding cost was also high.

More downside risk than upside at this price and time imho.

[makingheaps] 26/8/2008 10:53

Well it's nice to see the money being spent at long last, although it's still in small chunks and the financial engineering goes on! Each of the last two announcements state that independent valuers value the assets at more than RDP paid. Begs the question why the sellers didn't employ these people!! Still hoping there's some value to be unlocked in there but we're a long way from the £1 target in Charles Stanley research note of February. In retrospect they did well to raise money when they did to give them flexibility when hopefully other investors have fewer options or maybe even distressed sellers.

[bonzophil] 10/6/2008 17:33

I thought the timber assets were going to be good cash generators. If they have raised money via convertible bonds to fund buying assets, why are they hiving them off. Someone is out to make a fast buck, and I dont think it is the shareholders.

I was about to buy in, but this move has made me very sceptical.

[sbs] 10/6/2008 10:50

MakingHeaps - You're welcome. That one hasn't made the top 100 yet - people seem more interested in oil and gold at the moment.

[clearsoup] 09/6/2008 17:22

I agree that there is a bit too much financial engineering in the DNA of this Co. Still, the basic idea came from that, and it was a good one.

[makingheaps] 09/6/2008 16:52

Not a very impressive video but thanks for the post!

Today's announcement sounds like another way to cause a bit of confusion by passing assets around. Nice fee earner for Blue Oar.

Getting a bit frustrated with this one. I wish they would stick to the fundamentals and follow through on what they say they will do. They are still sitting for example on the money raised by the convertible bond. What is the intention for this money?

Simply managing the timber assets rather than owning them 100% de-risks the company somewhat but fundamentally just seems to me to add unecessary costs and complexity.

[sbs] 13/5/2008 07:00

Tim Bennett, CEO of Radicle Projects, talks about his company in , filmed at the recent show.

[topvest] 10/4/2008 21:44

Yes, I agree. The convertible bond puts me off this company..the should have raise equity instead!

[makingheaps] 10/4/2008 13:33

Don't know if thats a problem topvest. Presumably the subsiduary holdings pay dividends to the parent? See the Timbercorp announcement on 8th October last year.

What still concerns me is why they raised the convertible bond when they did and incurred the interest costs if they didn't intend to put it to use. It's still just sitting in the bank six months (and now nine) months later

[topvest] 31/3/2008 20:20

Rubbish results today, but I guess H2 will be better. I'm not sure that I fully understand this business model. Like the prospect, but a bit wary of the model with the large debt issuance.

OK, they hold a good selection of biological assets that are fair valued every year-end, but how do they obtain cash in the parent company to pay the substantial plc and borrowing costs? Anyone understand this and care to explain.

Any comments, much appreciated.

[bonzophil] 26/2/2008 13:18

Can anyone help!

I have just been looking into RDP as a possible investment. I am trying to get an idea of projected profits for 2008 and 2009. Am I right in thinking that profits are likely to dip this year due to the impact of the convertible issue, and for profits to reach £2.0+ for 2009 as the timber projects start to produce. Anyone got any views or sources of info I could reserch

[orado] 26/2/2008 08:57

Nice steady climb over the last few weeks, just the way I like it.

keep on going.

[makingheaps] 08/2/2008 19:22

Completely agree a good story and strong sentiment is what drives the price forward. They got off to a poor start in the trust stakes when QFL went into administration. This was an incestuous situation and very confusing at the time. Seems to have worked out OK though. I also agree with your earlier comment that we need to see some deals. As I said back in post 76 why did they raise £35m last June if they weren't ready to spend it.

[orado] 08/2/2008 10:54

MakingHeaps - I agree and always ignore broker targets.

I feel that the UK market does not realy understand RDP's business model.
Just wish we would get some good RNS to bring it to prospective shareholders attention.

[makingheaps] 08/2/2008 10:19

A note in the Times today that Charles Stenley has started coverage of RDP and has a £1 target valuation. they believe the company will benefit from Australia signing up to Kyoto. I don't have much faith in these broker targets as they're motivation is to generate commission but I would rather have it than not.

[orado] 08/2/2008 10:18

Nice 5%+ dividend received today.

Come on RDP - get out from under the radar and announce some "plum" deals.

[makingheaps] 07/2/2008 15:03

Disappointing that the rally has reversed for the time being. Can't see anything fundamentally different so expect to get back into the mid 60's at least once the market calms a little. In the meantime money in the bank is reassuring

[makingheaps] 12/12/2007 08:46

A directors buy is always welcome but he's hardly the last of the big spenders! A Xmas gift for someone possibly?

[makingheaps] 10/12/2007 14:15

I also find it a little odd that they raise £15.1m in June costing 8% but so far we've only seen one announcement of this cash being used and that was a whole £370k! Presumably therefore the funds are still sitting in the company's bank account where if we're lucky they'll be earning 3% - 4%. Is the implication that they are making further investments without announcing to the market? Otherwise I cannot see why they did this if there were no pressing purchases to be completed.

[makingheaps] 10/12/2007 13:08

A muted but positive reaction to the results. I guess the concern now is that the dividend of 3p comes from earnings of only 4.4p and that almost all of those earnings are driven by the increase in the value of the biological assets. Cash generated by operations was only £86k.

There may also be a concern over the conversion rights attaching to the loan notes. They can be converted to shares at a price of 84p and would represent just under half the enlarged share capital. On the one hand it would be nice to get back to somehere near 84p but on the other a 50% dilution of earnings would be a drag on the shares. Of course the loan would go away so NAV would increase and there would be a reduction in the interest bill to compensate.

Finally Rosiella I totally agree that the PR here is not good enough. Just look at the correspondence above concerning when the results were due out. They need to get these simple basics right and then move on to some analyst and press briefings. For example I may have missed it but i don't think there was mention in the IC. Maybe it just missed last weeks publication date.

[orado] 10/12/2007 12:52

Solid results - now they have to make REGULAR positive announcements to get the share price up to where it should be.

We shall have to wait and see!!!!!!!!