Citius Resources Share Discussion Threads

[finkie] 09/12/2014 16:26

agreed that is always the end game but peel have to pay fair value to shareholders there consented land is fairly transparent now ie a lot of the portfolio has consents which are fairly easy to establish value on.

[jeffian] 22/11/2014 12:44

I just have a feeling that this is all part of a grand plan for Peel Holdings to end up with the lot eventually. Not that I mind, as long as the minority shareholders get fair value.

[finkie] 22/11/2014 09:23

I would like to hear from others who have a feeling of how the £150m will be raised a rights issue at a discount to share price would be normal but probably with a rebased price/shares for the larger entity otherwise it's billions of penny shares?!

[semper vigilans] 18/11/2014 12:14

I presume the shares will trade at a discount to NAV after the deal so that discount will be needed initially.

[strutt12] 18/11/2014 08:21

200 sites valued at approximately GBP283.7 million and with net assets of approximately GBP247.3 million as at 30 June 2014

All this for £200 million, looks like the discount is already in!!

Quick calculation PPF gets 25-29.9% of Harworth and cash of £80 Million gives a value of about £235 Million.

[jeffian] 18/11/2014 08:18

8-)


.....or see why the low share price has attracted an opportunist bid! Maybe, like you, Peel feel that the chance to buy 9.6P(?) for 5.5p is too good to resist.

[strutt12] 18/11/2014 08:15

Jeffian,

Now we see why the shares price has been falling!!!

£150 Million for 75.1% put our value at £50 Million :-))

[semper vigilans] 18/11/2014 08:13

Might be a bit of a huff from Labour MPs over this!

[jeffian] 18/11/2014 08:07

Only a matter of time before Peel Holdings mop up the lot, surely?

[folderboy] 18/11/2014 08:00

Change of name, suspension, reverse takeover . . . think significant may be an understatement!

[bigbigdave] 18/11/2014 07:33

Think today's news may be significant in the long term

[dazzaa] 10/11/2014 21:59

Shall we say amen! one thing for sure Christmas is gettin nearer.

[jeffian] 07/11/2014 09:45

Errrr, I said "follow". I see you remain mystified by the concept of discounted forward value, strutt. Anyway, it is worth highlighting that there will be a revaluation in December which will give an indication of how much and how quickly the potential value is being unlocked.

[strutt12] 07/11/2014 07:49

Jeffian,

"The share price will follow the growth in NAV and the realisation of development value as it happens, and that will take years rather than months."

Errrrr, NAV increased, more planning permission obtained, share price reduces!!!

[jeffian] 07/11/2014 00:03

As stated previously, this is a slow and steady long-term value play where value is added over time by obtaining planning permissions and developing or selling land over time.

"As last year, Harworth Estates intends to carry out an external valuation on its property portfolio in December, the results of which will be incorporated into the Group's results for the 2014 year end."

The share price will follow the growth in NAV and the realisation of development value as it happens, and that will take years rather than months.

[jacks13] 06/11/2014 20:03

Interim Results - for the half year ended 30 June 2014

Net assets of 58.4m (FY13: 55.2m)

Net assets per share of 9.6 pence (FY13: 9.1 pence)

Focus on 24.9% investment in Harworth Estates whose assets include:

- Investment properties valued at 283.7m (FY13: 278.5m); and

- Net assets of 247.3m (FY: 234.7m)

No debt, positive cash balance

[finkie] 06/11/2014 16:31

Daw mill planning going ok reduction on warehousing due to residents concern on vehicle movements (heavy vehicles) but that isn't the juice in the deal the rest of it resi etc is where the value is.

What is their current debt and asset value does anyone have latest figures....I thought about 8-9p currently?

Debt presume they are clear but for running costs now??

[strutt12] 26/10/2014 09:40

Maybe I'm being a little too eager, and forward thinking, but I always worked on the fact the market looked about 12 months ahead? The rental income I'm referring to I thought was coming from the industrial units and offices Harworth rent out, am I wrong, have they just sold the land to another company.
From their website:
"Our Role

The Business Space team works with prospective and existing tenants to provide occupation on either existing accommodation or through the delivery of design & build premises on either a leasehold or freehold basis."

Existing tenants, would imply to me rental income, unless you think they are rent free?

With regards realising the value through planning consent look at the progress in the last 6 months and yet the market fails to recognize this!

Harworth Estates secures two further residential planning consents
August 21, 2014

Harworth Estates has received planning consent this month for a total of 73 residential units in Leicestershire and West Yorkshire in partnership with two high-quality housebuilders. At Measham, Leicestershire, North West Leicestershire District Council has…

Harworth Estates secures another residential planning consent
September 19, 2014

Harworth Estates has received planning consent this month for a total of 58 residential units at Malvins Road, Blyth, Northumberland in partnership with Gleeson Homes. The development will be promoted as Malvins Walk – a…


Green light given for Harworth’s North Gawber development
October 23, 2014

Harworth Estates has received outline planning approval from Barnsley Council for a development of up to 325 homes at Mapplewell, Barnsley subject to a planning agreement. The development will regenerate the former North Gawber Colliery,…

Full details can be found here:
hxxp://harworthestates.co.uk/category/latest-news/

hxxp://harworthestates.co.uk/wp-content/uploads/2014/08/MapUpdateV3.pdf

Then there's the income from their solar and wind farm projects I see no mention of this in last years accounts.

I must stop reading about all the progress Harworth Estates are making as it's making me want to purchase more shares and I already hold well over a Million!!

[jeffian] 26/10/2014 00:13

Have a look at the accounts which specifically include a section on Harworth Estates.



You tell me how much rental income they have (nil/next to nil) and what "dividend" they pay to CRES (nil).

I, too, have shares in this company because I like buying £1 for 50p, but I appreciate it may take a while before that value is realised. It isn't growing "with little risk", it has a risk that the value will not be achieved by planning permissions, by fluctuations in the property market and by delays in realising that value. In the meantime, the share price will fluctuate as the market's perception of the likely timing and amount of such realisations changes. Basically, CRES owns 25% of a company which just owns a lot of derelict land (former mining sites) which it hopes will pay out as they are developed for housing or commercial use over time. There is also, as you say, the chance that Peel will buy out the rest of the company they already own, though I can't see a compelling reason for this as they are already in the driving seat.

It is likely that the share will always trade at a discount to underlying NAV for the reasons given previously. What one hope is that current NAV proves to be vastly undervalued as the development potential of those sites is realised.

[strutt12] 25/10/2014 20:07

Wooooah,

Don't get defensive, I was just giving my opinion I didn't say you were talking rubbish either. I have a lot of faith and money tied up in this stock and always knew it would be a long time before the real value is uncovered.

When I asked about rent I was referring to Harworth Estates, obviously CRES don't receive rent as they only have a shareholding in Harworth so will only receive dividends.

What I'm unhappy about is I see no reason for the share price to fall when the company can only grow with little risk, I also feel that Peel will take them over before we get to any true value.

In hindsight I should of taken profits when I had the chance at 6.5p with a view of buying back in now, but knowing my luck they'd fly the other direction after i sold.

[jeffian] 25/10/2014 17:32

Net Asset Value, as the term implies, is of course net of debt. Their income is as good as any other. You ask "regards income do they (CRES) not receive rent?" Errr, no. Or not much, if any, according to the last accounts.

Look, I was just trying to answer your question about why a company might trade below NAV. CRES themselves say in their last report "there is still a long way to go in fully realising the potential of its land portfolio". Deferred value will always be discounted. You and others may think I am talking rubbish, which is fine by me, but that is why you will continue to be mystified by the share price graph above.

[strutt12] 25/10/2014 16:23

Jeffian,

Both of those companys have huge debt, that's the reason they are trading below NAV also their income string is not guaranteed. Coalfield has no debt and regards income do they not receive rent?

[jeffian] 24/10/2014 23:17

ETI. NAV=288 SP=120
DJAN. NAV=101.88 SP=50

for starters

[loafofbread] 24/10/2014 22:36

Jeff,

Can you list the other property plays you mention that sit at a substantial discount to NAV.

TIA