R.e.a Hlds 9%pf Discussion Threads

[dandigirl] 26/11/2024 13:58

Like pbaker we are 6 figure holders of the prefs.

[dandigirl] 26/11/2024 13:57

IMV barring unforeseen circumstances, there is no doubt that the dividend will be paid at year end given the price of CPO these past many weeks. Moreover, following the deal of earlier this year the balance sheet has improved. Then there is the purchase at discount of some of the dollar debt from cash resources.

[cwa1] 26/11/2024 12:43

...and another 35,000 @ 83p gone through at 10.33am

[jaf111] 26/11/2024 11:26

Buyer must surely be confident / “in the know” about the 4.5p payment due at the end of next month……

[cwa1] 26/11/2024 11:04

That's a decent sized trade at 8.30 this morning. 50,037 going through at 85p, well above offer price. Nice to see the price tick up a touch too

[dandigirl] 15/11/2024 14:53

From A J Bell's Shares magazine...........

‘As to what M.P. Evans will do with the cash remains to be seen but M&A is certainly on the agenda with it having recently increased its portfolio by 10,000 hectares through a series of acquisitions,’ added the broker. [Panmure].

[dandigirl] 15/11/2024 08:06

CWA1 - thanks. Interesting. Just to add that I don't think that "the market" has cottoned on to the improvements at REA. The Evans announcement will draw attention to both companies, I suggest.

[dandigirl] 15/11/2024 08:00

pbaker - thanks. I think the restructuring of earlier this year has put the company on a sounder footing. The high CPO price is a bonus although the company suggested that this could be offset by lower production. I agree that there is a possibility of price reversal or an act of stupidity by the government. I, too, will be looking to reduce should the price rise. 90p does it for us.Then there is the possibility of a take over.

[cwa1] 15/11/2024 07:56

Of interest :-)

[pbaker] 14/11/2024 19:05

dandigirl, with the 11% plus yield, REA preference shares do look very tempting and I really hope the company can make some good profits at this level of CPO prices. I still hold to many for the size of my portfolio. I would not hold more than 10% or 5% if you are more cautious. There are other high yields out there and make sure you have enough diversity in case CPO or country specific events take an unexpected turn. I am still looking to reduce my holding but not at this price.
A year or two of good results and further debt reduction could see these move towards £1, fingers crossed.

[dandigirl] 14/11/2024 16:44

CPO price remaining high. The figures for the second half should reflect this with increased profitability.Have topped up again today.

[russman] 09/11/2024 05:33

maybe the spread is a deterrent.
volume usually climbs before xd.

[cwa1] 08/11/2024 23:02

FWIW my guesstimate was for 5/12. Not long to wait to find out!

[pbaker] 08/11/2024 22:18

31 December 2022 to holders of preference shares registered at the close of business on 2 December 2022.
NTV it could be a little earlier than you suggest. The last ex dividend in December was 02.12.22.
The Dividend for 31.12.23 was paid this April due to the deal with DSN.
Though dates do change, with REA it is often 4 weeks before.

[ntv] 08/11/2024 21:31

Sorry CWA1, I am not sure where I got it from
Just in my diary

[cwa1] 08/11/2024 10:33

Hi NTV, thanks for that. If you don't mind me asking, where did you pick that up from? I had a brief look the other day but didn't see anything official

[ntv] 08/11/2024 09:26

xd dec 12 I think

[russman] 08/11/2024 06:53

surprised no one appears to be scalping the 2nd half pref divi yet.

[pbaker] 30/10/2024 12:56

I agree with Russman. Buying back the preference shares at some point in the future would aid the company. I would repay all other debt first as suggested by NTV. I hope CPO stays at an advantageous price for the company. Repaying debt from cash flow could be transformational.

[ntv] 30/10/2024 08:37

I think they are going to buyback the short term dated debt as a priority
There is no need to buyback the prefs as they undated and they can stop paying the interest at more or less any point
That would be advantageous to them as it has been in the past if things get tight again
They would certainly really see the benefits of the higher CPO if it lasted to the end of the year

[dandigirl] 30/10/2024 08:27

Looks like payment of re.b at the end of the year is assured especially with CPO price firming well above 1,000. Now 1,260.

[russman] 30/10/2024 06:54

REA should present a resolution to shareholders giving them the authority to buyback the prefs when cashflow permits.

[pbaker] 29/10/2024 19:07

Buying £7,626,000 of debt at a discount, sounds like great news for both preference and ordinary share holders. Just the last £23,226,000 to cover by redemption on 31 August 2025. In previous times the company has had to pay debt holders to extend the term of the debt. If the company can become debt free (very long term) it could see excellent returns for ordinary share holders and perhaps a return to 100p for preference shares. (Getting ahead of myself with a hope of a return to dividends for ordinary shareholders).