Rasmala Investors - RMA

Share Name	Share Symbol	Market	Stock Type
Rasmala	RMA	London	Ordinary Share

	Price Change	Price Change %	Share Price	Last Trade
	0.00	0.00%	135.00	00:00:00

Open Price	Low Price	High Price	Close Price	Previous Close
			135.00	135.00

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Posted at 30/1/2017 03:04 by wexboy Rasmala (RMA:LN) (3.0%): Share Price: GBP 110p Market Cap: GBP 33 Million Rasmala was a ghost in 2016…the business made no discernible progress, nor did the shares. Which is all the more frustrating, noting the oil price soared, the AIM Index clocked a 14%+ return, and even (some) deep-value micro-caps rallied significantly. Longer-term, the legacy private equity portfolio remains unsold, AUM is unchanged for over 3 years now, and after 5 years at the helm CEO Zak Hydari is still nowhere close to delivering a sustainable return on equity. Even successful activism – relinquishment of the banking licence, a £20 million tender offer, a share buyback approval (albeit management hasn’t acted on it since) – has been ignored by investors. But it’s priced accordingly: Eliminating the equity stake in Diamondcorp (DCP:LN), which looks touch & go here, RMA trades on a 0.35 Price/Book multiple. For a company which operates near break-even & has a relatively low-risk/un-levered/hedged balance sheet, that’s a dirt-cheap valuation. But alas, a valuation which may not change significantly ’til we see a significant corporate event – whether it’s another tender offer (we’d probably need to see management do the buyback first), or some kind of merger/takeover. Though the appearance of Somers Ltd., who have steadily built a 8.1% stake to date, may well prove a potential catalyst. While it’s still one of their smaller holdings, Somers has a history of constructive activism – we can expect them to push for value enhancement/realisation here too. Opportunities for a deal with another Somers portfolio holding might appear limited (though Bermuda Commercial Bank could perhaps approach Rasmala as a potential balance sheet transaction/expansion), so finding a buyer or initiating a formal sale seems a more likely bet. [And Somers wouldn’t have much trouble attracting support from other disgruntled investors!]. And noting another relationship that’s been developing recently (here & here), Ajman Bank (AJMANBAN:UH) is perhaps a candidate – though in a formal sale, other bidders could pop out of the woodwork (SHUAA Capital (SHUAA:UH), for example?). Like most special situations, earning a decent (annualised) return here will inevitably depend on how long it might take for value to be realised – and so, time is the enemy here… For this & other top picks, check/Google my latest 'Top Trumps For 2017...' post on the Wexboy investment blog. Read Full Thread Reply

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Posted at 30/1/2017 03:04 by wexboy

Rasmala (RMA:LN) (3.0%):

Share Price: GBP 110p

Market Cap: GBP 33 Million

Rasmala was a ghost in 2016…the business made no discernible progress, nor did the shares. Which is all the more frustrating, noting the oil price soared, the AIM Index clocked a 14%+ return, and even (some) deep-value micro-caps rallied significantly. Longer-term, the legacy private equity portfolio remains unsold, AUM is unchanged for over 3 years now, and after 5 years at the helm CEO Zak Hydari is still nowhere close to delivering a sustainable return on equity. Even successful activism – relinquishment of the banking licence, a £20 million tender offer, a share buyback approval (albeit management hasn’t acted on it since) – has been ignored by investors.

But it’s priced accordingly: Eliminating the equity stake in Diamondcorp (DCP:LN), which looks touch & go here, RMA trades on a 0.35 Price/Book multiple. For a company which operates near break-even & has a relatively low-risk/un-levered/hedged balance sheet, that’s a dirt-cheap valuation. But alas, a valuation which may not change significantly ’til we see a significant corporate event – whether it’s another tender offer (we’d probably need to see management do the buyback first), or some kind of merger/takeover. Though the appearance of Somers Ltd., who have steadily built a 8.1% stake to date, may well prove a potential catalyst. While it’s still one of their smaller holdings, Somers has a history of constructive activism – we can expect them to push for value enhancement/realisation here too.

Opportunities for a deal with another Somers portfolio holding might appear limited (though Bermuda Commercial Bank could perhaps approach Rasmala as a potential balance sheet transaction/expansion), so finding a buyer or initiating a formal sale seems a more likely bet. [And Somers wouldn’t have much trouble attracting support from other disgruntled investors!]. And noting another relationship that’s been developing recently (here & here), Ajman Bank (AJMANBAN:UH) is perhaps a candidate – though in a formal sale, other bidders could pop out of the woodwork (SHUAA Capital (SHUAA:UH), for example?). Like most special situations, earning a decent (annualised) return here will inevitably depend on how long it might take for value to be realised – and so, time is the enemy here…

For this & other top picks, check/Google my latest 'Top Trumps For 2017...' post on the Wexboy investment blog.

Read Full Thread

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