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Rasmala Share Discussion Threads
Showing 51 to 75 of 75 messages
|I have bought a touch more here - if they do return capital I dont think price will fall as much as distribution implies.
Final results out. Just had a quick look but they seem quite poor with NAV down to 295p and NTAV down to 242p. Most of the tangible assets are cash or marketable securities/financial assets.
The good news is they are planning to return cash;
"We anticipate shareholder distributions of approximately £20 million in 2017."
That's 65p per share. They are also considering the AIM listing.|
|Have I got my maths right.They paid $6m for a seventh.Continuing ops were $2.6m last year.Clear as mud.|
|Agree not clear at all! This is the subsidiary with about a $1 billion under management. I can't see anything on page 93 but there is some info on pages 73-74 which does not reconcile with the profits stated and the net assets don't make sense either. The amount paid though does seem to be at a similar level to previous purchases eg. early 2012 when they first started buying a stake in Rasmala Holdings.|
|Very odd - the holding as a negative NAV (P93 of 2015 accounts). It earnt roughly a million last year. Value implies the full holding worth 40m - or 33m before aquisition.
Still lots held outside this level.
Dont know exactly what has done on - could be being subtly robbed and unaware of it - not enough detail in the RNS for my liking...
Doesnt change the case so will continue holding.|
|any views on this announcement?
CJohn you are not wrong.It's odd with the markets at record highs to see this still trading at such a huge discount to NAV.
Remember this from last years results? They obviously considered some "short term measures to support the share price" but didn't much like them.
"...We have developed a unique platform which is well positioned to grow and expand. However, we believe the current share price materially undervalues the Group and whilst confidence in our strategy and the building up of a track record is essential to create long-term value, we are considering short-term measures to support the share price..."|
|If RMA updated their shareholders more often; it may get more noticed.|
|Well, isn't it the case that deep value shares often remain deep for some time, then when things start moving they move quickly.
I don't doubt you've had that experience.|
|Still looking dead here Jim but should get the final results this month.|
|I make RMA's net tangible asset value to be 271p if DiamondCorp written down to zero. It's been suspended for months so no big surprise. However its not that clear how they were valuing this holding. Was it based on the share price or its realisable value? If realisable value it would maybe have had a nominal book value given its illiquidity.|
|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.|
|Patience is certainly required.|
|Decent rise today on hardly any volume. Maybe Somers still buying. Either that or they've bought all the loose stock.|
|Somers have increased from 7% to 8%.
Didn't realise Somers were 50% owned by Utilico (UTL). Gives them a bit more credibility. In fact Somers is their biggest investment http://www.uil.limited/portfolio/|
|Some comment on Rasmala from blogger Wexboy.
Rasmala (RMA:LN): (1)% Loss, (0.1)% Portfolio Return.
The loss is immaterial, but the +14.3% AIM Index gain’s a reminder of the opportunity cost here. Rasmala’s problem has been a negligent return on equity (RoE), with little chance an over-capitalised balance sheet would yield a decent RoE (even if the original operating/AUM targets were met). I also assumed an oil bear market (in the last few years) was irrelevant, as shariah fund management appeared to be a secular growth story, but with the operational disappointments here that became yet another negative influence on a neglected stock. Noting the fundamentals (NAV & AUM essentially unchanged for 3 years now), I assumed a 0.6-0.8 P/B trading range, which was clearly wrong…I never anticipated a 0.2-0.4 P/B range as a new normal here. A major corporate event (takeover, or liquidation) is inevitably required to realise shareholder value, so time remains the enemy…
I think that's fair comment although worth notng the company has returned a significant amount of cash in 2015 at 280 per share. They also said the shares are "materially undervalued" so they have at least tried to close the discount.
One of the problems with RMA is the spread. Ask price is 105p and the sell price appears to be 95.25p. Anyone buying this is immediately sitting on a 10% paper loss.|
|Thinking of adding more too...|
Rob Mahan's portfolio made 33% profit in 2016.
He has RMA has his largest position. Mine also.|
|looking dead here|
|Oil starting to encroach on $60. RMA is not an obvious play on oil but given the Middle East economies are so dependent on the stuff this should help RMA. Also RMA started falling in 2014 in tandem with the collapsing oil price.|
|Chunky trade at 100p. Still think this should be twice the current share price.|
The results weren't great, but given the discount to current assets, it doesn't matter
Just needs to be some sort of catalyst to out the value. The sale of the private equity or a bid?|
|A rather uninspiring set of interim results announced today.
No mention of progress on sale of the £20M private equity or on plans to address the "material" undervaluation of the companys' shares. Probably one is dependent on the other in that they can return £20M by way of a buyback or tender offer, once the private equity is sold.
The other thing is the low oil price generally hurting the middle east economies which isn't exactly helping RMA's business.
Still dead cheap though with NTAV of £86.5M (283p per share) which is nearly all net cash+cash equivalents+liquid investments+private equity|
|"...PIT manages our private equity investments which includes non-strategic positions. We are actively working towards exits in our non-strategic holdings. The total valuation of our non-strategic portfolio is £20 million (2014: £16.7 million)."
If they manage to add another £20M cash to the balance sheet then this stock will be bonkers cheap. Maybe we'll get an update on the progress of this in the interim results.|