R.e.a Share Discussion Threads

[dandigirl] 15/10/2021 10:59

Well nobull and wiggy: Didn't see that coming! Eating humble-pie this a.m.

Hope you have made oodles of doodle.

sp up 15p/23% as I write.

Augers well for the prefs too.

Happy days all round.

[kadvfn1] 15/10/2021 10:28

I've read that you can only buy warrant directly with the company so my guess is that's the case for Mr Robinow since he is in the 'know' :)

[nobull] 15/10/2021 10:16

kadvfn1, you are welcome. The warrants don't always move in lock step with the underlying security, especially when they are far out of the money, but still people buy them for the gearing they give: theoretically a 10p rise in the ords from 64p to 74p might cause the warrants to rise from 6.5p to 12p, giving you a bigger percentage rise than on ords. The only problem is I don't how one would buy the warrants as maybe they are not quoted, and Mr Robinow has bought up a good chunk of the entire amount in issue! Anyway I think it's the best buy signal we've had for the ords!

Wigwammer, yes, and don't forget production volumes are slightly weighted towards H2.

[kadvfn1] 15/10/2021 09:05

@nobull thank you for the clear explanation. Much appreciated

[wigwammer] 15/10/2021 08:40

With oil prices where they are nobull, you would certainly hope so. Translating the spot price into an annualised figure would add around $50m to the top line, and that would likely be achieved at very high margin. Given they were more than breaking even at the half way point, that $50m should largely float to the bottom line. $50m vs $40m market cap... let's hope prices stay buoyant for a while!

[nobull] 14/10/2021 18:30

Absolutely brilliant, CWA1, that last announcement. There's a real brain there on our Board, for sure. Over the moon to see evidence the BoD is going to work for us. Very happy indeed!

kadvfn1, the warrants excercise at £1.26p around the time the sterling loan notes are due for redemption, bringing in £5m to help redeem some of the loan notes. Yes, it causes dilution but you can't have everything. If the share price didn't reach £1.26 before then, the warrants would expire worthless. The 6.5p price reflects the long time value of the warrants as they are said to be "out of the money" right now. Hope that helps. Yes, Mr Robinow wouldn't be buying them if he thought he was going to lose his money. ATB.

"It is proposed that each warrant would be exercisable quarterly on 15 January, 15 April, 15 July and 15 October in each year up to 15 July 2025 on not less than 14 days' notice of the exercise. The first exercise date would be 15 January 2021."



(Source: )


Warrant strike price

"Pursuant to the enhanced proposals, REA Holdings will issue Noteholders with a total of 4,010,760 warrants each entitling the holder to subscribe one new ordinary share in the capital of REA Holdings at a price equal to 20 per cent above the average of the middle market quotations for the ordinary shares on each of the dealing days between 26 February 2020 and 26 March 2020 (inclusive) (as derived from the Daily Official List), payable in full on subscription.

Such subscription price has now been calculated to be £1.26 per new ordinary share.”



(Source: )

[kadvfn1] 14/10/2021 15:07

so how does this warrant work?

[nobull] 14/10/2021 14:06

Thanks for that, CWA1. The disposal of 604,212 shares by Nokia Bell still doesn't explain all the trades on 7th Oct., not that it matters. Brain dead selling out now. As to "an event changing breakdown of voting rights", I think that has been incorrectly ticked.

[wigwammer] 13/10/2021 15:04

...that's over 30% higher than in 1H when sales were annualising around $170m pa.

[wigwammer] 13/10/2021 15:03

Palm oil futures breach MYR 5000 per tonne for the first time in history :)

[ntv] 11/10/2021 21:32

No news despite the amount traded as being over the 3% mark of ordinaries but because of the fact that currently the prefs are counted as a class with voting rights and therefore existing have technically ordinaries have been diluted when it comes to voting

[ntv] 07/10/2021 19:15

AT deals are done using a DMA platform so probably pre arranged especially with having that quantity showing on the bid size. It could even be the same person moving stock between accounts
if not it must be pretty much a 3% lot so might even get a RNS in the not to distant future

[wigwammer] 07/10/2021 16:35

The faster the shares move from weak hands that do not want them, to stronger hands that do, the better. IMO

[wigwammer] 07/10/2021 16:34

I saw that, nobull. At the same time, someone - probably the house broker - willing to take on a substantial position.

[nobull] 07/10/2021 16:26

Someone is keen to get out despite yesterday's ex-mill-gate price of $929! ($1,370 CIF Rotterdam)

Date Time Trade Prc Volume Buy/Sell Bid Ask Value
07-Oct-21 15:56:27 58.00 3,329 Sell* 58.00 66.00 1,931 A
07-Oct-21 15:56:19 58.00 1,395,132 Sell* 58.00 66.00 809.18k A
07-Oct-21 15:56:17 58.50 75,000 Sell* 58.00 66.00 43.88k A
07-Oct-21 15:56:15 60.00 5,000 Sell* 58.50 66.00 3,000 A
07-Oct-21 15:56:13 60.50 7,353 Sell* 60.00 66.00 4,449 A
07-Oct-21 15:56:09 63.00 5,000 Sell* 60.50 66.50 3,150 A
07-Oct-21 15:28:00 65.00 10,000 Buy* 63.00 66.50 6,500 O

[nobull] 06/10/2021 10:06

NTV, hi. Simon Thompson agrees with you about AEP, but to me, and I can be wrong (I haven't written any investment books like he has and am not as experienced as he is), it just seems to me that paying down debt here is a better way to create value than to hope Mdm Lim will be nice and pay out a decent div or create value with all that cash - she didn't bother to do any buybacks in April 2020, at the bottom of the
price cycle?). Anyway, it will be interesting to see what happens next. I shall follow both with great interest. ATB. P.S. Of course they both have very different risk ratings, so that has to be a factor too. With AEP, you at least get the luxury of a decent night's sleep!

[wigwammer] 06/10/2021 09:38

Malaysian benchmark oil price at all time highs, climbing above previous peak resistance with conviction.. hard to see how that's anything but good news for the ords, where returns are not capped in the same way the debt and prefs are.. :)

[ntv] 06/10/2021 09:19

I bought some more this morning as it seemed rude not too

[nobull] 06/10/2021 08:41

Ex-mill gate price today should be $919 plus, say, $15 sustainable premium. Assumptions: CPO $1,360 or thereabouts, CIF Rotterdam today, and I base that on front month in KL being around 5,070 ringgit this afternoon in KL. What a shocker! Only a few days ago, I thought it was impossible to breach the $1,300 level.

Witnessing extraordinary times here:



Spot gas prices in the UK went to 300p a therm yesterday, up 20% on the day, I believe.

Barry Parkin, Sustainability and Procurement Officer, from Mars Confectionery said on Radio 4, on the Today programme this morning, that the company is reducing its palm supply chain down to 10 mills over the next few years, to ensure their palm oil is deforestation-free. He claimed that previously they sourced their palm oil from 1,500 mills!

[nobull] 05/10/2021 09:17

Although we are not allowed an owner's interest in our coal mine...a sale of it surely can't fail to cause a write-back of all that unpaid loan interest written off.



With $70m EBITDA in prospect, I can't see why we need to bother refinancing the $ loan notes next year. We must be getting at least $860 at the mill gate now, if not more. CPO should be around the $1,320 mark in Rotterdam today, I wonder?

[wigwammer] 30/9/2021 16:40

Whichever one they choose to pay down, the enterprise value remains pretty much the same - but the ords value rises. Worth considering if you are a pref holder, whether or not the pref stock will go "ex" well. It has had a decent run already.