R.e.a Share Discussion Threads

[ntv] 23/12/2021 08:48

To me , the last statement appears to imply that some bond holders want out next July and so the company will have buy those bonds back. It sounds as they intend to re sell a new similar bond back to the market
The financial position of the company depends on commodity prices and those are pretty good still
Selling stone could make this a very interesting company in a couple of years time hopefully

[nobull] 22/12/2021 07:52

Erik, not at all. I have made a few catastrophic investment mistakes, all my own fault, but I try to learn from them. Luckily, I've been given a second chance (by inherited wealth of a scale I had no idea existed, and which I am not proud of, so I'll have to try to do better this time). The pandemic has been a time of very easy pickings (well, so far), so I don't really count the recent successes I've had as sustainable, so not a proper test of ability at all. One day I expect I'll manage to go back and read the old chat threads and face my past delusions and errors more fully, but for now I've just got to look forward and keep reading all the investment books to get better. I've read a few grammar and punctuation books too, to try and improve. I hope my misplaced enthusiasm didn't lead anyone to disaster and I hope you prosper too - well, I am sure you are doing well. Regards Frank.

[eriktherock] 21/12/2021 17:01

Thanks Frank. Please receive this as intended : You are a top man. Massive talent.

[nobull] 21/12/2021 16:37

Oh, you make me laugh, Erik. Yes, doing much better. I try not to think about the past! I've had my delusions, and for now they are cured. All the best.

[eriktherock] 21/12/2021 16:31

To be Frank. Merry Christmas. I hope you prosper.

[nobull] 21/12/2021 16:25

Merry Xmas all. News on coal shipment coming soon perhaps?

[wigwammer] 21/12/2021 15:49

Another nice move up, despite some retracement of the palm oil benchmark in recent days. Happy Christmas all :)

[ntv] 17/12/2021 17:40

50k gone through @112

[ntv] 07/12/2021 17:10

Thanks for correcting me on the strike nobull
IG quote 5059 - 5071 for palm

[nobull] 07/12/2021 08:59

Yes, our shares are going to be above £1.515 in no time (£1.26 strike price + 25.5p Emba paid for the warrants). Yes, Mr Robinow, as I suspected, has massively multiplied his money on his first purchase of warrants. Brilliant stuff.

Anybody noticed how Bursa Malaysia now has a night time cpo futures trading session? Are they worried about losing business to the European time zone?

P.S. CPO futures have recovered a bit this week compared with last week's dismal performance, so the spot price should be over $1,300, I hope - the price at which we start to get the cpo price upside back.

P.P.S. McHattie, the author of the best book on warrants, refers to them as "deferred rights issues". They should bring in some of the money, just when we need it, to help pay off the sterling loan notes.

[ntv] 06/12/2021 16:02

A director buying a sizable chunk of warrants
Presume the strike price is £1.40?

[wigwammer] 26/11/2021 00:29

https://masterinvestor.co.uk/evil-diaries/evil-diaries-oil-in-your-palm/

[wigwammer] 25/11/2021 10:00

The valuation of the ords still makes little sense - way undervalued. They were trading 150p+ prior to covid, since when palm oil prices have roughly doubled and reported net debt has fallen from $209m to presently somewhere below $175m, and with a vastly improved outlook. Much more to go for, IMO.

[nobull] 25/11/2021 09:49

Yes, NTV, but I would have liked them to say something on the stone interests.

[ntv] 25/11/2021 09:32

Nice update

[nobull] 25/11/2021 08:06

Yes, a good start. I got it wrong too, on both counts. The prefs are down but maybe they went xd today?

Edit. Yes, the prefs needed to drop 5.5p (4.5p + 1p arrears) because they went xd today.

[wigwammer] 25/11/2021 08:01

Nice early reaction. I might have got that wrong then!

[wigwammer] 25/11/2021 07:57

Thanks nobull. You are only going to get loan extensions on attractive terms, or commit to paying pref dividends, if those in the know are confident about the underlying business. I suspect the ords won't see a rise today, but the story is building nicely..

[nobull] 25/11/2021 07:51

The prefs should rise today (10p of the arrrears to be paid next year). $ loan note due for redemption next year being extended for 4 years looks a done-deal (REA owns some itself!). The $ loan notes are maybe their cheapest form of finance, so if REA can earn more than the cost of this finance, then that's fine.

Not expecting the ords to do much today - coal mining resumption was expected but I do expect the prefs to go up :{

[nobull] 02/11/2021 14:28

Coal has bombed about $90 a tonne in a SINGLE day - not great, but the price is still above the last cyclical high about 10 years ago.

[nobull] 29/10/2021 09:07

With front month at 5,428 ringgit, 15 minutes ago, next month's US$36 rise in export tax shouldn't be a problem. On Wednesday, I estimate our ex-mill-gate price to have been about $941, excluding any premium for sustainably produced. "Entering a period of prosperity" has to be the understatement of the year!

[nobull] 28/10/2021 15:28

I should think the auditor's qualification on the 2019 accounts, published in May 2020, would have given them plenty of sleepless nights; it gave me plenty - that's when I bought for a relative who wasn't averse to accusing me of gambling with their money.

Yes, it wasn't suited to their attitude to risk, but arguably with the prospect of their estate suffering 40% IHT, they needed to invest in 66% baggers for their relatives to be left with the same starting capital.

I think the auditor said "material uncertainty as to going concern".

Leaving it in the bank and waiting for the tax man and inflation to only give you less than 60% back wasn't really a good idea.

[cousinit] 28/10/2021 13:24

M&G might be selling post the Woodford debacle - having 20% of an illiquid small cap in an open-ended fund probably been giving the compliance and risk peeps sleepless nights...

[wigwammer] 28/10/2021 12:58

Odey buying, M&G and Nokia Pensions selling. I know which of those managers I would back :)

[wigwammer] 27/10/2021 21:31

They were profitable at 3750 MYR per tonne in H1. Palm oil price now circa 5000 MYR, adding around $50m+ to annualised top line at very high margin. All of that high margin $50m incremental sales falls into the lap of the ords, which are currently capitalised at $58m. As the debt is paid down at a decent clip the enterprise will be increasingly owned by the ord holders. 150p prior to covid, 300p+ historically, but now palm oil prices at all time highs. Happy to continue riding this.. :)