React Share Discussion Threads

[vikingben] 26/4/2022 18:55

Got a few more at 1.308
Now waiting for some good news, will not be buying any more for a while

[vikingben] 25/4/2022 17:09

I am not trading, but accumulating, looking to fund a nice electric SUV

[yump] 25/4/2022 16:31

If you’re bothered about fractions of a penny, then you’re trading and there are better stocks to trade that have established levels.

This stock now has a selection of unknown unknowns.

[vikingben] 25/4/2022 12:10

Just been quoted 1.319p to buy 500k
Is the price likely to go down from there?

[melloteam] 25/4/2022 12:08

Mello2022, the popular three-day Investor event takes place on 24TH-26TH MAY at the Clayton Hotel & Conference Centre, Chiswick, W4. The breakdown of the three days is as follows:

Tuesday 24th May, 9am - 6pm - Mello Investment Trusts and Funds (WE ARE GIVING AWAY 20 FREE TICKETS TO THE TRUST AND FUNDS EVENT - THE FREE CODE IS FIRST20TF)

Wednesday 25th & Thursday 26th May, 9am - 6pm - Smaller Growth and Mid-Cap Companies

Just to let shareholders and prospective investors know that REACT will be among the 60+ LSE Small Cap and AIM listed companies attending. There will also be keynote speakers such as Lord John Lee, Andy Brough, Rosemary Banyard, Clarke Carlisle and Gervais Williams.

Tickets for 1 day are £115 and tickets for 2 days are £189. To get 50% off, use code MMTADVFN50.

For more information, please visit the event webpage:

[effortless cool] 22/4/2022 17:14

It obviously can't be earnings enhancing for 2021, since that is in the past.

By definition, it must be earnings enhancing for the current and future years. That may be a misleading statement, however. 2022/23 forecasts earnings are presently 0.18p. That figure will fall post-fundraising. It will then rise again post-acquisition.

Is the final number going to be higher than 0.18p or just higher than whatever 0.18p falls to after the fund-raising?

[yump] 22/4/2022 16:52

Anyone want to hazard a guess at the level of earnings that is going to be enhanced ?

Is it 0.07p, 0.10p, 0.14p ?

Depends on what year is being referred to. I reckon its year to Sept 21, otherwise the figures make no sense.

[yump] 22/4/2022 11:04

Clearly its enhancing over the 0.07p earnings to Sept 21, not over the 0.14p Allenby forecast which is pants.

Pick a previous earnings figure (adjusted of course) to compare with and it all looks fine and dandy.

[yump] 22/4/2022 10:53

So that means exceeding 0.14p then or exceeding 0.17p.

So on double the number of shares, earnings will rise as a result of getting 3mln extra revenue and 1.2mln adjusted ebitda (so actual earnings will be less), although Reat currently generate at least double that revenue to get the current 0.14p earnings.

On 3mln revenue Target A is a business with 30%+ pbt ?

I look forward to seeing that.

[wisecat2] 21/4/2022 20:13

Company directors are responsible for the management of their companies. They must act honestly and promote the success of the business and benefit its shareholders.

[davidosh] 21/4/2022 18:57

Well I intend to clarify before that, that “earnings enhancing in the first year” means based on the new number of shares.

Yump...the answer is yes or they would not have been able to comment on it. They cannot mislead on such things when raising funds.

[yump] 21/4/2022 18:13

Well I intend to clarify before that, that “earnings enhancing in the first year” means based on the new number of shares.

Can’t get my head around that, given they’re only buying 3mln of revenue.

That doesn’t need a visit, where I might mislead myself and forget to ask, if they are all jolly nice people.

Looking back, I think I’ve found a six month period where I can actually see around 1.5mln of cash generation, so perhaps they’ve accumulated a fair bit in the last six months.

[davidosh] 19/4/2022 16:17

React have accepted my invitation to present at Mello2022 next month so lots of opportunity to ask questions to Mark Braund face to face

[wisecat2] 16/4/2022 05:45

Please do not concern yourself with directors not having equity because once the deal is completed and with the shares around a penny they will load up with options.please don’t think they are ungrateful for providing a good lifestyle in these troubled times but now they would like you to quietly F@@K OFF

[yump] 15/4/2022 11:22

To be fair and correct myself, they've had 6 months of cash flowing in.
Haven't figured out what that figure might be yet.

I guess that assuming they know what they're doing financially, the various levels of staged performance payments for an acquisition, tie up significantly with the cash generated by that performance.

I suppose the last few years have demonstrated that they do know what they're doing and to be fair they haven't gone rushing into anything.

Its just that 1.2p that grates.

[techno20] 14/4/2022 16:23

No mention of director purchases!

[superhoop2] 14/4/2022 16:17

Helium and Octopus are still with us so that's a plus. Also, be interesting to see who the 'bought' company is.

[yump] 14/4/2022 15:25

Any comments on the apparently false earnings rise from Fidelis ?

ie. if they had raised the 2.5mln likely to be due to Fidelis, as a placing previously, there would not have been an earnings per share increase.

Could they have paid that from existing or forecast cash this year ?

Need to have a good look at that before trusting management on this one.

[rivaldo] 14/4/2022 12:32

Obviously that works both ways - I've also seen the share price consolidate and then rise. The placing could be oversubscribed, the buying institutions are in for the long-term, follow-up news flow is positive.....not saying it will, but sometimes share prices actually thrive post-placing.

One would bl..dy well hope that at 1.2p the placing was well subscribed!

[1gw] 14/4/2022 11:08

The issue with a big placing though, as I understand what has happened on others, is that some of those that get placing shares then sell them to take the immediate profit (if the share is trading above the placing price) and that weight of selling can take the price down to close to the placing price.

[rivaldo] 14/4/2022 10:54

Given the relative weighting pre and post placing with the post placing 964,339,358 shares in issue I calculate the share price should - in theory! - settle at around 1.5p. Which doesn't mean that natural investor disappointment won't take the price nearer to the 1.2p placing price.

If a "meh" trading update is indeed in the works, then perhaps it's now priced in anyway. After the initial sellers have exited the shares might bounce back to that 1.5p level or so.

The "earnings enhancing" Target A acquisition will certainly be predicated on the increased shares in issue post placing.

I'd like to see the directors investing substantially in the placing.

Management have a lot of credibility to regain now. I'm expecting the H1 trading update to be reasonably good if not great given the comment about H2 in particular benefiting from all the recent contract wins.

That wealth of contract wins - approaching £10m from memory - and high recurring income/forward visibility give every reason for confidence.

[yump] 14/4/2022 10:41

Just looking back £2.5 mln is likely due to be paid to Fidelis if it meets 2022 targets.

So in effect have they raised some of the cash which otherwise would have needed in an earlier placing to fund the Fidelis buy ?

In which case why not raise it when the share price was flying ?

So is the increase in earnings due to Fidelis actually false, because it is on a false lower number of shares ... until now ?

[yump] 14/4/2022 10:35

I had this as one of my “least likely to get shafted at my average price shares”. What could be safer than a relatively boring gradual growth stock in cleaning ?

To be fair earnings per share did go up after the Fidelis acquisition.

[yump] 14/4/2022 09:12

Its the placing price thats the bummer. If had been at say 1.7p, a p/e if 10 on forecasts, that would double ebitda and be much closer to an ok deal for existing shareholders.

“Earnings enhancing in the first year”. I should bloody hope so for being diluted at this level.

Imo that sentence is shockingly vague given the dilution.

Unless it means “based on the new number of shares”, which it always should, but never does.

No company should be allowed to say that unless it means based on the new no of shares.