React Share Discussion Threads

[rivaldo] 04/4/2024 08:24

I love that you can come to that conclusion after just 15 minutes :o))

The share price is already up 1.5p on just £11k of trades, which hopefully indicates there's not much stock around. Come back at the earliest at the end of the day and then it might be time to discuss how much interest there is!

EDIT - interesting buy just now of 454 shares at 69.36p, a long way above the published 68p offer price.

[jeanesy] 04/4/2024 08:16

Yes great news rivaldo but clearly there is no interest in these shares atmo for some reason.

[rivaldo] 04/4/2024 07:15

Excellent news this morning, with both major contract wins and contract renewals which now include significant additional services.

The headline is £1.3m of annual revenues, which I assume comprises the additional £500k per annum from the new FM agreement plus the new £500k from the UK Government agency, as well as the £295k per annum from the existing FM provider? Or are the new/potential revenues in addition to the core values of the contracts?

Whichever, there's also "a stream of small and medium sized wins" in addition.

It all sounds extremely promising:

[vikingben] 02/4/2024 13:28

Think we might see late trades at the mid price before any change in the price, large orders to be filled at current level??
Could take a while to get sorted.
Edit: trade no 6 is missing in today’s trades, might see it at lunchtime tomorrow?

[petewy] 02/4/2024 10:11

waiting for the dip

[revbessex] 02/4/2024 09:11

All mines gone into Revb ready to explode

[blackhorse23] 02/4/2024 08:18

Added APH today

[gbenson1] 01/4/2024 12:50

Well should be priced at 67.5p @ 0800 tomorrow, will we see a pop up or a trim back, anyone got any thoughts?

[gbenson1] 28/3/2024 15:23

All resolutions passed.

[superhoop2] 28/3/2024 13:07

I thought the AGM went well and the body language of the team tells me that they were itching to say how well things are going but obviously cannot. If, after the consolidation, there is any initial weakness, I shall fill my boots!

[rivaldo] 28/3/2024 10:27

Singer Capital retain their Buy and 1.9p price target.

They forecast 0.136p EPS to this September, i.e a P/E of only 9.9, and summarise as follows - remember that we're already halfway through the financial year, so today's AGM statement should presage a good H1:

"A brief AGM Statement from React confirms that trading is on track, with momentum continuing into FY24. Revenue for the first five months of the year was ahead of the prior year and the Board is cautiously optimistic about the outlook. We therefore keep our forecasts unchanged and remain at Buy with a 1.9p TP, noting React’s defensiveness, high recurring revenues and attractive margin"

[gbenson1] 28/3/2024 09:39

Very positive trading statement, if the share consolidation is approved at the AGM (we should know about 1400 hrs) @ the current share price it should be worth 67.5p on the opening on Tuesday after the bank holiday. With only 21m+ shares in issue I suspect we should see an upward movement in the share price @ the open!!

[rivaldo] 28/3/2024 07:14

The AGM statement looks very positive, with cautious confidence about trading. Revenues are ahead of last year, and in particular:

"momentum has continued into the current financial year and the Group is taking advantage of significant growth opportunities for its essential services"

And:

"Each division has performed well and the Group continues to benefit from cross selling opportunities which not only enhance our offering but also contribute to the organic growth"

[superhoop2] 27/3/2024 18:26

Big day tomorrow ... hope it goes smoothly and at the higher share price and extremely low amount of shares in issue plus a bit of 'news' it could be the start of a more realistic share price!

[vikingben] 20/3/2024 08:33

Quite a few mid price trades, most delayed, have been going through lately!
Hope we might get a clue at the AGM?

[superhoop2] 09/3/2024 18:51

Never seen a company with just 21 million shares in circulation ... very happy if it goes through.

[tole] 07/3/2024 21:37

https://masterinvestor.co.uk/equities/small-cap-catch-up-time-reat-eman-and-foxt/REACT Group (LON:REAT) – Ready To Be Swept AwayIn my Profile on this leading specialist cleaning, hygiene, decontamination and contract cleaning business on 12th February I made a concluding comment about the 1,067,648,507 shares in issue.I clearly stated that –"It would be sensible if moves were made to lose the current 'penny share' status, that could give it more investor credibility – which it certainly deserves."The shares, which I classed as a bargain for new investors, were then 1.25p, they have since been up to 1.50p, that was before yesterday morning's announcement which I consider will go a long way to gaining the £15m valued group so much more credence.The group has now proposed to consolidate its share capital with the aim of improving the marketability of its shares. If approved, this measure will give 1 new share for every 50 currently held.That will see the number in issue reduce following the consolidation to just 21,352,971 shares.We will look to the AGM on Thursday 28th March and the group's latest Trading Update for further comment on the current year Outlook.The shares closed last night at just 1.38p.

[gbenson1] 07/3/2024 11:20

I think he's dyslexic as well!!

[gipps] 07/3/2024 10:57

Well the trade of 3629 was a buy for me to round up to a million although it shows as a sell.

[cfb2] 07/3/2024 10:54

Yes to both ;)
However, dealing costs are going to be bigger than 50 or 60p that you'll lose with the consolidation.

You could argue that the residual shareholding has been donated to the company so it has a bigger market capitalisation therefore you have taken one for team REACT.

Bottom line is, the cost to shareholders are trivial but to the company they are of benefit. The company of course will need to pay out to lawyers, HMRC, companies house etc. to make the consolidation happen.

[diesel] 07/3/2024 10:33

Sounds like someone skipped their maths lessons!

[gipps] 07/3/2024 10:05

cfb2 does that mean that we are all better off if we currently hold shares in multiples of 50 exactly rather than 49 ?

[cfb2] 06/3/2024 18:34

MMs tend to offer a smaller percentage spread with a higher share price. No reason why that should be the case but they do.

A 50:1 consolidation will result in fractional entitlements. Likely the company will benefit; if you had 99 shares before consolidation you will only have 1 share and the company will normally get the pre-consolidation 49 shares. Over a large number of small shareholders this does become significant.

Also a consolidation allows the company to set the nominal share value again. Useful if they are looking to make acquisitions, which apparently they are.

[microscope] 06/3/2024 17:22

Everyone has their (perfectly legit) trading strategies of course and I don't judge, but then again penny shares in my opinion attract the dave4545s of this world, day traders with absolutely no interest in the company's business prospects, however much they pretend to, just a few days 'ramping' and hope they can talk the price up, then flog it and genuine holders are back to square one.

A 70p shareprice should be less attractive to them, and that's good for the shareprice medium term imho. One reason why it's more appealing at 70p to genuine investors. In fairness owenski, the size of the Laddersfree acquisition vis-a-vis the company's size was never going to be cash. And the company has benefited from it.

[owenski] 06/3/2024 16:43

Although the market cap is what it is, penny shares coupled with excessive shares in issue tells me that this has had a love affair with a printing press on steroids, and I'm going to get diluted to death at some point.

When a company does a consolidation, it also gives out a message that its - getting mugs paying the wage bill - days are over.

Well, that's the theory anyway.