React Share Discussion Threads

[jeanesy] 08/7/2020 18:57

That is 3 days running now that there have been some large late sells. Not sure why they are being reported late.

[sikhthetech] 08/7/2020 16:17

Rivaldo

"I suspect the new forecasts will be conservative"

I think they will try to justify why the placing was at 1.5p. Therefore, I wouldn't put too much emphasis on what they say.

[rivaldo] 08/7/2020 13:45

Absolutely agreed Effortless Cool.

Time to relax and wait for the next contract news or the new Allenby note. The share price might rise or fall a bit in the meantime, but for long term holders this really doesn't matter. Otherwise there's not much to say in the interim except to post occasional company or industry news flow.

I suspect the new forecasts will be conservative, leaving room to be beaten, and giving those who value the company purely on current year P/E an opportunity to moan and those who take into account other measures like PEG, tiny m/cap relative to large opportunity, client base, recurring revenues etc etc reassurance.

[sikhthetech] 08/7/2020 11:59

There hasn't been any clarity on figures hence the lack of interest.


If the shares were supposedly a bargain at 1.5p then there would be a huge interest when the share price is below the placing price. Whereas there seems to be selling going on especially towards the end of the day.

People waiting for clarity.

[jeanesy] 08/7/2020 11:50

It does seem though that recent interest in this share has waned. It could possibly drift even lower imo without some positive news.

[zico01] 08/7/2020 11:25

For me the story has not changed :

The new management team had turned this company around well before covid-19 .

From the results last week the company is trading very strongly and we are into Q4. Even without any bolt on acquisition(s) we are likely to increase revenue by at least 50 % on last year .

We will have guidence for this year ending 09/20 and may be next year ending 09/21 fairly soon.

As we approach year end the share price will rise in anticipation of a bullish trading update.

[effortless cool] 08/7/2020 11:08

Don't lose sight of the fact that this is a £6.6m cap company, i.e. absolutely tiny (I own 0.8% of it, lol). Institutions came in on the placing because it gave them a one-off opportunity to get a decent slug of shares. Even then, what they got is likely a tiny proportion of their overall portfolio and they are probably invested on a "set and forget" view.

It simply is not worth the effort for them to chase up a few m shares at marginally below the placing price.

[investographer] 08/7/2020 10:56

But they did not wait for proof when applying for the shares. There are a large amount of shares available at this price, but very little buying/ interest

[jeanesy] 08/7/2020 10:08

Does seem rather strange as you can now buy at less than 1.4p. Surely there are shares available in the market for those that missed out. Perhaps they are awaiting for more proof of their worth ?

[investographer] 08/7/2020 08:09

The Placing was materially oversubscribed Then why have the investors who missed out at 1.5p not now filling their boots?It wasnt just oversubscribed (which could mean by one share), but materially oversubscribed.Any thoughts?

[investographer] 06/7/2020 22:02

I like companies where the Directors have plenty of skin in the game, like my largest holding BOTB.I have looked at the Shareholders register but can not see if the CEO Shaun Doak or the CFO Andrea Pankhurst own any shares. Did they participate in the oversubscribed placing?Any help will be appreciated, as I am still looking to buy here.

[sikhthetech] 06/7/2020 10:28

Given the management forecast was produced before Covid19, it's obvious they would have beaten it.

They are now in Q4 and lockdowns are being eased in different areas/sectors. Therefore, they should have a good idea of expectations for fy.

Also, given the broker is due to give their expectations this month, I would have thought it would be based on what the BoD have to say anyway. After all, how did they come up with a 1.5p placing price?

[ged5] 06/7/2020 09:33

Thanks Effortless Cool. That makes sense.

They do like to remind us of the different areas they work in:-

[effortless cool] 06/7/2020 09:29

My take on the situation is that: (1) they had a budget that reflected their original expectations; (2) COVID-19 came along and presented opportunities that meant that original budget would be easily beaten; (3) it is not yet clear how large the COVID-19 opportunities will be, how long they will persist for and what residual gain there will be in demand for cleaning services post-COVID; and (4) therefore the REAT management do not currently feel that they have enough information to make a reliable reforecast.

[ged5] 06/7/2020 09:19

The concerns I have about REAT is that from the 6th April 2020 they have been saying:-

"Recent trading, notably in March, has been ahead of management expectations and as result the Group is likely to have delivered a small operating profit in the six months to 31 March 2020, which puts the Group in a good position to meet or exceed management expectations for the full year."

They've repeated this in the placing announcement on 3rd June 2020 and again something similar at the end of June.

If they can say they expect to meet or exceed expectations then they must have some idea of those expectations yet they can't give us an answer to what those expectations were. Were the words just bluster like the patting on the back in the presentations?

For the first time my confidence in the management is wavering. I think I need a contract announcement for it to be restored.

[jeanesy] 06/7/2020 08:16

Q and A are now available from the investors meeting last week. Answers have been given in quite alot of detail.

[investographer] 06/7/2020 08:10

An oversubscribed placing at 1.5p should provide a yardstick here. Those that took part were given forecasts i assume & did their due diligence

[zico01] 06/7/2020 00:00

cooltools

SICKINTHEHEAD's continues negative posts are just for his personal gains they do not represent the true valuation of this company at this present moment,i don't mind bearish posts . He's comparing TLY ( in the health care sector with REAT & BYOT ).Health Care has always had lowly ratings.

[cooltools] 05/7/2020 23:35

Instead of personal attacks, just scroll on. I actually find stt's counter arguments a useful balance, not that I necessarily agree. But checking whether I agree with bearish views is a useful exercise in its own right. I'd rather that than a bubble of self-confirming opinions. If you don't agree, no need to argue more than once, just scroll on by.

[zico01] 05/7/2020 22:40

SICKINTHEHEAD go back to your TLY forum

It's always difficult to put a valuation on small companies

REAT and BYOT are both in the chemicals sector both relatively small companies that will start to make profits ( BYOT only made £250,000 last year eps of 0.05p )
BYOT at 6.25p is trading on pe of 125.
REAT on a pe of 35 would be 2.1p which is fairly reasonable for growth company revenue to grow by over 50% for year ending September . Either REAT is cheap or BYOT is very expensive.

It's difficult to put pe valuations on very small companies.

[sikhthetech] 05/7/2020 19:14

Jeanesy

"There is always going to be disagreements about this until we get some hard facts."

Agree, except I doubt brokers figures will provide any clarity simply because they are producing forecasts after the placing.

How did they come up with a placing priced at 1.5p without any forecasts??

I therefore think that they will have no option but to come up with a target price above 1.5p in order to prevent questions being asked about the placing price.

[jeanesy] 03/7/2020 15:29

looks like buying pressure is building.

[jeanesy] 03/7/2020 13:13

Let us wait until the forecasts come out. There is always going to be disagreements about this until we get some hard facts. Shouldn't be too long hopefully until the picture here is clearer !