React Share Discussion Threads

[yump] 07/8/2020 11:19

The cash argument is a complete red-herring. They just raised 1.3mln, diluting shareholders, so when that happened the business immediately increased its rating by 20%.

[zico01] 07/8/2020 11:02

What it really needs to kick start the share price is more news flow

more contract wins
director buys
quarterly trading updates What was the revenue and profits for Q3 ( April,May,June )

They need to update share holders more regularly

I stronly disagree with the above post on valuation @ 1.1p the company is considerably under valued if you take out the cash ( nearly £1.5M )presently the business is only worth £4M.

[investographer] 06/8/2020 15:00

The Allenby broker to contact is Ian Jermin [e-mail] about time shareholders put some pressure on management

[investographer] 06/8/2020 14:49

I asked fund manager Simon Like of MD Barnard & Oberon Investments what he thought about the share price & the fact that the Directors owned no shares.This was his replyA great question. We still like the Company and it operates in an area that can only see increased demand. We are frustrated by the share price decline. I have also expressed my disappointment to their Broker. Company could do with more news flow to stimulate interest.

[investographer] 05/8/2020 22:54

I agree, announce more contracts, get the share price back to 1.5p & then get the Directors to load up at this placing price to instil some confidence back here. If they want to generate some interest from shareholders, they must have plenty of skin in the game.

[zico01] 05/8/2020 22:48

Would not harm the share price if we get an rns regarding more contracts !!!

[yump] 03/8/2020 15:23

Ged5

Thanks for that very useful.

So I think the implication is that reactive work is higher margin (seems reasonable, as if someone wants something done suddenly, most businesses charge more), so any margin hit may not be that bad. Also presumably they're looking for more subcontractors because a lot of covid work is reactive, not planned.

So at the moment its a % of a % of 25-30% - which is not much.

[investographer] 03/8/2020 08:55

Directors were badly advised as to not participating in recent fund raise. Have no skin in the game. CEO Shaun Doak & CFO Andrea Pankhurst own NO shares. share price needs to gain 50% to get back to placing price. Options don't impress me. Hold but will not add further.I did write to them, but Chairperson Gillian Leates thought she was to important to write back & ignored me. Shaun Doak did reply & said he had some options. Not good enough.Too late to buy at these prices for them, as it will undermine the last lot of investors.

[ged5] 02/8/2020 16:05

Hi Yump.

You mentioned subcontractors and margins in one of your posts. Not sure if this helps a little bit. It's from the Q&A on the 10th June Investor Meet Presentation.

Q28: What is the current ratio to REAT only work to sub-contactor work and how do you envisage this ratio changing?

The ratio changes from month to month and represents a strength in our business model in that it helps us provide rapid response, national coverage, and some unique skills without significant ongoing costs.

Many of the sub-contractors in the REACT network have exceptionally strong skills in narrowly defined niche areas, allowing REACT to provide our Customers with a range of highly specialised services as a one-stop-shop.

Our network of skilled subcontractors is typically used to support higher-margin reactive work only. At present we are fulfilling in the range of 20-25% of reactive work using our network of skilled subcontractors.

We resource regular maintenance work using directly engaged REACT employees.

Going through the questions from both presentations I found the answers to two very similar questions being very different as very intriguing:-

10th June
Q31: Are there any new contracts that the company is currently in talks about or about to confirm in the near future ?
Unfortunately answering this question would contribute to a forward-looking statement, which we are not able to provide.

1st July
Q5: Is the company working on signing any new major contracts?
Yes, as is normal for the business, the sales team are engaged with a number of Customers from a range of sectors and are currently pursuing opportunities in the market.

[zico01] 01/8/2020 19:26

You don't hold any shares your just a troll

MOVE ON

[zico01] 01/8/2020 19:21

yump

You are a moron and stop trolling.

MOVE ON

[yump] 01/8/2020 18:40

Whether I am a complete moron or not does not answer the question does it now ?

You really need to polish up your debating skills.

[zico01] 01/8/2020 10:06

yump

You are a complete moron
MOVE ON

[yump] 31/7/2020 18:05

and there we have it from zico:

a challenge to justify presumptions about the future in some way, meets with avoidance, rather than discussion.

I'm still interested here and waiting for someone possibly to post something that justifies a game changing future, that would justify buying.

Nobody commented on REAT's comments about looking for subcontractors and the possible issue with margin. I don't think the same profit level % can be assumed if for instance revenue rises 30% as a result of subcontracting.

[sikhthetech] 31/7/2020 14:37

Rivaldo,
Your post on lse is not true, is it???
Cooltools stated he sold 10m on the 10th July and share price highs were around 28th/29th May, 6 wks earlier.
The share price was already falling when Cooltools sold.

Therefore, cooltools sell doesn't help explain why the share price fell from 1.7/1.8p highs.


Your post:
rivaldo

RE: Burst of buyingWed 08:56
From posts on another bb, we now know that a poster called "Cooltools" who'd bought 10m shares sold them all at the highs and then at steadily reducing prices, and has now bought 6m of them back at much lower prices to hold for the longer-term to a target of 2.8p.

This certainly helps to explain why the share price fell back from the 1.7p-1.8p levels.


Cooltools post:

cooltools - 10 Jul 2020 - 09:45:19 - 807 of 990
Changed mind, bit the bullet and just sold my entire 2% of company. Fingers crossed... (fortunately only a small loss, lost the paper gain).
<...>

cooltools - 10 Jul 2020 - 09:54:20 - 811 of 990
10,000,000 this morning.

Shares extant: 499m, so 2%

[zico01] 30/7/2020 19:02

yump

You do not own any shares in the company,you have no intention of buying,you do not even like this company.

I suggest you move on stop posting rubbish and wasting everyone's time'.

MOVE ON

[yump] 30/7/2020 18:37

zico

I repeat for the hard of hearing:

Where is your evidence for the multi-year forecasts you've posted ?

By the way the ACTUAL forecast is for £150K profit this year, or didn't you see that. or did you just add 50K for no other reason than you happen to think the forecast is conservative.

[brownbear3] 30/7/2020 16:42

What happened @ midday.

[investographer] 30/7/2020 16:18

While our #PartnerProgramme is being born during the #Coronavirus crisis, we're confident it will extend far into the future, based on high standards and a shared passion for #SpecialistCleaning. Find out more today #DeepCleaning #Subcontractor #REAT ow.ly/Y6tn50ziNZh

[zico01] 30/7/2020 12:26

yump it's you who's the con-artist by posting rubbish

A few of us have already posted on this forum on full year revenue forecast for this year to 30/09 since you are so thick i'll mentioned it to you again.
Revenue for year ending 30/09 to be at least £4.5m to £5.0m that's a growth of between 45% to 60% and profit of about £200,000 ( min. ) from a loss of £183,000.

since you are so THICK i'll repeat it again 45% to 60% growth for this year.

For next year i'm 100% convinced this management team will have completed at least one bolt on acquisition

( The Board of REACT believes there is an opportunity to scale the business through organic growth and carefully selected acquisitions focusing on markets where REACT has differentiation and access to higher margins. The Board of REACT also believes there is an opportunity for the Company to materially grow profitable revenue with large customers in the health, rail and facilities management sectors in addition to strengthening recurring revenue streams through incremental and long-term contracts.)

With all the long term contracts and the acquisition(s)i'm expecting a sizeable growth in revenue and profits for year ending 30/09/21.

btw decontamination/deep cleaning is not going to go away regardless of covid-19.
people will be wearing face masks for a long time.This sector will also be busy for the foreseeable future

You don't like this company so why don't you move on instead of posting rubbish no one's interested in your comments.

since you are so THICK just MOVE ON.

[yump] 30/7/2020 11:19

Zico

Produce your financial evidence for your comment about tremendous revenue and profit growth for the foreseeable future.

You can’t can you - its just words.

You’re not doing your own case any good by appearing to be a ramping con-artist.

There was a sensible discussion on here about valuation.

Perhaps you could do some actual research about the cleaning market by contacting a few companies or reading up about it. Or not.

[ged5] 30/7/2020 10:16

Good morning, Rivaldo.

I had originally dismissed the tweet but a poster on another thread, LR2, brought another tweet to my attention. Barnard Nominees took part in a placing in that company last September.

I hadn't realised Oberon was the same company so thanks for that.

This is from Simon Like's profile:-

"He is a stock picker rather than an investor in sectors or particular size of Companies. He spends a lot of time looking for companies to invest in. He ideally meets the management and Directors of these companies and keeps in regular contact so that he can accumulate an in-depth knowledge of each one."

[rivaldo] 30/7/2020 08:38

Ged5, thanks re post 973 about the tweet from the Fund Manager at Oberon. Oberon is apparently now the trading name of MD Barnard & Co - I used to deal with MD Barnard, but had never heard of Oberon before:



"Nice to see some positive news from REACT Group a Company we like at Oberon Investments.Amazed to see how the price had slipped from its 1.5p placing price in June. Up almost 18% this morning as investors return to the investment."



Simon Like: Fund manager at MD Barnard and Oberon Investments."