React Energy Share Discussion Threads

[buyn0w] 22/1/2014 14:48

Time to add..

[ryan83] 22/1/2014 14:42

upto 29H. More at 31.8p for me.

[buyn0w] 22/1/2014 14:13

Here for the news which may not be long now ryan.

Looks like howard is out.

[ryan83] 22/1/2014 12:46

Thought you may have exited BUYNOW ;-)

[ryan83] 22/1/2014 12:45

cheers Trout - always nice to see another persons view. Even better when it is roughly in line with your own and positive lol!

[buyn0w] 22/1/2014 12:42

Nice rise plenty more upside when news is released.

Not long now.

[troutisout] 22/1/2014 11:17

ryan83,
I have thought long and hard about this and I have read as much as I can (although would love more info).
I believe the share price is suffering from previous holders/traders who attract a lot of strife that spills over onto the share, especially one that is so illiquid.
So the share price valuation is likely to be full of wild swings and probably not close to real value.
Looking at the pipeline the value is on completion and there are metrics per MW to value them, but that is for the sites, the value to the Company from the heat and power generated as you say will give us a nice income and that should be given a fair multiple, because this will be a steady, reliable income stream, more so even than solar or wind power as we can generate everyday and are not reliant on the elements (although it would need a constant fuel source). The Biomass generators are great because that fuel source is there and the savings from landfill make it a very viable fuel stream.

I think with confirmation of phase 2 Newry, this could see us back towards the 60p's, also we are awaiting the financial close at Enfield, once that is done and building out the site gets underway, this too moves into another stage for valuation. Before the financial close, I have seen about valuations of £0.2m/MW, but after that it will increase, leading of course to the completion and commissioning which will see it valued much higher.
REACT aim to keep at least 50% share in their generators and this will mean very good income and a decent asset value. They will need to raise funds for further planning and development work on their pipeline and I hope they do this steadily as she goes. However when people react to REACT and see what they have, will have and will be generating the valuation will rise dramtically.

I don't want to forecast too much, but I can easily see the valuation growing up through the tens of millions over the next two/three years.

They have a good pipeline and some very good biomass projects, if these start to all progress then people will have to sit up and take notice.

Trout.

[mrlovebucket] 22/1/2014 11:11

Coming together nicely :-)

[ryan83] 22/1/2014 11:01

Trout, what your price target this year?

Based just on Newry at 4MW = £2m EBIDTA, fair value of this at 10 times? so £20m.

Considering REAC are only capped at £7m now and also have:-

Phase 3 Newry to 8MW - increase oof 4MW, additional £2m EBIDTA

Enfield 12MW - additional £7m EBIDTA

Pluckanes 800KW operational (EBIDTA???)

pipeline of 150MW+

[ryan83] 22/1/2014 10:54

yep I got some more money waiting so not fussed.

[ryan83] 22/1/2014 10:53

seems some one sold 1714 shares at a loss lol.

[troutisout] 22/1/2014 10:50

25k looks to have started this off.

ryan, We need the stock, so some selling would be good at the moment, I still want more.

[ryan83] 22/1/2014 10:47

a few people unwinding their position?? their loss.

[ryan83] 22/1/2014 10:42

As is my ISA trout. Lets hope its a good un

[troutisout] 22/1/2014 10:29

colp54,

It's a New Year make the change, I opened up a Barclays ISA online with them the other day as well, it now is loaded with REAC shares from the drop,

Trout.

[colp54] 22/1/2014 10:25

trout

Sadly FD don't do anything as helpful as that. I keep meaning to switch but haven't got around to it yet.

[troutisout] 22/1/2014 10:17

colp54,
My Barclays is execution only, but if you place an online limit order they will call if they have a part deal or different price and then you can instruct them to work or deal on your behalf and if the order was placed online they only charge an online fee, not a telephone one.

Trout.

[ryan83] 22/1/2014 10:13

At 40p, that is only 0.8p old money, the level at which the shares traded pre consolidation (50-1).

[ryan83] 22/1/2014 10:11

I had an e/o account with sharedeal active, never use them anymore. Only reason why its still open is that they hold my suspended now valueless MDC shares lol

[colp54] 22/1/2014 10:05

trout,I'm with first direct, unfortunately. It's an execution only service and they don't shop around - or do AIM ISAs...

[troutisout] 22/1/2014 09:57

ryan,
I though so, especially at lower prices, I also have a good idea of where most of the buys went during that period which is good, as I would prefer to see them held for a while.

Trout.

[troutisout] 22/1/2014 09:56

Colp54,

Who are you with? Barclays managed to get me 10k yesterday quite quickly and the day before 10k of a 25k order (I had held back the other 25k part of my order). They have been offering what seemed at the time, ridiculous prices, but the price has soon moved up to those prices. When I had the 25k order at 27p, they offered me all at 29p or 10k at 27p and work the rest, I took 10k and asked them to work the rest, when I went back later they wanted 35p for the remaining 15k. Certainly can't buy at 29p and doubt I could get 15k at 35p now, so take it when it is offered.

Trout.

[ryan83] 22/1/2014 09:51

trout the drop has been on very small volume.

[colp54] 22/1/2014 09:49

... and number 2 on the leader board - the good one!

[troutisout] 22/1/2014 09:48

Well I am glad the charts are fixed for the rise.

Ryan, I said 3 to 4 weeks.......

Well I can't get any at the moment but will try again shortly, the MMs seem to be extremely short of stock, which surprises me, but perhaps that drop wasn't on much selling and this has left them having to react (do you see what I did there?) by reducing limits dramatically and moving the price up.

Trout.