React Share Discussion Threads

[dave4545] 08/2/2024 08:15

I took a small hit, think I can use the money to better short term elsewhere

[dave4545] 08/2/2024 07:20

Blimey is that 2 sellers with a combined 150 million shares to shift ?

That will take some clearing especially with these "value" type stocks struggling
to see great demand atm.

[davidosh] 08/2/2024 00:40

Mattjos.....You could not be further from the truth on that one.

Checkout the companies that came to the Mello London conference in November and look how well they have done since then...

Filtronic has almost doubled on very good announcements this year for example...that is not ramping.
Journeo....Is up 30%
Venture Life, Brave Bison, and Aeorema Communications to name just three more up significantly on very good results.

Most of the companies we help to engage have very high Stockopedia ratings and are nearly all consistently profitable

Why not watch a show rather than moan and btw tens of fund managers and wealth managers attend the shows so certainly not exclusive to individual investors.

[nobbygnome] 07/2/2024 20:58

II sales announced post market. Hmmmm…

[mattjos] 07/2/2024 19:21

that will absolutely seal its fate. Mello is just a forum to suck in retail investors to duff stocks

[davidosh] 07/2/2024 14:01

React will be presenting and the new FD will be available for questions on the Mello Monday show on the 26th February. There is also a show next on the 19th February

[dave4545] 07/2/2024 12:54

pays ya money take your chances

got 250k here so around mid price to buy

[yump] 07/2/2024 11:39

O/T
“but it's an Indian company listed in the UK - why?” Exactly !

I don’t think I’ve ever bought any overseas businesses listing here and had success, so stopped years ago.

[dave4545] 06/2/2024 21:11

Thanks Jaknife

[jaknife] 06/2/2024 20:50

I'm not a fan of OPG. Perhaps there's nothing wrong but it's an Indian company listed in the UK - why? What's wrong with listing in India?

I looked at it in Feb 2019 after it presented at ShareSoc, it was a StockRank of 96 then and seemed super value and yet the share price has tanked more than 50% since then.

I figure that it's a value trap but I've never looked closely at the accounts to work out why.

But in a bull market a rising tide lifts all boats!

[dave4545] 06/2/2024 20:34

Does OPG give any red flags to you ?

I do not mind your opinion either if negative, for me it looks too good to be true
so your view would be welcome if you know the stock

[jaknife] 06/2/2024 20:31

I like React FWIW. My conviction long is Renold (RNO).

[dave4545] 06/2/2024 20:28

Jaknife

Any real small caps you like, super tough out there atm and nobody is touching anything unless they are flying ?

[mattjos] 06/2/2024 20:12

Well more fool them for rolling over to HSBC in such a way and rather backs up my earlier comment re inadequate management.
Daft to have both facilities provided by one lender.
The new CFO should (on the face of his CV) know better and be able to do better but, CID is a sign of laziness and lack of attention to the detail.

Sorry, it's personal bugbear for me and always a massive red flag that means i will not invest with that in place.

[jaknife] 06/2/2024 19:55

Mattjos,

FWIW, the likes of HSBC insist on these sorts of arrangements so that they can perfect their security interest in the receivables. They want to be certain that, in a default scenario, all the cash is going to flow into a HSBC bank account that they can take control of.

JakNife

[mattjos] 06/2/2024 19:14

"The Group has plans underway to move its banking arrangements to a single platform provider, this should be completed by May 2024. This arrangement will be a replacement of existing banking arrangements and will include an invoice discount facility and the term loan on a comparable basis. This arrangement will provide greater day-to-day operational efficiency."

I have been keeping tabs on this for a while to try and see what Laurence Hulse sees in it .... just doesn't do it for me & certainly not now with I/Discounting and Debt going forward.
Some will argue that I/D is an assist for fast growth businesses but, I just see it as a Band Aid to mask inadequate management of Receivables & poor Cash Flow disciplines.

[yump] 06/2/2024 17:58

No I’m sitting on my hands as I think the current share price is “safe”, so taking my time. Possibly funds might buy a few more then share price might be better.

[jeanesy] 06/2/2024 17:15

I see a late printed trade of 4.575m at 1.35 . I am thinking that is a delayed sell from earlier on. Was that you yump ?

[jeanesy] 06/2/2024 17:09

5.7m buys v 800k sells and yet almost unchanged ?!

[yump] 06/2/2024 15:29

Rivaldo. I was after capital growth here but its going to grow via acqisitions and I’m done with wading through accounts to figure out if the business will actually make profits after exveptionals are removed.

Amortisation and depreciation are always accounted for separately from costs and so they should be.

Depreciation is straightforward, as equipment will need renewing at some point in the future, so it wpuld be misleading not to debit it as a seperate cost. As its a capital cost, not an overhead, its not appropriate to put it in admin costs.

Amortisation is depreciation on goodwill snd intangibles and its an opaque area, subject to a “reasonable221; valuation. If the business values them too highly, then at some point in the future, there will be an impairment charge because they will have been used to reduce statutory profits and therefore tax.

I’m afraid it doesn’t do it for me as a business now. I’m sticking to organic, non-aquisitive growth companies that may excite investors at some point. They’ve all been taken down in this market though.

[yump] 06/2/2024 15:15

Vikingben
I’m not that interested now.

[jeanesy] 06/2/2024 14:57

seems to be plenty of buys at cheaper and cheaper prices. Must be large sell orders not being shown.

[vikingben] 06/2/2024 14:43

yump, why don’t you ask that question next week at the presentation, let’s see what our new financial guy can come up with.
The brokers are still wanting more shares at the current level.
I think a or some very large buy orders are being worked.
We have on had the notification of 750000 added since our 2nd broker started, with well over 20 million shares having been sold with only the 1 announcement?

[rivaldo] 06/2/2024 14:38

REAT won't be a dividend stock for a while since it's going for capital growth, which is why I'm here as in two or three years I can see REAT being much, much bigger.

Depreciation and amortisation are usually included wholly or mostly in admin/operating expenses as the convenient bucket - they're not costs of sale.

No goodwill was amortised at all, and only 25% of the customer list c/f was amortised (see Note 4 re Intangible Assets).

[yump] 06/2/2024 12:20

I’m sick of AIM companies doing odd accounting thats at best opaque.

I have never seen amortisation included in admin costs. It is not an admin cost.

1/2 the revenue amortised in intangibles and goodwill seems a lot but it keeps tax down over several years. Presumably agreed with auditors as reasonable.

I’m selling at some point soon- not quite sure why I bought. It might become a big cleaning business cash cow, but I need to move into income stocks, or something that is more geared when growing revenue.

GLA.