Redhall Share Discussion Threads

[dangersimpson2] 06/5/2019 19:48

Normally I’d be wary of a company with low margins and debt, but Downing are not going to let this go into admin. Situations where the equity is priced as an option due to debt levels but the debt is backstopped can generate large gains, not without risk but it’s the presence of supportive larger shareholders that makes this an interesting play.

[tomboyb] 06/5/2019 19:41

Sorry to hear that Pug -

We'll see what transpires as downing clearly looking for a possible sale from this historic low -

[pugugly] 06/5/2019 19:07

Why buy the coy when you can pick up the bits you want from the receiver and leave all the costly baggage behind - agreed with charco - Got put into this dog by a broker who is no longer used!!

[tomboyb] 06/5/2019 18:12

No -

I think it could get quite interesting here -

Looking at the holdings in the company i suspect they would be looking at a share price 3x-4x for a takeout -

But we will see -

[charo] 05/5/2019 22:47

More likely admin.Such companies need large cash reserves and balls to tell customers what real cost is.
Too often low ball to win contracts hoping extras will save them .Just stupid contract management on both sides.

[nico115] 05/5/2019 21:08

I bought in at 10p and averaged at 1.1755p I will be delighted with A great acquisition for someone

[tomboyb] 05/5/2019 18:11

Last placing was at 10p and where debt was converted into equity -

So it will be v interesting to see what level a possible acquirer will take the company -

Downing clearly have an idea -

We are of the view that a potential acquirer will value the toe-hold that Redhall provides into UK nuclear and infrastructure.

[tomboyb] 05/5/2019 16:17

Thank you for that Danger Simpson -

It does now look like Downing will look for an exit strategy -

4x current price to around 5-6p may well be possible considering -

That will still be way below the last 10p placing -

[dangersimpson2] 05/5/2019 00:16

Downing likley to be pushing for a sale of the busness at somepoint:

Redhall has made progress in growing its order book, although it has been slow on both delivery and execution of it. Frustratingly, contract delays have consequently had an impact on working capital. Given these are large infrastructure projects, such as Crossrail and Hinckley Point C, and are often subject to delays, there was an inevitable knock on effect to Redhall. Ultimately, you would want this type of contracting business to have sufficient regular smaller business to weather the bumps, however this has not been the case. Although we now have a team that is more focused on engineering efficiency and best practice than ever before, there is still a lot of work to do. We cannot dispute the fact that Redhall either needs to be part of something larger or gain critical mass itself.

We are of the view that a potential acquirer will value the toe-hold that Redhall provides into UK nuclear and infrastructure.

Our strategic position of 22.9% across Downing client funds, has been accompanied by a £700,000 loan to the company, carrying a 12.5% redemption premium for its eight-month term. This allows us the influence and investor rights to ensure the correct corporate activity is followed.

[tomboyb] 03/5/2019 09:26

Ruffer buys another percent this could be above 2p -

9.5p to 1.3p in one year -

Looks to me like a t/o possibility -

[tomboyb] 02/5/2019 17:42

Ruffer have been buying up stock to 13% -

I was in a stock a good years back and was 1p and completely written off -

Within one day it was taken out at 6p a share -

You never know -

I'll try and remember the name of that stock ( long while ago but reminds me of a similar situation with RHL) -

[red army] 02/5/2019 17:32

Very risky to buy outright.

[tomboyb] 02/5/2019 16:22

I wonder whether someone will make an offer for RHL -

Last time noted was at 8p and last placing was 10p -

[tomboyb] 02/5/2019 12:23

I initially saw RHL around the 8p mark so surprised to see this at these levels -

I do think that selling has stopped at these levels and it looks like this could be in for a move up -

But dyor -

[tomboyb] 02/5/2019 08:20

Ruffer have been buying stock -

Up to 14% so lets see if they will keep on buying at all time lows -

[danny baker] 01/5/2019 10:55

Woof woof again from Redhall. At some stage the big holders have to sort this out. To think the last placing at 10p was at a premium to the market price and was over-subscribed. I think with progress at Hinkley C this could bounce hard and fast but we may have to be patient. Lombard Odier have just bought a big stake in IOG. I hope they don't curse that one as well.

[maroni tony] 01/5/2019 10:52

I've made costly mistakes in years gone by, but fortunately not here. I confess to waiting on the side lines with this at 4p, planning to jump in upon change in sentiment. What to think now ? do I buy at this low rate, or forget this completely ?

[pejaten] 01/5/2019 09:37

I agree, the whole strategy seemed logical and with institutional backing as well . Just too many disappointments. Hope you have better luck elsewhere

[leading] 01/5/2019 09:08

Better hold my hand up. This is now a ten bagger for me, just in the wrong direction.

Plenty of lessons to learn. In particular, keep stakes in tiddlers relatively small and beware of turnaround stories. The words were good and the strategy looked sensible, but not able to execute.

Currently my worst ever loss, so please don't gloat.

No point selling now. However, if there ever is a recovery in trading, the company will be back to the market like a shot for more money. That will be a tricky decision.

[charo] 01/5/2019 09:04

Another downing mess.

[arthur_lame_stocks] 01/5/2019 08:21

The management take £1.2m a year out of this business and what do they deliver?

[value viper] 01/5/2019 08:16

Ouch - this is a sad state of affairs now

[escapetohome] 01/5/2019 08:06

De-leveraged and better focused now on higher margin business.
Engineering and contracting exposure down and a new management team delivering on a strategic recovery plan.

Oh dear management , is the CON struction industry the vehicle for your talent?

[nico115] 01/5/2019 08:05

Yup still in : (Surprised by today's RNS as only 6 weeks ago they were so upbeat Even today's they try to beCan't they just be more honest Or are they trying to sell themselves to a bigger outfit ?Hey ho my 1.175 purchase not looking so sweet today : (

[escapetohome] 01/5/2019 08:03

Not another CON struction company, profit warning? Lets hope they dont follow other CON struction ‘leaders’; , very poor management , being honest about it.