Renewi Share Discussion Threads

[sunnybeachboy] 04/2/2019 15:42

Bid 25.35Ask 25.55p

[george stobbart] 04/2/2019 15:36

You just doubled or tripled you money!

- Fully covered dividend by cash earnings (FY19 Cash EPS = est 5.5 / Dividend = 3.65p.) with scope for further div growth
- Low and declining debt, much lower than international peers
- Sale of Canadian and Reym business upcoming in the few weeks at c. 140mn EUR (more than half of the current market cap)
- Pure play in the growing Benelux waste market exclusively with limited exposure to the toxic UK PFI market
- Takeover of company looks imminent once they clear out the Canadian / Reym outliers

[sunnybeachboy] 04/2/2019 15:24

Another 10,000@25p thank you.

[sunnybeachboy] 04/2/2019 14:37

Taken 50,000@25.19p average price.

[taximania] 02/2/2019 20:57

Article in todays paper talking about the potential chaos for recycling co's if no del brexit goes ahead.

[taximania] 01/2/2019 15:29

Let's call it a gamble that may turn into an investment)

[wad collector] 01/2/2019 14:13

I just added at 25p but view it as a gamble not an investment.

[sirrux] 01/2/2019 09:16

Clearly unloved, clearly the leadership need to grab the bull by the horns. At what price does this become a no-brainer?

[wad collector] 31/1/2019 10:06

There still seems a disconnect between the share price and the board statements. Is this a screaming buy or are we being laughed at by a board that know the company is going down the tubes but hiding it?
Hope it is the former.

[salpara111] 31/1/2019 10:00

Their debt pile is unsustainable.
I guess the divi will have to go, whether they will require an emergency fundraise as well is up for debate.

[dplewis1] 30/1/2019 16:30

Frustrating. Someone selling into the strength.

[sirrux] 30/1/2019 13:48

Yes, and I like what they did on PFI still possibly more to recover there. That could be why the council don't want the public to know but really the council need to recover from the funding side of those deals if they lost out and they'll need to talk to the government about that as most of that money will be offshore. I really hope the BBC do their job and Renewi can get back to focussing on building a sustainable business!

[taximania] 30/1/2019 11:41

Good is that its not bad R2 :-)
Would have been easy to kitchen sink it after the 70% fall in the share price and upcoming change in management, ive long since given up on trying to make short term money but a 10% yeild and that reassurance make it worth a punt imo.

[robsy2] 30/1/2019 11:20

I not sure about good. In terms of profits, they said;

Given our continued expectation of a strong fourth quarter performance, the Board remains confident that Renewi will deliver full year results in line with its expectations as set out with the Half Year Results in November 2018.


The thing is I've had a look at the november update and I can't see what their expectations were.

It does involve 3m a month less profit from RWI but I don't see the figures. I'll wait until the brokers update, but yes it looks quite positive which is something of a relief for me. Having looked at it for months I bought in without waiting for any upside momentum thereby breaking my own falling knive rule. I've been ivesting for a long time now but the blood still rushes to the head from time to time.
We're not out of the woods yet and the divi looks incongruous but yes it looks like the fundamentals are more positive than the sentiment. That's what I'm backing anyway.
R2

[taximania] 30/1/2019 11:09

im back in.

[taximania] 30/1/2019 10:15

So we have a share with a 10% divi and a statement saying trading is all good ...time to reload for me...quite surprised it hasn't bounced much higher but im happy to buy and hold for the dividends,28.82 to buy seems low :-)

[dplewis1] 30/1/2019 07:39

Pug they have stated that for quite a while, so it's not new news. Their financial year is 31st of March so only 2 months which doesn't seem too long to wait.

[robsy2] 30/1/2019 07:37

dplewis1 . me neither,so this is not a RWI specific problem. This will be resolved and the physical backlog cleared at higher margins. I am encouraged by this update.
R2

[dplewis1] 30/1/2019 07:27

No nasties in there. I actually didn't realise the contaminated soil ban was across the whole of the country, I thought it was just the ATM plant. Long way to go to get to my average but at least it shouldn't drop today!

[pugugly] 30/1/2019 07:19

agreed but still some way to go - ATM progress will be the key BUT still (apparently a lot of negotiations still to be undertaken) - "we do not expect to resume full production this financial year and a further update will be provided no later than the end of March."

[sirrux] 30/1/2019 07:13

Well according to the RNS today we have nothing to worry about. They believe they are in the right on all issues (as far as market moving issues go, implied by what they left out of the announcement) and just need to navigate the waters. This can be a dirty business but Renewi seem to want to be doing right and if they get that right the prospects will be a lot better than they look right now. Hopefully the treasure will reveal itself not too long from now.

[george stobbart] 30/1/2019 07:13

Key takeaways

- No issues with leverage, remains very low. On track to drop even lower to 2x.
- Strong cash generation will increase dividend coverage, on track to raise the dividend by FY2020
- Full year profits will be achieved INCLUSIVE of the £3mn monthly loss from ATM. This is a huge positive profit statement. ATM was a small drag in profitability overall.
- No mention on UK PFIs because they are irrelevant anymore as the company is not focusing on the UK as a core market
- Significant demand for the Canadian and Reym business from potential buyers

Enjoy your profits going forward gents!

[taximania] 29/1/2019 17:37

I would have said the soil is the issue, when you merge like that and then find out you are losing 3m a month in profits it doesn't inspire confidence ...that oncoming update will make things clearer, share price suggests lower profits and maybe a suspension of the divi imo but i hope not...if the update is solid easy to see a near 100% rise but would rather invest more after the facts are clearer.

[gnawe] 29/1/2019 12:30

Thanks Sirrux, makes more sense.