Renewi Share Discussion Threads

[taximania] 05/2/2019 17:32

buyers all day, solid till 4.28 ...usual pre close action .

[sunnybeachboy] 05/2/2019 16:44

Close 24.5pOnce that large seller clears this moves up.

[dplewis1] 05/2/2019 16:35

Not sure how you know dark pool activity.. it's called dark for a reason so it's not printed for all to see. There are lots of SI trades going through but not sure that's an indicator either. I do agree there's a large seller though - volume is high and the price is going down!

[sunnybeachboy] 05/2/2019 16:28

750,000@25.04 buy...

[pugugly] 05/2/2019 16:14

Dark pool in operation - So lots of hidden activity - You have been advised. Looks as though (imo) major unloads still going on in the dark

[sunnybeachboy] 05/2/2019 11:12

Thank you for the reply. Much appreciated

[george stobbart] 05/2/2019 11:10

Not agreed but management has highlighted that they are open to M&A and their competitor Attero was recently acquired as well. A lot of PE and Chinese money is circling the waste Benelux sector.

Neptune (one of largest shareholders released last month this commentary that highlights that takeover is within the investment thesis.

31/12/2018

“Another major detractor to performance was Renewi due to lower than expected results for the first half of the year. This was due to increased disposal costs due to a lack of incineration capacity and other outlets over the summer, lower recycling pricing, mainly on paper and plastics, related to the Chinese ban on polluted waste which has increased supply in Europe and ATM’s slowdown in production as a result of regulatory investigation. Other key detractors included Circassia, RPS Group and Devro.

The acquisition of Van Gansewinkel in 2016 should give Renewi further pricing power, and management confirmed this to us at our recent meeting. Whilst there is a delay to passing on price increases, those increases are being implemented and management are confident they will stick. This is a large part of the reason for our continued confidence in the company, as well as the long-term structural drivers around recycling growth to which Renewi is well exposed. In addition, management are in the process of divesting two sizeable assets (one in the Netherlands, Reym, and one in Canada) which will refocus the business, reduce debt and potentially increase the group’s strategic value to acquirers of Renewi. We expect progress to be announced regarding these disposals within a couple of months.”

[sunnybeachboy] 05/2/2019 10:53

Has a sale be agreed?Are they in talks with anyone to sell ?

[george stobbart] 05/2/2019 10:46

that fact that this is cheap doesn't mean it can't go lower.

Definitely someone is manip the price with these penny trades but I wouldn't sell it or flip it.

Once the announcement comes in you will be doubling or tripling your money that week

[sunnybeachboy] 05/2/2019 10:30

Double bottom

[sunnybeachboy] 05/2/2019 10:29

Was that a double double today 42p target within 1 month.

[sunnybeachboy] 05/2/2019 09:26

Someone or something is hella bent on dragging this down with the tiny sells.Stick with 42p target in 1 month.

[george stobbart] 05/2/2019 07:50

It would be crazy it stock trades like a penny stock. Just look at the numbers:

Current mcap = 228m EUR

They closed 30 Sep 18 with:

105m EUR Cash
+68m EUR Operating Cash flow
+288m EUR receivables

And the potential sale of Canadian + Reym would bring

+140m EUR

So effectively the current market justifies less than the current amount of liquid resources!!

The dividend for FY19 is fully covered by cash earnings by c. 180% (EPS 5.5 / 3.05 Div)
Net Debt Payments are fully covered 389% (EBIT 44.8 / 11.5 Net Interest for H1) so no issues with debt.

At this market cap you buying a company for less than free as it trades at a discount to its cash resources!!!

Effectively you are getting paid to own for free its municipal, commercial and hazardous assets!

[sunnybeachboy] 05/2/2019 07:35

Director buy. Will be adding again today.

[george stobbart] 05/2/2019 07:02

Management & Board scooped some shares yesterday @25p

[george stobbart] 05/2/2019 07:01

Selling the UK municipal business is almost impossible, even though the management would loved to. But I guess everything has a price and they could sell it even at a discount to book.

The UK muni for now is a very very very hard sell - it has already been impaired and ring-fenced for the next 15 years because of the Chinese RDF issue.

Surprisingly any brexit risk comes from the commercial & hazardous Dutch businesses - they import c. 7-8% of their volume from the UK but this is seasonal and varies. Any hard brexit disruptions could affect this business. Also currency risk as well because it trades in GBP, reports in EUR.

[cyfran101] 04/2/2019 23:29

Reporting in euros, entering Euronext and new dutch Ceo. Whats the likelihood, with high debt, brexit and the canadian business sold that Renewi flogs the uk municipal side so they are purely Benelux. The could then "focus and grow" there.

[george stobbart] 04/2/2019 22:29

It's not only one seller possibly. Street suggests three scenarios:

1)UK ETFs and Mid/Smcap funds keep winding positions because RWI exited the FTSE250 a few months back

2) Home Bias: RWI / Shanks was previously held by domestic funds that wanted exposure to UK Infrastructure. But RWI has exited the UK as a core market, has changed the reporting currency to EUR and plans secondary listing on Euronext. Next step perhaps is moving the legal seat from Milton Keynes to Amsterdam. Some home biased UK funds would rather own domestic infra stocks (HICL, INPP etc) rather than Dutch

3) Cross Ocean Partners (4th largest shareholder) has been historically a credit investor and was forced to hold RWI equity after the merger. COP and the affiliates might have started trimming positions

[sunnybeachboy] 04/2/2019 22:00

Just read the whole year of the posts. Investors were happy buying this in the 70s 60s 50s 40s 30s and now 20s.Unbelievable the drop here must be a large seller just waiting for the TR1. As soon as seller out this booms.Remember the weigh scales large seller on one side.... once the seller of the scales this booms!

[sunnybeachboy] 04/2/2019 21:26

Happy with my 1st buy.Will double up on weakness.

[taximania] 04/2/2019 16:47

Doesn't really matter.. If you are going to be a holder you have to share the pain like the rest of us.. Up a little.. Up a little... Oops down a lot.. And so it goes ?

[sunnybeachboy] 04/2/2019 16:41

Trade 750,000@25pBuy or sell ?

[sunnybeachboy] 04/2/2019 16:07

Just added another 10000 to the bid

[taximania] 04/2/2019 15:50

Any brexit issues George? Will it help maybe having a base over there?