Renewi Share Discussion Threads

[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?

[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.