Renewi Share Discussion Threads

[mathurin1] 24/1/2020 09:45

Renewi with the Amsterdam listing was mentioned by the Investors
Chronicle yesterday- first time I have seen Renewi mentioned by the UK press - hasn’t moved the share price!

[george stobbart] 23/1/2020 14:24

Renewi releases an RNS called "Director/PDMR Shareholding" within 24 hours

[kraakhelder] 23/1/2020 14:18

Just chipping in on the conversation. Where do you guys get information on the Directors purchasing shares?

[george stobbart] 22/1/2020 18:26

De Telegraaf (the largest dutch newspaper) has a positive review of renewi ahead of the listing next week.

hxxps://www.telegraaf.nl/financieel/181476498/aandelen-in-renewi-weggegooid-geld-of-niet?utm_source=t.co

We need more articles like these to attract dutch retail money and pump the price on the 30th Jan! We need a good retail/esg FOMO next Thursday!

[markjb49] 22/1/2020 13:33

I think we will see 50p by the next full set of results. PFAS is more about limits and substituting.

[mathurin1] 22/1/2020 13:06

Graphs- apart from a general consensus of being undervalued we also have our graphist friends seeing an early rise to 40p -why not on Jan 30 when listed at Amsterdam.
George then advocates selling but things will only get better by 2021- I will be happy at 60p.

[gregsc] 22/1/2020 12:56

I am a chemist and familiar with these compounds.
Per and polyfluoroalkyl compounds are inherently heat stable and non-reactive, and once they are in the environment it is almost impossible to remove them.
For example: non-stick coatings on cooking utensils and fry-pans that you use every day..

The only answer is not to put them there in the first place.

What I am saying is, all regulations would be in the supply and use of these compounds, not in their removal.

[markjb49] 22/1/2020 10:33

The regulatory issue could cause problems but ultimately that has an equal effect on competitors and creates barriers to entry. It also helps price increases. Renewi has stated it is cautious about the Dutch Construction Industry due to contamination. Let’s not forget these materials still need disposing of or recycling. Four EU countries are pushing hard for PFAS restrictions and it’s not something that is new. They presented to the EU council in December to restrict all per- and polyfluoroalkyl substances (PFAS), except for uses of the chemicals deemed essential.

Any confirmed takeover interest would see the share price rocket and would be mostly likely closer to £1 than 30p.

This is a good read on PFAS

hxxps://cen.acs.org/environment/persistent-pollutants/EU-countries-propose-restrictions-PFAS/97/web/2019/12

[george stobbart] 22/1/2020 10:07

Not feeling more positive, because even a takeover would be an external event rather than organic improvement.

What worries me is not the ELWA 25.5mn write-down but the new PFAS regulatory issue.

PFAS could create more regulatory blocks for the next 2-3 years (given how stringent the Dutch regulator is). PFAS could become a bigger problem than the TCG saga (ATM) because is affects the biggest revenue-generating part of Renewi, the Dutch Commercial Division.

[markjb49] 22/1/2020 09:56

You feeling a bit more positive about the company George? Renewi is so well positioned - everyday there is some major story about recycling or the environment. This week we had 42 containers of plastic being returned to UK...... the world has problems and Renewi has solutions.

[george stobbart] 22/1/2020 09:33

Rabobank-Kepler Cheuvreux who are the Dutch listing agent of Renewi believe that Renewi could soon become a takeover target.

"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 was 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 have recently divested 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. We think these sales will be well received and further increase the likelihood of the company itself being bought."

[markjb49] 21/1/2020 23:03

Even given the news this week I think the stock is still a bargain and will gradually creep up over next 18 months. I sold half my holding off at 36-36.5p and have been buying them back last two days. 37p was always seen as a point of resistance and there is a good chance the market was looking to pull this back a little - add some justification to those graphs!! I am quite happy to sit on a stock that is going to show a nice slow and steady rise for the next couple of years.

[mathurin1] 21/1/2020 20:48

Please let us all remember this fact - the projected PE ratio in 2021 for Renewi
is 8.4 whilst the Waste Management sector ( USA ) is 18.4 for this year.Apart from this fact I can glean nothing from recent figures which allows me to justify the Peel Hunt
figure of 50p.
But as an institutional Pension Fund buy it does seem to tick certain boxes - it may be boring but I don't think it's going to lose anyone's money at this price ( 35p).And it's
so so repectable.

[cwilmot1] 21/1/2020 10:48

It has been very frustrating with this stock thinking that the future will be bright soon... The 25.5 Mil Euro exceptional charge was another hit, but I understand the co is expecting 40 million Euro efficiency savings from the merger for the next tax year, and that they were loosing 3 million a month through the suspension of ATM (which looks like it will be highly profitable from the summer as the new markets develop). IMHO the directors maybe down playing the future prospects a bit with a plan give good new prior to a fund raising on Euronext to pay down debt later in the year?

[theolonghair] 20/1/2020 20:57

hxxps://www.iex.nl/Nieuws/ANP-200120-106/Afvalverwerker-Renewi-zet-stap-richting-Damrak.aspx

To amsterdam AEX €0,41 / 35.00 GBX SO SOON.

[wad collector] 20/1/2020 17:30

At least it is back where it started 2019.

[taximania] 20/1/2020 17:11

Certainly feels like a disaster stock , all that waiting for ATM to be sorted ..smooth sailing from there we thought and just a few weeks later they throw this at us ...two businesses sold and leverage still going to be 3x , it doesn't make much money as it is and they still keep finding ways to lose more money .

[outsizeclothes.com] 20/1/2020 14:44

You've also got a 1.45p {++ next year now that ATM's running] divvy coming down the line.
Having first called this right as a kitchen-sinking exercise at 23.3 ( posts 681, 682 & 712 )I still see 50p this year, and a possible 75p+ next.

[outsizeclothes.com] 20/1/2020 14:32

I'm happy enough with what I read. You can't account for new taxes coming out of left field. But in the context of maybe £70m earnings, £25m (over 4 years) is manageable.
The 50k buy just now @ 35.148 is mine in an ISA

[george stobbart] 20/1/2020 11:27

No it is a disaster company. Always something new comes up, we had the ATM and sinfin issues for years.

Now it seems we will be having the ELWA write-downs and Dutch recyclate slowdown for next couple of years.

I will wait for the dead cat bounce pre- and during Euronext listing to sell (29 Jan to 7 Feb).

Good luck all

[warranty] 20/1/2020 11:01

Ha ha not a disaster company George, just another buying opportunity. Sadly no company can anticipate government legislation but at least knock backs allow long termers to buy more for less. It will come good, just not as soon as we anticipated. ;-)

[george stobbart] 20/1/2020 10:03

such a disaster stock..never fails to disappoint

[wad collector] 20/1/2020 09:45

The share price drop suggests that perhaps the update was not "in line" with market expectations..

[taximania] 20/1/2020 09:31

They found yet another way to lose money , I give up !