Renewi Share Discussion Threads

[george stobbart] 10/11/2020 16:29

all the previous sells during the past 2 years were just for paying taxes and top mgmt (CFO, CEO, COO) have been significantly net buyers overall.

that sell today from this guy was bizarre to say at least

[gnawe] 10/11/2020 16:15

I am out completely. Fed up with this continual selling by directors at such low prices. Either they know something or they are money grabbing idiots.

[scepticalinvestor] 10/11/2020 14:42

lol yes truly unbelievableshouts out that they really dont give a toss abt anything but their own personal gain.v. bad form

[gnawe] 10/11/2020 13:54

So why does a director sell 40,000 shares. Unbelievable.

[gregsc] 10/11/2020 13:27

Anything over 29p would be very much appreciated.
I note that nearly 16M shares traded today so far in London, and over 1M in Amsterdam.

[spypat] 10/11/2020 12:48

A bit of TA before today's results...

Renewi PLC forms bullish "Diamond Bottom" chart pattern
Nov 09, 2020

Trading Central has detected a "Diamond Bottom" chart pattern formed on Renewi PLC (RWI:LSE). This bullish signal indicates that the stock price may rise from the close of 24.65 to the range of 34.00 - 37.00. The pattern formed over 170 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.

hxxps://site.recognia.com/recognia_news/serve.shtml?page=event&eid=UKvyWmAAQ4bwA9gABAACAAAD6CZg&lang=en

[outsizeclothes.com] 10/11/2020 11:42

A slow burner, but definitely the fuse is lit.
I can see a full year divvy again, unless there's such a degree of lockdown that they are forced to furlough workers.
1p ???

[mathurin1] 10/11/2020 08:10

George - your insights are greatly appreciated-

[sirrux] 10/11/2020 07:52

Beige gold!

[pugugly] 10/11/2020 07:31

"Full year outlook: the Board now anticipates a performance materially ahead of previous expectations"

[scepticalinvestor] 10/11/2020 07:26

not bad at all

[dplewis1] 10/11/2020 07:08

Look good as expected. Net debt/ebitda really coming down at 2.69. Ripe for a PE firm to stick a ton of leveraged loans on there ;)

[george stobbart] 09/11/2020 18:21

The main objective of any PE takeover is to make money. Also, remember that the Benelux business core of RWI was previous held by CVC and KKR until they merged with Shanks to form Renewi, So most of RWI's core assets are well known to big PEs.

Effectively buying RWI at a low multiple, refinancing their debt and then adding more leverage to hit 10-15% IRRs over the medium term until they exit their investment.

Also, there is recently massive activity in PE takeovers of eco friendly infrastructure assets (renewables & recycling) in order for PEs to "improve" their sustainability profile.

So my rationale is based on:

i) low multiple, high potential IRRs based on basic LBO maths
ii) ESG attractiveness

[mathurin1] 09/11/2020 17:43

George S - I am interested at your hope that a takeover is conceivable - what would be the objective of a private equity group to buy Renewi -
is current management at fault or do you see other areas to improve the business ?

[dplewis1] 09/11/2020 15:20

Not sure it's up 13% because of that though. Everyone has gone mad

[pdosullivan] 09/11/2020 15:09

H1 results are due out tomorrow.

[george stobbart] 09/11/2020 12:36

rallying up on vaccine news even though covid had so far limited impact on the group with waste volumes already recovering to 96% and debt continuing to reduce.

whatever

[gregsc] 09/11/2020 10:37

Several articles recently highlight advantages of investing in ESG stocks, but this hasn't moved the undervalued RWI share price yet. It's got to come eventually.

[george stobbart] 09/11/2020 09:48

let's see what's in store tomorrow

[scepticalinvestor] 06/11/2020 12:40

Can't buy at offer in large chunksMin for 100k shares is 22.2p currently

[gregsc] 06/11/2020 10:32

Agreed George. I'm still holding.
Just compared RWI to BIFF, and it looks like a bargain in spite of the debt.

[george stobbart] 06/11/2020 09:50

yep takeovers in UK shares seem to have been picking up during the past weeks with nice premiums.

RSA takeover bid yesterday and this morning UANC.

Whilst frustrating to see RWI trading as a penny stock and losing all these 30% rallies within a matter of weeks, the possibility of a takeover remains high.

I've stop taking profits on these short-term RWI rallies even though I believe it could drift lower absence of interest. Because a takeover bid could come here as well at 40-50p+ and rational thing is to hold.

[dplewis1] 06/11/2020 08:52

Yep this is still just too cheap imo. Has ESG coming out of its ears and forward looking PE is way below industry median. Add to that a Biden win and people looking for green investment this is ripe for an LBO

[scepticalinvestor] 06/11/2020 07:46

No worries! Fingers crossed all is well - can easily hit the 40's again this year if so