Renewi Share Discussion Threads

[dplewis1] 16/8/2022 11:13

Every time I look at the red number on my 2022 spreadsheet I thank RWI for making it a lot less painful..!

[its the oxman] 16/8/2022 10:31

Within site of 52 week high at 855p. Reckon 900p soon. Bit of momentum building.

[outsizeclothes.com] 10/8/2022 18:19

Lol Wad, I'll give you a thumbs up for that !

[wad collector] 10/8/2022 12:07

78.7% of statistics are made up!

[outsizeclothes.com] 10/8/2022 10:33

Hi Wad,
Having been classed as a "sophisticated investor" [US term] for almost 35 years now, and having been in at least 4 'operations' rooms of 4 different brokerages in that time, I've talked to analysts and saw what they were doing.
Analysts and brokers really ARE a herd - One leads, and the rest look for a reason to follow. Charts are usually part of that reason.

[wad collector] 09/8/2022 21:59

Can I ask if you have any evidence to support B ?

[outsizeclothes.com] 09/8/2022 21:11

2092, 2098, 2100
820 resistance is now to be overcome, but the inverted wedge target is still 850/860.
I have learned to follow charts for 2 reasons
A] History HAS a habit of repeating itself.
B] 80% of the City are looking at, and following charts too

[its the oxman] 09/8/2022 15:37

Remains well undervalued here.

[wad collector] 09/8/2022 15:17

Bit like Sparticus then!
I will count your Bs in future to decide on your mood...

[george stobbart] 09/8/2022 09:53

Same person, one for serious talk one for meme trolling

[wad collector] 09/8/2022 08:51

I'm confused, are there two George Stob/barts? Is this hero worship or stalking?

[gregsc] 08/8/2022 17:23

If private equity pays anywhere near that, I'm coming too.

[george stobbart] 08/8/2022 17:08

Takeover bid today for Suez UK at 17x EBITDA by Macquarie.

‘The sale proceeds of €2.4 billion represent an attractive valuation of 16.9 times 2021 normalized EBITDA.’

Renewi trades at ~5.2x. If private equity pays 17x, I’m throwing a party at Ritz hotel

[count dis] 08/8/2022 17:07

Veolia sold Suez's UK waste business to Macquarie for €2.4bn.

The sale proceeds of €2.4 billion represent an attractive valuation of 16.9 times 2021 normalized EBITDA.

Renewi trades around 4.5 times EV/EBITDA . . .

www.veolia.com/en/our-media/newsroom/...

[wad collector] 08/8/2022 16:04

Funny to think this was £28 15 yrs ago. Hate to think what that is now with RPI.

[george stobart] 27/7/2022 09:49

Dutch Gas prices up +100% since Renewi's year end (Mar-22).

Renewi told us they are fully hedged for fuel/electricity costs this year but in revenue terms there's a positive correlation with recyclate prices

[george stobart] 19/7/2022 11:54

this one creeping up towards 8 quid with an ok-ish RNS

also positive year to date return so far (31 Dec 21 price 757p) against most equity indices deep in the red

let's see if this one has any legs to go above £8

[theolonghair] 18/7/2022 14:04

Dont have much tho complain,
I don't miss the dividend right now.
The price gain is catching up which
for me will do for now.
Although some will look at it from a different stand point.

I've seen a lot of websites cover Renewi and valuation ranges between
(€ 10,90 / GBX 922) to
(€ 12.40 / GBX 1049)at most.
[Respectively LSE & EAM]

Back in 2017 it was to be expected
after the fusion business costs a load of money. Now 5 years later it is, dare I say peeling the first layers of recovery?

Reducing debt in my view has opened a lot of doors for Renewi, and therefore also benefits the shareholders future return.

If I had to choose between a dividend or another debt reduction I'd take the latter.

In 2018 debt was about € 629.300M.
Equity € 436.300 M.

In 2021 March debt was € 438.300M
Equity € 338.200 M.

If they could pull it off to reduce it another at least € 150.000 M, I'm pretty convinced that would benefit a shareholder more than a dividend right now.

[dplewis1] 14/7/2022 07:45

Trading in line rather than beating expectations this time. I'm almost a bit disappointed..

[rolo7] 08/7/2022 08:02

this has a chance of fste 250 entry in september needs 700+million market cap but it looks like the funds are already buying.

[outsizeclothes.com] 07/7/2022 16:22

I'll get a divvy yet !!! ;-)

[george stobart] 07/7/2022 13:29

someone's buying ahead of the 14th July trading update RNS & AGM? I was expecting it to boringly trade range bound ahead of the RNS

Also someone has pre-submitted a question ahead of the AGM. From Renewi's document:

Q1: Future intentions in relation to dividend policy?

A1: Recognising the Group’s significant growth investment programme and the resultant cash flow profile in the short term, the Board is not recommending a dividend for FY22; however, it will keep the Group’s dividend policy under review for FY23.


FY23 is year ending Mar-23 so current FY

[gregsc] 06/7/2022 11:06

My thoughts exactly George.
RWI's future lies in Europe not UK.

[george stobart] 06/7/2022 09:59

Well researched article, involving speculation that Renewi might be after the £1bn 'orphan' UK waste assets that the UK CMA is forcing Veolia to sell.


hxxps://www.letsrecycle.com/news/large-uk-waste-firm-wants-to-buy-suez-from-veolia/


It would be a suicide mission if RWI got involved because:

i) RWI moved out of the UK to be more active in the highest circular economies in Europe (Benelux). Buying back UK assets would be a U-turn.

ii) RWI doesn't have the money to execute £1bn transaction - they would need both equity and debt. Shareholders will be furious if RWI raised equity at 5x EBITDA currently to buy assets >10x

iii) Post significant deleveraging in recent years, top spending priority should be completing investment growth CAPEX programme + restarting the dividend. Why do now massive M&A?