Rm Share Discussion Threads

[wigwammer] 07/9/2022 15:13

I agree Tom. Given they have only recently waived covenant restrictions then you would think so. Could be something out of leftfield that has hit them - accounting issue or the like. Who knows at this stage - management remain mute.

[wigwammer] 07/9/2022 15:10

Apols Tom. Prior post meant for essential investor and his "dark irony" (think we may have a hannibal lecter wannabe!)

[wigwammer] 07/9/2022 15:08

This board isn't about me. Do you have anything to add about RM?

[tomboyb] 07/9/2022 15:07

I get those points Wig, the issues are going to be about future trading -

Big revolving facility, and banks remain supportive One expects? -

Online can buy 600k for £198k grand but at 28p -

[essentialinvestor] 07/9/2022 15:00

Are your posts intended as dark irony?.

[wigwammer] 07/9/2022 14:59

Perhaps they are planning a cash raise.. but 1) no intimation they needed to raise in the report from just a few weeks ago.. 2) the large holders like sanford and blackrock would likely know about it, and thus be barred from selling.

[wigwammer] 07/9/2022 14:57

40m debt with a 70m facility... it doesn't sound that bad. Yes it's gone up because they've had to invest, but arguably the company was undergeared previously with almost no debt at all. Pension equation has materially swung in their favour, not that the market cares two hoots about that while it's in voting mode.

[tomboyb] 07/9/2022 14:55

The problem is no one is in a rush to buy themselves -

Net debt above £40million so its going to be a brave one here -

[wigwammer] 07/9/2022 14:51

I think blackrock may have exited after the rout last month, and the problem is sanford de land want to sell their 11% apparently at any price! But there are no takers at that volume. Surely it is the role of management - and the MM's they employ - to find a happy home for that 11% ... they clearly aren't marketing the story and/or convincing anyone, nor have they bought shares themselves... Very poor.

[tomboyb] 07/9/2022 14:32

for £300k -

I think the debt levels here are one to consider -

And a few are exiting here -

[tomboyb] 07/9/2022 14:29

1 million shares available at 29.87p -

[empirestate] 07/9/2022 14:25

OMG, What's the story?

[wigwammer] 07/9/2022 13:27

Wow. Incredible fall. Must be something leaking?

[wigwammer] 05/9/2022 08:13

Chief Executive Officer, Neil Martin, was paid £628k by RM last year, yet he had not made a single share purchase in the business since the stock plummeted last month. Given the absolute farce going on, the least he could do is put some of that money where his mouth is. IMO

[wigwammer] 30/8/2022 16:34

Re overhang. True there are big sellers - but that can change quickly, look at how quickly Artemis have scaled their position. Blackrock and Sanford selling, but how much nous do you attach to them? They bought at multiples of the current price, after all... Looks a daft low price, given over the medium term it should be a low cyclicality and cash generative business, with disposable parts, the sort that is often swallowed by PE.

[wigwammer] 30/8/2022 16:30

Is the vertiginous rise in the IAS pension surplus (and halving of actuarial deficit) not also material and relevant though? The £4m+ they've been setting aside for pension payments falls out completely in 2026. Seems the market doesn't care at the minute, which makes little sense IMO. I suspect this is a business that can achieve 10% op margins with 5%+ growth over the medium term, so an EV of £200m+ would be justified given the sales base. So at current market cap we're pricing in debt moving from around £40m to £140m. Looks excessive. Little wonder Artemis are interested, given their bias to value stocks.

[tomboyb] 30/8/2022 15:03

Well you can buy online in one go 1 million shares at 48.89p -

[essentialinvestor] 30/8/2022 14:55

I hope my posts here from a few months back saved at least one
of two people some money. The vertiginous increase in net debt,
followed by an abrupt departure were significant warning signs.

[tomboyb] 30/8/2022 14:51

Sanford are selling as well if I am not mistaken -

11% at last count and Blackrock below 5% -

[tomboyb] 30/8/2022 14:48

Blackrock still have quite a bit to sell -

[wigwammer] 30/8/2022 14:43

The pension positions - both IAS and actuarial - are shown in the last accounts.. -- "31 May 2021 Pension triennial concluded with scheme deficit reducing from GBP46.5m to GBP21.6m (IAS19accounting basis is a surplus of GBP38.7m)"... clearly market fixated on debt, and ignoring the highly material positive change in pension funding.

[nicholasblake] 30/8/2022 09:34

The real pension position can be ascertained by checking the level of annual past service contributions, if any.

[wigwammer] 30/8/2022 08:12

Currently, the accounting pension surplus nearly covers the market cap. Yes they have taken on some debt, but the EV calculation including that surplus looks crazy low for a £200m+ revenue software group.

[wigwammer] 30/8/2022 07:27

Artemis buying, blackrock selling.