Rock Solid Share Discussion Threads

[christianf12] 12/1/2012 09:00

Someone just bought 230k.

[christianf12] 12/1/2012 08:17

Fox Davies say RSI need $11.6m in revenue to achieve EPS of 1.4p for 2012. Considering they hyave achieved reveenue of $3.2m in the past 7 weeks, this looks very much achievable and I wonder if that too is conservative? Page 2:



Cash is 1.2p per share so we are currently on a ex cash p/e of less than 1 if the targets are met.

Fox Davies have the 13p target as it's a forward p/e of 9 exclauding cash.

[christianf12] 12/1/2012 08:08

Qwazi, 10p would do me now but 20p would be even better.

RSI seems to be doing now what it has always promised and the share price is at an all time low.

People buying down here could make multiples on their investment if fox Davies are right with their 13p target.

I know some brokers come up with silly targets but fox Davies actually are considered conservative with their targets.

[qwazi] 11/1/2012 22:42

Also, about 50% of the shares are held by the three big shareholders, leaving a float of 75m. Since the announcement of the strategic review, about 30m shares have traded - even allowing for some double counting that's a big chunk of the free float.

[qwazi] 11/1/2012 22:36

I've spent some more time looking at this, and am finding it increasingly interesting.

There's clearly been some sellers weighing on the price although at least we know it is none of the major shareholders as they would have to make a Rule 8
announcement if they sold any shares. (East Hill have actually been a buyer - see announcement on 7 Dec)

It has rallied well in recent days but let's be clear - it's only back to where it was in late November, and as mentioned in previous posts, the market cap
remains tiny, particularly if the Fox Davies forecasts come to pass.

The big question in my mind is why they decided to conduct the strategic review and what are they looking to achieve. It is seemingly early days in the rebuilding of the business, with apparently rapidly growing revenue, and you would think that the company would want to see the business grow more before a strategic review.

My guess is that at least one of the major shareholders wants to see the business sold, and has been the driver behind the strategic review.

So here's some blue sky thinking on valuation on a buyout. The Fox Davies initiation note (available on the website) gives M&A transaction multiples for M&A deals in the reservoir/seismic sub-sector on page 11. They suggest a median revenue multiple of 4x. They are forecasting £8m of revenue for RSI for 2012, which on the Fox Davies numbers would suggest a deal value of £32m or 20p per share! The comparables are on p28, I'm not familiar with the sector so I can't say which companies are truly similar, and it does look like most of them are profitable as opposed to RSI which is currently lossmaking. If you use the actual results for 2011 - i.e. £4m revenue - you still come to an implied deal value of £16m or 10p per share.

I'm interested to hear views from people who have followed this stock for longer and/or are more familiar with the sector.

DYOR and I hold.

[117mike] 11/1/2012 22:18

It's only an impressive rally if it gets back to where I bought in @ 6.5p and then kicks on to 13p!

[christianf12] 11/1/2012 21:53

Oilfield Services
 
Rock Solid Images (LON:RSI) continued its impressive rally, pushing 10% higher during trading to 2.2p. Recent contract wins have been one of the drivers behind the stock.



Starting to get noticed!!!!!!!!

[christianf12] 11/1/2012 15:14

The real bid is 1.95p : )

Think we should get at least 1 tick up before the close today.

[christianf12] 11/1/2012 14:14

Chart from last year just before RSI was formed, notice the day the share price went from 5p to over 11p in one day. It moves quick as there are hardly any shares in free float.

[christianf12] 11/1/2012 14:13

100k buyer is back!

RSI long term chart!!!

[christianf12] 11/1/2012 13:54

Buying started again?

[christianf12] 11/1/2012 12:40

I see they are now bidding nearly 2p for stock. Looks like a tick up is coming.

[christianf12] 11/1/2012 11:44

Maybe someone stake building ahead of news on the following?



Wednesday 09 November, 2011
Rock Solid Images
Strategic Review
RNS Number : 7970R
Rock Solid Images plc
09 November 2011



9 November 2011



Rock Solid Images plc

("Rock Solid Images" "RSI" or "the Company")



STRATEGIC REVIEW



Following the divestment of the capital intensive and loss making marine electro-magnetic acquisition business of OHM Ltd and OHM Surveys Sdn Bhd in November 2010, RSI successfully repositioned itself as a high-end geophysical consultancy with an industry leading position in the integration of data types including seismic and electro-magnetics ('EM').



As a result of this repositioning, the Company has seen a growing level of market acceptance and customer interest in its traditional seismic business (the WSS division), particularly in relation to unconventional opportunities including shale gas, and in RSI's integrated seismic and EM offering (the WISE division).



The Board is keen to capitalise on the industry's renewed focus on RSI's services and value proposition and has therefore engaged Simmons & Company International Limited ('Simmons') to assist in reviewing the strategic options available to RSI and its operating divisions, WSS and WISE. When completed, this strategic review may result in proposals to restructure, sell part or sell all of the Company.



Simmons is a leading independent investment bank serving the global energy industry.

[chrisis33] 11/1/2012 11:43

Yep - I noticed that too. More than just PI interest I wonder?

[christianf12] 11/1/2012 11:13

Someone is buying in 100k blocks. Been happening last few days.

[christianf12] 11/1/2012 10:33

No real resistance on the chart till 3.5p so get ready for the big increase. That will make more people aware of RSI.

[chrisis33] 11/1/2012 09:57

Decent buying interest today again. Encouraging.

[christianf12] 11/1/2012 08:41

Limits unchanged;

buy 150k max at 2.17p and sell 300k at 1.9p

[christianf12] 11/1/2012 08:37

500k at 2p?

The bid hasn't moved from 1.9p and the offer from 2.17p so maybe a filled trade or a broker to broker?

Or maybe even a director buy?

[christianf12] 11/1/2012 08:30

2 x 100k buys just through.

No resistance on the chart till 3.5p, can that be tested today?

[christianf12] 11/1/2012 08:08

Looks like with a few buys we will be heading up again today, the limits this morning are:

Buy max 150k at 2.17p

Sell 300k at 1.9p

Looks like 3p could be seen today with a few buys.

[christianf12] 10/1/2012 16:29

I expect so, if not now then in the morning.

Can see more contract announcements coming also.