Rock Solid Share Discussion Threads

[bones30] 18/1/2012 13:54

"Looking forward, margins should continue to improve when revenues increase because the Company's productive cost base is largely fixed in the short term."

This is quite good news, as oil explorers get more confident (as they are, compared to back in the dark days of 2009) they will likely spend more on RSI's products.

[christianf12] 18/1/2012 13:53

Trading outlook

The 2012 financial year is looking promising with the award of several large projects for both our WSS and WISE product lines. Our revenue backlog is much healthier and visibility of the opportunity pipeline is significantly better than at this stage last year.



We are seeing growing interest in our new funded R&D project, designed to deliver a next generation EM processing and interpretation system, which is anticipated to commence early in 2012 subject to industry funding.



We forecast steady growth in our traditional offshore reservoir characterisation market (WSS), but more rapid growth in revenues from and our offering to the un-conventional reservoir market (also WSS) and, particularly, our WISE business line.



I'd like to thank our shareholders, both old and new, for their continued support. RSI has been through some challenging times, but has emerged as a strong and capable business, focussed on delivering substantial value to all stakeholders.

[christianf12] 18/1/2012 13:50

pugugly

It is abundantly clear from the statement that the directors think the business is materially undervalued, just a few quotes below. The onus then is on the directors to prove up that value - if the market won't recognise it, then they should sell the business and show the market it was wrong.

I note the following:

Disappointingly, despite the significant progress made since November 2010, our share price appears to be completely disconnected from the current and future potential of the business.

The coming year is one in which we will demonstrate that the remaining business can be profitable and deliver real shareholder value.

The 2012 financial year is looking promising with the award of several large projects for both our WSS and WISE product lines. Our revenue backlog is much healthier and visibility of the opportunity pipeline is significantly better than at this stage last year.

The Directors consider the value attributable to net cash flows generated from the WISE and WSS businesses to be higher than the current carrying value of goodwill, tangible and intangible assets and consequently no impairment adjustment is required. However, attention is drawn to the risks and uncertainties in arriving at this conclusion. [note – current carrying value of goodwill, tangible and intangible assets is £14.8m]

[pugugly] 18/1/2012 13:45

Not surprised people getting out - decks may be cleared but still appears heavily loss making. I have been unable to determine likely margins going forward.

[christianf12] 18/1/2012 11:36

Mr Mac

You aren't related to this lady are you?

Dr. Lucy Margaret MacGregor, Chief Technology Officer RSI

[christianf12] 18/1/2012 11:32

Oh yes another big company that could take us out : )

[christianf12] 18/1/2012 09:37

Must be a buyer in the background mopping the sells up as the best quote I can get is 2.5p currently. I want to add but will wait till later today to see if there are any other people who want to sell me their stock : )

[christianf12] 18/1/2012 09:25

They still want 2.5p but hopefully I can grab some later at c. 2.25p, please : )

[christianf12] 18/1/2012 08:57

goodboke, exactly. The company are obviously not happy with the share price at 2.5p and I expect a takeover for all of the business at c. 6.5p if we stay down here much longer.

[goodboke] 18/1/2012 08:52

Looking to top up next week when funds due and i sincerely hope, selfishly, that it stays at this level till i buy more so if there are any more plonkers willing to sell (so i can take advantage of your lack of understanding of this company) please continue to do so till i top up next week!

[christianf12] 18/1/2012 08:43

Here is a list of companies whoi could buy RSI right now for say £10m, circa 6.5p per RSI share and it wouldn't even dent their balance sheets. Fox Davies have a 13p target so 6.5p would offer s decent premium for us holders of RSI now on 2.5p and give the buyer a 50% discount on their true value...everyone is happy!!!

Amec
Baker Hughes
Cape
Capital Drilling
Hunting
KBC Advanced Technologies
Kentz
Lamprell
Newpark Resources
Petrofac
Technip
Schoeller-Bleckmann
Wood Group
EMGS

[qwazi] 18/1/2012 08:38

It is abundantly clear from the statement that the directors think the business is materially undervalued, just a few quotes below. The onus then is on the directors to prove up that value - if the market won't recognise it, then they should sell the business and show the market it was wrong.


Disappointingly, despite the significant progress made since November 2010, our share price appears to be completely disconnected from the current and future potential of the business.

The coming year is one in which we will demonstrate that the remaining business can be profitable and deliver real shareholder value.

The 2012 financial year is looking promising with the award of several large projects for both our WSS and WISE product lines. Our revenue backlog is much healthier and visibility of the opportunity pipeline is significantly better than at this stage last year.

The Directors consider the value attributable to net cash flows generated from the WISE and WSS businesses to be higher than the current carrying value of goodwill, tangible and intangible assets and consequently no impairment adjustment is required. However, attention is drawn to the risks and uncertainties in arriving at this conclusion. [note – current carrying value of goodwill, tangible and intangible assets is £14.8m]

[christianf12] 18/1/2012 08:23

Some plonker sold 200k so you can buy at 2.6p. Hope they bring the offer down further and I'll grab some more.

[christianf12] 18/1/2012 08:11

Just played around with a few dummy buys, looks like the mm's have no shares down here so we could move up swiftly today.

You can buy 59,251 shares but can't buy 59,500 shares so in between those 2 figures is the max available.

When these have been bought then expect a tick up.

[christianf12] 18/1/2012 08:02

Max available to buy is down to 50k shares this morning.

[christianf12] 18/1/2012 07:57

GTC/EMGS?

We should get an updated Fox Davies note after today's news. All helps with bringing RSI to investor's radars.

[christianf12] 18/1/2012 07:29

Are directors able to buy shares now or are they still in a closed period due to ongoing strategic review?

I'd imagine they will be buying shares, in the Market if they think the share price is too low, if they can of course.

[christianf12] 18/1/2012 07:23

Very upbeat! I did wonder why someone was very keen to get in yesterday by paying over the offer price!
I like these 2 bits:

·    Continued sales of a 79 well multi-client rock physics study in the Barents Sea and commencement of a 61 well multi-client rock physics study in mid-Norway;


Disappointingly, despite the significant progress made since November 2010, our share price appears to be completely disconnected from the current and future potential of the business.

----

RSI obviously think the share price should be much higher, like us!

[chrisis33] 18/1/2012 07:15

News ... All sounds very upbeat to me.

[the prophet] 17/1/2012 16:48

-well, the strategic review was initiated over 2 months ago, crimbo/n.year in the way, but you would think they wouldn't be too far off from some conclusions as they've hardly got a massive business to analyse here. Not demeaning the business in any way, just saying it shouldn't take yonks to reach some sensible conclusions/suggestions as to the best way to realise shareholder value.

[chrisis33] 17/1/2012 16:46

Full sale? Part sale?
All being considered as part of the strategic review.

[christianf12] 17/1/2012 16:44

Wonder why someone was so keen to get in and pay 2.86p, over the 2.75p offer today. I think things are hapening behind the scenes and we should soon find out what.