Rockrose Energy Share Discussion Threads

[cf456] 07/11/2018 07:17

"#RRE
Available Cash : £50m
yearly profit : £60m
Production: 11,000 boepd
Arran field to take that to : 17,400 boepd
No debt!
current market cap : £92.9m

Undervalued! Broker target 1460p DYOR"

[costax1654x] 07/11/2018 00:13

So is Legal and General the big seller!???why?.... they know more than us???Why the company is buying?Profit next yr is huge,why to sell???And again I'm thinking at Patisserie Valerie......!!!!Hope not

[costax1654x] 07/11/2018 00:07

Before we talk about price target,hope you know that public investors have only 4%!!!!!!!institutions 61%,insiders 25.73%,private companies 1%,employee share scheme rest of them!So....The Company is buying back!!!What for???Why they don't buy more assets?,We will have at some point 11000 barrels/day 50% GAS and 50% OIL(not 11000 oil only),....still cheap assets there!!!Why the company doesn't buy more of them?Why buying shares?

[costax1654x] 06/11/2018 23:59

So the big ones selling and The Company buying....they ...took the best decision!!!why they are selling?????????????????????????????????????????

[cf456] 06/11/2018 13:32

Agreed mad foetus.

Broker note out from Whitman Howard with a 1460p target.

"We initiate coverage with a BUY recommendation and a TP of 1460p, representing significant potential upside of 156% from the current share price, a gap we believe will close quickly once investors realise RockRose is trading at a sharp discount to fundamental value."

[mad foetus] 06/11/2018 08:32

Agree with that cf, though it is an unusual company in that it has the clean up costs to pay at the end of life. I think that complexity puts some investors off, but the upside is that PIs who can understand it can buy at a very cheap price. In a completely different area, BURford is similar: a different model means that many investment committees don't get/won't consider it, leaving PIs free to buy something that is fundamentally undervalued. But I would expect growth here to fuel the share price, rather than a sudden understanding from the market that it is undervalued.

[cf456] 06/11/2018 08:27

Hugely undervalued here with an exceptionally low PE.

The re-rating has a long way to go.

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"The latest #rre interim results (RNS dated 20.09.18) make for very bullish reading. Expected Full year EBITDA from all producing assets ~£77m. Unalloacted cash ~£40m. Once buy back is executed, Mcap (at £6/share)=£72m. This gives a P/E ratio of 0.94."

[mad foetus] 06/11/2018 08:23

This is just a really nice share to hold at the moment. I wonder what will happen with the tender: it hardly seems worth the hassle of the EGM to agree everything, unless the company has been told that a big holder wants out (but why would they?). All very odd, but pleased to see the price ticking up and the money coming in

[pineapple1] 05/11/2018 14:32

I wonder why this is so thinly traded with little liquidity.
Maybe some sort of share split may encourage investors.
You know what some peeps are like . They see a share costing £5.70 and they baulk ,hence the small trade sizes .
imho

[cf456] 05/11/2018 13:48

Strong move in the natural gas price today.

7.3% up at the moment.

[crooky1967] 05/11/2018 13:30

Hopefully the ii's have already put their requests in.

[5chipper] 05/11/2018 13:15

Can't see many of the shares being tendered seeing as price has been consistently above 560.

Looking forward to the days following the tender offer close date. Could well be more interesting developments

[cf456] 01/11/2018 18:17

Good post from the lse BB:

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"If joe blogs has 1 share, representing 10% of the shares in a £10m company, his stake, and his share is worth £1m.

Now, assuming there is no price action, if the company buys back 5 shares (half of the shares) and cancels them, the market cap is now £5m and there are 5 shares left in circulation.

Joe Bloggs still has his 1 share, which now represents 20% of a £5m company. This equate to £1m a share.

If the company make £5m a year profits, and assuming this fact is unchanged by the share buy back, the PE ratio when there was 10 shares would be 2. In the situation where there are only 5 shares, the PE ratio is now 1.

Lets assume that when there was 10 shares the company's PE ratio was at fair value of 2. IF there are only 5 shares and the PE is 1, then the share price should in theory have to appreciate by 100% to get to 'fair value' of PE = 2.

People saying RRE market cap will go down by 20% are correct and people saying that the share price will go up by 20% are correct in theory.

The difference is that the former is guaranteed, and the latter is not. Having said this, wiping out sellers equivalent to 20% of market cap would massively tip the balance of buy vs sell pressure toward the buy side, and this is why i am very excited for the execution date to pass as not only will the company be more undervalued due to having the same operating incomes but with a smaller market cap, but there will be an absense of sellers dampening any share price appreciation that follows."

[xxx] 26/10/2018 10:25

Does anyone have a link to the pro forma balance sheet post Dyas ? There must an update somewhere , but I can't locate it...

[ols1] 25/10/2018 13:17

Yes could be worried about a lowball takeover plus Andrew Austin owns 23% so keen to protect his investment. He's holding currently worth circa. £20m but he clearly believe we should be multiples higher so he's very incentivised for a higher share price With regards to production i believe it's only 17000 when Aaran field comes online which is 2020-2021

[crooky1967] 25/10/2018 10:04

Could they be worried about a takeover bid if the share price is so low? RRE are well undervalued based on some other oil companies.

[bountyhunter] 25/10/2018 09:46

possibly thinking of their options?

[homebrewruss] 25/10/2018 09:37

I just think it's a bit odd that the bod are that concerned with the share price.

[basem1] 25/10/2018 09:37

Will production not be closer to 17000 bopd ?

[ols1] 25/10/2018 09:30

Its to clear the couple of sellers in the market as noted by recent tr-1's. There's a few II's in from much lower who are clearly reducing positions. A 10% div, whilst attracting buyers, would take longer to clear. This is an exceptionally aggressive move by BOD and could be a master stroke. Assuming full uptake (which I don't think there will be) then mcap will be £65m, no debt, unrestricted cash nearly at mcap and producing approx 11k boepd and no large sellers. Could retake exceptionally quick come 21st of November.

[nigelpm] 24/10/2018 23:46

Clearly a seller in the background - makes sense to allow them a chance to sell to avoid trashing the share price - simple.

[pyemckay] 24/10/2018 21:42

going private? hope not.