Rose Grp Share Discussion Threads

[andrbea] 27/2/2009 16:20

another calculation

take current share price for minerva (another property company with rentals):
9.30p

it has a basic net asset value per share at 31 December 2008 of 20.2 pence

so a ratio of 46% (current share price to NAV/share)


rgi has a nav/share of 16$ and a current share price of 0.10$
so a ratio of 0.625%

rgi: bargain of the century?

nia dyor

[andrbea] 27/2/2009 15:22

which is plain stupid
but I agree, these are stupid times...

take another property company (minerva)..

eg when minerva had a Price Objective of 110p, the shares were trading on a 70% discount to the broker's adjusted NAV forecast of 299p.

so a roughly 70% discount (is normal) for share price to adjusted nav

rgi's nav is 16$/share, so (in normal times) we should be seeing 4.80$/share,.. not the current 0.10$/share (48 times too low)

[darcon] 27/2/2009 14:09

Looks like the market is moving to where it would be valuing RGI at its net cash position in which case this could yet have further to fall

[andrbea] 27/2/2009 13:43

the figures in the last post can be found here

[andrbea] 27/2/2009 13:40

must be bargain of the century?

Last Sept the share price was much higher (ca 4.4 dollars)
now 0.105 dollars to buy (42 times less)

in November 2008
current cash balance = approximately $50 million

NAV = USD 2.035 BN (June 2008)

[andrbea] 27/2/2009 12:58

On Nov 7 2008
they said:

The Company's current cash balance is approximately $50 million. RGI currently has an outstanding debt of approximately $45 million in unsecured Series A bonds (the "Bonds"). Maturity of these Bonds is phased over two years and not scheduled to begin until November 2010.



Commenting, Boris Kuzinez, Chief Executive said:




"In these extreme market conditions, with no visibility at all in the credit markets, we must protect our long-term position. These are difficult times but the business has relatively low leverage and many of us at RGI experienced the last economic crisis in 1998. We managed our business through that period and we will manage RGI through the current crisis, which we expect will lead to business opportunities as well as challenges. In the meantime, we intend to run the business prudently."

[andrbea] 27/2/2009 12:19

2 trades, both buys
and they mark it down 10%
Crazy...

has to find a floor sometime...

BRICKS & MORTAR: A floor under Moscow property
business new europe - ‎Feb 25, 2009‎
Compared with prime office rents of $900-1200, class-B accommodation in the $300-400 range is looking very attractive now to some businesses.

[andrbea] 27/2/2009 12:03

still going down

the nav is USD 16 (June 2008)

share price has to respond to that at some stage, surely?

[andrbea] 26/2/2009 16:19

last buy filled at a premium to the offer (2nd time that's happened this week)

the one at 0.165 usd

[andrbea] 26/2/2009 09:18

Moscow luxury real estate prices leave London behind
Posted on 11 February 2009

From Russia-ic.com: Last year financial turmoil hammered foreign real estate markets, while the Russian market maintains leading position in terms of prices on luxury properties.

According to the Global Property Guide's research, in 2008 Moscow climbed to the second position on the list of cities with the most expensive real estate markets, beating out London for the first time

[andrbea] 26/2/2009 09:15

see article

low rates could mean it's a good time to deal (property in Moscow)
19 FEb

[andrbea] 26/2/2009 08:21

the nav (as of June 2008) was 16$
SP now 0.20$
so 80 times lower

In their presentation document (dd. Sept 2008) they predict a nav (in 2012) of 32$

that would be 160 times the current SP


nia dyor

[andrbea] 25/2/2009 13:29

this was on the rgi thread (iii site) on Jan 13 2009

My Wife is Russian and flys the Billionaires on their private jets as a job. And over hears all the gossip of teh high end millionaires. I also go to Russia alot and have seen the constant boom over the past few years. Moscow is booming and the rich are as extravagant as can possibly be. They want the best houses/cars/property/jets. I can only see Moscow property continue to grow and grow. People in central Moscow earn twice as much as their counterparts in London these days. For me this is a mid to long term buy.

Price details at 2009-01-13 16:35:14:-
Bid: 0.35, Ask: 0.38, LastTrade: 0.36, Change: 10.61%


--------------------------------------------------------------------------------

[igoe104] 25/2/2009 13:20

Cant see a property boom in russia for many years, the billionaires in russia have halfed, its not a section i would put my money, in times like this.

[andrbea] 25/2/2009 13:10

Real Estate Fund to Allocate USD 500 mln for Moscow Properties

24-02-09, 12:28, (Property Xpress) - A real estate fund said it has set apart USD 500 mln to acquire commercial properties in and around Moscow.

[andrbea] 25/2/2009 12:23

on p4 of the link (post 7) it says nav of the company = USD 2.04 billion (at at June 2008)

Current mkt cap is 25.16 m pounds = USD 36.2 million

"what a steal" (a comment from a poster on iii) at this imbalance.....

[andrbea] 25/2/2009 12:11

a buy recommendation for RGI


In the first half of 2009, is the study of Renaissance Capital, an investment company recommends buying shares of CC PIC, LSR Group, the company AFI Development, EPH, and RGI International.

«По наш;емm1; мне;ниn2;, рис;ки сек;тоl8;а нед;виk8;им 86;ст
080; ура;внl6;ве 96;ив
072;ются пот;енm4;иа 83;ом рос;та их акц;ий», - доб;авl3;яю 90; спе;циk2;ли 89;ты. «In our view, the risks of real estate sector balanced growth potential of their shares», - add specialists.

[andrbea] 25/2/2009 09:59

saw the share price stood at 9.0 usd in June 2008

(plenty of upside then..) :-)

[andrbea] 25/2/2009 09:51

last trade at 0.217 usd
when offer was 0.210 usd

indicates to me that they're short of stock (filling buys at a premium)

[darcon] 02/1/2009 12:38

Following above announcement about the purchase of bonds and working back through the announcements to when they last made an announcement about their cash position on 7th November I estimate they have approximately $31.7 million cash (although this figure excludes any operating expenses since 7 November and related to completion of the construction of the Tsvetnoy Project.

[darcon] 02/1/2009 12:32

RNS Number : 9394K
R.G.I. International Limited
31 December 2008



R.G.I. International Limited

Purchase of Bonds

R.G.I. International Limited ("RGI" or the "Company"), the AIM-listed developer of high-end properties in Moscow and the surrounding area, announces that it has yesterday purchased 1,400,000 of the Company's unsecured Series A 8.7% bonds for a total consideration of NIS 1,120,000 (approximately US$ 298,000). The Company intends to cancel the bonds which it has acquired.

Following this transaction, RGI has outstanding bonds with a nominal value of NIS 95,250,000 (approximately US$ 25.30 million).

[darcon] 11/9/2007 23:12

For background info about the Russian property sector the following report is an excellent place to start:



Rencap have a buy rating on RGI, which according to the small print means they expect appreciation of greater than 15% in the stock price. Hasn't quite worked out that way owing to the recent market turmoil but on a medium-term view there are a lot of positives for this stock

[darcon] 02/6/2007 09:26

The following information is not related to RGI but is important for any evaluation of the sector:

PIK Group, a Moscow-based property company, floated its GDRs yesterday at bottom of indicative price range according to Financial News raising $1.85bn (€1.38bn).

Other points of note in the Financial News article:

- pricing is linked to "a recent fall in Russian equities which has pushed the total slide in the country's stock market to more than 7% for the year to date."

- "PIK Group shares were priced at the bottom of a $25 to $31 range, valuing the business at $12.3bn"

"Deutsche Bank, Morgan Stanley and Nomura led PIK Group's listing, which earned the banks a total of $55m in fees and commissions."

"PIK Group's listing is the largest in Russia since the flotation last month of the country's second largest financial group VTB, which raised $8.2bn in a London and Moscow share sale."

"The Moscow equity market has been hit by heavy falls recently, which analysts have struggled to explain. Some have suggested that the large volume of new share issues might have led investors to sell existing Russian holdings to finance investment in fresh offerings."

Last para above may also explain recent small retreat in RGI price