Rtc Share Discussion Threads

[tiswas] 01/2/2022 08:38

Trading update and notice of results was 22/1 last year. Have the company given up as well as Investors?

[1realist] 12/8/2021 15:45

Previous contract length was 5 years + option of 1 additional year at total revenues of £80m-£100m. New contract length is 5 years + option of 3 additional years at total revenues of £100m-£150m. So contract length has increased by 2 years and annual revenues have increased 25% from around £16m to around £20m. But I think the certainty of having it renewed is more important to the company than the improved terms.

[edmundshaw] 12/8/2021 15:24

hxxps://www.nytimes.com/2021/08/11/us/politics/biden-taliban-afghan-war.html

[edmundshaw] 12/8/2021 15:22

@dave, that is an interesting point.

Would Biden want to do a U-turn? On the other hand, if US citizens get attacked by a resurgent Taliban, would he want to get the blame?

[stemis] 12/8/2021 12:20

1Realist

What makes you think the terms are improved?

[dave4545] 12/8/2021 11:43

You cannot rule out a U turn in Afghanistan too, that is what hurt the shares having a business then nothing out there but the way the news there is going they might change their minds and send troops back

[1realist] 12/8/2021 11:36

Pre-pandemic, RTC was 75p per share with annual dividend of around 4p.The renewal of the national rail contract was a big unknown and risk, which dragged on the share price.The fact that the contract has been awarded to RTC again, this time on improved and longer terms, takes away the risk and gives increased confidence that they can return to their previous higher share price and dividend payments.For RTC to now be at 50p share price after that announcement, the same level as a few weeks ago, seems strange and makes it look undervalued to me.I've accumulate some around this level as a results and am happy to wait.

[edmundshaw] 12/8/2021 09:26

The old contract was 80-100 million over 5 years right. It's in an RNS from about 6 years ago (there was a one year extension to the 5 year contract a year ago).

[stemis] 12/8/2021 08:40

If that's true (and I've no reason to disbelieve you) then it just looks like renewal of the existing contract at a similar level. That derisks the business going forward (assuming they haven't had to sharpen their pencils) but it's not a quantum change. The fact the share price has settled back at the same level as pre announcement suggests the market takes the same view. RTC has always attracted a low valuation, maybe because the board seem to view it as their own private piggy bank. So as someone who doesn't own shares here I'm not inclined to change that, but good luck to all holders...

[beckaroo] 12/8/2021 08:11

The old contract was 80-100 million over 5 years, so the new contract is slightly bigger.

[stemis] 12/8/2021 08:05

If it was £30m pa, then the new contract (£100m over 5 years - £150m over 8 years) is smaller!! You didn't think it was £100m - £150m pa did you ?

[smart solution] 11/8/2021 18:38

I thought it was 30 m pa before new contract so x 5 bigger.

Expect more contract announcements imo.

[stemis] 11/8/2021 18:24

If you think it's cheap after the announcement then presumably you know the answer to my question?

[smart solution] 11/8/2021 18:20

Very cheap at this price after yesterday's RNS.

Expect bounce next few days.

[stemis] 11/8/2021 18:17

Anybody know how much Network Rail turnover already existed in the accounts?

[smart solution] 11/8/2021 18:04

Very cheap at this price after yesterday's RNS.

Expect bounce next few days.

[castleford tiger] 11/8/2021 18:01

looks too cheap to me

[davydoo] 11/8/2021 17:52

Some huge buys, at high prices, from yesterday afternoon only just reported

[dave4545] 11/8/2021 15:11

Sorry Advfn is saying £4.78 mil market cap in the header above.

[stemis] 11/8/2021 13:35

At the end of the day a sub £5 mil stock

At 53p the market cap is £7.8 million

[dave4545] 11/8/2021 13:23

Guess everybody has a no nonsense way of trading.

Personally if I paid 88p for a stock then it dropped to 50p I'd just put it away and hold especially if it's just £2k, at some point it will spike again and the traders will all pile back in and chase again and you'll escape with your money back or a small profit.

At the end of the day a sub £5 mil stock with a £150 mil contract is still massive even if the margins are poor.

If it was say a £20k trade and you have made a mistake and can still get back say £12-13k then perhaps I'll sell knowing with that amount I can still rectify the mistake trading elsewhere

each to their own but very noble to own up to it inthemix

[davydoo] 11/8/2021 12:36

Been very glad to buy for 54p today

Having previously been invested I have been out and watching for a while. I saw the potential loss of contract as a risk rather more than I see this contract as a win.

Enormous spread today, particularly if you look at each individual market maker's spread, but as the traders exit and that unwinds I am hopeful just to get back to pre covid levels and a reinstated dividend.

[smart solution] 11/8/2021 11:45

Should move up nicely from here now..

[demark] 11/8/2021 11:43

SteMis,

thanks,

bods' should have been
more transparent, and
provided the breakdown
between recurring and
new contracts to avoid
any confusion!