Thalassa Share Discussion Threads

[basem1] 23/1/2017 08:19

Yes if everyone holds they'll have a job getting there mits on 2m shares.

[jmf69] 23/1/2017 08:15

Looks good. Happy to hold

[janeann] 23/1/2017 07:31

your Board is strongly of the opinion that cash, cash generation and caution are the appropriate tenants of Group management in 2017… as they were in 2016. .......... so why spend it on a REIT?

[rivaldo] 23/1/2017 07:30

Great to see THAL trading ahead of expectations,

This is mainly due to reserve releases, hedging gains etc, which although one-off in nature reflect well on THAL in terms of their ability to ascertain/manipulate the markets and plan ahead successfully and conservatively.

THAL has around £12.2m of cash and investments against the £13m m/cap, so the business itself is valued at almost nothing.

And a fresh buyback plan will help underpin the share price nicely.

The 2017 outlook of "cautious optimism" is also good to hear given the interesting later comments about the global economic outlook.

[masurenguy] 23/1/2017 07:25

RNS Number : 7731U
Thalassa Holdings Limited
23 January 2017

2016 Trading Update and 2017 outlook

The Board of Thalassa announces that it expects profit for the year ended 31 December 2016 to exceed market expectations. It estimates that Thalassa Group will report revenue of approximately $14.0 million and profit before tax (excluding consolidation of the holding in The Local Shopping REIT plc using the equity method) of approximately $2.2 million. 2016 year-end cash position is estimated at $7.7 million.

The above-expectation performance is primarily due to the partial release of contingencies, which are no longer necessary, and non-operating gains from currency and commodity hedging of in excess of $1 million. In addition, the Group still has a Self Insured Reserve (which covers any eventual excess payment due on insurance claims) of $250,000 and a further reserve in the region of $500,000 to cover maintenance, refurbishment and upgrades to fixed assets. The exact amount of such further expenditure will not be known until closer to the date of the first mobilisations in 2017 and may result in reserves being released to profit. The Board expects to announce the results for the year ended 31 December 2016 during week commencing 10 April 2017, subject to timely completion of the audit.

Duncan Soukup, Chairman of Thalassa, commented:"Given conditions in the industry at the beginning of 2016, the Board is extremely pleased to be able to announce successful operational and financial results for 2016, which may increase further following the conclusion of our review of reserves. As result of which, the Board has resolved to replace the current stock buy back programme, once completed, under which the Company has bought back a total of 3,108,657 of its own shares since February 2015 at a cost of £1,343,257.80, with a new plan to repurchase up to £2m of the Company's shares.

The Board's current view for 2017 is one of cautious (but unpredictable) optimism. The price of oil has recovered to current levels of ca. $52 (WTI) and riding the coattails of the largest reflationary intervention in the history of mankind, global economic activity is improving...slowly. However, the global recovery is not convincing as it is not associated with substantially higher employment. In fact, given how far behind the curve the Central Banks of the USA, UK and Germany are, the current recovery looks to us to be far weaker than meets the eye. This worries us significantly as it could result in one of two scenarios, neither of which would be good for sustained, long-term economic growth. The first alternative is that Central Bankers ignore the bond markets and leave interest rates at historic lows for too long; the result would be a bout of short term, high(er) inflation followed by excessive tightening which could derail the current recovery. The second alternative is that Central Bankers tighten too quickly and cut the recovery off before it is firmly established.

Given the recent US Presidential and Brexit results, which some would refer to as the rise of "Populism", upcoming elections in France and Germany, continued economic problems in Greece and Italy, and potentially heightened political tension between the Trump Administration and China, or should I say the USA and every other country in the World, 2017 is shaping up to be even more unpredictable than 2016. Holding one's breath and jumping is not a prudent economic or business model which is why the THAL Board is reticent to present any long term forecasts in the current political and economic environment. In fact, given the upcoming elections in France and Germany and the inauguration of President Trump, we would go so far as to say that even short-term predictions are nothing more than speculative guesses. Given the perspective outlined above your Board is strongly of the opinion that cash, cash generation and caution are the appropriate tenants of Group management in 2017....as they were in 2016."

[jmf69] 17/1/2017 19:15

Possible reason for the rise today...hTTp://energyfuse.org/shale-deepwater-lead-oil-industry-spending/

[greenroom78] 17/1/2017 13:04

Hopefully.

[cheshire man] 17/1/2017 11:58

Good timing by the looks of it GR

[greenroom78] 17/1/2017 10:54

I bought back in this morning having bought at 50p a few years ago. It served me very well last time selling between 200 & 300p. Looks too cheap here and I didn't have funds last time it was hot. Took me a while to get a fill at 55p & 56p so stock was tight early on.

[basem1] 17/1/2017 10:40

Idiots selling...... I mean, why would you at this juncture ?? Clueless, some folk. I may be tempted to topslice a few at 90p, but 58 ??

[rcturner2] 17/1/2017 10:32

The market must be very tight, since there are only fairly small scale buys going through.

[basem1] 17/1/2017 10:23

Even at £1 this would be mega cheap. £20m mkt cap still nowhere near fair value.

[jmf69] 16/1/2017 17:44

Trading update due?

[jmf69] 04/1/2017 19:32

Flying nodes

[rcturner2] 04/1/2017 19:24

Glasshalfull, excellent summary.

Is there not another business (dormant) that has some future tech that can also be added to the sum of parts?

[glasshalfull] 04/1/2017 18:48

...or perhaps the rise in the THAL share price is due to investors waking up to the fact that sum of the parts is probably worth circa. £1 coupled with oil services stocks beginning to find favour???

If I may,

Current market market Cap = £10.9m

* WGP valuation = Operating Profit (EBITDA) of US$3.7m in 2015 x 5 multiple = $18.5m or £15m

* LSR holding = 19,093,376 LSR shares @ 27.5p (current bid price) = £5.25m
* PML holding = 40,000,000 PML shares @ 0.95p (current bid) = £380k
* Net Cash = Per WH Ireland estimates for yr ended 31.12.2016 following LSR investment = $3.6m or £2.9m

Sum of the parts total = £23.53m

With 22m shares in issue you are looking at a ballpark valuation of £1.07p before applying any discounts or perhaps factoring in a higher valuation for WGP?


So essentially I believe it's a doubler from here.

Kind regards,
GHF

[harry the haddock] 04/1/2017 16:53

Wobbly bottom?

[gfrae] 04/1/2017 16:36

or silver triangle ?

[jmf69] 04/1/2017 15:42

Golden cross??

[rivaldo] 04/1/2017 11:42

The oil price continues to recover nicely. Presumably THAL is responding.

[someuwin] 03/1/2017 14:16

Good recovery play for 2017.