R.E.A. Holdings Discussion R.E.A. Holdings Discussion Board http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion Interactive Investor http://www.iii.co.uk/icons/logos/uk_logo.gif http://www.iii.co.uk tag:iii.co.uk,2003:tst.8987844 Re: Prefs ex date? http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=8987844&action=detail Wed, 23 Nov 2011 22:21:00 GMT fieldsman tag:iii.co.uk,2003:tst.8987824 Prefs ex date? I cant find it in the prospectus, only pay 30 June & 30 December

2. Hardiman still enthusiastic:

http://www.hardmanandco.com/Research/REA%20Sept%202011.pdf
£11 value??? By fieldsman ]]> http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=8987824&action=detail Wed, 23 Nov 2011 22:13:00 GMT fieldsman tag:iii.co.uk,2003:tst.8681284 Proposes half-way step to emigration from UK REA proposes half-way step to emigration from UK
http://www.agrimoney.com/news/rea-proposes-half-way-step-to-emigration-from-uk--3514.html
Veteran plantations group REA Holdings is considering floating its main palm oil business in Indonesia as an intermediate step to joining the list of UK-based companies relocating overseas.

The group, which Agrimoney.com revealed in June was sounding out shareholders over emigration, said that relocation appeared "feasible".

"And if, as might well be the case, it would be likely to result in a better rating for the company's ordinary shares, would be supported by most larger ordinary shareholders," Richard Robinow, the REA chairman, said.

However, the company is considering as an alternative, "at least for the immediate future", a listing of its core REA Kaltim operation on the Jakarta stock exchange.

'Local profile'

Such a move would allow REA to raise its profile with Asian investors, who attribute far higher multiples to shares in plantations companies.

Research from City broker Hardman & Co earlier this week revealed that Malaysian-listed palm oil groups trade at a premium of 40%, on a market value to planted land basis, compared with rivals whose stock is traded in London.

Furthermore, it would assist the group's drive to expand in Indonesia, by enabling it to "establish a more local profile for itself",

"The directors believe that this is likely to become an increasingly important factor in determining whether the group is able to add to its East Kalimantan land bank as it would like to do," Mr Robinow said.

REA is currently towards the end of a two-year plan to expand its developed plantation land by 8,000 hectares, although it admitted that the programme's completion would "almost certainly" miss its end-2011 deadline.

Sunstainability landmark

The comments came as REA revealed that its Kaltim subsidiary, which accounts for nearly half the group's landbank of some 63,000 hectares, had been certified as a supplier of sustainable palm oil.

Receiving certification from the Roundtable on Sustainable Palm Oil is being seen as increasingly important, given the switch by Western giants such as Nestle and Unilever – under pressure from environmental campaigners - towards sustainable supplies.

And REA unveiled results showing a 93% jump to $27.4m in earnings for the first six months of 2011, on revenues up 50% at $75.5m.

Dryness concern

Sales were boosted both by higher palm oil production as younger plantations matured, offsetting a dent to extraction rates from cloudy weather, which curbed trees' photosynthesis and lowered oil yields.

However, it cautioned that production ahead could yet be harmed by dry weather in July and August.

"Moisture stress suffered by palms during this drier period could affect production during part of 2012, but its impact should not be material if levels of rain increase in September as they normally do," Mr Robinow said.

REA shares, whose shares suffered particularly badly during the stockmarket sell-off earlier this month, tumbling more than 20%, stood at 578p in morning trade in London, up 7.5% on the day. By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=8681284&action=detail Wed, 24 Aug 2011 10:19:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.7980089 Re: Contra market
I have the postal address but who uses that these days??

Thanks By BLUE-BOTTLE ]]> http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=7980089&action=detail Thu, 17 Mar 2011 09:20:00 GMT BLUE-BOTTLE tag:iii.co.uk,2003:tst.4419567 Contra market By budu ]]> http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=4419567&action=detail Tue, 13 Jan 2009 15:51:00 GMT budu tag:iii.co.uk,2003:tst.4222951 Re: Free shares
It all sounds a bit suspicious to me, though I read the bumf at great speed so may be missing a trick.

The company seems to be going to inordinately complicated lengths to generate a tiny bit of income for shareholders who might otherwise say: "A yield of less than 1% on an Indonesian palm oil plantation? You can not be serious, man! I want at least 4%" and sell their shares.

I have a vague feeling of a company which cannot get access to conventional debt at a reasonable interest rate, because it operates in a risky business in a risky neck of the woods.

Rather than just pay a special divi on the ordinary shares, which it should be well able to do given recent high palm oil prices, it seems to be conserving what cash it has and buying off shareholders' expectations of a higher income with these prefs shares. They do pay a 9% coupon, which is not bad, but not brilliant, given the risks of the business. But anyone trying to sell 'em to generate a synthetic income is likely to find the market exceedingly thin and so will, in all probability be locked in.

The foregoing may well be totally unfair, but I would certainly wait a while, were I considering buying any of the palm oil companies of which New Britain Palm Oil (which I do not hold) seems to be by some way the cheapest. By LK Hyman ]]> http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=4222951&action=detail Wed, 24 Sep 2008 15:50:00 GMT LK Hyman tag:iii.co.uk,2003:tst.4210030 Free shares sharehilders are to get a free share for every 10 held. This would apear to be good news so why not a small upwards blip in the share price? By budu ]]> http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=4210030&action=detail Thu, 18 Sep 2008 12:33:00 GMT budu tag:iii.co.uk,2003:tst.4176260 Re: Hardman august notes
However palm oil prices are underpressure which I guess is the reason for the recent dip in the shareprice. The second half number will be much lower than the interims but overall, 2008 should be better than 2007.

The Company did reiterate that it can make good profits with the palm oil price much lower than the current $700 ish per tonne so I don't see any long term problems.

Regarding the coal ming venture, REA may be onto something. Kalimantan is a very large coal producer and REA knows much about the land so presumable is in a good position to identify good prospective areas. A small investment of 3 million dollars to dip the toe in the water is no bad thing IHMO.

Regarding the loading up of debt, REA have said that they only really need it if palm oil prices stay low as their invstement can be financed from cash generation especially as the dividend price is so low. So long as the cash is invested wisely and plantings/production steadily increases I don't see a problem.

Since palm oil appears now to be loosly connected to mineral oil prices I can't see the palm oil price moving down much further as I don't see oil prices ever going much lower than $100/barrel.

So maybe a good buying/topping up opportunity.

By smilingmickey1 ]]> http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=4176260&action=detail Fri, 29 Aug 2008 10:44:00 GMT smilingmickey1 tag:iii.co.uk,2003:tst.4155315 Re: Hardman august notes
Two factors, I suspect, are responsible for the fall in the share price.

First, the management must be stark raving mad to risk taking their eye off the palm oil ball by dabbling in the coal business. That smacks of speculation and hubris of the worst kind. They know nothing about coal and should, like the cobbler, stick to their last. That last is palm oil.

Second, they should not be gearing up their balance sheet with the new bond issue. The fact that it carries a 9.5% interest rate is a clear sign of the risks associated with it. I could get a better rate than that from Barclays on an unsecured loan fercryingoutloud!

They should have gone to their shareholders for more equity capital, not to the debt market. If palm oil prices follow other soft and hard commodities down they're gonna get crucified by that debt, regardless of the standard guff about their balance sheet being well able to take the strain yadda yadda.

By LK Hyman ]]> http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=4155315&action=detail Tue, 12 Aug 2008 10:44:00 GMT LK Hyman tag:iii.co.uk,2003:tst.4154541 Re: Hardman august notes http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=4154541&action=detail Mon, 11 Aug 2008 18:05:00 GMT budu tag:iii.co.uk,2003:tst.4153439 Hardman august notes REA has taken the opportunity to update the market on a number of important new developments.

First, the creation of a further £28m guaranteed sterling loan notes payable in 2015/17 and bearing an interest rate of 9.5%, if approved, will ensure the company has enough cash to fund its ambitious new
planting programme in the event of a cyclical fall in the palm oil price. If the CPO price is sustained at current levels ($1200 per tonne) the extension planting programme will be largely self funding and under this
scenario we expect the surplus funds from the capital raising to be used for land acquisitions and/or increasing the targeted level of expansion on the existing land bank.

REA finished the year to end December 2008 with net debt of $52m, for gearing of 35% (including preference shares as part of the equity) so we believe the balance sheet can support the additional debt burden. The intention is to issue an initial tranche of up to £15m sterling loan notes.
It follows the issue of £22m guaranteed 9.5% sterling loan notes, also payable in 2015/17, in two tranches in early 2007. The issue is subject to the approval of existing shareholders with a meeting scheduled for 22 August 2008.

The company has also provided an update on the group’s diversification into coal mining. A small office in Jakarta, Indonesia has been established to follow up leads in this area and is being run quite separately from the plantation operations in East Kalimantan. Although it is early days the company has already signed its first contract to source coal from Kalimantan and supply it to a power station in Sumatra.

The statement indicates profits from this short-term arrangement will cover the costs of the office. Going forward, we understand REA is exploring a number of land site acquisitions in East Kalimantan with potential for open cast mining of coal and a decision on one site in
particular is likely at or around the time of the interim results in September. We expect the group’s entry into this market to be low-risk.
For example the site under consideration, for circa.£3.5m in cash, already has a) the relevant permits for coal mining in place, and b) proven coal reserves suitable for open cast mining. The preference will
be to outsource production to one of the major contractors for a fixed price per tonne. Indonesia is the world’s largest exporter of thermal coal with industry reports indicating the country will export 170 million tonnes of coal this year increasing to 190 million tonnes in 2009. We look forward to further updates on the coal mining venture in due course.

Meanwhile on the palm oil plantations, output in the first half of the year exceeded budgeted levels at 231,102 tonnes. This was 15% above budget and 40% up on the previous half year. At 23%, the palm oil extraction rate was lower than the circa.24% we were expecting although this reflects weather-related conditions (less sunlight hours) as opposed to any erious issues with the mills. On the extension planting programme REA has acquired its third land allotment this year. The
purchase of the entire issued share capital of PT Prasetia Utama (PU) for circa.$7.3 million, will add an additional 9,000 hectares to the group’s 120,000 hectares land bank. The land is located 70km South of the core land area of the group and has a full hak guna usaha land title.
Following last year’s delays, we are pleased to note that the extension planting programme which was resumed in May 200 8 is progressing to plan on two out of a total of five sites.

We would point out that Indonesian export tax ramps up quite quickly after $1000/tonne. With the current CPO price at $1200/tonne CIF
Rotterdam, this provides a useful buffer in the event of a moderated fall in the palm oil price and leaves REA’s realised sales price for CPO, FOB Samarinda, relatively unchanged. A fall below $950/per tonne would,
however, require us to revise our estimates m By flying-pig ]]> http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=4153439&action=detail Sun, 10 Aug 2008 15:43:00 GMT flying-pig tag:iii.co.uk,2003:tst.4080257 Re: Price rising - why?
An upbeat Interim Management Statement confirmed production continues to run ahead of expectations in the current financial year. Crop output to end April was 150,719 tonnes against a budget of 135,773 tonnes, although management has stressed that the year end result will be totally dependent on rainfall patterns. Overcast weather in the first four months of the year reduced the palm oil extraction rate to 23.09% versus our forecast of 24%. The palm kernel extraction rate during the period was much better than we expected, however, at 4.33% (our estimates model is based on a palm kernel extraction rate of 4%).

Palm oil is currently trading at $1235 per tonne, CIF Rotterdam, close to all time highs so H1 results will be very good indeed. The company has also made headway in its negotiations with local villages regarding land compensation settlements and we are pleased to see that extension planting activities have been resumed. By flying-pig ]]> http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=4080257&action=detail Sun, 22 Jun 2008 21:32:00 GMT flying-pig tag:iii.co.uk,2003:tst.4048958 Re: Price rising - why? http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=4048958&action=detail Thu, 29 May 2008 14:55:00 GMT budu tag:iii.co.uk,2003:tst.4047648 Re: Price rising - why?
They havn't said output is likely to decline. They have had a very good quarter but are simply warning that there is no guarantee that this level of output will be maintained through out the year.
With prices continuing high they will have made much more profit than last years first qr and with oil prices at $130 plus per barrel its hard to see the prices coming down anytime soon.
I'm frankly surprised the share price is so low. By smilingmickey1 ]]> http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=4047648&action=detail Wed, 28 May 2008 18:26:00 GMT smilingmickey1 tag:iii.co.uk,2003:tst.4047633 Price rising - why? http://www.iii.co.uk/investment/detail?code=cotn:RE-.L&display=discussion&id=4047633&action=detail Wed, 28 May 2008 18:12:00 GMT budu