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correction over?

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Regular Contributor
If it settles at around R4, Time to start adding I think
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11 REPLIES 11
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Not applicable
I have been a shareholder for 4 years now. Not the best performer in the chemicals sector, I am a bit concerned about their operating costs and cash-flow - which have both been heavily affected. But I am a believer in the agricultural chemicals sector - in which Rolfes are a player. It is a $40bn a year industry in Africa, and the agri business hasn't even put the starting blocks down yet on the continent, IMO. But if you are already a shareholder, I wouldn't buy now - they are likely to go on rights issue in the near future, as acquisition is still their stated strategy.
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Not applicable
I have been a shareholder for 4 years now. Not the best performer in the chemicals sector, I am a bit concerned about their operating costs and cash-flow - which have both been heavily affected. But I am a believer in the agricultural chemicals sector - in which Rolfes are a player. It is a $40bn a year industry in Africa, and the agri business hasn't even put the starting blocks down yet on the continent, IMO. But if you are already a shareholder, I wouldn't buy now - they are likely to go on rights issue in the near future, as acquisition is still their stated strategy.
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Super Contributor
They are coming off due to the PNC mess; tainted by the fact that they share a primary "owner" and director. With any luck they will be smashed back to R1 and we can feast on a decent enough little company.
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Super Contributor
I think the sheep is right as regards the general agri environment and its opportunities - this has just got to be a part of anyone's portfolio for the future. (So I am hoping that Kaapagri will list - I deal with them and it seems a pretty sound little business.)
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Super Contributor
I wonder if Kaap Agri will have no choice?
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Regular Contributor
Well, further sale on today. A rights offer should be priced at a discount to market, so just keep some cash on the side to participate if it arises. I think their cash generation is OK though, so they'd probably try more debt before issuing more stock. Another factor in recent weakness might be the ongoing platinum strike affecting the water and chemicals businesses.
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Super Contributor
The question to me remains - What role did Takalani Tshivhase played in this company as a non exec director. Were they involved in paying bribes for tenders, and that was the extent of that bribes ? This could have made Rolfes look at lot better on paper that they really are, and they are now being punished for just that. This is another falling knife I won't dare to catch until I hear a thud when they hit the ground, and another thud when the dead cat bounce is over.
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Valued Contributor
was he not exec director, not non exec ??
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Valued Contributor
ah of course, non exec at RLF, exec at NC
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Not applicable
outside of water management, I wonder how many government contracts Rolfes has? Which also leads me to the next question. If a director is found guilty of bribery - does that automatically make the company liable, and if so (probably) - what would the extent of the damages end up being - I would guess it would be in relation to how much the company gained out of the corruption.
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Super Contributor
So there is the first bounce. Now lets see some follow through on volume today, or we're headed south again for the second drop.
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