Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

lucky guy who was getting out at 13 and 14 smelt something was fishy about this stock

Reply
Harathke
Regular Contributor
Reducing debt does not effect profitability, it effects cash flows, but not really the income statement other than financial leverage.
0 Kudos
Penny_Pincher
Super Contributor
Interest bearing debt and /or a reduction in such doesn't affect the income statement? Sounds like government accounting to me.
0 Kudos
Not applicable
he means that on an income statement - your PBT is unaffected by using the profits to pay down debt - not entirely true, but mostly so. So what it means, is that RBA probably didn't sell their units like the CEO promised. So you have failure in management, and failure in operations. I took a punt, and have to say that it didn't work - so will say good bye to this stock.
0 Kudos
SimonPB
Valued Contributor
couple of points, I preferred CGR over RBA in my FinWeek article, marc A (the editor holds RA I hold CGR) .. I am interested in RBA at 8c, had a bid but then it ran away .. they busy getting things right, that gonna take time and may not succeed ..
0 Kudos
Not applicable
Ja Simon, it is a question of size, isn't it. I get the feeling this is a volumes business. RBA have to squabble with financiers to raise money for a R10m property. Calgro has over R150m in the bank, and can fund development out of their own cash flow. CGR can keep themselves busy on their current projects for the next 6 years, so even evaluating them just on a PE of 6, you are getting a good deal. With an NPV of 220 (of which 100 is cash!), EPS soon to be released which should be around the 61cps mark - means a fair value of around 560cps. At current prices, the market doesn't seem to think CGR will get another long term project. With government earmarking 6000 sites long term, I think that is highly unlikely
0 Kudos
JulzM
Regular Contributor
0 Kudos
Not applicable
i can bet you will be duying at 20 cents on thursday
0 Kudos
Pepi
Regular Contributor
0 Kudos
Not applicable
shame looks like no CNBC INTERVIEW FOR DIRECTOR THIS YEAR.
0 Kudos
Pepi
Regular Contributor
0 Kudos
Not applicable
hi guys seen somebody buying big quantities at 11 anybody know anything
0 Kudos
GAF1984
Occasional Contributor
Are the results being released today? Any idea what time?
0 Kudos
masterblaster
Contributor
The CEO spoke about March results in late September, I really think that the 260 houses where not registered in time for the December period. He said that they were presold, so we have to hope that the deal has gone through [ they cannot add these houses to balance sheet till registration takes place. These houses have a conservative total of approx R 65mill @ R 250 000/ house but I see that they have some of the houses up for sale for R 550 000. If this is correct these figures coming through on the interims are going to look even more attractive and will keep them heavily in the black till March 2014. Remember directors were buying in December... would you put your own money into a dead horse that you paid double the market value for?
0 Kudos
Not applicable
And - there you have it. Revenues increase, but margin drops. Nothing in that to drive the price to 20c, IMO. By their own admission, the reduced margin is due to the revised strategy and increased sales volumes. A bit counter intuitive, if you ask me.
0 Kudos
Not applicable
i told you so .no cnbc interview for compnanies that that take profitable companies and turn them into losses .its a shame really had tought that this company was worth looking at lucky for me i noticed the big seller at 12 and today at 11 cents .would like to know who it was maybe i can learn something from him
0 Kudos
Preston
Super Contributor
0 Kudos
Preston
Super Contributor
0 Kudos
Not applicable
at least the worst is over nav is still 13.69 cents and the next set results will be the test i am curious to what simon brown has to say about latest results noticed that big volumes going through
0 Kudos
Not applicable
i hope you right ossie but i would like masterblaster take on above as find him fairly partial on the remarks he makes
0 Kudos
masterblaster
Contributor
Sorry Ossie, not trying to be partial, just trying to figure whole thing out: CONS: HIGH DEBT LOWER MARGINS BIG CHANGE IN BOARD MEMBERSHIP PROS FOR SEPT RESULTS 260 HISTORICALLY BUILT HOUSES STILL TO COME IN. SELLING R 70MILL RENTAL PORFOLIO. SOLD LAND TO SHELL [ R6.5MILL] BOARD MEMBERS BUYING LARGE AMOUNTS THINK SEPT RESULTS WILL BE GOOD AND THEN DIP IN PRICE AGAIN. I AM PARTICIPATING ON THE FORUM BECAUSE I BULLISH ON THIS SHARE, BUT I DONT WANT TO BE A BLIND BULL THAT RUNS INTO THE BARBWIRE FENCE.
0 Kudos