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

The facts behind the calgro deal.

Reply
Contributor
Worried and a bit confused about the deal, I did the bright thing, I asked! Esor did indeed sell 50% of it's subsidiary company to Calgro M3 for a token fee of R500, however, there are fees paid amounting to R80 million (I think I got the amount correct) of which Calgro will pay Esor half. Esor also retains the rights for 100% of the initial work for infrastructure. Esor has the right of first refusal for 50% of the actual construction. Calgro M3 has the right of first refusal for the other 50%. I still say Esor made the correct move and I will retain my shares and faith in management.
0 Kudos
Reply
9 REPLIES 9
Not applicable
still think there are easier ways to make money investing than by hanging onto loss making firms in depressed markets in the hopes of a reversal of fortune. While you have been hanging onto ESR, I am up 400% having invested in a profitable company - namely Calgro.
0 Kudos
Reply
Contributor
I don't think I would have hung on if I had known the share would tumble as it did. Just pointing out that Esor didn't give away a R1.2 billion contract for R500. If I had the ability to see into the future, I would have bought R25 000 of Capitec shares at R1 each in about 2001 and have a nett worth of over R8.5 million! Well done on your Calgro investment.
0 Kudos
Reply
Super Contributor
Newbie - did you see the Research doc from Merchantec Capital this week? It might make you feel better.
0 Kudos
Reply
Regular Contributor
Newbie, I think Skaap was trying to point out that you must have an exit strategy and know when to cut your losses. Sure none of us know when a share will plummet and at some point we do make wrong descisions. I made quite a loss on Esorfranki (Before it was renamed Esor) at one stage and sold and moved on. Rolfes and Ellies were my other big losers.
0 Kudos
Reply
Contributor
Thank you for the feedback. Skaaptjop, I like winners too. Made 250% in less than a month on Simmers & Jack. I held onto Esor because I like the story and management. If I am wrong, I take a beating. I am sure you have taken a loss before? If not, you can run my portfolio. Vince888, I did get Skaaptjop's point and would have done things differently if I could predict the future. Thank you for the constructive information. I think this chat forum is for sharing information and idea's, not to insult others choices. I appreciate your input. Klapka, I will look up that article you suggested. I actually spoke to Wessell Van Zyl from Esor who actually got back to me when I queried the Calgro/Esor deal. I couldn't beleive he responded and I am impressed that he took the time to actually call a shareholder! I have a much clearer picture now and will still hold my shares. I know you also hold Esor so hopefully the interim results will show a small profit helping the share to increase from the lousy 25 cents it is sitting at today!
0 Kudos
Reply
Not applicable
my point is not about stops etc or whether I have taken a loss or not - I also burned on Rolfes. My point is I am a firm believer in the time value of money. Trying to time an investment in loss making companies in the hopes that they will turn is a documented strategy, just not for me. But what I do know about these strategies, is you need deep pockets, because you need a basket of such stocks, because 50% of them will fail outright, and maybe 2 or 3 out of 10 will shoot the lights out. You can't build a contrarian portfolio on a single stock
0 Kudos
Reply
Contributor
Can't argue with the logic. I once spoke to a broker who said all his short-term punts became his long-term holds! I had to see the funny side of that comment. Your point is well taken. I guess I should look longer term instead of quick profits. Force of habit!
0 Kudos
Reply
Valued Contributor
an too skaaps point cgr up some 60% last 3 months since the deal and esr gone nowhere
0 Kudos
Reply
Super Contributor
It's amazing how much directors' selling there has been in cgr in the last couple of years. These guys could have made many millions more by holding on.
0 Kudos
Reply