by Travis Johnson, Stock Gumshoe | March 22, 2013 6:36 pm
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Source URL: https://www.stockgumshoe.com/2013/03/this-68-year-old-disruptive-energy-technology-could-mark-the-end-of-opec-as-we-know-it/
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Would this be an entry point for Lonrho or would you wait until next week??
I am not personally adding to my position just now, and I have no idea what might come from the next release — but I think the downside risk has been reduced substantially by the recent fall in the shares.
Lonrho is certainly cheap.The guys on the message boards over here are unhappy with the way the company is being run,and there are dark mutterings about a shareholder revolt,high directors’ pay and options,etc.
The pay packages are clearly quite high for such a small (now even smaller ) company, though I have had some hope that they’ll be more pragmatic with Lenifas out and some new board members. Remains to be seen, to be sure — and some potential activist shareholders have built up stakes, though I don’t know if they will press (or are pressing) for changes.
To me it looks like a stock to throw a few grand of mad money at and let it ride for the long term. I’ll likely grab a bit at the bottom.
Shell Qatar doesn’t mention Sasol, not does Sasol mention a license to Shell for GTL.
Kindly explain of the auccess of Shell Qatar, will benefit Sasol. Thanks – Alfredo
Not related, as far as I know. Sasol doesn’t own the process, though their technology is probably different — as far as i know Sasol’s Qatar project is separate from Shell’s.
Lonrho’s stock price has come down as if folks are expecting it to go bankrupt, but it certainly seems like they are positioned well in a number of interesting areas for emerging Africa. Could someone who can pick apart financial reports comment on this?
Thanks.
I don’t know about bankrupt, but the shares have certainly come down as if folks are afraid that the report will be worse than pre-announced. Their annual report is expected soon for 2012, and in the preannouncement (here: http://www.lonrho.com/Press/News_(RNS)/RnsNews.aspx?id=779&rid=11477435) they said to expect losses due to delays and some reorganization/restructuring following the management change last Fall. I suspect that the main fear is a secondary share offering at this depressed price because cash levels have gotten low — though they should have had a bump in revenue in early 2013 from projects that didn’t quite complete in 2012 … unless they’re lying or whitewashing us or incompetent, (any of which are possible, of course), the balance sheet should be manageable. This next announcement and investor response to it will be critical, we’ve been burned for quite a while by Lonrho’s management optimism and the expectation that their transition from capital investment to cash flow generation would be imminent.
Looks like we misread the tea leaves a bit. March 28 Lonhro announced strong revenue growth for 2012 and 32% growth in revenues for final quarter. Plus they launched the first low cost airline for the African continent. Stock up 32.4% yesterday. !!
http://www.investegate.co.uk/lonrho-plc–lonr-/rns/results/201303280702140958B/
Very good article.