We currently post anonomously. But i am happy to sign a proxy to anyone here to help get the voice louder re our initiative.
also happy to support this...
Posted 24 November 2020 - 06:24 PM
We currently post anonomously. But i am happy to sign a proxy to anyone here to help get the voice louder re our initiative.
Posted 24 November 2020 - 05:21 PM
Posted 24 November 2020 - 02:46 PM
Great iniative
My input is as follows.
Managements bonuses must be granted in the form of share appreciation rights and will vest only when certain criteria are met. Settled in shares. The excercise price must be based on the weighted average share price for the year around 2.50. Mark joined when the share price was over R4. So only if the share price exceeds R2.50 will there be value for them. It aligns their interest with ours and is important.
They need to be more creative in keeping the prized asset than to sell it. Obtain financing at cheaper rates.
Management must use existing cash flows to pay down debt to reduce interest.
They must reduce head office costs. R140 million is head office spend is for a centralized conglomerate not a decentralized holding company.
Remedica must not be sold.
Im not sure what they earning but their salaries must be benchmarked with similar size companies. The incentive for them must be to create value for us not bankers and themselves.
Posted 24 November 2020 - 02:18 PM
We should prepare for agm and raise actions for management to consoder which drives the share price.
Bonusses must be paid with shares. Ascendis hence has to buy the share in the market and this will drive the price due to volume demand . Long twrm incentives for ceo and senior management to be aligned again with share tranches .
Not sure how many shares m sardi has , and if he here short term to sort disposal and take a bonus on the turnaround.
We should ask specifically about q1 performance and whther there has been an inctease in demand and revenue to meet covid peak 2 ...
Etc....what else people.......
Posted 24 November 2020 - 12:53 PM
Posted 23 November 2020 - 05:21 PM
Posted 23 November 2020 - 02:45 PM
Posted 23 November 2020 - 02:05 PM
Not in this case. Debt will come down. If they manage costs and pay down debt in a disciplined manner. They can refinance the debt. The company is coping to pay a 14 percent interest rate. If its reduced there is very little risk.
Posted 23 November 2020 - 02:03 PM
Agreed Remedica is the crowned jewel and will be good for growth if kept. I think shareholders want it gone for 2 reasons.
1. The sale will reduce debt and have an immediate large impact on the share price - Investors hoping for a quick buck are obviously keen on the capital gains here.
2. The large debt creates uncertainty and the possibility of liquidation where shareholders will get nothing. So it’s more risky for them to have Remedica as this will be coupled with the burden of debt. The risk averse would prefer to have no debt and little growth potential as opposed to high debt and large growth potential.
Posted 23 November 2020 - 01:52 PM
I dont understand why you guys support selling of assets that are growing.
I did a calc if they continue growing EBITDA by 20 percent for 5 years. Pay down debt as they go along. Debt should half in 5 years. Earnings should be around R2 billion. On a 10 pe you looking at R20 billion valuation. This CEO has his own agenda. I don't like it. Nothing can justify an asset. Even at the 14 percent interest the business can grow to this. He comes from private equity so he knows about this and yet he is promoting the sale. It questions his intention. Why doesn't he have shares in the company either. I recall that part of this business was sold or going to be sold to Nedbank Capital this guy worked there. No investor in their right mind will sell a growing asset for nothing. He can reduce head office costs as well. They should be able to refinance or even cover the high interest rate. If he cares about shareholders than i cant see why this should not be worth R16 plus in 5 years. Provided that they don't sell Remedica.
Posted 23 November 2020 - 01:36 PM
https://www.news24.c...growth-20200930
Even with the sale of Remedica there will still be huge growth potential in Africa. The article has some detailed information on this.
Also IN, my valuation has not changed significantly since the last time. It might have even got better.
Last years EBITDA was close to 1.2 billion. Remedica was 0.73 billion. So let's assume an EBITDA of between 500 and 700 Million after the sale of Remedica for 2021. The sale of remedica should eliminate all debt.
So a debt free company producing an EBITDA of 0.5 to 0.7 billion with good growth potential should have an EBITDA multiple of between 6 and 10.
This would give us a value of around 3 and 7 billion.
Assuming the lowest valuation we would have a share price of atleast 6 rands in my opinion.
Again this is just my personal view and the valuation I use is just a high level rule of thumb.
But as previously mentioned I personally still see great value here.
Posted 23 November 2020 - 12:19 PM
Posted 22 November 2020 - 08:09 AM
Posted 20 November 2020 - 09:35 AM
Posted 20 November 2020 - 08:53 AM
Posted 20 November 2020 - 07:56 AM
Posted 20 November 2020 - 02:59 AM
Posted 19 November 2020 - 07:18 PM
Agree, has to be...Someone has insider information and is getting in early
Posted 19 November 2020 - 04:57 PM
Posted 19 November 2020 - 03:53 PM